Document and Entity Information
| Document and Entity Information - shares | 9 Months Ended | |
| Sep. 30, 2016 | Nov. 04, 2016 | |
| Document and Entity Information [Abstract] | ||
| Entity Registrant Name | ATLANTIC AMERICAN CORP | |
| Entity Central Index Key | 8,177 | |
| 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 | 20,415,228 | |
| Document Fiscal Year Focus | 2,016 | |
| Document Fiscal Period Focus | Q3 | |
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Sep. 30, 2016 |
CONDENSED CONSOLIDATED BALANCE
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
| ASSETS | ||
| Cash and cash equivalents | $ 11,864 | $ 15,622 |
| Investments: | ||
| Fixed maturities (cost: $207,055 and $210,450) | 214,749 | 205,324 |
| Common and non-redeemable preferred stocks (cost: $11,453 and $10,953) | 19,954 | 23,131 |
| Other invested assets (cost: $10,763 and $6,454) | 10,763 | 6,454 |
| Policy loans | 2,209 | 2,200 |
| Real estate | 38 | 38 |
| Investment in unconsolidated trusts | 1,238 | 1,238 |
| Total investments | 248,951 | 238,385 |
| Receivables: | ||
| Reinsurance | 9,337 | 11,759 |
| Insurance premiums and other (net of allowance for doubtful accounts: $545 and $528) | 14,475 | 11,988 |
| Deferred income taxes, net | 0 | 829 |
| Deferred acquisition costs | 28,791 | 27,866 |
| Other assets | 5,541 | 5,610 |
| Intangibles | 2,544 | 2,544 |
| Total assets | 321,503 | 314,603 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Future policy benefits | 73,980 | 72,136 |
| Unearned premiums | 25,616 | 25,348 |
| Losses and claims | 60,603 | 63,870 |
| Other policy liabilities | 1,401 | 1,991 |
| Total insurance reserves and policyholder funds | 161,600 | 163,345 |
| Accounts payable and accrued expenses | 14,683 | 15,028 |
| Deferred income taxes, net | 2,531 | 0 |
| Junior subordinated debenture obligations, net | 33,738 | 33,738 |
| Total liabilities | 212,552 | 212,111 |
| Commitments and contingencies (Note 7) | ||
| Shareholders' equity: | ||
| Preferred stock, $1 par, 4,000,000 shares authorized; Series D preferred, 55,000 shares issued and outstanding; $5,500 redemption value | 55 | 55 |
| Common stock, $1 par, 50,000,000 shares authorized; shares issued: 22,400,894; shares outstanding: 20,433,678 and 20,426,536 | 22,401 | 22,401 |
| Additional paid-in capital | 56,995 | 56,623 |
| Retained earnings | 26,024 | 25,443 |
| Accumulated other comprehensive income | 10,527 | 4,584 |
| Unearned stock grant compensation | (372) | (273) |
| Treasury stock, at cost: 1,967,216 and 1,974,358 shares | (6,679) | (6,341) |
| Total shareholders' equity | 108,951 | 102,492 |
| Total liabilities and shareholders' equity | $ 321,503 | $ 314,603 |
CONDENSED CONSOLIDATED BALANCE3
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
| Investments: | ||
| Fixed maturities, cost | $ 207,055 | $ 210,450 |
| Common and non-redeemable preferred stocks, cost | 11,453 | 10,953 |
| Other invested assets, cost | 10,763 | 6,454 |
| Receivables: | ||
| Insurance premiums and other, allowance for doubtful accounts | $ 545 | $ 528 |
| Shareholders' equity: | ||
| Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
| Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
| Preferred stock, shares issued (in shares) | 55,000 | 55,000 |
| Preferred stock, shares outstanding (in shares) | 55,000 | 55,000 |
| Preferred stock, redemption value | $ 5,500 | $ 5,500 |
| Common stock, par value (in dollars per share) | $ 1 | $ 1 |
| Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
| Common stock, shares issued (in shares) | 22,400,894 | 22,400,894 |
| Common stock, shares outstanding (in shares) | 20,433,678 | 20,426,536 |
| Treasury stock, at cost (in shares) | 1,967,216 | 1,974,358 |
CONDENSED CONSOLIDATED STATEMEN
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
| Revenue: | ||||
| Insurance premiums | $ 39,432 | $ 37,859 | $ 117,012 | $ 113,349 |
| Investment income | 2,453 | 2,456 | 7,523 | 7,547 |
| Realized investment gains, net | 527 | 7 | 1,411 | 5,106 |
| Other income | 35 | 37 | 102 | 78 |
| Total revenue | 42,447 | 40,359 | 126,048 | 126,080 |
| Benefits and expenses: | ||||
| Insurance benefits and losses incurred | 26,955 | 24,637 | 78,702 | 76,261 |
| Commissions and underwriting expenses | 11,558 | 11,816 | 34,339 | 33,024 |
| Interest expense | 396 | 361 | 1,154 | 1,064 |
| Other expense | 3,221 | 3,180 | 9,803 | 10,167 |
| Total benefits and expenses | 42,130 | 39,994 | 123,998 | 120,516 |
| Income before income taxes | 317 | 365 | 2,050 | 5,564 |
| Income tax expense | 168 | 127 | 762 | 1,290 |
| Net income | 149 | 238 | 1,288 | 4,274 |
| Preferred stock dividends | (100) | (100) | (299) | (299) |
| Net income applicable to common shareholders | $ 49 | $ 138 | $ 989 | $ 3,975 |
| Earnings per common share (basic and diluted) (in dollars per share) | $ 0 | $ 0.01 | $ 0.05 | $ 0.19 |
CONDENSED CONSOLIDATED STATEME5
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract] | |||||
| Net income | $ 149 | $ 238 | $ 1,288 | $ 4,274 | |
| Available-for-sale securities: | |||||
| Gross unrealized holding gain (loss) arising in the period | 1,842 | (3,729) | 10,554 | (1,774) | |
| Related income tax effect | (645) | 1,306 | (3,694) | 621 | |
| Less: reclassification adjustment for net realized gains included in net income | [1] | (527) | (7) | (1,411) | (5,106) |
| Related income tax effect | [2] | 185 | 2 | 494 | 1,787 |
| Total other comprehensive income (loss), net of tax | 855 | (2,428) | 5,943 | (4,472) | |
| Total comprehensive income (loss) | $ 1,004 | $ (2,190) | $ 7,231 | $ (198) | |
| [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 on the accompanying condensed consolidated statements of operations. | ||||
CONDENSED CONSOLIDATED STATEME6
| CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | 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 |
| Beginning Balance at Dec. 31, 2014 | $ 55 | $ 22,401 | $ 56,491 | $ 21,866 | $ 9,279 | $ (460) | $ (5,437) | $ 104,195 |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Net income | 0 | 0 | 0 | 4,274 | 0 | 0 | 0 | 4,274 |
| Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | (4,472) | 0 | 0 | (4,472) |
| Dividends on common stock | 0 | 0 | 0 | (412) | 0 | 0 | 0 | (412) |
| Dividends accrued on preferred stock | 0 | 0 | 0 | (299) | 0 | 0 | 0 | (299) |
| Restricted stock grants | 0 | 0 | 106 | 0 | 0 | (184) | 78 | 0 |
| Amortization of unearned compensation | 0 | 0 | 0 | 0 | 0 | 249 | 0 | 249 |
| Purchase of shares for treasury | 0 | 0 | 0 | 0 | 0 | 0 | (360) | (360) |
| Issuance of shares under stock plans | 0 | 0 | 22 | 0 | 0 | 0 | 15 | 37 |
| Ending Balance at Sep. 30, 2015 | 55 | 22,401 | 56,619 | 25,429 | 4,807 | (395) | (5,704) | 103,212 |
| Beginning Balance at Dec. 31, 2015 | 55 | 22,401 | 56,623 | 25,443 | 4,584 | (273) | (6,341) | 102,492 |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Net income | 0 | 0 | 0 | 1,288 | 0 | 0 | 0 | 1,288 |
| Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 5,943 | 0 | 0 | 5,943 |
| Dividends on common stock | 0 | 0 | 0 | (408) | 0 | 0 | 0 | (408) |
| Dividends accrued on preferred stock | 0 | 0 | 0 | (299) | 0 | 0 | 0 | (299) |
| Restricted stock grants | 0 | 0 | 346 | 0 | 0 | (556) | 210 | 0 |
| Amortization of unearned compensation | 0 | 0 | 0 | 0 | 0 | 457 | 0 | 457 |
| Purchase of shares for treasury | 0 | 0 | 0 | 0 | 0 | 0 | (565) | (565) |
| Issuance of shares under stock plans | 0 | 0 | 26 | 0 | 0 | 0 | 17 | 43 |
| Ending Balance at Sep. 30, 2016 | $ 55 | $ 22,401 | $ 56,995 | $ 26,024 | $ 10,527 | $ (372) | $ (6,679) | $ 108,951 |
CONDENSED CONSOLIDATED STATEME7
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
