Atlantic American (AAME) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 07, 2017
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		20,439,411
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 9,473	$ 13,252
Investments:
Fixed maturities (cost: $215,241 and $210,505)	217,999	210,670
Common and non-redeemable preferred stocks (cost: $10,918 and $11,453)	21,582	20,257
Other invested assets (cost: $9,167 and $9,709)	9,167	9,709
Policy loans	2,113	2,265
Real estate	38	38
Investment in unconsolidated trusts	1,238	1,238
Total investments	252,137	244,177
Receivables:
Reinsurance	16,871	11,703
Insurance premiums and other (net of allowance for doubtful accounts: $219 and $280)	15,572	12,581
Deferred income taxes, net	0	160
Deferred acquisition costs	32,159	28,975
Other assets	5,549	5,208
Intangibles	2,544	2,544
Total assets	334,305	318,600
LIABILITIES AND SHAREHOLDERS' EQUITY
Future policy benefits	80,015	74,843
Unearned premiums	26,501	23,208
Losses and claims	67,184	62,562
Other policy liabilities	1,492	2,066
Total insurance reserves and policyholder funds	175,192	162,679
Accounts payable and accrued expenses	14,880	16,677
Deferred income taxes, net	975	0
Junior subordinated debenture obligations, net	33,738	33,738
Total liabilities	224,785	213,094
Commitments and contingencies (Note 9)
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: 20,453,217 and 20,446,705	22,401	22,401
Additional paid-in capital	57,420	57,114
Retained earnings	28,551	27,272
Accumulated other comprehensive income	8,725	5,830
Unearned stock grant compensation	(587)	(428)
Treasury stock, at cost: 1,947,677 and 1,954,189 shares	(7,045)	(6,738)
Total shareholders' equity	109,520	105,506
Total liabilities and shareholders' equity	$ 334,305	$ 318,600

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investments:
Fixed maturities, cost	$ 215,241	$ 210,505
Common and non-redeemable preferred stocks, cost	10,918	11,453
Other invested assets, cost	9,167	9,709
Receivables:
Insurance premiums and other, allowance for doubtful accounts	$ 219	$ 280
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)	20,453,217	20,446,705
Treasury stock, at cost (in shares)	1,947,677	1,954,189

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Insurance premiums	$ 42,094	$ 39,432	$ 122,996	$ 117,012
Investment income	2,136	2,453	6,380	7,523
Realized investment gains, net	539	527	2,818	1,411
Other income	29	35	95	102
Total revenue	44,798	42,447	132,289	126,048
Benefits and expenses:
Insurance benefits and losses incurred	30,417	26,955	87,446	78,702
Commissions and underwriting expenses	10,176	11,558	31,800	34,339
Interest expense	440	396	1,273	1,154
Other expense	3,134	3,221	9,301	9,803
Total benefits and expenses	44,167	42,130	129,820	123,998
Income before income taxes	631	317	2,469	2,050
Income tax expense (benefit)	(116)	168	483	762
Net income	747	149	1,986	1,288
Preferred stock dividends	(100)	(100)	(299)	(299)
Net income applicable to common shareholders	$ 647	$ 49	$ 1,687	$ 989
Earnings per common share (basic and diluted) (in dollars per share)	$ 0.03	$ 0	$ 0.08	$ 0.05

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net income	$ 747	$ 149	$ 1,986	$ 1,288
Available-for-sale securities:
Gross unrealized holding gain arising in the period	2,852	1,842	7,271	10,554
Related income tax effect	(997)	(645)	(2,544)	(3,694)
Less: reclassification adjustment for net realized gains included in net income	(539)	(527)	(2,818)	(1,411)
Related income tax effect	188	185	986	494
Total other comprehensive income, net of tax	1,504	855	2,895	5,943
Total comprehensive income	$ 2,251	$ 1,004	$ 4,881	$ 7,231

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, 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, 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
Beginning Balance at Dec. 31, 2016	55	22,401	57,114	27,272	5,830	(428)	(6,738)	105,506
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	0	0	1,986	0	0	0	1,986
Other comprehensive income, net of tax	0	0	0	0	2,895	0	0	2,895
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	293	0	0	(522)	229	0
Amortization of unearned compensation	0	0	0	0	0	363	0	363
Purchase of shares for treasury	0	0	0	0	0	0	(546)	(546)
Issuance of shares under stock plans	0	0	13	0	0	0	10	23
Ending Balance at Sep. 30, 2017	$ 55	$ 22,401	$ 57,420	$ 28,551	$ 8,725	$ (587)	$ (7,045)	$ 109,520

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,986	$ 1,288
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of deferred acquisition costs	8,696	6,764
Acquisition costs deferred	(11,880)	(7,689)
Realized investment gains, net	(2,818)	(1,411)
Compensation expense related to share awards	363	457
Depreciation and amortization	1,149	860
Deferred income tax (benefit) expense	(423)	161
Increase in receivables, net	(8,289)	(65)
Increase (decrease) in insurance reserves	12,513	(1,745)
Decrease in other liabilities	(2,096)	(644)
Other, net	(344)	(252)
Net cash used in operating activities	(1,143)	(2,276)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold	52,760	48,729
Proceeds from investments matured, called or redeemed	8,982	9,247
Investments purchased	(63,346)	(58,193)
Additions to property and equipment	(101)	(335)
Net cash used in investing activities	(1,705)	(552)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends on common stock	(408)	(408)
Proceeds from shares issued under stock plans	23	43
Purchase of shares for treasury	(546)	(565)
Net cash used in financing activities	(931)	(930)
Net decrease in cash and cash equivalents	(3,779)	(3,758)
Cash and cash equivalents at beginning of period	13,252	15,622
Cash and cash equivalents at end of period	9,473	11,864
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	1,263	1,142
Cash paid for income taxes	$ 1,400	$ 675

