Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ATLANTIC AMERICAN CORP | ' |
Entity Central Index Key | '0000008177 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 21,201,142 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $37,252 | $18,951 |
Investments: | ' | ' |
Fixed maturities (cost: $191,629 and $201,986) | 193,030 | 230,508 |
Common and non-redeemable preferred stocks (cost: $13,432 and $10,477) | 16,945 | 12,205 |
Other invested assets (cost: $648 and $565) | 648 | 565 |
Policy loans | 2,327 | 2,338 |
Real estate | 38 | 38 |
Investment in unconsolidated trusts | 1,238 | 1,238 |
Total investments | 214,226 | 246,892 |
Receivables: | ' | ' |
Reinsurance | 16,621 | 18,768 |
Insurance premiums and other (net of allowance for doubtful accounts: $353 and $379) | 17,135 | 6,330 |
Deferred income taxes, net | 1,626 | 0 |
Deferred acquisition costs | 27,689 | 26,133 |
Other assets | 1,018 | 975 |
Goodwill | 2,128 | 2,128 |
Total assets | 317,695 | 320,177 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Future policy benefits | 68,937 | 66,932 |
Unearned premiums | 32,032 | 22,637 |
Losses and claims | 64,852 | 62,873 |
Other policy liabilities | 1,383 | 2,116 |
Total insurance reserves and policyholder funds | 167,204 | 154,558 |
Accounts payable and accrued expenses | 12,223 | 11,481 |
Deferred income taxes, net | 0 | 7,164 |
Junior subordinated debenture obligations | 41,238 | 41,238 |
Total liabilities | 220,665 | 214,441 |
Commitments and contingencies (Note 8) | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, $1 par, 4,000,000 shares authorized; Series D preferred, shares issued and outstanding: 65,000 and 70,000; redemption value: $6,500 and $7,000 | 65 | 70 |
Common stock, $1 par, 50,000,000 shares authorized; shares issued: 22,400,894; shares outstanding: 21,251,203 and 21,216,542 | 22,401 | 22,401 |
Additional paid-in capital | 57,096 | 57,180 |
Retained earnings | 17,396 | 8,621 |
Accumulated other comprehensive income | 3,194 | 19,571 |
Unearned stock grant compensation | -567 | 0 |
Treasury stock, at cost: 1,149,691 and 1,184,352 shares | -2,555 | -2,107 |
Total shareholders' equity | 97,030 | 105,736 |
Total liabilities and shareholders' equity | $317,695 | $320,177 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Investments: | ' | ' |
Fixed maturities, cost | $191,629 | $201,986 |
Common and non-redeemable preferred stocks, cost | 13,432 | 10,477 |
Other invested assets, cost | 648 | 565 |
Receivables: | ' | ' |
Insurance premiums and other, allowance for doubtful accounts | 353 | 379 |
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) | 65,000 | 70,000 |
Preferred stock, shares outstanding (in shares) | 65,000 | 70,000 |
Preferred stock, redemption value | $6,500 | $7,000 |
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) | 21,251,203 | 21,216,542 |
Treasury stock, at cost (in shares) | 1,149,691 | 1,184,352 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue: | ' | ' | ' | ' |
Insurance premiums | $38,385 | $32,381 | $107,777 | $94,654 |
Investment income | 2,534 | 2,880 | 8,213 | 8,618 |
Realized investment gains, net | 2,283 | 0 | 8,415 | 1,428 |
Other income | 45 | 41 | 140 | 106 |
Total revenue | 43,247 | 35,302 | 124,545 | 104,806 |
Benefits and expenses: | ' | ' | ' | ' |
Insurance benefits and losses incurred | 26,786 | 22,289 | 75,147 | 68,056 |
Commissions and underwriting expenses | 10,396 | 8,962 | 30,081 | 23,965 |
Interest expense | 442 | 662 | 1,457 | 1,977 |
Other expense | 2,934 | 2,433 | 8,097 | 7,278 |
Total benefits and expenses | 40,558 | 34,346 | 114,782 | 101,276 |
Income before income taxes | 2,689 | 956 | 9,763 | 3,530 |
Income tax expense (benefit) | 9 | -128 | 201 | 8 |
Net income | 2,680 | 1,084 | 9,562 | 3,522 |
Preferred stock dividends | -118 | -127 | -364 | -381 |
Net income applicable to common shareholders | $2,562 | $957 | $9,198 | $3,141 |
Earnings per common share (basic) (in dollars per share) | $0.12 | $0.05 | $0.43 | $0.15 |
Earnings per common share (diluted) (in dollars per share) | $0.12 | $0.04 | $0.42 | $0.15 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Comprehensive Income (Loss) [Abstract] | ' | ' | ' | ' | ||||
Net income | $2,680 | $1,084 | $9,562 | $3,522 | ||||
Available-for-sale securities: | ' | ' | ' | ' | ||||
Gross unrealized holding gain (loss) arising in the period | -3,912 | 6,562 | -16,921 | 13,037 | ||||
Related income tax effect | 1,369 | -2,297 | 5,922 | -4,563 | ||||
Less: reclassification adjustment for net realized gains included in net income | -2,283 | [1] | 0 | [1] | -8,415 | [1] | -1,428 | [1] |
Related income tax effect | 799 | [2] | 0 | [2] | 2,945 | [2] | 500 | [2] |
Net effect on other comprehensive income (loss) | -4,027 | 4,265 | -16,469 | 7,546 | ||||
Derivative financial instrument: | ' | ' | ' | ' | ||||
Fair value adjustment to derivative financial instrument | 0 | 188 | 141 | 534 | ||||
Related income tax effect | 0 | -66 | -49 | -187 | ||||
Net effect on other comprehensive income (loss) | 0 | 122 | 92 | 347 | ||||
Total other comprehensive income (loss), net of tax | -4,027 | 4,387 | -16,377 | 7,893 | ||||
Total comprehensive income (loss) | ($1,347) | $5,471 | ($6,815) | $11,415 | ||||
[1] | Realized gains on available-for-sale securities recognized in realized investment gains, net on the accompanying condensed consolidated statements of operations. | |||||||
[2] | Income tax effect on reclassification adjustment for net realized gains included in income tax expense (benefit) on the accompanying condensed consolidated statements of operations. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (USD $) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Unearned Stock Grant Compensation [Member] | Treasury Stock [Member] | Total |
In Thousands, unless otherwise specified | ||||||||
Balance at Dec. 31, 2011 | $70 | $22,401 | $57,136 | $6,179 | $12,244 | $0 | ($1,753) | $96,277 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 0 | 0 | 0 | 3,522 | 0 | 0 | 0 | 3,522 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 7,893 | 0 | 0 | 7,893 |
Dividends on common stock | 0 | 0 | 0 | -425 | 0 | 0 | 0 | -425 |
Dividends accrued on preferred stock | 0 | 0 | 0 | -381 | 0 | 0 | 0 | -381 |
Purchase of shares for treasury | 0 | 0 | 0 | 0 | 0 | 0 | -556 | -556 |
Issuance of shares under stock plans | 0 | 0 | 25 | 0 | 0 | 0 | 81 | 106 |
Balance at Sep. 30, 2012 | 70 | 22,401 | 57,161 | 8,895 | 20,137 | 0 | -2,228 | 106,436 |
Balance at Dec. 31, 2012 | 70 | 22,401 | 57,180 | 8,621 | 19,571 | 0 | -2,107 | 105,736 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 0 | 0 | 0 | 9,562 | 0 | 0 | 0 | 9,562 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | -16,377 | 0 | 0 | -16,377 |
Preferred stock redeemed | -5 | 0 | -495 | 0 | 0 | 0 | 0 | -500 |
Dividends on common stock | 0 | 0 | 0 | -423 | 0 | 0 | 0 | -423 |
Dividends accrued on preferred stock | 0 | 0 | 0 | -364 | 0 | 0 | 0 | -364 |
Restricted stock grants | 0 | 0 | 393 | 0 | 0 | -704 | 311 | 0 |
Amortization of unearned compensation | 0 | 0 | 0 | 0 | 0 | 137 | 0 | 137 |
Purchase of shares for treasury | 0 | 0 | 0 | 0 | 0 | 0 | -867 | -867 |
Issuance of shares under stock plans | 0 | 0 | 18 | 0 | 0 | 0 | 108 | 126 |
Balance at Sep. 30, 2013 | $65 | $22,401 | $57,096 | $17,396 | $3,194 | ($567) | ($2,555) | $97,030 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $9,562 | $3,522 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Amortization of deferred acquisition costs | 7,862 | 7,932 |
Acquisition costs deferred | -9,418 | -9,587 |
Realized investment gains | -8,415 | -1,428 |
Increase in insurance reserves | 12,646 | 4,511 |
Compensation expense related to share awards | 137 | 0 |
Depreciation and amortization | 450 | 341 |
Deferred income tax expense (benefit) | 28 | -323 |
Increase in receivables, net | -5,870 | -1,568 |
Increase (decrease) in other liabilities | 519 | -1,606 |
Other, net | 49 | -86 |
Net cash provided by operating activities | 7,550 | 1,708 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Proceeds from investments sold, called or matured | 107,681 | 34,358 |
Investments purchased | -95,004 | -36,672 |
Additions to property and equipment | -262 | -159 |
Net cash provided by (used in) investing activities | 12,415 | -2,473 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Redemption of Series D preferred stock | -500 | 0 |
Payment of dividends on Series D preferred stock | 0 | -508 |
Payment of dividends on common stock | -423 | -425 |
Proceeds from shares issued under stock plans | 126 | 106 |
Purchase of shares for treasury | -867 | -556 |
Net cash used in financing activities | -1,664 | -1,383 |
Net increase (decrease) in cash and cash equivalents | 18,301 | -2,148 |
Cash and cash equivalents at beginning of period | 18,951 | 21,285 |
Cash and cash equivalents at end of period | 37,252 | 19,137 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Cash paid for interest | 1,522 | 1,981 |
Cash paid for income taxes | $486 | $180 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
Note 1. Basis of Presentation | |
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”). All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying 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, 2012. The Company’s financial condition and results of operations as of and for the three month and nine month periods ended September 30, 2013 are not necessarily indicative of the financial condition or results of operations that may be expected for the year ending December 31, 2013 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_Sta