| Sep. 30, 2016 | Sep. 30, 2015 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net income | $ 1,288 | $ 4,274 |
| Adjustments to reconcile net income to net cash used in operating activities: | ||
| Amortization of deferred acquisition costs | 6,764 | 7,857 |
| Acquisition costs deferred | (7,689) | (8,551) |
| Realized investment gains, net | (1,411) | (5,106) |
| (Decrease) increase in insurance reserves | (1,745) | 1,268 |
| Compensation expense related to share awards | 457 | 249 |
| Depreciation and amortization | 860 | 834 |
| Deferred income tax expense | 161 | 703 |
| Increase in receivables, net | (65) | (3,571) |
| (Decrease) increase in other liabilities | (644) | 1,006 |
| Other, net | (252) | (330) |
| Net cash used in operating activities | (2,276) | (1,367) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Proceeds from investments sold | 48,729 | 76,569 |
| Proceeds from investments matured, called or redeemed | 9,247 | 3,924 |
| Investments purchased | (58,193) | (79,932) |
| Additions to property and equipment | (335) | (197) |
| Net cash (used in) provided by investing activities | (552) | 364 |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Payment of dividends on common stock | (408) | (412) |
| Proceeds from shares issued under stock plans | 43 | 37 |
| Purchase of shares for treasury | (565) | (360) |
| Net cash used in financing activities | (930) | (735) |
| Net decrease in cash and cash equivalents | (3,758) | (1,738) |
| Cash and cash equivalents at beginning of period | 15,622 | 16,375 |
| Cash and cash equivalents at end of period | 11,864 | 14,637 |
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||
| Cash paid for interest | 1,142 | 1,063 |
| Cash paid for income taxes | $ 675 | $ 1,165 |
Basis of Presentation
| Basis of Presentation | 9 Months Ended |
| Sep. 30, 2016 | |
| 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 financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The unaudited condensed consolidated financial statements included herein and these related notes should be read in conjunction with the Company’s consolidated financial statements, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Annual Report”). The Company’s financial condition and results of operations as of and for the three month and nine month periods ended September 30, 2016 are not necessarily indicative of the financial condition or results of operations that may be expected for the year ending December 31, 2016 or for any other future period. The Company’s significant accounting policies have not changed materially from those set out in the Company’s 2015 Annual Report. 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 Stan
| Recently Issued Accounting Standards | 9 Months Ended |
| Sep. 30, 2016 | |
| Recently Issued Accounting Standards [Abstract] | |
| Recently Issued Accounting Standards | Note 2. Recently Issued Accounting Standards In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Share-Based Payment In March 2016, the FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10) In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. Revenue from Contracts with Customers (Topic 606) periods beginning after December 15, 2016. In May 2015, the FASB issued ASU No. 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration Contracts |
Segment Information
| Segment Information | 9 Months Ended |
| Sep. 30, 2016 | |
| 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 and Bankers Fidelity Assurance Company (together known as “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, 2016 and 2015. Revenue Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 American Southern $ 14,112 $ 14,899 $ 43,743 $ 45,335 Bankers Fidelity 28,225 25,370 81,947 80,260 Corporate and Other 110 90 358 485 Total revenue $ 42,447 $ 40,359 $ 126,048 $ 126,080 Income Before Income Taxes Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 American Southern $ 1,855 $ 1,572 $ 5,971 $ 5,245 Bankers Fidelity 164 290 1,111 5,380 Corporate and Other (1,702 ) (1,497 ) (5,032 ) (5,061 ) Income before income taxes $ 317 $ 365 $ 2,050 $ 5,564 |
Junior Subordinated Debentures
| Junior Subordinated Debentures | 9 Months Ended |
| Sep. 30, 2016 | |
| Junior Subordinated Debentures [Abstract] | |
| Junior Subordinated Debentures | Note 4. 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 those activities necessary or incidental thereto. The financial structure of each of Atlantic American Statutory Trust I and II as of September 30, 2016 was as follows: Atlantic American Statutory Trust I Atlantic American Statutory Trust II JUNIOR SUBORDINATED DEBENTURES (1) (2) Principal amount owed $ 18,042 $ 23,196 Balance September 30, 2016 $ 18,042 $ 23,196 Less: Treasury debt (3) - (7,500 ) Net balance September 30, 2016 $ 18,042 $ 15,696 Net balance December 31, 2015 $ 18,042 $ 15,696 Coupon rate LIBOR + 4.00% LIBOR + 4.10% Interest payable Quarterly Quarterly Maturity date December 4, 2032 May 15, 2033 Redeemable by issuer Yes Yes TRUST PREFERRED SECURITIES Issuance date December 4, 2002 May 15, 2003 Securities issued 17,500 22,500 Liquidation preference per security $ 1 $ 1 Liquidation value $ 17,500 $ 22,500 Coupon rate LIBOR + 4.00% LIBOR + 4.10% Distribution payable Quarterly Quarterly Distribution guaranteed by (4) Atlantic American Corporation Atlantic American Corporation (1) For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures’ respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company’s common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities. (2) The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries. (3) On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures. (4) The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation. |
Earnings Per Common Share
| Earnings Per Common Share | 9 Months Ended |
| Sep. 30, 2016 | |
| Earnings Per Common Share [Abstract] | |
| Earnings Per Common Share | Note 5. 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 September 30, 2016 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 149 20,451 Less preferred stock dividends (100 ) - Net income applicable to common shareholders $ 49 20,451 $ - Three Months Ended September 30, 2015 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 238 20,589 Less preferred stock dividends (100 ) - Net income applicable to common shareholders $ 138 20,589 $ .01 Nine Months Ended September 30, 2016 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 1,288 20,433 Less preferred stock dividends (299 ) - Net income applicable to common shareholders $ 989 20,433 $ .05 Nine Months Ended September 30, 2015 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 4,274 20,584 Less preferred stock dividends (299 ) - Net income applicable to common shareholders $ 3,975 20,584 $ .19 The assumed conversion of the Company’s Series D preferred stock was excluded from the earnings per common share calculation for all periods presented since its impact would have been antidilutive. |
Income Taxes
| Income Taxes | 9 Months Ended |
| Sep. 30, 2016 | |
| Income Taxes [Abstract] | |