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
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”). The Parent’s primary operating subsidiaries, American Southern Insurance Company and American Safety Insurance Company (together known as “American Southern”) and Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance Company (together known as “Bankers Fidelity”) operate in two principal business units. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The unaudited condensed consolidated financial statements included herein and these related notes should be read in conjunction with the Company’s consolidated financial statements, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “Annual Report”). The Company’s financial condition and results of operations and cash flows as of and for the three month and nine month periods ended September 30, 2017 are not necessarily indicative of the financial condition or results of operations and cash flows that may be expected for the year ending December 31, 2017 or for any other future period. The Company’s significant accounting policies have not changed materially from those set out in the 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, 2017
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 2. Recently Issued Accounting Standards Adoption of New Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). This guidance applies to all entities that issue share-based payment awards to their employees and is designed to simplify several areas of the accounting for share-based payment transactions, including income tax consequences, forfeitures, classification of awards as either equity or liabilities and related classification on the statement of cash flows. The guidance requires the excess tax benefit or deficiency on vesting or settlement of awards to be recognized in earnings as an income tax benefit or expense, respectively. The Company adopted ASU 2016-09 as of January 1, 2017. Adoption of ASU 2016-09 did not have a material impact on the Company’s consolidated financial statements. 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 (“ASU 2016-07”). This guidance eliminates the requirement to retroactively adopt the equity method of accounting when an investment qualifies for the use of the equity method as a result of an increase in the level of ownership or degree of influence. Under ASU 2016-07, the equity method investor is required to add the cost of acquiring the additional interest in the investee to the current basis of the previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The Company adopted ASU 2016-07 as of January 1, 2017. Adoption of ASU 2016-07 did not have an impact on the Company’s consolidated financial statements. Future Adoption of New Accounting Standards In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). This guidance shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. Under current GAAP, premiums and discounts on callable securities generally are amortized to the maturity date. ASU 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018, although earlier adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ( "ASU 2014-09"). ASU 2014-09 as modified provides guidance for recognizing revenue. The guidance excludes insurance contracts and financial instruments. Revenue is to be recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to be entitled in exchange for those goods or services. This guidance is effective retrospectively on January 1, 2018, with a choice of restating prior periods or recognizing a cumulative effect for contracts in place as of adoption. Early adoption is permitted as of January 1, 2017. The Company will adopt this ASU on January 1, 2018. Based on current evaluations, the adoption is not expected to have a material impact on the Company's consolidated financial statements.