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
Recently Issued Accounting Standards [Abstract] | ' |
Recently Issued Accounting Standards | ' |
Note 2. Recently Issued Accounting Standards | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). The main objective of ASU 2013-02 is to enhance disclosures for reclassification adjustments including changes in accumulated other comprehensive income (“AOCI”) balances by component and significant items reclassified out of AOCI. ASU 2013-02 does not change the requirements for reporting net income or other comprehensive income in financial statements. However, the ASU requires an entity to provide enhanced disclosures to present separately by component reclassifications out of AOCI. In addition, an entity is also required to provide a tabular disclosure of the effect of items reclassified out of AOCI on the respective line items of net income, but only if the item reclassified is required under GAAP to be reclassified to net income in its entirety. For other reclassification items that are not required under GAAP to be reclassified directly to net income in their entirety, ASU 2013-02 only requires a cross-reference to other disclosures required under GAAP for those items. The Company adopted ASU 2013-02 effective January 1, 2013. Since ASU 2013-02 was a disclosure only update, its adoption did not have a material impact on the Company’s financial condition or results of operations. See Condensed Consolidated Statements of Comprehensive Income and Note 11 for expanded disclosures. | |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Note 3. Segment Information | |||||||||||||||||
The Company’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”) 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 revenue and income before income taxes for each business unit for the three month and nine month periods ended September 30, 2013 and 2012. | |||||||||||||||||
Revenues | Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
American Southern | $ | 14,994 | $ | 10,482 | $ | 40,231 | $ | 32,633 | |||||||||
Bankers Fidelity | 28,036 | 24,604 | 83,097 | 71,542 | |||||||||||||
Corporate and Other | 217 | 216 | 1,217 | 631 | |||||||||||||
Total revenue | $ | 43,247 | $ | 35,302 | $ | 124,545 | $ | 104,806 | |||||||||
Income Before Income Taxes | Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
American Southern | $ | 1,912 | $ | 233 | $ | 6,531 | $ | 1,993 | |||||||||
Bankers Fidelity | 2,445 | 2,230 | 7,169 | 6,005 | |||||||||||||
Corporate and Other | (1,668 | ) | (1,507 | ) | (3,937 | ) | (4,468 | ) | |||||||||
Income before income taxes | $ | 2,689 | $ | 956 | $ | 9,763 | $ | 3,530 |
Credit_Arrangements
Credit Arrangements | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Credit Arrangements [Abstract] | ' | ||||||||
Credit Arrangements | ' | ||||||||
Note 4. Credit Arrangements | |||||||||
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 Atlantic American; and (iii) engaging in only those activities necessary or incidental thereto. | |||||||||
The financial structure of each of Atlantic American Statutory Trust I and II as of September 30, 2013 was as follows: | |||||||||
Atlantic American | Atlantic American | ||||||||
Statutory Trust I | Statutory Trust II | ||||||||
JUNIOR SUBORDINATED DEBENTURES (1) (2) | |||||||||
Principal amount owed | $ | 18,042 | $ | 23,196 | |||||
Balance September 30, 2013 | 18,042 | 23,196 | |||||||
Balance December 31, 2012 | 18,042 | 23,196 | |||||||
Coupon rate | LIBOR + 4.00% | LIBOR + 4.10% | |||||||
Interest payable | Quarterly | Quarterly | |||||||
Maturity date | 4-Dec-32 | 15-May-33 | |||||||
Redeemable by issuer | Yes | Yes | |||||||
TRUST PREFERRED SECURITIES | |||||||||
Issuance date | 4-Dec-02 | 15-May-03 | |||||||
Securities issued | 17,500 | 22,500 | |||||||
Liquidation preference per security | $ | 1 | $ | 1 | |||||
Liquidation value | 17,500 | 22,500 | |||||||
Coupon rate | LIBOR + 4.00% | LIBOR + 4.10% | |||||||
Distribution payable | Quarterly | Quarterly | |||||||
Distribution guaranteed by (3) | 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 | 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. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Derivative Financial Instruments [Abstract] | ' |
Derivative Financial Instruments | ' |
Note 5. Derivative Financial Instruments | |
The Company had a zero cost interest rate collar with Wells Fargo Bank, National Association, which terminated on March 4, 2013, the stated maturity date, by its terms. There were no balances outstanding under the zero cost interest rate collar at that time. |
Earnings_Per_Common_Share
Earnings Per Common Share | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Common Share [Abstract] | ' | ||||||||||||
Earnings Per Common Share | ' | ||||||||||||
Note 6. Earnings Per Common Share | |||||||||||||
A reconciliation of the numerator and denominator used in the earnings per common share calculations is as follows: | |||||||||||||
Three Months Ended | |||||||||||||
30-Sep-13 | |||||||||||||
Shares | Per Share | ||||||||||||
Income | (In thousands) | Amount | |||||||||||
Basic Earnings Per Common Share: | |||||||||||||
Net income | $ | 2,680 | 21,299 | ||||||||||
Less preferred stock dividends | (118 | ) | - | ||||||||||
Net income applicable to common shareholders | 2,562 | 21,299 | $ | 0.12 | |||||||||
Diluted Earnings Per Common Share: | |||||||||||||
Effect of Series D preferred stock | 118 | 1,629 | |||||||||||
Net income applicable to common shareholders | $ | 2,680 | 22,928 | $ | 0.12 | ||||||||
Three Months Ended | |||||||||||||
30-Sep-12 | |||||||||||||
Shares | Per Share | ||||||||||||
Income | (In thousands) | Amount | |||||||||||
Basic Earnings Per Common Share: | |||||||||||||
Net income | $ | 1,084 | 21,212 | ||||||||||
Less preferred stock dividends | (127 | ) | - | ||||||||||
Net income applicable to common shareholders | 957 | 21,212 | $ | 0.05 | |||||||||
Diluted Earnings Per Common Share: | |||||||||||||
Effect of dilutive stock options | - | 76 | |||||||||||
Net income applicable to common shareholders | $ | 957 | 21,288 | $ | 0.04 | ||||||||
Nine Months Ended | |||||||||||||
30-Sep-13 | |||||||||||||
Shares | Per Share | ||||||||||||
Income | (In thousands) | Amount | |||||||||||
Basic Earnings Per Common Share: | |||||||||||||
Net income | $ | 9,562 | 21,250 | ||||||||||
Less preferred stock dividends | (364 | ) | - | ||||||||||
Net income applicable to common shareholders | 9,198 | 21,250 | $ | 0.43 | |||||||||
Diluted Earnings Per Common Share: | |||||||||||||
Effect of dilutive stock options | - | 19 | |||||||||||
Effect of Series D preferred stock | 364 | 1,629 | |||||||||||
Net income applicable to common shareholders | $ | 9,562 | 22,898 | $ | 0.42 | ||||||||
Nine Months Ended | |||||||||||||
30-Sep-12 | |||||||||||||
Shares | Per Share | ||||||||||||
Income | (In thousands) | Amount | |||||||||||
Basic Earnings Per Common Share: | |||||||||||||
Net income | $ | 3,522 | 21,253 | ||||||||||
Less preferred stock dividends | (381 | ) | - | ||||||||||
Net income applicable to common shareholders | 3,141 | 21,253 | $ | 0.15 | |||||||||
Diluted Earnings Per Common Share: | |||||||||||||
Effect of dilutive stock options | - | 66 | |||||||||||
Net income applicable to common shareholders | $ | 3,141 | 21,319 | $ | 0.15 | ||||||||
The assumed conversion of the Company’s Series D preferred stock was excluded from the earnings per common share calculation for the three month and nine month periods ended September 30, 2012 since its impact would have been antidilutive. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Note 7. 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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Federal income tax provision at statutory rate of 35% | $ | 941 | $ | 335 | $ | 3,417 | $ | 1,236 | |||||||||
Dividends received deduction | (41 | ) | (45 | ) | (119 | ) | (127 | ) | |||||||||
Small life insurance company deduction | (107 | ) | (375 | ) | (185 | ) | (612 | ) | |||||||||
Other permanent differences | 9 | 12 | 27 | 28 | |||||||||||||
Change in asset valuation allowance due to change in judgment relating to realizability of deferred tax assets | (799 | ) | 24 | (2,945 | ) | (438 | ) | ||||||||||
Adjustment for prior years’ estimates to actual | 6 | (79 | ) | 6 | (79 | ) | |||||||||||
Income tax expense (benefit) | $ | 9 | $ | (128 | ) | $ | 201 | $ | 8 | ||||||||
The components of income tax expense (benefit) were: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Current - Federal | $ | 76 | $ | 213 | $ | 173 | $ | 331 | |||||||||
Deferred - Federal | 732 | (365 | ) | 2,973 | 115 | ||||||||||||
Change in deferred tax asset valuation allowance | (799 | ) | 24 | (2,945 | ) | (438 | ) | ||||||||||
Total | $ | 9 | $ | (128 | ) | $ | 201 | $ | 8 | ||||||||