| Income Taxes | Note 6. Income Taxes A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and income tax expense is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Federal income tax provision at statutory rate of 35% $ 110 $ 127 $ 717 $ 1,947 Dividends-received deduction (25 ) (21 ) (71 ) (75 ) Small life insurance company deduction - 51 - (572 ) Other permanent differences 12 9 45 29 Adjustment for prior years’ estimates to actual 71 (39 ) 71 (39 ) Income tax expense $ 168 $ 127 $ 762 $ 1,290 The components of income tax expense were: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Current - Federal $ 11 $ (532 ) $ 601 $ 587 Deferred - Federal 157 659 161 703 Total $ 168 $ 127 $ 762 $ 1,290 The primary difference between the effective tax rate and the federal statutory income tax rate for the three month and nine month periods ended September 30, 2016 resulted from the provision-to-filed return adjustments, as described below and the dividends-received deduction (“DRD”). 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 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, 2015 resulted from the DRD and the small life insurance company deduction (“SLD”). 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 provision-to-filed return adjustments are generally updated at the completion of the third quarter of each fiscal year and were $71 and $39 in the three month and nine month periods ended September 30, 2016 and 2015, respectively. |
Commitments and Contingencies
| Commitments and Contingencies | 9 Months Ended |
| Sep. 30, 2016 | |
| Commitments and Contingencies [Abstract] | |
| Commitments and Contingencies | Note 7. 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, 2016 | |
| Investments [Abstract] | |
| Investments | Note 8. 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, 2016 and December 31, 2015. Investments were comprised of the following: September 30, 2016 Carrying Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 26,823 $ 458 $ 80 $ 26,445 Obligations of states and political subdivisions 18,491 1,232 - 17,259 Corporate securities: Utilities and telecom 17,969 2,305 - 15,664 Financial services 59,795 3,276 826 57,345 Other business – diversified 63,298 2,626 2,029 62,701 Other consumer – diversified 28,180 1,267 535 27,448 Total corporate securities 169,242 9,474 3,390 163,158 Redeemable preferred stocks: Other consumer – diversified 193 - - 193 Total redeemable preferred stocks 193 - - 193 Total fixed maturities 214,749 11,164 3,470 207,055 Equity securities: Common and non-redeemable preferred stocks: Utilities and telecom 1,559 595 - 964 Financial services 5,634 806 - 4,828 Other business – diversified 216 169 - 47 Other consumer – diversified 12,545 6,931 - 5,614 Total equity securities 19,954 8,501 - 11,453 Other invested assets 10,763 - - 10,763 Policy loans 2,209 - - 2,209 Real estate 38 - - 38 Investments in unconsolidated trusts 1,238 - - 1,238 Total investments $ 248,951 $ 19,665 $ 3,470 $ 232,756 December 31, 2015 Carrying Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 22,234 $ 290 $ 175 $ 22,119 Obligations of states and political subdivisions 25,479 621 552 25,410 Corporate securities: Utilities and telecom 17,589 1,357 692 16,924 Financial services 54,035 1,797 1,351 53,589 Other business – diversified 60,960 729 5,898 66,129 Other consumer – diversified 24,581 136 1,391 25,836 Total corporate securities 157,165 4,019 9,332 162,478 Redeemable preferred stocks: Financial services 253 3 - 250 Other consumer – diversified 193 - - 193 Total redeemable preferred stocks 446 3 - 443 Total fixed maturities 205,324 4,933 10,059 210,450 Equity securities: Common and non-redeemable preferred stocks: Utilities and telecom 1,386 422 - 964 Financial services 5,175 847 - 4,328 Other business – diversified 198 151 - 47 Other consumer – diversified 16,372 10,758 - 5,614 Total equity securities 23,131 12,178 - 10,953 Other invested assets 6,454 - - 6,454 Policy loans 2,200 - - 2,200 Real estate 38 - - 38 Investments in unconsolidated trusts 1,238 - - 1,238 Total investments $ 238,385 $ 17,111 $ 10,059 $ 231,333 Bonds having an amortized cost of $11,143 and $11,259 and included in the tables above were on deposit with insurance regulatory authorities at September 30, 2016 and December 31, 2015, respectively, in accordance with statutory requirements. The carrying value and amortized cost of the Company’s investments in fixed maturities at September 30, 2016 and December 31, 2015 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties. September 30, 2016 December 31, 2015 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 1,648 $ 1,643 $ 4,143 $ 4,113 Due after one year through five years 24,219 24,024 20,557 20,591 Due after five years through ten years 95,711 92,293 99,614 103,066 Due after ten years 80,800 76,849 79,882 81,684 Varying maturities 12,371 12,246 1,128 996 Totals $ 214,749 $ 207,055 $ 205,324 $ 210,450 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, 2016 and December 31, 2015. September 30, 2016 December 31, 2015 Carrying Value Amortized Cost Unrealized Gains Carrying Value Amortized Cost Unrealized Gains (Losses) U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 26,823 $ 26,445 $ 378 $ 22,234 $ 22,119 $ 115 Obligations of states and political subdivisions 18,491 17,259 1,232 25,479 25,410 69 Utilities and telecom 19,528 16,628 2,900 18,975 17,888 1,087 Financial services 65,429 62,173 3,256 59,463 58,167 1,296 Other business – diversified 63,514 62,748 766 61,158 66,176 (5,018 ) Other consumer – diversified 40,918 33,255 7,663 41,146 31,643 9,503 Other investments 14,248 14,248 - 9,930 9,930 - Investments $ 248,951 $ 232,756 $ 16,195 $ 238,385 $ 231,333 $ 7,052 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, 2016 and December 31, 2015. September 30, 2016 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 11,987 $ 80 $ 501 $ - $ 12,488 $ 80 Corporate securities 19,031 392 22,224 2,998 41,255 3,390 Total temporarily impaired securities $ 31,018 $ 472 $ 22,725 $ 2,998 $ 53,743 $ 3,470 December 31, 2015 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 9,209 $ 120 $ 2,243 $ 55 $ 11,452 $ 175 Obligations of states and political subdivisions 16,079 552 - - 16,079 552 Corporate securities 79,482 4,284 16,131 5,048 95,613 9,332 Total temporarily impaired securities $ 104,770 $ 4,956 $ 18,374 $ 5,103 $ 123,144 $ 10,059 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 the 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, 2016, there were thirty-five securities in an unrealized loss position, which primarily included certain of the Company’s investments in fixed maturities within the other diversified business, other diversified consumer and financial services sectors. Securities in an unrealized loss position reported in the other diversified business sector included gross unrealized losses of $1,665 related to investments in fixed maturities of eight different issuers, all related to the oil and gas industry. The oil and gas investee companies represent a diversified group of businesses which include, among others, refiners, pipeline owners and operators, deep water offshore rig owners and operators, all of which we believe are in continuing stages of rationalizing their current operations, investments, future capital expenditures and carefully managing their capital and liquidity positions. To our knowledge, the companies are continuing to assess and revise short-term, intermediate and long-term business plans in response to the current trends in oil and gas markets. While these companies have generally experienced credit downgrades or may be currently under credit rating review, the Company believes that many of the downgrades are in response to external market forces and not necessarily specific credit events of any obligor which would currently indicate that an other than temporary impairment need be recorded. All of the investees have continued to make regular interest payments on their debt when and as due and the Company continues to perform in-depth analysis of the financial disclosures of each of the investees on a regular basis. 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, 2016. 