Investments

Investments	9 Months Ended
	Sep. 30, 2017
Investments [Abstract]
Investments	Note 3. Investments The following tables set forth the carrying value, gross unrealized gains, gross unrealized losses and cost or amortized cost of the Company’s investments, aggregated by type and industry, as of September 30, 2017 and December 31, 2016. September 30, 2017 Carrying Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 32,426 $ 189 $ 414 $ 32,651 Obligations of states and political subdivisions 17,882 696 54 17,240 Corporate securities: Utilities and telecom 20,463 1,636 76 18,903 Financial services 51,927 2,161 411 50,177 Other business – diversified 41,339 941 1,499 41,897 Other consumer – diversified 53,770 910 1,321 54,181 Total corporate securities 167,499 5,648 3,307 165,158 Redeemable preferred stocks: Other consumer – diversified 192 - - 192 Total redeemable preferred stocks 192 - - 192 Total fixed maturities 217,999 6,533 3,775 215,241 Equity securities: Common and non-redeemable preferred stocks: Utilities and telecom 1,484 520 - 964 Financial services 5,579 796 - 4,783 Other business – diversified 275 228 - 47 Other consumer – diversified 14,244 9,120 - 5,124 Total equity securities 21,582 10,664 - 10,918 Other invested assets 9,167 - - 9,167 Policy loans 2,113 - - 2,113 Real estate 38 - - 38 Investments in unconsolidated trusts 1,238 - - 1,238 Total investments $ 252,137 $ 17,197 $ 3,775 $ 238,715 December 31, 2016 Carrying Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 31,102 $ 197 $ 553 $ 31,458 Obligations of states and political subdivisions 17,572 625 308 17,255 Corporate securities: Utilities and telecom 18,034 1,462 88 16,660 Financial services 57,282 1,880 911 56,313 Other business – diversified 57,419 1,071 2,337 58,685 Other consumer – diversified 29,069 471 1,344 29,942 Total corporate securities 161,804 4,884 4,680 161,600 Redeemable preferred stocks: Other consumer – diversified 192 - - 192 Total redeemable preferred stocks 192 - - 192 Total fixed maturities 210,670 5,706 5,541 210,505 Equity securities: Common and non-redeemable preferred stocks: Utilities and telecom 1,601 637 - 964 Financial services 5,402 574 - 4,828 Other business – diversified 244 197 - 47 Other consumer – diversified 13,010 7,396 - 5,614 Total equity securities 20,257 8,804 - 11,453 Other invested assets 9,709 - - 9,709 Policy loans 2,265 - - 2,265 Real estate 38 - - 38 Investments in unconsolidated trusts 1,238 - - 1,238 Total investments $ 244,177 $ 14,510 $ 5,541 $ 235,208 Bonds having an amortized cost of $11,219 and $11,435 and included in the tables above were on deposit with insurance regulatory authorities at September 30, 2017 and December 31, 2016, respectively, in accordance with statutory requirements. The carrying value and amortized cost of the Company’s investments in fixed maturities at September 30, 2017 and December 31, 2016 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, 2017 December 31, 2016 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 1,415 $ 1,411 $ 2,544 $ 2,507 Due after one year through five years 16,612 16,795 20,278 20,038 Due after five years through ten years 104,519 103,571 90,667 90,926 Due after ten years 75,117 72,923 80,099 79,627 Varying maturities 20,336 20,541 17,082 17,407 Totals $ 217,999 $ 215,241 $ 210,670 $ 210,505 The following table sets forth the carrying value, cost or amortized cost, and net unrealized gains (losses) of the Company’s investments aggregated by industry as of September 30, 2017 and December 31, 2016. September 30, 2017 December 31, 2016 Carrying Value Cost or Amortized Cost Unrealized Gains (Losses) Carrying Value Cost or Amortized Cost Unrealized Gains (Losses) U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 32,426 $ 32,651 $ (225 ) $ 31,102 $ 31,458 $ (356 ) Obligations of states and political subdivisions 17,882 17,240 642 17,572 17,255 317 Utilities and telecom 21,947 19,867 2,080 19,635 17,624 2,011 Financial services 57,506 54,960 2,546 62,684 61,141 1,543 Other business – diversified 41,614 41,944 (330 ) 57,663 58,732 (1,069 ) Other consumer – diversified 68,206 59,497 8,709 42,271 35,748 6,523 Other investments 12,556 12,556 - 13,250 13,250 - Investments $ 252,137 $ 238,715 $ 13,422 $ 244,177 $ 235,208 $ 8,969 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, 2017 and December 31, 2016. September 30, 2017 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 $ 15,900 $ 188 $ 9,016 $ 226 $ 24,916 $ 414 Obligations of states and political subdivisions 2,994 17 1,978 37 4,972 54 Corporate securities 30,340 451 33,204 2,856 63,544 3,307 Total temporarily impaired securities $ 49,234 $ 656 $ 44,198 $ 3,119 $ 93,432 $ 3,775 December 31, 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 $ 23,494 $ 553 $ - $ - $ 23,494 $ 553 Obligations of states and political subdivisions 8,747 308 - - 8,747 308 Corporate securities 59,404 2,124 20,587 2,556 79,991 4,680 Total temporarily impaired securities $ 91,645 $ 2,985 $ 20,587 $ 2,556 $ 112,232 $ 5,541 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, 2017, there were sixty-three securities in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the other diversified business and other diversified consumer sectors. Securities in an unrealized loss position reported in the other diversified business sector included gross unrealized losses of $1,006 related to investments in fixed maturities of five different issuers, all related to the oil and gas industry. The oil and gas companies represent a diversified group of businesses which include, among others, exploration and production, 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 and modifying their capital and liquidity positions. Based on publicly available information, 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 analyses of the publicly available 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, 2017. 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, 2017 and December 31, 2016, the value of the Company’s fixed maturities valued using Level 3 criteria was $1,351 and $1,264, respectively. The use of different criteria or assumptions regarding data may have yielded materially different valuations. As of September 30, 2017, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Assets: Fixed maturities $ - $ 216,648 $ 1,351 (1) $ 217,999 Equity securities 16,233 5,349 (1) - 21,582 Cash equivalents 8,884 - - 8,884 Total $ 25,117 $ 221,997 $ 1,351 $ 248,465 (1) All underlying securities are financial service industry related. As of December 31, 2016, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Assets: Fixed maturities $ - $ 209,406 $ 1,264 (1) $ 210,670 Equity securities 15,153 5,104 (1) - 20,257 Cash equivalents 9,811 - - 9,811 Total $ 24,964 $ 214,510 $ 1,264 $ 240,738 (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, 2017 and 2016. Fixed Maturities Balance, December 31, 2016 $ 1,264 Total unrealized gains included in other comprehensive income 38 Balance, March 31, 2017 1,302 Total unrealized gains included in other comprehensive income 30 Balance, June 30, 2017 1,332 Total unrealized gains included in other comprehensive income 19 Balance, September 30, 2017 $ 1,351 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 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, 2017 and 2016. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Gross gains $ 539 $ 543 $ 2,879 $ 1,497 Gross losses - (16 ) (61 ) (86 ) Realized investment gains, net $ 539 $ 527 $ 2,818 $ 1,411