The primary differences between the effective tax rate and the federal statutory income tax rate for the three month and nine month periods ended September 30, 2013 and 2012 resulted from the dividends received deduction (“DRD”), the small life insurance company deduction (“SLD”) and the change in deferred tax asset valuation allowance. The current estimated DRD is adjusted as underlying factors change and can vary from estimates based on, but not limited to, actual distributions from investments as well as the amount of the Company’s taxable income. The SLD varies in amount and is determined at a rate of 60 percent of the tentative life insurance company taxable income (“LICTI”). The SLD for any taxable year is reduced (but not below zero) by 15 percent of the tentative LICTI for such taxable year as it exceeds $3,000 and is ultimately phased out at $15,000. The change in deferred tax asset valuation allowance was due to the unanticipated utilization of certain capital loss carryforward benefits that had been previously reduced to zero through an existing valuation allowance reserve. The provision-to-filed return adjustments are generally updated at the completion of the third quarter of each fiscal year and were $6 and $79 in the three month and nine month periods ended September 30, 2013 and 2012, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
Note 8. Commitments and Contingencies | |
From time to time, the Company is, and expects to continue to be, involved in various claims and lawsuits incidental to and in the ordinary course of its businesses. 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. | |
Investments
Investments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Investments [Abstract ] | ' | ||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
Note 9. Investments | |||||||||||||||||||||||||
The following tables set forth the carrying value, gross unrealized gains, gross unrealized losses and amortized cost of the Company’s investments, aggregated by type and industry, as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||
Investments were comprised of the following: | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Carrying | Unrealized | Unrealized | Amortized | ||||||||||||||||||||||
Value | Gains | Losses | Cost | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 12,024 | $ | 700 | $ | 40 | $ | 11,364 | |||||||||||||||||
Obligations of states and political subdivisions | 11,084 | 806 | - | 10,278 | |||||||||||||||||||||
Corporate securities: | |||||||||||||||||||||||||
Utilities and telecom | 17,116 | 1,560 | 128 | 15,684 | |||||||||||||||||||||
Financial services | 45,856 | 1,486 | 696 | 45,066 | |||||||||||||||||||||
Other business – diversified | 67,635 | 889 | 2,322 | 69,068 | |||||||||||||||||||||
Other consumer – diversified | 36,955 | 584 | 1,410 | 37,781 | |||||||||||||||||||||
Total corporate securities | 167,562 | 4,519 | 4,556 | 167,599 | |||||||||||||||||||||
Redeemable preferred stocks: | |||||||||||||||||||||||||
Financial services | 2,168 | 2 | 30 | 2,196 | |||||||||||||||||||||
Other consumer – diversified | 192 | - | - | 192 | |||||||||||||||||||||
Total redeemable preferred stocks | 2,360 | 2 | 30 | 2,388 | |||||||||||||||||||||
Total fixed maturities | 193,030 | 6,027 | 4,626 | 191,629 | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common and non-redeemable preferred stocks: | |||||||||||||||||||||||||
Utilities and telecom | 1,400 | 436 | - | 964 | |||||||||||||||||||||
Financial services | 6,796 | 499 | 510 | 6,807 | |||||||||||||||||||||
Other business – diversified | 170 | 123 | - | 47 | |||||||||||||||||||||
Other consumer – diversified | 8,579 | 2,965 | - | 5,614 | |||||||||||||||||||||
Total equity securities | 16,945 | 4,023 | 510 | 13,432 | |||||||||||||||||||||
Other invested assets | 648 | - | - | 648 | |||||||||||||||||||||
Policy loans | 2,327 | - | - | 2,327 | |||||||||||||||||||||
Real estate | 38 | - | - | 38 | |||||||||||||||||||||
Investments in unconsolidated trusts | 1,238 | - | - | 1,238 | |||||||||||||||||||||
Total investments | $ | 214,226 | $ | 10,050 | $ | 5,136 | $ | 209,312 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Carrying | Unrealized | Unrealized | Amortized | ||||||||||||||||||||||
Value | Gains | Losses | Cost | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 27,512 | $ | 4,618 | $ | - | $ | 22,894 | |||||||||||||||||
Obligations of states and political subdivisions | 17,761 | 2,514 | - | 15,247 | |||||||||||||||||||||
Corporate securities: | |||||||||||||||||||||||||
Utilities and telecom | 17,921 | 3,128 | - | 14,793 | |||||||||||||||||||||
Financial services | 43,695 | 3,957 | 415 | 40,153 | |||||||||||||||||||||
Other business – diversified | 66,741 | 7,172 | 12 | 59,581 | |||||||||||||||||||||
Other consumer – diversified | 52,910 | 7,665 | 120 | 45,365 | |||||||||||||||||||||
Total corporate securities | 181,267 | 21,922 | 547 | 159,892 | |||||||||||||||||||||
Redeemable preferred stocks: | |||||||||||||||||||||||||
Financial services | 3,775 | 18 | 3 | 3,760 | |||||||||||||||||||||
Other consumer – diversified | 193 | - | - | 193 | |||||||||||||||||||||
Total redeemable preferred stocks | 3,968 | 18 | 3 | 3,953 | |||||||||||||||||||||
Total fixed maturities | 230,508 | 29,072 | 550 | 201,986 | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common and non-redeemable preferred stocks: | |||||||||||||||||||||||||
Utilities and telecom | 1,298 | 334 | - | 964 | |||||||||||||||||||||
Financial services | 8,607 | 857 | 39 | 7,789 | |||||||||||||||||||||
Other business – diversified | 134 | 87 | - | 47 | |||||||||||||||||||||
Other consumer – diversified | 2,166 | 489 | - | 1,677 | |||||||||||||||||||||
Total equity securities | 12,205 | 1,767 | 39 | 10,477 | |||||||||||||||||||||
Other invested assets | 565 | - | - | 565 | |||||||||||||||||||||
Policy loans | 2,338 | - | - | 2,338 | |||||||||||||||||||||
Real estate | 38 | - | - | 38 | |||||||||||||||||||||
Investments in unconsolidated trusts | 1,238 | - | - | 1,238 | |||||||||||||||||||||
Total investments | $ | 246,892 | $ | 30,839 | $ | 589 | $ | 216,642 | |||||||||||||||||
The amortized cost and carrying value of the Company’s investments in fixed maturities at September 30, 2013 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. | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Carrying | Amortized | ||||||||||||||||||||||||
Value | Cost | ||||||||||||||||||||||||
Due in one year or less | $ | - | $ | - | |||||||||||||||||||||
Due after one year through five years | 8,895 | 8,233 | |||||||||||||||||||||||
Due after five years through ten years | 96,603 | 96,100 | |||||||||||||||||||||||
Due after ten years | 86,412 | 86,301 | |||||||||||||||||||||||
Varying maturities | 1,120 | 995 | |||||||||||||||||||||||
Totals | $ | 193,030 | $ | 191,629 | |||||||||||||||||||||
The following table sets forth the carrying value, amortized cost, and net unrealized gains (losses) of the Company’s investments, aggregated by industry, as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Carrying | Amortized | Unrealized | Carrying | Amortized | Unrealized | ||||||||||||||||||||
Value | Cost | Gains (Losses) | Value | Cost | Gains | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 12,024 | $ | 11,364 | $ | 660 | $ | 27,512 | $ | 22,894 | $ | 4,618 | |||||||||||||
Obligations of states and political subdivisions | 11,084 | 10,278 | 806 | 17,761 | 15,247 | 2,514 | |||||||||||||||||||
Utilities and telecom | 18,516 | 16,648 | 1,868 | 19,219 | 15,757 | 3,462 | |||||||||||||||||||
Financial services | 54,820 | 54,069 | 751 | 56,077 | 51,702 | 4,375 | |||||||||||||||||||
Other business – diversified | 67,805 | 69,115 | (1,310 | ) | 66,875 | 59,628 | 7,247 | ||||||||||||||||||
Other consumer – diversified | 45,726 | 43,587 | 2,139 | 55,269 | 47,235 | 8,034 | |||||||||||||||||||
Other investments | 4,251 | 4,251 | - | 4,179 | 4,179 | - | |||||||||||||||||||
Investments | $ | 214,226 | $ | 209,312 | $ | 4,914 | $ | 246,892 | $ | 216,642 | $ | 30,250 | |||||||||||||
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, 2013 and December 31, 2012. | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 3,235 | $ | 40 | $ | - | $ | - | $ | 3,235 | $ | 40 | |||||||||||||
Corporate securities | 90,486 | 4,480 | 1,924 | 76 | 92,410 | 4,556 | |||||||||||||||||||
Redeemable preferred stocks | 1,416 | 30 | - | - | 1,416 | 30 | |||||||||||||||||||
Common and non-redeemable preferred stocks | 3,813 | 470 | 960 | 40 | 4,773 | 510 | |||||||||||||||||||
Total temporarily impaired securities | $ | 98,950 | $ | 5,020 | $ | 2,884 | $ | 116 | $ | 101,834 | $ | 5,136 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Corporate securities | $ | 8,806 | $ | 147 | $ | 1,600 | $ | 400 | $ | 10,406 | $ | 547 | |||||||||||||
Redeemable preferred stocks | 1,216 | 3 | - | - | 1,216 | 3 | |||||||||||||||||||
Common and non-redeemable preferred stocks | 3,494 | 39 | - | - | 3,494 | 39 | |||||||||||||||||||
Total temporarily impaired securities | $ | 13,516 | $ | 189 | $ | 1,600 | $ | 400 | $ | 15,116 | $ | 589 | |||||||||||||
The evaluation for an other than temporary impairment is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold these securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status. | |||||||||||||||||||||||||
As of September 30, 2013, securities in an unrealized loss position primarily included certain of the Company’s investments in fixed maturities within the other diversified business, other diversified consumer and financial services sectors. The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, including those described above, the Company has deemed these securities to be temporarily impaired as of September 30, 2013. | |||||||||||||||||||||||||
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 substantially all of its fixed maturities, which consist of U.S. Treasury securities and 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 using Level 2 criteria, the Company utilizes various external pricing sources. | ||||||||||||||||||||||||