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 significantly 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 of its fixed maturities and non-redeemable preferred stocks using Level 2 criteria, the Company utilizes data from outside sources, including nationally recognized pricing services and broker/dealers. Prices for the majority of the Company’s Level 2 fixed maturities and non-redeemable preferred stocks were determined using unadjusted prices received from pricing services that utilize a matrix pricing concept, which is a mathematical technique used widely in the industry to value debt securities based on various relationships to other benchmark quoted prices. 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, 2016 and December 31, 2015, the value of the Company’s fixed maturities valued using Level 3 criteria was $1,364 and $2,237, respectively. The use of different criteria or assumptions regarding data may have yielded materially different valuations. As of September 30, 2016, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Fixed maturities $ - $ 213,385 $ 1,364 (1) $ 214,749 Equity securities 14,563 5,391 (1) - 19,954 Cash equivalents 9,312 - - 9,312 Total $ 23,875 $ 218,776 $ 1,364 $ 244,015 (1) All underlying securities are financial service industry related. As of December 31, 2015, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Fixed maturities $ - $ 203,087 $ 2,237 (1) $ 205,324 Equity securities 18,245 4,886 (1) - 23,131 Cash equivalents 13,772 - - 13,772 Total $ 32,017 $ 207,973 $ 2,237 $ 242,227 (1) All underlying securities are financial service industry related. The following tables provide a roll-forward of the Company’s 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, 2016 and 2015. Fixed Maturities Balance, December 31, 2015 $ 2,237 Total unrealized gains included in other comprehensive income 63 Balance, March 31, 2016 2,300 Total unrealized gains included in other comprehensive income 68 Balance, June 30, 2016 2,368 Total realized gains included in earnings 57 Total unrealized losses included in other comprehensive income (61 ) Settlements (1,000 ) Balance, September 30, 2016 $ 1,364 Fixed Maturities Balance, December 31, 2014 $ 2,214 Total unrealized gains included in other comprehensive income 50 Balance, March 31, 2015 2,264 Total unrealized losses included in other comprehensive loss (57 ) Balance, June 30, 2015 2,207 Total unrealized gains included in other comprehensive loss 34 Balance, September 30, 2015 $ 2,241 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 following table is a summary of realized investment gains (losses) for the three month and nine month periods ended September 30, 2016 and 2015. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Gross gains $ 543 $ 35 $ 1,497 $ 5,493 Gross losses (16 ) (28 ) (86 ) (387 ) Realized investment gains, net $ 527 $ 7 $ 1,411 $ 5,106 |
Fair Values of Financial Instru
| Fair Values of Financial Instruments | 9 Months Ended |
| Sep. 30, 2016 | |
| Fair Values of Financial Instruments [Abstract] | |
| Fair Values of Financial Instruments | Note 9. Fair Values of Financial Instruments The estimated fair values have been determined by the Company using available market information from various market sources and appropriate valuation methodologies as of the respective dates. However, considerable judgment is necessary to interpret market data and to develop the estimates of fair value. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, the estimates presented herein are not necessarily indicative of the amounts which the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The following 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, 2016 and December 31, 2015. September 30, 2016 December 31, 2015 Level in Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 11,864 $ 11,864 $ 15,622 $ 15,622 Fixed maturities (1) 214,749 214,749 205,324 205,324 Equity securities (1) 19,954 19,954 23,131 23,131 Other invested assets Level 3 10,763 10,763 6,454 7,070 Policy loans Level 2 2,209 2,209 2,200 2,200 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, net Level 2 33,738 33,738 33,738 33,738 (1) See Note 8 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. There have not been any transfers between Level 1, Level 2 and Level 3 during the periods presented in these condensed consolidated financial statements. |
Accumulated Other Comprehensive
| Accumulated Other Comprehensive Income | 9 Months Ended |
| Sep. 30, 2016 | |
| Accumulated Other Comprehensive Income [Abstract] | |
| Accumulated Other Comprehensive Income | Note 10. Accumulated Other Comprehensive Income The following table sets forth the balance of the only component of accumulated other comprehensive income as of September 30, 2016 and December 31, 2015, and the changes in the balance of that component during the nine month period ended September 30, 2016, net of taxes. Unrealized Gains on Available-for- Sale Securities Balance, December 31, 2015 $ 4,584 Other comprehensive income before reclassifications 6,860 Amounts reclassified from accumulated other comprehensive income (917 ) Net current period other comprehensive income 5,943 Balance, September 30, 2016 $ 10,527 |
Related Party Transactions
| Related Party Transactions | 9 Months Ended |
| Sep. 30, 2016 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Note 11. Related Party Transactions For the nine month period ended September 30, 2016, the Company has paid approximately $215 to a digital marketing services organization, which is a branch of Gray Television, Inc., a related party. Services purchased primarily include assistance with numerous website marketing initiatives on behalf of the Company’s life and health operations. |
Segment Information (Tables)
| Segment Information (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| 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, 2016 and 2015. Revenue Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 American Southern $ 14,112 $ 14,899 $ 43,743 $ 45,335 Bankers Fidelity 28,225 25,370 81,947 80,260 Corporate and Other 110 90 358 485 Total revenue $ 42,447 $ 40,359 $ 126,048 $ 126,080 Income Before Income Taxes Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 American Southern $ 1,855 $ 1,572 $ 5,971 $ 5,245 Bankers Fidelity 164 290 1,111 5,380 Corporate and Other (1,702 ) (1,497 ) (5,032 ) (5,061 ) Income before income taxes $ 317 $ 365 $ 2,050 $ 5,564 |
Junior Subordinated Debentures
| Junior Subordinated Debentures (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| Junior Subordinated Debentures [Abstract] | |
| Financial structure of statutory business trusts | The financial structure of each of Atlantic American Statutory Trust I and II as of September 30, 2016 was as follows: Atlantic American Statutory Trust I Atlantic American Statutory Trust II JUNIOR SUBORDINATED DEBENTURES (1) (2) Principal amount owed $ 18,042 $ 23,196 Balance September 30, 2016 $ 18,042 $ 23,196 Less: Treasury debt (3) - (7,500 ) Net balance September 30, 2016 $ 18,042 $ 15,696 Net balance December 31, 2015 $ 18,042 $ 15,696 Coupon rate LIBOR + 4.00% LIBOR + 4.10% Interest payable Quarterly Quarterly Maturity date December 4, 2032 May 15, 2033 Redeemable by issuer Yes Yes TRUST PREFERRED SECURITIES Issuance date December 4, 2002 May 15, 2003 Securities issued 17,500 22,500 Liquidation preference per security $ 1 $ 1 Liquidation value $ 17,500 $ 22,500 Coupon rate LIBOR + 4.00% LIBOR + 4.10% Distribution payable Quarterly Quarterly Distribution guaranteed by (4) Atlantic American Corporation Atlantic American Corporation (1) For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures’ respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company’s common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities. (2) The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries. (3) On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures. (4) The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation. |