Fair Values of Financial Instru

Fair Values of Financial Instruments	9 Months Ended
	Sep. 30, 2017
Fair Values of Financial Instruments [Abstract]
Fair Values of Financial Instruments	Note 4. Fair Values of Financial Instruments The estimated fair values have been determined by the Company using available market information from various market sources and appropriate valuation methodologies as of the respective dates. However, considerable judgment is necessary to interpret market data and to develop the estimates of fair value. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, the estimates presented herein are not necessarily indicative of the amounts which the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The following 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, 2017 and December 31, 2016. September 30, 2017 December 31, 2016 Level in Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 9,473 $ 9,473 $ 13,252 $ 13,252 Fixed maturities (1) 217,999 217,999 210,670 210,670 Equity securities (1) 21,582 21,582 20,257 20,257 Other invested assets Level 3 9,167 9,167 9,709 9,709 Policy loans Level 2 2,113 2,113 2,265 2,265 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 3 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.

Liabilities for Unpaid Losses,

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses	9 Months Ended
	Sep. 30, 2017
Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]
Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses	Note 5. Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses, by major product, is as follows: Property and Casualty Insurance Products Nine Months Ended September 30, 2017 2016 Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 49,556 $ 51,200 Less: Reinsurance recoverable on unpaid losses (9,806 ) (11,639 ) Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net 39,750 39,561 Incurred related to: Current accident year 27,359 26,534 Prior accident year development (1) (1,480 ) (1,296 ) Total incurred 25,879 25,238 Paid related to: Current accident year 9,858 9,799 Prior accident years 13,720 15,950 Total paid 23,578 25,749 Ending liabilities for unpaid losses, claims and loss adjustment expenses, net 42,051 39,050 Plus: Reinsurance recoverable on unpaid losses 9,455 9,234 Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 51,506 $ 48,284 (1) In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. However, as a result, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period. Medicare Supplement Insurance Products Nine Months Ended September 30, 2017 2016 Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 11,263 $ 10,547 Less: Reinsurance recoverable on unpaid losses (990 ) - Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net 10,273 10,547 Incurred related to: Current accident year 50,733 46,295 Prior accident year development 720 (1,009 ) Total incurred 51,453 45,286 Paid related to: Current accident year 40,801 35,986 Prior accident years 10,445 9,267 Total paid 51,246 45,253 Ending liabilities for unpaid losses, claims and loss adjustment expenses, net 10,480 10,580 Plus: Reinsurance recoverable on unpaid losses 3,640 - Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 14,120 $ 10,580 Other Life and Health Insurance Products Nine Months Ended September 30, 2017 2016 Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 1,743 $ 2,123 Less: Reinsurance recoverable on unpaid losses - - Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net 1,743 2,123 Incurred related to: Current accident year 6,226 5,489 Prior accident year development (104 ) (173 ) Total incurred 6,122 5,316 Paid related to: Current accident year 4,807 4,206 Prior accident years 1,500 1,494 Total paid 6,307 5,700 Ending liabilities for unpaid losses, claims and loss adjustment expenses, net 1,558 1,739 Plus: Reinsurance recoverable on unpaid losses - - Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 1,558 $ 1,739 Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred: Nine Months Ended September 30, 2017 2016 Total incurred losses $ 83,454 $ 75,840 Cash surrender value and matured endowments 1,167 1,037 Benefit reserve changes 2,825 1,825 Total insurance benefits and losses incurred $ 87,446 $ 78,702

Junior Subordinated Debentures

Junior Subordinated Debentures	9 Months Ended
	Sep. 30, 2017
Junior Subordinated Debentures [Abstract]
Junior Subordinated Debentures	Note 6. 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, 2017 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, 2017 $ 18,042 $ 23,196 Less: Treasury debt (3) - (7,500 ) Net balance September 30, 2017 $ 18,042 $ 15,696 Net balance December 31, 2016 $ 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, 2017
Earnings Per Common Share [Abstract]
Earnings Per Common Share	Note 7. 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, 2017 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 747 20,440 Less: preferred stock dividends (100 ) - Net income applicable to common shareholders $ 647 20,440 $ .03 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 $ - Nine Months Ended September 30, 2017 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 1,986 20,428 Less: preferred stock dividends (299 ) - Net income applicable to common shareholders $ 1,687 20,428 $ .08 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 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, 2017
Income Taxes [Abstract]
Income Taxes	Note 8. Income Taxes A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and income tax expense (benefit) is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Federal income tax provision at statutory rate of 35% $ 221 $ 110 $ 864 $ 717 Dividends-received deduction (23 ) (25 ) (71 ) (71 ) Small life insurance company deduction (313 ) - (343 ) - Other permanent differences 18 12 52 45 Adjustment for prior years’ estimates to actual (19 ) 71 (19 ) 71 Income tax expense (benefit) $ (116 ) $ 168 $ 483 $ 762 The components of income tax expense (benefit) were: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Current - Federal $ (157 ) $ 11 $ 906 $ 601 Deferred - Federal 41 157 (423 ) 161 Total $ (116 ) $ 168 $ 483 $ 762 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, 2017 resulted from the dividends-received deduction (“DRD”) and the small life insurance company deduction (“SLD”). 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 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, 2016 resulted from provision-to-filed return adjustments, as described below, and the DRD. The provision-to-filed return adjustments are generally updated at the completion of the third quarter of each fiscal year and were $19 and $71 in the three month and nine month periods ended September 30, 2017 and 2016, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 9. 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.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2017
Segment Information [Abstract]
Segment Information	Note 10. Segment Information The Parent’s primary insurance subsidiaries, American Southern and Bankers Fidelity, operate in two principal business units, each focusing on specific products. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each business unit is managed independently and is evaluated on its individual performance. The following sets forth the revenues and income before income taxes for each business unit for the three month and nine month periods ended September 30, 2017 and 2016. Revenues Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 American Southern $ 15,047 $ 14,112 $ 43,402 $ 43,743 Bankers Fidelity 29,661 28,225 87,757 81,947 Corporate and Other 90 110 1,130 358 Total revenue $ 44,798 $ 42,447 $ 132,289 $ 126,048 Income Before Income Taxes Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 American Southern $ 1,860 $ 1,855 $ 5,941 $ 5,971 Bankers Fidelity 402 164 190 1,111 Corporate and Other (1,631 ) (1,702 ) (3,662 ) (5,032 ) Income before income taxes $ 631 $ 317 $ 2,469 $ 2,050