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. The Company’s financial instruments valued using Level 3 criteria consist of a limited number of fixed maturities. As of September 30, 2013 and December 31, 2012, the value of the Company’s fixed maturities valued using Level 3 criteria was $2,015 and $2,124. The use of different criteria or assumptions regarding data may have yielded materially different valuations. | ||||||||||||||||||||||||
As of September 30, 2013, financial instruments carried at fair value were measured on a recurring basis as summarized below: | |||||||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||||||
Markets | Other | Significant | |||||||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Fixed maturities | $ | - | $ | 191,015 | $ | 2,015 | $ | 193,030 | |||||||||||||||||
Equity securities | 10,404 | 6,541 | - | 16,945 | |||||||||||||||||||||
Cash equivalents | 34,026 | - | - | 34,026 | |||||||||||||||||||||
Total | $ | 44,430 | $ | 197,556 | $ | 2,015 | $ | 244,001 | |||||||||||||||||
As of December 31, 2012, financial instruments carried at fair value were measured on a recurring basis as summarized below: | |||||||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||||||
Markets | Other | Significant | |||||||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Fixed maturities | $ | - | $ | 228,384 | $ | 2,124 | $ | 230,508 | |||||||||||||||||
Equity securities | 3,805 | 8,400 | - | 12,205 | |||||||||||||||||||||
Cash equivalents | 15,326 | - | - | 15,326 | |||||||||||||||||||||
Total | $ | 19,131 | $ | 236,784 | $ | 2,124 | $ | 258,039 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Derivative financial instrument | $ | - | $ | - | $ | 141 | $ | 141 | |||||||||||||||||
The following is a roll-forward of the financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three month and nine month periods ended September 30, 2013. | |||||||||||||||||||||||||
Fixed | Derivative | ||||||||||||||||||||||||
Maturities | (Liability) | ||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 2,124 | $ | (141 | ) | ||||||||||||||||||||
Total unrealized gains (losses) included in other comprehensive income | (32 | ) | 141 | ||||||||||||||||||||||
Balance, March 31, 2013 | 2,092 | - | |||||||||||||||||||||||
Total unrealized losses included in other comprehensive income | (58 | ) | - | ||||||||||||||||||||||
Balance, June 30, 2013 | 2,034 | - | |||||||||||||||||||||||
Total unrealized losses included in other comprehensive income | (19 | ) | - | ||||||||||||||||||||||
Balance, September 30, 2013 | $ | 2,015 | $ | - | |||||||||||||||||||||
The Company’s fixed maturities valued using Level 3 inputs consist solely of issuances of pooled debt obligations of multiple, smaller financial services companies. They are not actively traded and valuation techniques used to measure fair value are based on future estimated cash flows (based on current cash flows) discounted at reasonable estimated rates of interest. There are no assumed prepayments and/or default probability assumptions as a majority of these instruments contain certain U.S. government agency strips to support repayment of the principal. Other qualitative and quantitative information received from the original underwriter of the pooled offerings is also considered, as applicable. The Company’s derivative financial instrument was an interest rate collar which terminated on March 4, 2013, the stated maturity date, by its terms. | |||||||||||||||||||||||||
Fair_Values_of_Financial_Instr
Fair Values of Financial Instruments | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Values of Financial Instruments [Abstract] | ' | ||||||||||||||||||||
Fair Values of Financial Instruments | ' | ||||||||||||||||||||
Note 10. 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. Accordingly, 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 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, 2013 and December 31, 2012. | |||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||
Level in Fair | Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
Value | Amount | Fair Value | Amount | Fair Value | |||||||||||||||||
Hierarchy (1) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 37,252 | $ | 37,252 | $ | 18,951 | $ | 18,951 | ||||||||||||
Fixed maturities | (1) | 193,030 | 193,030 | 230,508 | 230,508 | ||||||||||||||||
Equity securities | (1) | 16,945 | 16,945 | 12,205 | 12,205 | ||||||||||||||||
Other invested assets | Level 3 | 648 | 648 | 565 | 565 | ||||||||||||||||
Policy loans | Level 2 | 2,327 | 2,327 | 2,338 | 2,338 | ||||||||||||||||
Real estate | Level 2 | 38 | 38 | 38 | 38 | ||||||||||||||||
Investment in unconsolidated trusts | Level 2 | 1,238 | 1,238 | 1,238 | 1,238 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Junior subordinated debentures | Level 2 | 41,238 | 41,238 | 41,238 | 41,238 | ||||||||||||||||
Derivative financial instrument | Level 3 | - | - | 141 | 141 | ||||||||||||||||
-1 | See Note 9 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. | ||||||||||||||||||||
The fair value estimates as of September 30, 2013 and December 31, 2012 were based on pertinent information available to management as of the respective dates. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, current estimates of fair value may differ significantly from amounts that might ultimately be realized in a market exchange on any subsequent date. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
Note 11. Accumulated Other Comprehensive Income | |||||||||||||
The following table sets forth the balance of each component of accumulated other comprehensive income as of September 30, 2013 and December 31, 2012, and the changes in the balance of each component thereof during the nine month period ended September 30, 2013, net of taxes. | |||||||||||||
Unrealized | Derivative | Total | |||||||||||
Gains on | Financial | ||||||||||||
Available-for- | Instrument | ||||||||||||
Sale Securities | |||||||||||||
Balance, December 31, 2012 | $ | 19,663 | $ | (92 | ) | $ | 19,571 | ||||||
Other comprehensive income (loss) before reclassifications | (10,999 | ) | 92 | (10,907 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | (5,470 | ) | - | (5,470 | ) | ||||||||
Net current-period other comprehensive income (loss) | (16,469 | ) | 92 | (16,377 | ) | ||||||||
Balance, September 30, 2013 | $ | 3,194 | $ | - | $ | 3,194 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Revenue and income before income taxes for each business unit | ' | ||||||||||||||||
The following sets forth the revenue and income before income taxes for each business unit for the three month and nine month periods ended September 30, 2013 and 2012. | |||||||||||||||||
Revenues | Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
American Southern | $ | 14,994 | $ | 10,482 | $ | 40,231 | $ | 32,633 | |||||||||
Bankers Fidelity | 28,036 | 24,604 | 83,097 | 71,542 | |||||||||||||
Corporate and Other | 217 | 216 | 1,217 | 631 | |||||||||||||
Total revenue | $ | 43,247 | $ | 35,302 | $ | 124,545 | $ | 104,806 | |||||||||
Income Before Income Taxes | Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
American Southern | $ | 1,912 | $ | 233 | $ | 6,531 | $ | 1,993 | |||||||||
Bankers Fidelity | 2,445 | 2,230 | 7,169 | 6,005 | |||||||||||||
Corporate and Other | (1,668 | ) | (1,507 | ) | (3,937 | ) | (4,468 | ) | |||||||||
Income before income taxes | $ | 2,689 | $ | 956 | $ | 9,763 | $ | 3,530 |
Credit_Arrangements_Tables
Credit Arrangements (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
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, 2013 was as follows: | |||||||||
Atlantic American | Atlantic American | ||||||||
Statutory Trust I | Statutory Trust II | ||||||||
JUNIOR SUBORDINATED DEBENTURES (1) (2) | |||||||||
Principal amount owed | $ | 18,042 | $ | 23,196 | |||||
Balance September 30, 2013 | 18,042 | 23,196 | |||||||
Balance December 31, 2012 | 18,042 | 23,196 | |||||||
Coupon rate | LIBOR + 4.00% | LIBOR + 4.10% | |||||||
Interest payable | Quarterly | Quarterly | |||||||
Maturity date | 4-Dec-32 | 15-May-33 | |||||||
Redeemable by issuer | Yes | Yes | |||||||
TRUST PREFERRED SECURITIES | |||||||||
Issuance date | 4-Dec-02 | 15-May-03 | |||||||
Securities issued | 17,500 | 22,500 | |||||||
Liquidation preference per security | $ | 1 | $ | 1 | |||||
Liquidation value | 17,500 | 22,500 | |||||||
Coupon rate | LIBOR + 4.00% | LIBOR + 4.10% | |||||||
Distribution payable | Quarterly | Quarterly | |||||||
Distribution guaranteed by (3) | 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 | 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_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Common Share [Abstract] | ' | ||||||||||||
Reconciliation of numerator and denominator used in earnings per common share calculations | ' | ||||||||||||
A reconciliation of the numerator and denominator used in the earnings per common share calculations is as follows: | |||||||||||||
Three Months Ended | |||||||||||||
30-Sep-13 | |||||||||||||
Shares | Per Share | ||||||||||||
Income | (In thousands) | Amount | |||||||||||
Basic Earnings Per Common Share: | |||||||||||||
Net income | $ | 2,680 | 21,299 | ||||||||||
Less preferred stock dividends | (118 | ) | - | ||||||||||
Net income applicable to common shareholders | 2,562 | 21,299 | $ | 0.12 | |||||||||
Diluted Earnings Per Common Share: | |||||||||||||
Effect of Series D preferred stock | 118 | 1,629 | |||||||||||
Net income applicable to common shareholders | $ | 2,680 | 22,928 | $ | 0.12 | ||||||||
Three Months Ended | |||||||||||||
30-Sep-12 | |||||||||||||