Earnings Per Common Share (Tabl
| Earnings Per Common Share (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| 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 September 30, 2016 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 149 20,451 Less preferred stock dividends (100 ) - Net income applicable to common shareholders $ 49 20,451 $ - Three Months Ended September 30, 2015 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 238 20,589 Less preferred stock dividends (100 ) - Net income applicable to common shareholders $ 138 20,589 $ .01 Nine Months Ended September 30, 2016 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 1,288 20,433 Less preferred stock dividends (299 ) - Net income applicable to common shareholders $ 989 20,433 $ .05 Nine Months Ended September 30, 2015 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 4,274 20,584 Less preferred stock dividends (299 ) - Net income applicable to common shareholders $ 3,975 20,584 $ .19 The assumed conversion of the Company’s Series D preferred stock was excluded from the earnings per common share calculation for all periods presented since its impact would have been antidilutive. |
Income Taxes (Tables)
| Income Taxes (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| 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 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Federal income tax provision at statutory rate of 35% $ 110 $ 127 $ 717 $ 1,947 Dividends-received deduction (25 ) (21 ) (71 ) (75 ) Small life insurance company deduction - 51 - (572 ) Other permanent differences 12 9 45 29 Adjustment for prior years’ estimates to actual 71 (39 ) 71 (39 ) Income tax expense $ 168 $ 127 $ 762 $ 1,290 |
| Components of income tax expense | The components of income tax expense were: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Current - Federal $ 11 $ (532 ) $ 601 $ 587 Deferred - Federal 157 659 161 703 Total $ 168 $ 127 $ 762 $ 1,290 |
Investments (Tables)
| Investments (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| Investments [Abstract] | |
| Investments aggregated by type and industry | Investments were comprised of the following: September 30, 2016 Carrying Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 26,823 $ 458 $ 80 $ 26,445 Obligations of states and political subdivisions 18,491 1,232 - 17,259 Corporate securities: Utilities and telecom 17,969 2,305 - 15,664 Financial services 59,795 3,276 826 57,345 Other business – diversified 63,298 2,626 2,029 62,701 Other consumer – diversified 28,180 1,267 535 27,448 Total corporate securities 169,242 9,474 3,390 163,158 Redeemable preferred stocks: Other consumer – diversified 193 - - 193 Total redeemable preferred stocks 193 - - 193 Total fixed maturities 214,749 11,164 3,470 207,055 Equity securities: Common and non-redeemable preferred stocks: Utilities and telecom 1,559 595 - 964 Financial services 5,634 806 - 4,828 Other business – diversified 216 169 - 47 Other consumer – diversified 12,545 6,931 - 5,614 Total equity securities 19,954 8,501 - 11,453 Other invested assets 10,763 - - 10,763 Policy loans 2,209 - - 2,209 Real estate 38 - - 38 Investments in unconsolidated trusts 1,238 - - 1,238 Total investments $ 248,951 $ 19,665 $ 3,470 $ 232,756 December 31, 2015 Carrying Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 22,234 $ 290 $ 175 $ 22,119 Obligations of states and political subdivisions 25,479 621 552 25,410 Corporate securities: Utilities and telecom 17,589 1,357 692 16,924 Financial services 54,035 1,797 1,351 53,589 Other business – diversified 60,960 729 5,898 66,129 Other consumer – diversified 24,581 136 1,391 25,836 Total corporate securities 157,165 4,019 9,332 162,478 Redeemable preferred stocks: Financial services 253 3 - 250 Other consumer – diversified 193 - - 193 Total redeemable preferred stocks 446 3 - 443 Total fixed maturities 205,324 4,933 10,059 210,450 Equity securities: Common and non-redeemable preferred stocks: Utilities and telecom 1,386 422 - 964 Financial services 5,175 847 - 4,328 Other business – diversified 198 151 - 47 Other consumer – diversified 16,372 10,758 - 5,614 Total equity securities 23,131 12,178 - 10,953 Other invested assets 6,454 - - 6,454 Policy loans 2,200 - - 2,200 Real estate 38 - - 38 Investments in unconsolidated trusts 1,238 - - 1,238 Total investments $ 238,385 $ 17,111 $ 10,059 $ 231,333 |
| Amortized cost and carrying value of fixed maturities by contractual maturity | The carrying value and amortized cost of the Company’s investments in fixed maturities at September 30, 2016 and December 31, 2015 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties. September 30, 2016 December 31, 2015 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 1,648 $ 1,643 $ 4,143 $ 4,113 Due after one year through five years 24,219 24,024 20,557 20,591 Due after five years through ten years 95,711 92,293 99,614 103,066 Due after ten years 80,800 76,849 79,882 81,684 Varying maturities 12,371 12,246 1,128 996 Totals $ 214,749 $ 207,055 $ 205,324 $ 210,450 |
| 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, 2016 and December 31, 2015. September 30, 2016 December 31, 2015 Carrying Value Amortized Cost Unrealized Gains Carrying Value Amortized Cost Unrealized Gains (Losses) U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 26,823 $ 26,445 $ 378 $ 22,234 $ 22,119 $ 115 Obligations of states and political subdivisions 18,491 17,259 1,232 25,479 25,410 69 Utilities and telecom 19,528 16,628 2,900 18,975 17,888 1,087 Financial services 65,429 62,173 3,256 59,463 58,167 1,296 Other business – diversified 63,514 62,748 766 61,158 66,176 (5,018 ) Other consumer – diversified 40,918 33,255 7,663 41,146 31,643 9,503 Other investments 14,248 14,248 - 9,930 9,930 - Investments $ 248,951 $ 232,756 $ 16,195 $ 238,385 $ 231,333 $ 7,052 |
| 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, 2016 and December 31, 2015. September 30, 2016 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 11,987 $ 80 $ 501 $ - $ 12,488 $ 80 Corporate securities 19,031 392 22,224 2,998 41,255 3,390 Total temporarily impaired securities $ 31,018 $ 472 $ 22,725 $ 2,998 $ 53,743 $ 3,470 December 31, 2015 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 9,209 $ 120 $ 2,243 $ 55 $ 11,452 $ 175 Obligations of states and political subdivisions 16,079 552 - - 16,079 552 Corporate securities 79,482 4,284 16,131 5,048 95,613 9,332 Total temporarily impaired securities $ 104,770 $ 4,956 $ 18,374 $ 5,103 $ 123,144 $ 10,059 |
| Financial instruments carried at fair value measured on a recurring basis | As of September 30, 2016, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Fixed maturities $ - $ 213,385 $ 1,364 (1) $ 214,749 Equity securities 14,563 5,391 (1) - 19,954 Cash equivalents 9,312 - - 9,312 Total $ 23,875 $ 218,776 $ 1,364 $ 244,015 (1) All underlying securities are financial service industry related. As of December 31, 2015, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Fixed maturities $ - $ 203,087 $ 2,237 (1) $ 205,324 Equity securities 18,245 4,886 (1) - 23,131 Cash equivalents 13,772 - - 13,772 Total $ 32,017 $ 207,973 $ 2,237 $ 242,227 (1) All underlying securities are financial service industry related. |