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 30, 2017
Accumulated Other Comprehensive Income [Abstract]
Accumulated Other Comprehensive Income	Note 11. Accumulated Other Comprehensive Income The following table sets forth the balance of the only component of accumulated other comprehensive income as of September 30, 2017 and December 31, 2016, and the changes in the balance of that component during the nine month period ended September 30, 2017, net of taxes. Unrealized Gains on Available-for- Sale Securities Balance, December 31, 2016 $ 5,830 Other comprehensive income before reclassifications 4,727 Amounts reclassified from accumulated other comprehensive income (1,832 ) Net current period other comprehensive income 2,895 Balance, September 30, 2017 $ 8,725

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Note 12. Related Party Transactions For the nine month period ended September 30, 2017, Gray Television, Inc., a related party, paid the Company approximately $448 in premiums related to a group accident plan.

Recently Issued Accounting St20

Recently Issued Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2017
Recently Issued Accounting Standards [Abstract]
Adoption of New Accounting Standards	Adoption of New Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). This guidance applies to all entities that issue share-based payment awards to their employees and is designed to simplify several areas of the accounting for share-based payment transactions, including income tax consequences, forfeitures, classification of awards as either equity or liabilities and related classification on the statement of cash flows. The guidance requires the excess tax benefit or deficiency on vesting or settlement of awards to be recognized in earnings as an income tax benefit or expense, respectively. The Company adopted ASU 2016-09 as of January 1, 2017. Adoption of ASU 2016-09 did not have a material impact on the Company’s consolidated financial statements. 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 (“ASU 2016-07”). This guidance eliminates the requirement to retroactively adopt the equity method of accounting when an investment qualifies for the use of the equity method as a result of an increase in the level of ownership or degree of influence. Under ASU 2016-07, the equity method investor is required to add the cost of acquiring the additional interest in the investee to the current basis of the previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The Company adopted ASU 2016-07 as of January 1, 2017. Adoption of ASU 2016-07 did not have an impact on the Company’s consolidated financial statements.
Future Adoption of New Accounting Standards	Future Adoption of New Accounting Standards In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). This guidance shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. Under current GAAP, premiums and discounts on callable securities generally are amortized to the maturity date. ASU 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018, although earlier adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ( "ASU 2014-09"). ASU 2014-09 as modified provides guidance for recognizing revenue. The guidance excludes insurance contracts and financial instruments. Revenue is to be recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to be entitled in exchange for those goods or services. This guidance is effective retrospectively on January 1, 2018, with a choice of restating prior periods or recognizing a cumulative effect for contracts in place as of adoption. Early adoption is permitted as of January 1, 2017. The Company will adopt this ASU on January 1, 2018. Based on current evaluations, the adoption is not expected to have a material impact on the Company's consolidated financial statements.