Shares | Per Share | ||||||||||||
Income | (In thousands) | Amount | |||||||||||
Basic Earnings Per Common Share: | |||||||||||||
Net income | $ | 1,084 | 21,212 | ||||||||||
Less preferred stock dividends | (127 | ) | - | ||||||||||
Net income applicable to common shareholders | 957 | 21,212 | $ | 0.05 | |||||||||
Diluted Earnings Per Common Share: | |||||||||||||
Effect of dilutive stock options | - | 76 | |||||||||||
Net income applicable to common shareholders | $ | 957 | 21,288 | $ | 0.04 | ||||||||
Nine Months Ended | |||||||||||||
30-Sep-13 | |||||||||||||
Shares | Per Share | ||||||||||||
Income | (In thousands) | Amount | |||||||||||
Basic Earnings Per Common Share: | |||||||||||||
Net income | $ | 9,562 | 21,250 | ||||||||||
Less preferred stock dividends | (364 | ) | - | ||||||||||
Net income applicable to common shareholders | 9,198 | 21,250 | $ | 0.43 | |||||||||
Diluted Earnings Per Common Share: | |||||||||||||
Effect of dilutive stock options | - | 19 | |||||||||||
Effect of Series D preferred stock | 364 | 1,629 | |||||||||||
Net income applicable to common shareholders | $ | 9,562 | 22,898 | $ | 0.42 | ||||||||
Nine Months Ended | |||||||||||||
30-Sep-12 | |||||||||||||
Shares | Per Share | ||||||||||||
Income | (In thousands) | Amount | |||||||||||
Basic Earnings Per Common Share: | |||||||||||||
Net income | $ | 3,522 | 21,253 | ||||||||||
Less preferred stock dividends | (381 | ) | - | ||||||||||
Net income applicable to common shareholders | 3,141 | 21,253 | $ | 0.15 | |||||||||
Diluted Earnings Per Common Share: | |||||||||||||
Effect of dilutive stock options | - | 66 | |||||||||||
Net income applicable to common shareholders | $ | 3,141 | 21,319 | $ | 0.15 |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||
Reconciliation of income tax expense | ' | ||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Federal income tax provision at statutory rate of 35% | $ | 941 | $ | 335 | $ | 3,417 | $ | 1,236 | |||||||||
Dividends received deduction | (41 | ) | (45 | ) | (119 | ) | (127 | ) | |||||||||
Small life insurance company deduction | (107 | ) | (375 | ) | (185 | ) | (612 | ) | |||||||||
Other permanent differences | 9 | 12 | 27 | 28 | |||||||||||||
Change in asset valuation allowance due to change in judgment relating to realizability of deferred tax assets | (799 | ) | 24 | (2,945 | ) | (438 | ) | ||||||||||
Adjustment for prior years’ estimates to actual | 6 | (79 | ) | 6 | (79 | ) | |||||||||||
Income tax expense (benefit) | $ | 9 | $ | (128 | ) | $ | 201 | $ | 8 | ||||||||
Components of income tax expense | ' | ||||||||||||||||
The components of income tax expense (benefit) were: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Current - Federal | $ | 76 | $ | 213 | $ | 173 | $ | 331 | |||||||||
Deferred - Federal | 732 | (365 | ) | 2,973 | 115 | ||||||||||||
Change in deferred tax asset valuation allowance | (799 | ) | 24 | (2,945 | ) | (438 | ) | ||||||||||
Total | $ | 9 | $ | (128 | ) | $ | 201 | $ | 8 |
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Investments [Abstract ] | ' | ||||||||||||||||||||||||
Schedule of investments aggregated by type and industry | ' | ||||||||||||||||||||||||
Investments were comprised of the following: | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Carrying | Unrealized | Unrealized | Amortized | ||||||||||||||||||||||
Value | Gains | Losses | Cost | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 12,024 | $ | 700 | $ | 40 | $ | 11,364 | |||||||||||||||||
Obligations of states and political subdivisions | 11,084 | 806 | - | 10,278 | |||||||||||||||||||||
Corporate securities: | |||||||||||||||||||||||||
Utilities and telecom | 17,116 | 1,560 | 128 | 15,684 | |||||||||||||||||||||
Financial services | 45,856 | 1,486 | 696 | 45,066 | |||||||||||||||||||||
Other business – diversified | 67,635 | 889 | 2,322 | 69,068 | |||||||||||||||||||||
Other consumer – diversified | 36,955 | 584 | 1,410 | 37,781 | |||||||||||||||||||||
Total corporate securities | 167,562 | 4,519 | 4,556 | 167,599 | |||||||||||||||||||||
Redeemable preferred stocks: | |||||||||||||||||||||||||
Financial services | 2,168 | 2 | 30 | 2,196 | |||||||||||||||||||||
Other consumer – diversified | 192 | - | - | 192 | |||||||||||||||||||||
Total redeemable preferred stocks | 2,360 | 2 | 30 | 2,388 | |||||||||||||||||||||
Total fixed maturities | 193,030 | 6,027 | 4,626 | 191,629 | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common and non-redeemable preferred stocks: | |||||||||||||||||||||||||
Utilities and telecom | 1,400 | 436 | - | 964 | |||||||||||||||||||||
Financial services | 6,796 | 499 | 510 | 6,807 | |||||||||||||||||||||
Other business – diversified | 170 | 123 | - | 47 | |||||||||||||||||||||
Other consumer – diversified | 8,579 | 2,965 | - | 5,614 | |||||||||||||||||||||
Total equity securities | 16,945 | 4,023 | 510 | 13,432 | |||||||||||||||||||||
Other invested assets | 648 | - | - | 648 | |||||||||||||||||||||
Policy loans | 2,327 | - | - | 2,327 | |||||||||||||||||||||
Real estate | 38 | - | - | 38 | |||||||||||||||||||||
Investments in unconsolidated trusts | 1,238 | - | - | 1,238 | |||||||||||||||||||||
Total investments | $ | 214,226 | $ | 10,050 | $ | 5,136 | $ | 209,312 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Carrying | Unrealized | Unrealized | Amortized | ||||||||||||||||||||||
Value | Gains | Losses | Cost | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 27,512 | $ | 4,618 | $ | - | $ | 22,894 | |||||||||||||||||
Obligations of states and political subdivisions | 17,761 | 2,514 | - | 15,247 | |||||||||||||||||||||
Corporate securities: | |||||||||||||||||||||||||
Utilities and telecom | 17,921 | 3,128 | - | 14,793 | |||||||||||||||||||||
Financial services | 43,695 | 3,957 | 415 | 40,153 | |||||||||||||||||||||
Other business – diversified | 66,741 | 7,172 | 12 | 59,581 | |||||||||||||||||||||
Other consumer – diversified | 52,910 | 7,665 | 120 | 45,365 | |||||||||||||||||||||
Total corporate securities | 181,267 | 21,922 | 547 | 159,892 | |||||||||||||||||||||
Redeemable preferred stocks: | |||||||||||||||||||||||||
Financial services | 3,775 | 18 | 3 | 3,760 | |||||||||||||||||||||
Other consumer – diversified | 193 | - | - | 193 | |||||||||||||||||||||
Total redeemable preferred stocks | 3,968 | 18 | 3 | 3,953 | |||||||||||||||||||||
Total fixed maturities | 230,508 | 29,072 | 550 | 201,986 | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common and non-redeemable preferred stocks: | |||||||||||||||||||||||||
Utilities and telecom | 1,298 | 334 | - | 964 | |||||||||||||||||||||
Financial services | 8,607 | 857 | 39 | 7,789 | |||||||||||||||||||||
Other business – diversified | 134 | 87 | - | 47 | |||||||||||||||||||||
Other consumer – diversified | 2,166 | 489 | - | 1,677 | |||||||||||||||||||||
Total equity securities | 12,205 | 1,767 | 39 | 10,477 | |||||||||||||||||||||
Other invested assets | 565 | - | - | 565 | |||||||||||||||||||||
Policy loans | 2,338 | - | - | 2,338 | |||||||||||||||||||||
Real estate | 38 | - | - | 38 | |||||||||||||||||||||
Investments in unconsolidated trusts | 1,238 | - | - | 1,238 | |||||||||||||||||||||
Total investments | $ | 246,892 | $ | 30,839 | $ | 589 | $ | 216,642 | |||||||||||||||||
Amortized cost and carrying value of fixed maturities by contractual maturity | ' | ||||||||||||||||||||||||
The amortized cost and carrying value of the Company’s investments in fixed maturities at September 30, 2013 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. | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Carrying | Amortized | ||||||||||||||||||||||||
Value | Cost | ||||||||||||||||||||||||
Due in one year or less | $ | - | $ | - | |||||||||||||||||||||
Due after one year through five years | 8,895 | 8,233 | |||||||||||||||||||||||
Due after five years through ten years | 96,603 | 96,100 | |||||||||||||||||||||||
Due after ten years | 86,412 | 86,301 | |||||||||||||||||||||||
Varying maturities | 1,120 | 995 | |||||||||||||||||||||||
Totals | $ | 193,030 | $ | 191,629 | |||||||||||||||||||||
Schedule of investments aggregated by industry | ' | ||||||||||||||||||||||||
The following table sets forth the carrying value, amortized cost, and net unrealized gains (losses) of the Company’s investments, aggregated by industry, as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Carrying | Amortized | Unrealized | Carrying | Amortized | Unrealized | ||||||||||||||||||||
Value | Cost | Gains (Losses) | Value | Cost | Gains | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 12,024 | $ | 11,364 | $ | 660 | $ | 27,512 | $ | 22,894 | $ | 4,618 | |||||||||||||
Obligations of states and political subdivisions | 11,084 | 10,278 | 806 | 17,761 | 15,247 | 2,514 | |||||||||||||||||||
Utilities and telecom | 18,516 | 16,648 | 1,868 | 19,219 | 15,757 | 3,462 | |||||||||||||||||||
Financial services | 54,820 | 54,069 | 751 | 56,077 | 51,702 | 4,375 | |||||||||||||||||||
Other business – diversified | 67,805 | 69,115 | (1,310 | ) | 66,875 | 59,628 | 7,247 | ||||||||||||||||||
Other consumer – diversified | 45,726 | 43,587 | 2,139 | 55,269 | 47,235 | 8,034 | |||||||||||||||||||
Other investments | 4,251 | 4,251 | - | 4,179 | 4,179 | - | |||||||||||||||||||
Investments | $ | 214,226 | $ | 209,312 | $ | 4,914 | $ | 246,892 | $ | 216,642 | $ | 30,250 | |||||||||||||
Schedule of 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, 2013 and December 31, 2012. | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 3,235 | $ | 40 | $ | - | $ | - | $ | 3,235 | $ | 40 | |||||||||||||