| Roll-forward of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The following tables provide a roll-forward of the Company’s 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, 2016 and 2015. Fixed Maturities Balance, December 31, 2015 $ 2,237 Total unrealized gains included in other comprehensive income 63 Balance, March 31, 2016 2,300 Total unrealized gains included in other comprehensive income 68 Balance, June 30, 2016 2,368 Total realized gains included in earnings 57 Total unrealized losses included in other comprehensive income (61 ) Settlements (1,000 ) Balance, September 30, 2016 $ 1,364 Fixed Maturities Balance, December 31, 2014 $ 2,214 Total unrealized gains included in other comprehensive income 50 Balance, March 31, 2015 2,264 Total unrealized losses included in other comprehensive loss (57 ) Balance, June 30, 2015 2,207 Total unrealized gains included in other comprehensive loss 34 Balance, September 30, 2015 $ 2,241 |
| Summary of realized investment gains (losses) | The following table is a summary of realized investment gains (losses) for the three month and nine month periods ended September 30, 2016 and 2015. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Gross gains $ 543 $ 35 $ 1,497 $ 5,493 Gross losses (16 ) (28 ) (86 ) (387 ) Realized investment gains, net $ 527 $ 7 $ 1,411 $ 5,106 |
Fair Values of Financial Inst24
| Fair Values of Financial Instruments (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| 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, 2016 and December 31, 2015. September 30, 2016 December 31, 2015 Level in Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 11,864 $ 11,864 $ 15,622 $ 15,622 Fixed maturities (1) 214,749 214,749 205,324 205,324 Equity securities (1) 19,954 19,954 23,131 23,131 Other invested assets Level 3 10,763 10,763 6,454 7,070 Policy loans Level 2 2,209 2,209 2,200 2,200 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, net Level 2 33,738 33,738 33,738 33,738 (1) See Note 8 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. |
Accumulated Other Comprehensi25
| Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| 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 the only component of accumulated other comprehensive income as of September 30, 2016 and December 31, 2015, and the changes in the balance of that component during the nine month period ended September 30, 2016, net of taxes. Unrealized Gains on Available-for- Sale Securities Balance, December 31, 2015 $ 4,584 Other comprehensive income before reclassifications 6,860 Amounts reclassified from accumulated other comprehensive income (917 ) Net current period other comprehensive income 5,943 Balance, September 30, 2016 $ 10,527 |
Recently Issued Accounting St26
| Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
| Recently Issued Accounting Standards [Abstract] | ||
| Equity securities available-for-sale | $ 19,954 | $ 23,131 |
| Equity securities unrealized gains, net of tax | $ 5,526 |
Segment Information (Details)
| Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Segment | Sep. 30, 2015USD ($) | |
| Segment Information [Abstract] | ||||
| Number of business units | Segment | 2 | |||
| Revenue and income before income taxes for each business unit [Abstract] | ||||
| Total revenue | $ 42,447 | $ 40,359 | $ 126,048 | $ 126,080 |
| Income before income taxes | 317 | 365 | 2,050 | 5,564 |
| Corporate and Other [Member] | ||||
| Revenue and income before income taxes for each business unit [Abstract] | ||||
| Total revenue | 110 | 90 | 358 | 485 |
| Income before income taxes | (1,702) | (1,497) | (5,032) | (5,061) |
| American Southern [Member] | Operating Segments [Member] | ||||
| Revenue and income before income taxes for each business unit [Abstract] | ||||
| Total revenue | 14,112 | 14,899 | 43,743 | 45,335 |
| Income before income taxes | 1,855 | 1,572 | 5,971 | 5,245 |
| Bankers Fidelity [Member] | Operating Segments [Member] | ||||
| Revenue and income before income taxes for each business unit [Abstract] | ||||
| Total revenue | 28,225 | 25,370 | 81,947 | 80,260 |
| Income before income taxes | $ 164 | $ 290 | $ 1,111 | $ 5,380 |
Junior Subordinated Debenture28
| Junior Subordinated Debentures (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | |
| Sep. 30, 2016USD ($)TrustQuarter$ / sharesshares | ||
| Debt Instrument [Line Items] | ||
| Number of Connecticut statutory business trusts | Trust | 2 | |
| Financial structure of statutory business trusts [Abstract] | ||
| Net balance September 30, 2016 | $ 33,738 | |
| Net balance December 31, 2015 | $ 33,738 | |
| Junior Subordinated Debentures [Member] | ||
| Financial structure of statutory business trusts [Abstract] | ||
| Number of consecutive quarters for which interest payments can be deferred | Quarter | 20 | |
| 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, 2016 | 18,042 | [1],[2] |
| Less: Treasury debt | 0 | [1],[2],[3] |
| Net balance September 30, 2016 | 18,042 | [1],[2] |
| Net balance December 31, 2015 | $ 18,042 | [1],[2] |
| Coupon rate | LIBOR + 4.00% | [1],[2] |
| Interest payable | Quarterly | [1],[2] |
| Maturity date | Dec. 4, 2032 | [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 | 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 | Dec. 4, 2002 | |
| Securities issued (in shares) | shares | 17,500 | |
| Liquidation preference per security (in dollars per share) | $ / shares | $ 1 | |
| Liquidation value | $ 17,500 | |
| Distribution payable | Quarterly | |
| Distribution guaranteed by | Atlantic American Corporation | [4] |
| Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member] | LIBOR [Member] | ||
| Financial structure of statutory business trusts [Abstract] | ||
| Basis spread on variable rate | 4.00% | |
| 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, 2016 | 23,196 | [1],[2] |
| Less: Treasury debt | (7,500) | [1],[2],[3] |
| Net balance September 30, 2016 | 15,696 | [1],[2] |
| Net balance December 31, 2015 | $ 15,696 | [1],[2] |
| Coupon rate | LIBOR + 4.10% | [1],[2] |
| Interest payable | Quarterly | [1],[2] |
| Maturity date | May 15, 2033 | [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 | 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 | May 15, 2003 | |
| Securities issued (in shares) | shares | 22,500 | |
| Liquidation preference per security (in dollars per share) | $ / shares | $ 1 | |
| Liquidation value | $ 22,500 | |
| Distribution payable | Quarterly | |
| Distribution guaranteed by | Atlantic American Corporation | [4] |
| Atlantic American Statutory Trust II [Member] | Trust Preferred Securities [Member] | LIBOR [Member] | ||
| Financial structure of statutory business trusts [Abstract] | ||
| Basis spread on variable rate | 4.10% | |
| [1] | For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures' respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company's common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities. | |
| [2] | The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries. | |
| [3] | On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures. | |
| [4] | The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation. | |
Earnings Per Common Share (Deta
| Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
| Income [Abstract] | ||||
| Net income | $ 149 | $ 238 | $ 1,288 | $ 4,274 |
| Less preferred stock dividends | (100) | (100) | (299) | (299) |
| Net income applicable to common shareholders | $ 49 | $ 138 | $ 989 | $ 3,975 |
| Shares [Abstract] | ||||
| Weighted average shares outstanding (in shares) | 20,451 | 20,589 | 20,433 | 20,584 |
| Per Share Amount [Abstract] | ||||
| Net income applicable to common shareholders (in dollars per share) | $ 0 | $ 0.01 | $ 0.05 | $ 0.19 |
Income Taxes (Details)
| Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
| Reconciliation of income tax (benefit) expense [Abstract] | ||||