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2017
Investments [Abstract]
Investments aggregated by type and industry	The following tables set forth the carrying value, gross unrealized gains, gross unrealized losses and cost or amortized cost of the Company’s investments, aggregated by type and industry, as of September 30, 2017 and December 31, 2016. September 30, 2017 Carrying Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 32,426 $ 189 $ 414 $ 32,651 Obligations of states and political subdivisions 17,882 696 54 17,240 Corporate securities: Utilities and telecom 20,463 1,636 76 18,903 Financial services 51,927 2,161 411 50,177 Other business – diversified 41,339 941 1,499 41,897 Other consumer – diversified 53,770 910 1,321 54,181 Total corporate securities 167,499 5,648 3,307 165,158 Redeemable preferred stocks: Other consumer – diversified 192 - - 192 Total redeemable preferred stocks 192 - - 192 Total fixed maturities 217,999 6,533 3,775 215,241 Equity securities: Common and non-redeemable preferred stocks: Utilities and telecom 1,484 520 - 964 Financial services 5,579 796 - 4,783 Other business – diversified 275 228 - 47 Other consumer – diversified 14,244 9,120 - 5,124 Total equity securities 21,582 10,664 - 10,918 Other invested assets 9,167 - - 9,167 Policy loans 2,113 - - 2,113 Real estate 38 - - 38 Investments in unconsolidated trusts 1,238 - - 1,238 Total investments $ 252,137 $ 17,197 $ 3,775 $ 238,715 December 31, 2016 Carrying Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 31,102 $ 197 $ 553 $ 31,458 Obligations of states and political subdivisions 17,572 625 308 17,255 Corporate securities: Utilities and telecom 18,034 1,462 88 16,660 Financial services 57,282 1,880 911 56,313 Other business – diversified 57,419 1,071 2,337 58,685 Other consumer – diversified 29,069 471 1,344 29,942 Total corporate securities 161,804 4,884 4,680 161,600 Redeemable preferred stocks: Other consumer – diversified 192 - - 192 Total redeemable preferred stocks 192 - - 192 Total fixed maturities 210,670 5,706 5,541 210,505 Equity securities: Common and non-redeemable preferred stocks: Utilities and telecom 1,601 637 - 964 Financial services 5,402 574 - 4,828 Other business – diversified 244 197 - 47 Other consumer – diversified 13,010 7,396 - 5,614 Total equity securities 20,257 8,804 - 11,453 Other invested assets 9,709 - - 9,709 Policy loans 2,265 - - 2,265 Real estate 38 - - 38 Investments in unconsolidated trusts 1,238 - - 1,238 Total investments $ 244,177 $ 14,510 $ 5,541 $ 235,208
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, 2017 and December 31, 2016 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, 2017 December 31, 2016 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 1,415 $ 1,411 $ 2,544 $ 2,507 Due after one year through five years 16,612 16,795 20,278 20,038 Due after five years through ten years 104,519 103,571 90,667 90,926 Due after ten years 75,117 72,923 80,099 79,627 Varying maturities 20,336 20,541 17,082 17,407 Totals $ 217,999 $ 215,241 $ 210,670 $ 210,505
Investments aggregated by industry	The following table sets forth the carrying value, cost or amortized cost, and net unrealized gains (losses) of the Company’s investments aggregated by industry as of September 30, 2017 and December 31, 2016. September 30, 2017 December 31, 2016 Carrying Value Cost or Amortized Cost Unrealized Gains (Losses) Carrying Value Cost or Amortized Cost Unrealized Gains (Losses) U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 32,426 $ 32,651 $ (225 ) $ 31,102 $ 31,458 $ (356 ) Obligations of states and political subdivisions 17,882 17,240 642 17,572 17,255 317 Utilities and telecom 21,947 19,867 2,080 19,635 17,624 2,011 Financial services 57,506 54,960 2,546 62,684 61,141 1,543 Other business – diversified 41,614 41,944 (330 ) 57,663 58,732 (1,069 ) Other consumer – diversified 68,206 59,497 8,709 42,271 35,748 6,523 Other investments 12,556 12,556 - 13,250 13,250 - Investments $ 252,137 $ 238,715 $ 13,422 $ 244,177 $ 235,208 $ 8,969
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, 2017 and December 31, 2016. September 30, 2017 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 $ 15,900 $ 188 $ 9,016 $ 226 $ 24,916 $ 414 Obligations of states and political subdivisions 2,994 17 1,978 37 4,972 54 Corporate securities 30,340 451 33,204 2,856 63,544 3,307 Total temporarily impaired securities $ 49,234 $ 656 $ 44,198 $ 3,119 $ 93,432 $ 3,775 December 31, 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 $ 23,494 $ 553 $ - $ - $ 23,494 $ 553 Obligations of states and political subdivisions 8,747 308 - - 8,747 308 Corporate securities 59,404 2,124 20,587 2,556 79,991 4,680 Total temporarily impaired securities $ 91,645 $ 2,985 $ 20,587 $ 2,556 $ 112,232 $ 5,541
Financial instruments carried at fair value measured on a recurring basis	As of September 30, 2017, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Assets: Fixed maturities $ - $ 216,648 $ 1,351 (1) $ 217,999 Equity securities 16,233 5,349 (1) - 21,582 Cash equivalents 8,884 - - 8,884 Total $ 25,117 $ 221,997 $ 1,351 $ 248,465 (1) All underlying securities are financial service industry related. As of December 31, 2016, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Assets: Fixed maturities $ - $ 209,406 $ 1,264 (1) $ 210,670 Equity securities 15,153 5,104 (1) - 20,257 Cash equivalents 9,811 - - 9,811 Total $ 24,964 $ 214,510 $ 1,264 $ 240,738 (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, 2017 and 2016. Fixed Maturities Balance, December 31, 2016 $ 1,264 Total unrealized gains included in other comprehensive income 38 Balance, March 31, 2017 1,302 Total unrealized gains included in other comprehensive income 30 Balance, June 30, 2017 1,332 Total unrealized gains included in other comprehensive income 19 Balance, September 30, 2017 $ 1,351 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
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, 2017 and 2016. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Gross gains $ 539 $ 543 $ 2,879 $ 1,497 Gross losses - (16 ) (61 ) (86 ) Realized investment gains, net $ 539 $ 527 $ 2,818 $ 1,411

Fair Values of Financial Inst22

Fair Values of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 and December 31, 2016. September 30, 2017 December 31, 2016 Level in Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 9,473 $ 9,473 $ 13,252 $ 13,252 Fixed maturities (1) 217,999 217,999 210,670 210,670 Equity securities (1) 21,582 21,582 20,257 20,257 Other invested assets Level 3 9,167 9,167 9,709 9,709 Policy loans Level 2 2,113 2,113 2,265 2,265 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 3 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.