Corporate securities | 90,486 | 4,480 | 1,924 | 76 | 92,410 | 4,556 | |||||||||||||||||||
Redeemable preferred stocks | 1,416 | 30 | - | - | 1,416 | 30 | |||||||||||||||||||
Common and non-redeemable preferred stocks | 3,813 | 470 | 960 | 40 | 4,773 | 510 | |||||||||||||||||||
Total temporarily impaired securities | $ | 98,950 | $ | 5,020 | $ | 2,884 | $ | 116 | $ | 101,834 | $ | 5,136 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Corporate securities | $ | 8,806 | $ | 147 | $ | 1,600 | $ | 400 | $ | 10,406 | $ | 547 | |||||||||||||
Redeemable preferred stocks | 1,216 | 3 | - | - | 1,216 | 3 | |||||||||||||||||||
Common and non-redeemable preferred stocks | 3,494 | 39 | - | - | 3,494 | 39 | |||||||||||||||||||
Total temporarily impaired securities | $ | 13,516 | $ | 189 | $ | 1,600 | $ | 400 | $ | 15,116 | $ | 589 | |||||||||||||
Financial instruments carried at fair value measured on a recurring basis | ' | ||||||||||||||||||||||||
As of September 30, 2013, financial instruments carried at fair value were measured on a recurring basis as summarized below: | |||||||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||||||
Markets | Other | Significant | |||||||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Fixed maturities | $ | - | $ | 191,015 | $ | 2,015 | $ | 193,030 | |||||||||||||||||
Equity securities | 10,404 | 6,541 | - | 16,945 | |||||||||||||||||||||
Cash equivalents | 34,026 | - | - | 34,026 | |||||||||||||||||||||
Total | $ | 44,430 | $ | 197,556 | $ | 2,015 | $ | 244,001 | |||||||||||||||||
As of December 31, 2012, financial instruments carried at fair value were measured on a recurring basis as summarized below: | |||||||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||||||
Markets | Other | Significant | |||||||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Fixed maturities | $ | - | $ | 228,384 | $ | 2,124 | $ | 230,508 | |||||||||||||||||
Equity securities | 3,805 | 8,400 | - | 12,205 | |||||||||||||||||||||
Cash equivalents | 15,326 | - | - | 15,326 | |||||||||||||||||||||
Total | $ | 19,131 | $ | 236,784 | $ | 2,124 | $ | 258,039 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Derivative financial instrument | $ | - | $ | - | $ | 141 | $ | 141 | |||||||||||||||||
Roll-forward of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ' | ||||||||||||||||||||||||
The following is a roll-forward of the financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three month and nine month periods ended September 30, 2013. | |||||||||||||||||||||||||
Fixed | Derivative | ||||||||||||||||||||||||
Maturities | (Liability) | ||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 2,124 | $ | (141 | ) | ||||||||||||||||||||
Total unrealized gains (losses) included in other comprehensive income | (32 | ) | 141 | ||||||||||||||||||||||
Balance, March 31, 2013 | 2,092 | - | |||||||||||||||||||||||
Total unrealized losses included in other comprehensive income | (58 | ) | - | ||||||||||||||||||||||
Balance, June 30, 2013 | 2,034 | - | |||||||||||||||||||||||
Total unrealized losses included in other comprehensive income | (19 | ) | - | ||||||||||||||||||||||
Balance, September 30, 2013 | $ | 2,015 | $ | - |
Fair_Values_of_Financial_Instr1
Fair Values of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Values of Financial Instruments [Abstract] | ' | ||||||||||||||||||||
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, 2013 and December 31, 2012. | |||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||
Level in Fair | Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
Value | Amount | Fair Value | Amount | Fair Value | |||||||||||||||||
Hierarchy (1) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 37,252 | $ | 37,252 | $ | 18,951 | $ | 18,951 | ||||||||||||
Fixed maturities | (1) | 193,030 | 193,030 | 230,508 | 230,508 | ||||||||||||||||
Equity securities | (1) | 16,945 | 16,945 | 12,205 | 12,205 | ||||||||||||||||
Other invested assets | Level 3 | 648 | 648 | 565 | 565 | ||||||||||||||||
Policy loans | Level 2 | 2,327 | 2,327 | 2,338 | 2,338 | ||||||||||||||||
Real estate | Level 2 | 38 | 38 | 38 | 38 | ||||||||||||||||
Investment in unconsolidated trusts | Level 2 | 1,238 | 1,238 | 1,238 | 1,238 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Junior subordinated debentures | Level 2 | 41,238 | 41,238 | 41,238 | 41,238 | ||||||||||||||||
Derivative financial instrument | Level 3 | - | - | 141 | 141 | ||||||||||||||||
-1 | See Note 9 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||
Changes in balances of each component of accumulated other comprehensive income, net of taxes | ' | ||||||||||||
The following table sets forth the balance of each component of accumulated other comprehensive income as of September 30, 2013 and December 31, 2012, and the changes in the balance of each component thereof during the nine month period ended September 30, 2013, net of taxes. | |||||||||||||
Unrealized | Derivative | Total | |||||||||||
Gains on | Financial | ||||||||||||
Available-for- | Instrument | ||||||||||||
Sale Securities | |||||||||||||
Balance, December 31, 2012 | $ | 19,663 | $ | (92 | ) | $ | 19,571 | ||||||
Other comprehensive income (loss) before reclassifications | (10,999 | ) | 92 | (10,907 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | (5,470 | ) | - | (5,470 | ) | ||||||||
Net current-period other comprehensive income (loss) | (16,469 | ) | 92 | (16,377 | ) | ||||||||
Balance, September 30, 2013 | $ | 3,194 | $ | - | $ | 3,194 | |||||||
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment | ||||
Segment Information [Abstract] | ' | ' | ' | ' |
Number of business units | ' | ' | 2 | ' |
Revenue and income before income taxes for each business unit [Abstract] | ' | ' | ' | ' |
Total revenue | $43,247 | $35,302 | $124,545 | $104,806 |
Income before income taxes | 2,689 | 956 | 9,763 | 3,530 |
American Southern [Member] | ' | ' | ' | ' |
Revenue and income before income taxes for each business unit [Abstract] | ' | ' | ' | ' |
Total revenue | 14,994 | 10,482 | 40,231 | 32,633 |
Income before income taxes | 1,912 | 233 | 6,531 | 1,993 |
Bankers Fidelity [Member] | ' | ' | ' | ' |
Revenue and income before income taxes for each business unit [Abstract] | ' | ' | ' | ' |
Total revenue | 28,036 | 24,604 | 83,097 | 71,542 |
Income before income taxes | 2,445 | 2,230 | 7,169 | 6,005 |
Corporate and Other [Member] | ' | ' | ' | ' |
Revenue and income before income taxes for each business unit [Abstract] | ' | ' | ' | ' |
Total revenue | 217 | 216 | 1,217 | 631 |
Income before income taxes | ($1,668) | ($1,507) | ($3,937) | ($4,468) |
Credit_Arrangements_Details
Credit Arrangements (Details) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | |
BusinessTrust | ||
Debt Instrument [Line Items] | ' | |
Number of connecticut statutory business trusts | 2 | |
Financial structure of statutory business trusts [Abstract] | ' | |
Balance September 30, 2013 | $41,238 | |
Balance December 31, 2012 | 41,238 | |
JUNIOR SUBORDINATED DEBENTURES [Member] | ' | |
Financial structure of statutory business trusts [Abstract] | ' | |
Number of consecutive quarters for which interest payments can be deferred | 20 | |
Atlantic American Statutory Trust I [Member] | JUNIOR SUBORDINATED DEBENTURES [Member] | ' | |
Financial structure of statutory business trusts [Abstract] | ' | |
Principal amount owed | 18,042 | [1],[2] |
Balance September 30, 2013 | 18,042 | [1],[2] |
Balance December 31, 2012 | 18,042 | [1],[2] |
Coupon rate | 'LIBOR + 4.00% | [1],[2] |
Interest payable | 'Quarterly | [1],[2] |
Maturity date | 4-Dec-32 | [1],[2] |
Redeemable by issuer | 'Yes | [1],[2] |
Atlantic American Statutory Trust I [Member] | JUNIOR SUBORDINATED DEBENTURES [Member] | LIBOR [Member] | ' | |
Financial structure of statutory business trusts [Abstract] | ' | |
Basis spread on variable rate (in hundredths) | 4.00% | |
Atlantic American Statutory Trust I [Member] | TRUST PREFERRED SECURITIES [Member] | ' | |
Financial structure of statutory business trusts [Abstract] | ' | |
Coupon rate | 'LIBOR + 4.00% | |
Issuance date | 4-Dec-02 | |
Securities issued (in shares) | 17,500 | |
Liquidation preference per security (in dollars per share) | $1 | |
Liquidation value | 17,500 | |
Distribution payable | 'Quarterly | |
Distribution guaranteed by | 'Atlantic American Corporation | [3] |
Atlantic American Statutory Trust I [Member] | TRUST PREFERRED SECURITIES [Member] | LIBOR [Member] | ' | |
Financial structure of statutory business trusts [Abstract] | ' | |
Basis spread on variable rate (in hundredths) | 4.00% | |
Atlantic American Statutory Trust II [Member] | JUNIOR SUBORDINATED DEBENTURES [Member] | ' | |
Financial structure of statutory business trusts [Abstract] | ' | |
Principal amount owed | 23,196 | [1],[2] |
Balance September 30, 2013 | 23,196 | [1],[2] |
Balance December 31, 2012 | 23,196 | [1],[2] |
Coupon rate | 'LIBOR + 4.10% | [1],[2] |
Interest payable | 'Quarterly | [1],[2] |
Maturity date | 15-May-33 | [1],[2] |
Redeemable by issuer | 'Yes | [1],[2] |
Atlantic American Statutory Trust II [Member] | JUNIOR SUBORDINATED DEBENTURES [Member] | LIBOR [Member] | ' | |
Financial structure of statutory business trusts [Abstract] | ' | |
Basis spread on variable rate (in hundredths) | 4.10% | |
Atlantic American Statutory Trust II [Member] | TRUST PREFERRED SECURITIES [Member] | ' | |
Financial structure of statutory business trusts [Abstract] | ' | |
Coupon rate | 'LIBOR + 4.10% | |
Issuance date | 15-May-03 | |
Securities issued (in shares) | 22,500 | |