| Federal income tax provision at statutory rate of 35% | $ 110 | $ 127 | $ 717 | $ 1,947 |
| Dividends-received deduction | (25) | (21) | (71) | (75) |
| Small life insurance company deduction | 0 | 51 | 0 | (572) |
| Other permanent differences | 12 | 9 | 45 | 29 |
| Adjustment for prior years' estimates to actual | 71 | (39) | 71 | (39) |
| Income tax expense | 168 | 127 | $ 762 | 1,290 |
| Federal statutory income tax rate | 35.00% | |||
| Components of income tax expense [Abstract] | ||||
| Current - Federal | 11 | (532) | $ 601 | 587 |
| Deferred - Federal | 157 | 659 | 161 | 703 |
| Income tax expense | 168 | $ 127 | $ 762 | $ 1,290 |
| SLD as percentage of life insurance company taxable income | 60.00% | |||
| Percentage of reduction in SLD | 15.00% | |||
| Tentative amount of LICTI to reduction of SLD | 3,000 | $ 3,000 | ||
| Tentative amount of LICTI to phase out of SLD | $ 15,000 | $ 15,000 | ||
Investments, Aggregated by Type
| Investments, Aggregated by Type and Industry (Details) $ in Thousands | 9 Months Ended | |
| Sep. 30, 2016USD ($)SecuritiesIssuer | Dec. 31, 2015USD ($) | |
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | $ 214,749 | $ 205,324 |
| Gross unrealized gains | 11,164 | 4,933 |
| Gross unrealized losses | 3,470 | 10,059 |
| Amortized cost | 207,055 | 210,450 |
| Carrying value | 19,954 | 23,131 |
| Gross unrealized gains | 8,501 | 12,178 |
| Gross unrealized losses | 0 | 0 |
| Amortized cost | 11,453 | 10,953 |
| Other invested assets | 10,763 | 6,454 |
| Other invested assets, amortized cost | 10,763 | 6,454 |
| Policy loans | 2,209 | 2,200 |
| Policy loans, amortized cost | 2,209 | 2,200 |
| Real estate | 38 | 38 |
| Real estate, amortized cost | 38 | 38 |
| Investment in unconsolidated trusts | 1,238 | 1,238 |
| Investment in unconsolidated trusts, amortized cost | 1,238 | 1,238 |
| Total investments | 248,951 | 238,385 |
| Total investments, gross unrealized gains | 19,665 | 17,111 |
| Total investments, gross unrealized losses | 3,470 | 10,059 |
| Total investments, amortized cost | 232,756 | 231,333 |
| Amortized cost of bonds on deposit with insurance regulatory authorities | $ 11,143 | 11,259 |
| Number of securities in unrealized loss position | Securities | 35 | |
| Oil and Gas Properties [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Gross unrealized losses | $ 1,665 | |
| Fixed maturity investments, number of issuers | Issuer | 8 | |
| Fixed Maturities - U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | $ 26,823 | 22,234 |
| Gross unrealized gains | 458 | 290 |
| Gross unrealized losses | 80 | 175 |
| Amortized cost | 26,445 | 22,119 |
| Fixed Maturities - Obligations of States and Political Subdivisions [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 18,491 | 25,479 |
| Gross unrealized gains | 1,232 | 621 |
| Gross unrealized losses | 0 | 552 |
| Amortized cost | 17,259 | 25,410 |
| Fixed Maturities - Corporate Securities [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 169,242 | 157,165 |
| Gross unrealized gains | 9,474 | 4,019 |
| Gross unrealized losses | 3,390 | 9,332 |
| Amortized cost | 163,158 | 162,478 |
| Fixed Maturities - Utilities and Telecom [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 17,969 | 17,589 |
| Gross unrealized gains | 2,305 | 1,357 |
| Gross unrealized losses | 0 | 692 |
| Amortized cost | 15,664 | 16,924 |
| Fixed Maturities - Financial Services [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 59,795 | 54,035 |
| Gross unrealized gains | 3,276 | 1,797 |
| Gross unrealized losses | 826 | 1,351 |
| Amortized cost | 57,345 | 53,589 |
| Fixed Maturities - Other Business - Diversified [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 63,298 | 60,960 |
| Gross unrealized gains | 2,626 | 729 |
| Gross unrealized losses | 2,029 | 5,898 |
| Amortized cost | 62,701 | 66,129 |
| Fixed Maturities - Other Consumer - Diversified [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 28,180 | 24,581 |
| Gross unrealized gains | 1,267 | 136 |
| Gross unrealized losses | 535 | 1,391 |
| Amortized cost | 27,448 | 25,836 |
| Fixed Maturities - Redeemable Preferred Stocks [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 193 | 446 |
| Gross unrealized gains | 0 | 3 |
| Gross unrealized losses | 0 | 0 |
| Amortized cost | 193 | 443 |
| Fixed Maturities - Financial Services [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 253 | |
| Gross unrealized gains | 3 | |
| Gross unrealized losses | 0 | |
| Amortized cost | 250 | |
| Fixed Maturities - Other Consumer Diversified [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 193 | 193 |
| Gross unrealized gains | 0 | 0 |
| Gross unrealized losses | 0 | 0 |
| Amortized cost | 193 | 193 |
| Equity Securities - Utilities and Telecom [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 1,559 | 1,386 |
| Gross unrealized gains | 595 | 422 |
| Gross unrealized losses | 0 | 0 |
| Amortized cost | 964 | 964 |
| Equity Securities - Financial Services [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 5,634 | 5,175 |
| Gross unrealized gains | 806 | 847 |
| Gross unrealized losses | 0 | 0 |
| Amortized cost | 4,828 | 4,328 |
| Equity Securities - Other Business Diversified [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 216 | 198 |
| Gross unrealized gains | 169 | 151 |
| Gross unrealized losses | 0 | 0 |
| Amortized cost | 47 | 47 |
| Equity Securities - Other Consumer Diversified [Member] | ||
| Investments aggregated by type and industry [Abstract] | ||
| Carrying value | 12,545 | 16,372 |
| Gross unrealized gains | 6,931 | 10,758 |
| Gross unrealized losses | 0 | 0 |
| Amortized cost | $ 5,614 | $ 5,614 |
Investments, Fixed Maturities b
| Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
| Carrying Value [Abstract] | ||
| Due in one year or less | $ 1,648 | $ 4,143 |
| Due after one year through five years | 24,219 | 20,557 |
| Due after five years through ten years | 95,711 | 99,614 |
| Due after ten years | 80,800 | 79,882 |
| Varying maturities | 12,371 | 1,128 |
| Totals | 214,749 | 205,324 |
| Amortized Cost [Abstract] | ||
| Due in one year or less | 1,643 | 4,113 |
| Due after one year through five years | 24,024 | 20,591 |
| Due after five years through ten years | 92,293 | 103,066 |
| Due after ten years | 76,849 | 81,684 |
| Varying maturities | 12,246 | 996 |
| Amortized cost | $ 207,055 | $ 210,450 |
Investments, Aggregated by Indu
| Investments, Aggregated by Industry (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
| Investments aggregated by industry [Abstract] | ||
| Carrying value | $ 214,749 | $ 205,324 |
| Amortized cost | 207,055 | 210,450 |
| Carrying value | 248,951 | 238,385 |
| Amortized cost | 232,756 | 231,333 |
| Unrealized gains (losses) | 16,195 | 7,052 |
| U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member] | ||
| Investments aggregated by industry [Abstract] | ||
| Carrying value | 26,823 | 22,234 |
| Amortized cost | 26,445 | 22,119 |
| Unrealized gains (losses) | 378 | 115 |
| Obligations of States and Political Subdivisions [Member] | ||
| Investments aggregated by industry [Abstract] | ||
| Carrying value | 18,491 | 25,479 |
| Amortized cost | 17,259 | 25,410 |
| Unrealized gains (losses) | 1,232 | 69 |
| Utilities and Telecom [Member] | ||
| Investments aggregated by industry [Abstract] | ||
| Carrying value | 19,528 | 18,975 |
| Amortized cost | 16,628 | 17,888 |
| Unrealized gains (losses) | 2,900 | 1,087 |
| Financial Services [Member] | ||
| Investments aggregated by industry [Abstract] | ||
| Carrying value | 65,429 | 59,463 |
| Amortized cost | 62,173 | 58,167 |
| Unrealized gains (losses) | 3,256 | 1,296 |
| Other Business - Diversified [Member] | ||