Liabilities for Unpaid Losses23

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses (Tables)	9 Months Ended
	Sep. 30, 2017
Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]
Reconciliation of total incurred losses to total insurance benefits and losses	Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred: Nine Months Ended September 30, 2017 2016 Total incurred losses $ 83,454 $ 75,840 Cash surrender value and matured endowments 1,167 1,037 Benefit reserve changes 2,825 1,825 Total insurance benefits and losses incurred $ 87,446 $ 78,702
Property and Casualty Insurance Products [Member]
Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]
Roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses	The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses, by major product, is as follows: Property and Casualty Insurance Products Nine Months Ended September 30, 2017 2016 Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 49,556 $ 51,200 Less: Reinsurance recoverable on unpaid losses (9,806 ) (11,639 ) Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net 39,750 39,561 Incurred related to: Current accident year 27,359 26,534 Prior accident year development (1) (1,480 ) (1,296 ) Total incurred 25,879 25,238 Paid related to: Current accident year 9,858 9,799 Prior accident years 13,720 15,950 Total paid 23,578 25,749 Ending liabilities for unpaid losses, claims and loss adjustment expenses, net 42,051 39,050 Plus: Reinsurance recoverable on unpaid losses 9,455 9,234 Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 51,506 $ 48,284 (1) In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. However, as a result, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.
Medicare Supplement Insurance Products [Member]
Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]
Roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses	The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses, by major product, is as follows: Medicare Supplement Insurance Products Nine Months Ended September 30, 2017 2016 Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 11,263 $ 10,547 Less: Reinsurance recoverable on unpaid losses (990 ) - Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net 10,273 10,547 Incurred related to: Current accident year 50,733 46,295 Prior accident year development 720 (1,009 ) Total incurred 51,453 45,286 Paid related to: Current accident year 40,801 35,986 Prior accident years 10,445 9,267 Total paid 51,246 45,253 Ending liabilities for unpaid losses, claims and loss adjustment expenses, net 10,480 10,580 Plus: Reinsurance recoverable on unpaid losses 3,640 - Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 14,120 $ 10,580
Other Life and Health Insurance Products [Member]
Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]
Roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses	The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses, by major product, is as follows: Other Life and Health Insurance Products Nine Months Ended September 30, 2017 2016 Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 1,743 $ 2,123 Less: Reinsurance recoverable on unpaid losses - - Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net 1,743 2,123 Incurred related to: Current accident year 6,226 5,489 Prior accident year development (104 ) (173 ) Total incurred 6,122 5,316 Paid related to: Current accident year 4,807 4,206 Prior accident years 1,500 1,494 Total paid 6,307 5,700 Ending liabilities for unpaid losses, claims and loss adjustment expenses, net 1,558 1,739 Plus: Reinsurance recoverable on unpaid losses - - Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 1,558 $ 1,739

Junior Subordinated Debentures

Junior Subordinated Debentures (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 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, 2017 $ 18,042 $ 23,196 Less: Treasury debt (3) - (7,500 ) Net balance September 30, 2017 $ 18,042 $ 15,696 Net balance December 31, 2016 $ 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, 2017
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, 2017 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 747 20,440 Less: preferred stock dividends (100 ) - Net income applicable to common shareholders $ 647 20,440 $ .03 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 $ - Nine Months Ended September 30, 2017 Income Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 1,986 20,428 Less: preferred stock dividends (299 ) - Net income applicable to common shareholders $ 1,687 20,428 $ .08 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

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2017
Income Taxes [Abstract]
Reconciliation of income tax expense (benefit)	A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and income tax expense (benefit) is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Federal income tax provision at statutory rate of 35% $ 221 $ 110 $ 864 $ 717 Dividends-received deduction (23 ) (25 ) (71 ) (71 ) Small life insurance company deduction (313 ) - (343 ) - Other permanent differences 18 12 52 45 Adjustment for prior years’ estimates to actual (19 ) 71 (19 ) 71 Income tax expense (benefit) $ (116 ) $ 168 $ 483 $ 762
Components of income tax expense (benefit)	The components of income tax expense (benefit) were: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Current - Federal $ (157 ) $ 11 $ 906 $ 601 Deferred - Federal 41 157 (423 ) 161 Total $ (116 ) $ 168 $ 483 $ 762

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Information [Abstract]
Revenue and income before income taxes for each business unit	The following sets forth the revenues and income before income taxes for each business unit for the three month and nine month periods ended September 30, 2017 and 2016. Revenues Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 American Southern $ 15,047 $ 14,112 $ 43,402 $ 43,743 Bankers Fidelity 29,661 28,225 87,757 81,947 Corporate and Other 90 110 1,130 358 Total revenue $ 44,798 $ 42,447 $ 132,289 $ 126,048 Income Before Income Taxes Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 American Southern $ 1,860 $ 1,855 $ 5,941 $ 5,971 Bankers Fidelity 402 164 190 1,111 Corporate and Other (1,631 ) (1,702 ) (3,662 ) (5,032 ) Income before income taxes $ 631 $ 317 $ 2,469 $ 2,050