Liquidation preference per security (in dollars per share) | $1 | |
Liquidation value | $22,500 | |
Distribution payable | 'Quarterly | |
Distribution guaranteed by | 'Atlantic American Corporation | [3] |
Atlantic American Statutory Trust II [Member] | TRUST PREFERRED SECURITIES [Member] | LIBOR [Member] | ' | |
Financial structure of statutory business trusts [Abstract] | ' | |
Basis spread on variable rate (in hundredths) | 4.10% | |
[1] | 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. | |
[2] | 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 debenturesb 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 Companybs 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. | |
[3] | 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_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income [Abstract] | ' | ' | ' | ' |
Net income | $2,680 | $1,084 | $9,562 | $3,522 |
Less preferred stock dividends | -118 | -127 | -364 | -381 |
Net income applicable to common shareholders | 2,562 | 957 | 9,198 | 3,141 |
Effect of Series D preferred stock | 118 | ' | 364 | ' |
Net income applicable to common shareholders, diluted | $2,680 | $957 | $9,562 | $3,141 |
Shares [Abstract] | ' | ' | ' | ' |
Weighted average shares outstanding, basic (in shares) | 21,299 | 21,212 | 21,250 | 21,253 |
Effect of dilutive stock options (in shares) | ' | 76 | 19 | 66 |
Effect of Series D preferred stock (in shares) | 1,629 | ' | 1,629 | ' |
Weighted average shares outstanding, diluted (in shares) | 22,928 | 21,288 | 22,898 | 21,319 |
Per Share Amount [Abstract] | ' | ' | ' | ' |
Net income applicable to common shareholders, basic (in dollars per share) | $0.12 | $0.05 | $0.43 | $0.15 |
Net income applicable to common shareholders, diluted (in dollars per share) | $0.12 | $0.04 | $0.42 | $0.15 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of income tax (benefit) expense [Abstract] | ' | ' | ' | ' |
Federal income tax provision at statutory rate of 35% | $941 | $335 | $3,417 | $1,236 |
Dividends received deduction | -41 | -45 | -119 | -127 |
Small life insurance company deduction | -107 | -375 | -185 | -612 |
Other permanent differences | 9 | 12 | 27 | 28 |
Change in asset valuation allowance due to change in judgment relating to realizability of deferred tax assets | -799 | 24 | -2,945 | -438 |
Adjustment for prior years' estimates to actual | 6 | -79 | 6 | -79 |
Income tax expense (benefit) | 9 | -128 | 201 | 8 |
Federal statutory income tax rate (in hundredths) | ' | ' | 35.00% | ' |
Components of income tax expense [Abstract] | ' | ' | ' | ' |
Current - Federal | 76 | 213 | 173 | 331 |
Deferred - Federal | 732 | -365 | 2,973 | 115 |
Change in deferred tax asset valuation allowance | -799 | 24 | -2,945 | -438 |
Income tax expense (benefit) | 9 | -128 | 201 | 8 |
SLD as percentage of life insurance company taxable income (in hundredths) | ' | ' | 60.00% | ' |
Percentage of reduction in SLD (in hundredths) | ' | ' | 15.00% | ' |
Minimum tentative amount of LICTI | 3,000 | ' | 3,000 | ' |
Maximum tentative amount of LICTI | $15,000 | ' | $15,000 | ' |
Investments_Details
Investments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | $214,226 | $246,892 |
Gross Unrealized Gains | 10,050 | 30,839 |
Gross Unrealized Losses | 5,136 | 589 |
Amortized Cost | 209,312 | 216,642 |
U.S. Treasury securities and obligations of U.S. Government agencies and authorities [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 12,024 | 27,512 |
Amortized Cost | 11,364 | 22,894 |
Obligations of states and political subdivisions [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 11,084 | 17,761 |
Amortized Cost | 10,278 | 15,247 |
Utilities and telecom [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 18,516 | 19,219 |
Amortized Cost | 16,648 | 15,757 |
Financial services [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 54,820 | 56,077 |
Amortized Cost | 54,069 | 51,702 |
Other business - diversified [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 67,805 | 66,875 |
Amortized Cost | 69,115 | 59,628 |
Other consumer - diversified [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 45,726 | 55,269 |
Amortized Cost | 43,587 | 47,235 |
Fixed maturities [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 193,030 | 230,508 |
Gross Unrealized Gains | 6,027 | 29,072 |
Gross Unrealized Losses | 4,626 | 550 |
Amortized Cost | 191,629 | 201,986 |
Fixed maturities [Member] | Bonds [Member] | U.S. Treasury securities and obligations of U.S. Government agencies and authorities [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 12,024 | 27,512 |
Gross Unrealized Gains | 700 | 4,618 |
Gross Unrealized Losses | 40 | 0 |
Amortized Cost | 11,364 | 22,894 |
Fixed maturities [Member] | Bonds [Member] | Obligations of states and political subdivisions [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 11,084 | 17,761 |
Gross Unrealized Gains | 806 | 2,514 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 10,278 | 15,247 |
Fixed maturities [Member] | Corporate securities [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 167,562 | 181,267 |
Gross Unrealized Gains | 4,519 | 21,922 |
Gross Unrealized Losses | 4,556 | 547 |
Amortized Cost | 167,599 | 159,892 |
Fixed maturities [Member] | Corporate securities [Member] | Utilities and telecom [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 17,116 | 17,921 |
Gross Unrealized Gains | 1,560 | 3,128 |
Gross Unrealized Losses | 128 | 0 |
Amortized Cost | 15,684 | 14,793 |
Fixed maturities [Member] | Corporate securities [Member] | Financial services [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 45,856 | 43,695 |
Gross Unrealized Gains | 1,486 | 3,957 |
Gross Unrealized Losses | 696 | 415 |
Amortized Cost | 45,066 | 40,153 |
Fixed maturities [Member] | Corporate securities [Member] | Other business - diversified [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 67,635 | 66,741 |
Gross Unrealized Gains | 889 | 7,172 |
Gross Unrealized Losses | 2,322 | 12 |
Amortized Cost | 69,068 | 59,581 |
Fixed maturities [Member] | Corporate securities [Member] | Other consumer - diversified [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 36,955 | 52,910 |
Gross Unrealized Gains | 584 | 7,665 |
Gross Unrealized Losses | 1,410 | 120 |
Amortized Cost | 37,781 | 45,365 |
Fixed maturities [Member] | Redeemable preferred stocks [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 2,360 | 3,968 |
Gross Unrealized Gains | 2 | 18 |
Gross Unrealized Losses | 30 | 3 |
Amortized Cost | 2,388 | 3,953 |
Fixed maturities [Member] | Redeemable preferred stocks [Member] | Financial services [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 2,168 | 3,775 |
Gross Unrealized Gains | 2 | 18 |
Gross Unrealized Losses | 30 | 3 |
Amortized Cost | 2,196 | 3,760 |
Fixed maturities [Member] | Redeemable preferred stocks [Member] | Other consumer - diversified [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 192 | 193 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 192 | 193 |
Equity securities [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 16,945 | 12,205 |
Gross Unrealized Gains | 4,023 | 1,767 |
Gross Unrealized Losses | 510 | 39 |
Amortized Cost | 13,432 | 10,477 |
Equity securities [Member] | Common and non-redeemable preferred stocks [Member] | Utilities and telecom [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 1,400 | 1,298 |
Gross Unrealized Gains | 436 | 334 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 964 | 964 |
Equity securities [Member] | Common and non-redeemable preferred stocks [Member] | Financial services [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 6,796 | 8,607 |
Gross Unrealized Gains | 499 | 857 |
Gross Unrealized Losses | 510 | 39 |
Amortized Cost | 6,807 | 7,789 |
Equity securities [Member] | Common and non-redeemable preferred stocks [Member] | Other business - diversified [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 170 | 134 |
Gross Unrealized Gains | 123 | 87 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 47 | 47 |
Equity securities [Member] | Common and non-redeemable preferred stocks [Member] | Other consumer - diversified [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 8,579 | 2,166 |
Gross Unrealized Gains | 2,965 | 489 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 5,614 | 1,677 |
Other invested assets [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 648 | 565 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 648 | 565 |
Policy loans [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 2,327 | 2,338 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 2,327 | 2,338 |
Real estate [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 38 | 38 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 38 | 38 |
Investments in unconsolidated trusts [Member] | ' | ' |
Schedule of investments aggregated by type and industry [Abstract] | ' | ' |
Carrying Value | 1,238 | 1,238 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | $1,238 | $1,238 |
Investments_Part_II_Details
Investments, Part II (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Carrying Value [Abstract] | ' | ' |
Due in one year or less | $0 | ' |
Due after one year through five years | 8,895 | ' |
Due after five years through ten years | 96,603 | ' |
Due after ten years | 86,412 | ' |
Varying maturities | 1,120 | ' |
Totals | 193,030 | 230,508 |
Amortized Cost [Abstract] | ' | ' |
Due in one year or less | 0 | ' |
Due after one year through five years | 8,233 | ' |