| Investments aggregated by industry [Abstract] | ||
| Carrying value | 63,514 | 61,158 |
| Amortized cost | 62,748 | 66,176 |
| Unrealized gains (losses) | 766 | (5,018) |
| Other Consumer - Diversified [Member] | ||
| Investments aggregated by industry [Abstract] | ||
| Carrying value | 40,918 | 41,146 |
| Amortized cost | 33,255 | 31,643 |
| Unrealized gains (losses) | 7,663 | 9,503 |
| Other Investment [Member] | ||
| Investments aggregated by industry [Abstract] | ||
| Carrying value | 14,248 | 9,930 |
| Amortized cost | $ 14,248 | $ 9,930 |
Investments, Securities with Co
| Investments, Securities with Continuous Unrealized Loss Postion (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
| Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
| Less than 12 months | $ 31,018 | $ 104,770 |
| 12 months or longer | 22,725 | 18,374 |
| Total | 53,743 | 123,144 |
| Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract] | ||
| Less than 12 months | 472 | 4,956 |
| 12 months or longer | 2,998 | 5,103 |
| Total | 3,470 | 10,059 |
| Fixed Maturities - U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member] | ||
| Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
| Less than 12 months | 11,987 | 9,209 |
| 12 months or longer | 501 | 2,243 |
| Total | 12,488 | 11,452 |
| Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract] | ||
| Less than 12 months | 80 | 120 |
| 12 months or longer | 0 | 55 |
| Total | 80 | 175 |
| Fixed Maturities - Obligations of States and Political Subdivisions [Member] | ||
| Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
| Less than 12 months | 16,079 | |
| 12 months or longer | 0 | |
| Total | 16,079 | |
| Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract] | ||
| Less than 12 months | 552 | |
| 12 months or longer | 0 | |
| Total | 552 | |
| Fixed Maturities - Corporate Securities [Member] | ||
| Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
| Less than 12 months | 19,031 | 79,482 |
| 12 months or longer | 22,224 | 16,131 |
| Total | 41,255 | 95,613 |
| Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract] | ||
| Less than 12 months | 392 | 4,284 |
| 12 months or longer | 2,998 | 5,048 |
| Total | $ 3,390 | $ 9,332 |
Investments, Fair Value Measure
| Investments, Fair Value Measured on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
| Financial instruments carried at fair value measured on a recurring basis [Abstract] | |||
| Assets at fair value | $ 244,015 | $ 242,227 | |
| Fixed Maturities [Member] | |||
| Financial instruments carried at fair value measured on a recurring basis [Abstract] | |||
| Assets at fair value | 214,749 | 205,324 | |
| Equity Securities [Member] | |||
| Financial instruments carried at fair value measured on a recurring basis [Abstract] | |||
| Assets at fair value | 19,954 | 23,131 | |
| Cash Equivalents [Member] | |||
| Financial instruments carried at fair value measured on a recurring basis [Abstract] | |||
| Assets at fair value | 9,312 | 13,772 | |
| 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 | 23,875 | 32,017 | |
| 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 | 14,563 | 18,245 | |
| 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 | 9,312 | 13,772 | |
| Significant Other Observable Inputs (Level 2) [Member] | |||
| Financial instruments carried at fair value measured on a recurring basis [Abstract] | |||
| Assets at fair value | 218,776 | 207,973 | |
| 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 | 213,385 | 203,087 | |
| 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 | [1] | 5,391 | 4,886 |
| 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 | 1,364 | 2,237 | |
| 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 | [1] | 1,364 | 2,237 |
| 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 | |
| [1] | All underlying securities are financial service industry related. | ||
Investments, Roll-forward of Fi
| Investments, Roll-forward of Financial Instruments Measured at Fair Value (Details) - Fixed Maturities [Member] - USD ($) $ in Thousands | 3 Months Ended | |||||
| Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |
| Assets measured at fair value on a recurring basis [Abstract] | ||||||
| Balance, beginning of period | $ 2,368 | $ 2,300 | $ 2,237 | $ 2,207 | $ 2,264 | $ 2,214 |
| Total realized gains included in earnings | 57 | |||||
| Total unrealized gains (losses) included in other comprehensive income (loss) | (61) | 68 | 63 | 34 | (57) | 50 |
| Settlements | (1,000) | |||||
| Balance, end of period | $ 1,364 | $ 2,368 | $ 2,300 | $ 2,241 | $ 2,207 | $ 2,264 |
Investments, Summary of Realize
| Investments, Summary of Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
| Summary of realized investment gains (losses) [Abstract] | ||||
| Gross gains | $ 543 | $ 35 | $ 1,497 | $ 5,493 |
| Gross losses | (16) | (28) | (86) | (387) |
| Realized investment gains, net | $ 527 | $ 7 | $ 1,411 | $ 5,106 |
Fair Values of Financial Inst38
| Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
| Carrying Amount [Member] | |||
| Assets [Abstract] | |||
| Fixed maturities | [1] | $ 214,749 | $ 205,324 |
| Equity securities | [1] | 19,954 | 23,131 |
| Carrying Amount [Member] | Level 1 [Member] | |||
| Assets [Abstract] | |||
| Cash and cash equivalents | 11,864 | 15,622 | |
| Carrying Amount [Member] | Level 2 [Member] | |||
| Assets [Abstract] | |||
| Policy loans | 2,209 | 2,200 | |
| Real estate | 38 | 38 | |
| Investment in unconsolidated trusts | 1,238 | 1,238 | |
| Liabilities [Abstract] | |||
| Junior subordinated debentures, net | 33,738 | 33,738 | |
| Carrying Amount [Member] | Level 3 [Member] | |||
| Assets [Abstract] | |||
| Other invested assets | 10,763 | 6,454 | |
| Estimated Fair Value [Member] | |||
| Assets [Abstract] | |||
| Fixed maturities | [1] | 214,749 | 205,324 |
| Equity securities | [1] | 19,954 | 23,131 |
| Estimated Fair Value [Member] | Level 1 [Member] | |||
| Assets [Abstract] | |||
| Cash and cash equivalents | 11,864 | 15,622 | |
| Estimated Fair Value [Member] | Level 2 [Member] | |||
| Assets [Abstract] | |||
| Policy loans | 2,209 | 2,200 | |
| Real estate | 38 | 38 | |
| Investment in unconsolidated trusts | 1,238 | 1,238 | |
| Liabilities [Abstract] | |||
| Junior subordinated debentures, net | 33,738 | 33,738 | |
| Estimated Fair Value [Member] | Level 3 [Member] | |||
| Assets [Abstract] | |||
| Other invested assets | $ 10,763 | $ 7,070 | |
| [1] | See Note 8 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. | ||
Accumulated Other Comprehensi39
| Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 9 Months Ended | |
| Sep. 30, 2016 | Sep. 30, 2015 | |
| Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward] | ||
| Beginning Balance | $ 102,492 | $ 104,195 |
| Net current period other comprehensive income (loss) | 5,943 | (4,472) |
| Ending Balance | 108,951 | 103,212 |
| AOCI Attributable to Parent [Member] | ||
| Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward] | ||
| Beginning Balance | 4,584 | 9,279 |
| Net current period other comprehensive income (loss) | 5,943 | (4,472) |
| Ending Balance | 10,527 | $ 4,807 |
| 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 | 4,584 | |
| Other comprehensive income before reclassifications | 6,860 | |
| Amounts reclassified from accumulated other comprehensive income | (917) | |
| Net current period other comprehensive income (loss) | 5,943 | |
| Ending Balance | $ 10,527 | |
Related Party Transactions (Det
| Related Party Transactions (Details) $ in Thousands | 9 Months Ended |
| Sep. 30, 2016USD ($) | |
| Related Party Transactions [Abstract] | |
| Services purchased from related party | $ 215 |