Due after five years through ten years | 96,100 | ' |
Due after ten years | 86,301 | ' |
Varying maturities | 995 | ' |
Totals | $191,629 | ' |
Investments_Part_III_Details
Investments, Part III (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of investments aggregated by industry [Abstract] | ' | ' |
Carrying Value | $214,226 | $246,892 |
Amortized Cost | 209,312 | 216,642 |
Unrealized Gains (Losses) | 4,914 | 30,250 |
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ' | ' |
Less than 12 months | 98,950 | 13,516 |
12 months or longer | 2,884 | 1,600 |
Total | 101,834 | 15,116 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ' | ' |
Less than 12 months | 5,020 | 189 |
12 months or longer | 116 | 400 |
Total | 5,136 | 589 |
U.S. Treasury securities and obligations of U.S. Government agencies and authorities [Member] | ' | ' |
Schedule of investments aggregated by industry [Abstract] | ' | ' |
Carrying Value | 12,024 | 27,512 |
Amortized Cost | 11,364 | 22,894 |
Unrealized Gains (Losses) | 660 | 4,618 |
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ' | ' |
Less than 12 months | 3,235 | ' |
12 months or longer | 0 | ' |
Total | 3,235 | ' |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ' | ' |
Less than 12 months | 40 | ' |
12 months or longer | 0 | ' |
Total | 40 | ' |
Obligations of states and political subdivisions [Member] | ' | ' |
Schedule of investments aggregated by industry [Abstract] | ' | ' |
Carrying Value | 11,084 | 17,761 |
Amortized Cost | 10,278 | 15,247 |
Unrealized Gains (Losses) | 806 | 2,514 |
Utilities and telecom [Member] | ' | ' |
Schedule of investments aggregated by industry [Abstract] | ' | ' |
Carrying Value | 18,516 | 19,219 |
Amortized Cost | 16,648 | 15,757 |
Unrealized Gains (Losses) | 1,868 | 3,462 |
Financial services [Member] | ' | ' |
Schedule of investments aggregated by industry [Abstract] | ' | ' |
Carrying Value | 54,820 | 56,077 |
Amortized Cost | 54,069 | 51,702 |
Unrealized Gains (Losses) | 751 | 4,375 |
Other business - diversified [Member] | ' | ' |
Schedule of investments aggregated by industry [Abstract] | ' | ' |
Carrying Value | 67,805 | 66,875 |
Amortized Cost | 69,115 | 59,628 |
Unrealized Gains (Losses) | -1,310 | 7,247 |
Other consumer - diversified [Member] | ' | ' |
Schedule of investments aggregated by industry [Abstract] | ' | ' |
Carrying Value | 45,726 | 55,269 |
Amortized Cost | 43,587 | 47,235 |
Unrealized Gains (Losses) | 2,139 | 8,034 |
Other Investment [Member] | ' | ' |
Schedule of investments aggregated by industry [Abstract] | ' | ' |
Carrying Value | 4,251 | 4,179 |
Amortized Cost | 4,251 | 4,179 |
Unrealized Gains (Losses) | 0 | 0 |
Corporate securities [Member] | ' | ' |
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ' | ' |
Less than 12 months | 90,486 | 8,806 |
12 months or longer | 1,924 | 1,600 |
Total | 92,410 | 10,406 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ' | ' |
Less than 12 months | 4,480 | 147 |
12 months or longer | 76 | 400 |
Total | 4,556 | 547 |
Redeemable preferred stocks [Member] | ' | ' |
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ' | ' |
Less than 12 months | 1,416 | 1,216 |
12 months or longer | 0 | 0 |
Total | 1,416 | 1,216 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ' | ' |
Less than 12 months | 30 | 3 |
12 months or longer | 0 | 0 |
Total | 30 | 3 |
Common and non-redeemable preferred stocks [Member] | ' | ' |
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ' | ' |
Less than 12 months | 3,813 | 3,494 |
12 months or longer | 960 | 0 |
Total | 4,773 | 3,494 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ' | ' |
Less than 12 months | 470 | 39 |
12 months or longer | 40 | 0 |
Total | $510 | $39 |
Investments_Part_IV_Details
Investments, Part IV (Details) (Recurring [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | $244,001 | $258,039 |
Derivative financial instrument [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Liabilities at fair value | ' | 141 |
Fixed maturities [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 193,030 | 230,508 |
Equity securities [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 16,945 | 12,205 |
Cash equivalents [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 34,026 | 15,326 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 44,430 | 19,131 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Derivative financial instrument [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Liabilities at fair value | ' | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed maturities [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 10,404 | 3,805 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash equivalents [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 34,026 | 15,326 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 197,556 | 236,784 |
Significant Other Observable Inputs (Level 2) [Member] | Derivative financial instrument [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Liabilities at fair value | ' | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed maturities [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 191,015 | 228,384 |
Significant Other Observable Inputs (Level 2) [Member] | Equity securities [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 6,541 | 8,400 |
Significant Other Observable Inputs (Level 2) [Member] | Cash equivalents [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 2,015 | 2,124 |
Significant Unobservable Inputs (Level 3) [Member] | Derivative financial instrument [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Liabilities at fair value | ' | 141 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed maturities [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 2,015 | 2,124 |
Significant Unobservable Inputs (Level 3) [Member] | Equity securities [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Cash equivalents [Member] | ' | ' |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ' | ' |
Assets at fair value | $0 | $0 |
Investments_Part_V_Details
Investments, Part V (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
Fixed maturities [Member] | ' | ' | ' |
Assets measured at fair value on a recurring basis [Abstract] | ' | ' | ' |
Balance, beginning of period | $2,034 | $2,092 | $2,124 |
Total unrealized gains (losses) included in other comprehensive income | -19 | -58 | -32 |
Balance, end of period | 2,015 | 2,034 | 2,092 |
Derivative (Liability) [Member] | ' | ' | ' |
Liabilities measured at fair value on a recurring basis [Abstract] | ' | ' | ' |
Balance, beginning of period | 0 | 0 | -141 |
Total unrealized gains (losses) included in other comprehensive income | 0 | 0 | 141 |
Balance, end of period | $0 | $0 | $0 |
Fair_Values_of_Financial_Instr2
Fair Values of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Carrying Amount [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Fixed maturities | $193,030 | [1] | $230,508 | [1] |
Equity securities | 16,945 | [1] | 12,205 | [1] |
Carrying Amount [Member] | Level 1 [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Cash and cash equivalents | 37,252 | 18,951 | ||
Carrying Amount [Member] | Level 2 [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Policy loans | 2,327 | 2,338 | ||
Real estate | 38 | 38 | ||
Investment in unconsolidated trusts | 1,238 | 1,238 | ||
Liabilities [Abstract] | ' | ' | ||
Junior subordinated debentures | 41,238 | 41,238 | ||
Carrying Amount [Member] | Level 3 [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Other invested assets | 648 | 565 | ||
Liabilities [Abstract] | ' | ' | ||
Derivative financial instrument | 0 | 141 | ||
Estimated Fair Value [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Fixed maturities | 193,030 | [1] | 230,508 | [1] |
Equity securities | 16,945 | [1] | 12,205 | [1] |
Estimated Fair Value [Member] | Level 1 [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Cash and cash equivalents | 37,252 | 18,951 | ||
Estimated Fair Value [Member] | Level 2 [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Policy loans | 2,327 | 2,338 | ||
Real estate | 38 | 38 | ||
Investment in unconsolidated trusts | 1,238 | 1,238 | ||
Liabilities [Abstract] | ' | ' | ||
Junior subordinated debentures | 41,238 | 41,238 | ||
Estimated Fair Value [Member] | Level 3 [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Other invested assets | 648 | 565 | ||
Liabilities [Abstract] | ' | ' | ||
Derivative financial instrument | $0 | $141 | ||
[1] | See Note 9 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | $19,571 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | -10,907 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -5,470 | ' |
Total other comprehensive income (loss), net of tax | -4,027 | 4,387 | -16,377 | 7,893 |
Ending balance | 3,194 | ' | 3,194 | ' |
Unrealized Gains on Available-for-Sale Securities [Member] | ' | ' | ' | ' |
Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 19,663 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | -10,999 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -5,470 | ' |
Total other comprehensive income (loss), net of tax | ' | ' | -16,469 | ' |
Ending balance | 3,194 | ' | 3,194 | ' |
Derivative Financial Instrument [Member] | ' | ' | ' | ' |
Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | -92 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | 92 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 0 | ' |
Total other comprehensive income (loss), net of tax | ' | ' | 92 | ' |
Ending balance | $0 | ' | $0 | ' |