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 and December 31, 2016, and the changes in the balance of that component during the nine month period ended September 30, 2017, net of taxes. Unrealized Gains on Available-for- Sale Securities Balance, December 31, 2016 $ 5,830 Other comprehensive income before reclassifications 4,727 Amounts reclassified from accumulated other comprehensive income (1,832 ) Net current period other comprehensive income 2,895 Balance, September 30, 2017 $ 8,725

Basis of Presentation (Details)

Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2017Segment
Basis of Presentation [Abstract]
Number of business units	2

Investments, Aggregated by Type

Investments, Aggregated by Type and Industry (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)SecuritiesIssuer	Dec. 31, 2016USD ($)
Investments aggregated by type and industry [Abstract]
Carrying value	$ 217,999	$ 210,670
Gross unrealized gains	6,533	5,706
Gross unrealized losses	3,775	5,541
Cost or amortized cost	215,241	210,505
Carrying value	21,582	20,257
Gross unrealized gains	10,664	8,804
Gross unrealized losses	0	0
Cost or amortized cost	10,918	11,453
Other invested assets	9,167	9,709
Other invested assets, cost or amortized cost	9,167	9,709
Policy loans	2,113	2,265
Policy loans, cost or amortized cost	2,113	2,265
Real estate	38	38
Real estate, cost or amortized cost	38	38
Investment in unconsolidated trusts	1,238	1,238
Investment in unconsolidated trusts, cost or amortized cost	1,238	1,238
Total investments	252,137	244,177
Total investments, gross unrealized gains	17,197	14,510
Total investments, gross unrealized losses	3,775	5,541
Total investments, cost or amortized cost	238,715	235,208
Amortized cost of bonds on deposit with insurance regulatory authorities	$ 11,219	11,435
Number of securities in unrealized loss position | Securities	63
Oil and Gas Properties [Member]
Investments aggregated by type and industry [Abstract]
Gross unrealized losses	$ 1,006
Fixed maturity investments, number of issuers | Issuer	5
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	$ 32,426	31,102
Gross unrealized gains	189	197
Gross unrealized losses	414	553
Cost or amortized cost	32,651	31,458
Fixed Maturities - Obligations of States and Political Subdivisions [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	17,882	17,572
Gross unrealized gains	696	625
Gross unrealized losses	54	308
Cost or amortized cost	17,240	17,255
Fixed Maturities - Corporate Securities [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	167,499	161,804
Gross unrealized gains	5,648	4,884
Gross unrealized losses	3,307	4,680
Cost or amortized cost	165,158	161,600
Fixed Maturities - Utilities and Telecom [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	20,463	18,034
Gross unrealized gains	1,636	1,462
Gross unrealized losses	76	88
Cost or amortized cost	18,903	16,660
Fixed Maturities - Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	51,927	57,282
Gross unrealized gains	2,161	1,880
Gross unrealized losses	411	911
Cost or amortized cost	50,177	56,313
Fixed Maturities - Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	41,339	57,419
Gross unrealized gains	941	1,071
Gross unrealized losses	1,499	2,337
Cost or amortized cost	41,897	58,685
Fixed Maturities - Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	53,770	29,069
Gross unrealized gains	910	471
Gross unrealized losses	1,321	1,344
Cost or amortized cost	54,181	29,942
Fixed Maturities - Redeemable Preferred Stocks [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	192	192
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Cost or amortized cost	192	192
Fixed Maturities - Other Consumer Diversified [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	192	192
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Cost or amortized cost	192	192
Equity Securities - Utilities and Telecom [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	1,484	1,601
Gross unrealized gains	520	637
Gross unrealized losses	0	0
Cost or amortized cost	964	964
Equity Securities - Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	5,579	5,402
Gross unrealized gains	796	574
Gross unrealized losses	0	0
Cost or amortized cost	4,783	4,828
Equity Securities - Other Business Diversified [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	275	244
Gross unrealized gains	228	197
Gross unrealized losses	0	0
Cost or amortized cost	47	47
Equity Securities - Other Consumer Diversified [Member]
Investments aggregated by type and industry [Abstract]
Carrying value	14,244	13,010
Gross unrealized gains	9,120	7,396
Gross unrealized losses	0	0
Cost or amortized cost	$ 5,124	$ 5,614

Investments, Fixed Maturities b

Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Carrying Value [Abstract]
Due in one year or less	$ 1,415	$ 2,544
Due after one year through five years	16,612	20,278
Due after five years through ten years	104,519	90,667
Due after ten years	75,117	80,099
Varying maturities	20,336	17,082
Totals	217,999	210,670
Amortized Cost [Abstract]
Due in one year or less	1,411	2,507
Due after one year through five years	16,795	20,038
Due after five years through ten years	103,571	90,926
Due after ten years	72,923	79,627
Varying maturities	20,541	17,407
Cost or amortized cost	$ 215,241	$ 210,505

Investments, Aggregated by Indu

Investments, Aggregated by Industry (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investments aggregated by industry [Abstract]
Carrying value	$ 217,999	$ 210,670
Cost or amortized cost	215,241	210,505
Carrying value	252,137	244,177
Cost or amortized cost	238,715	235,208
Unrealized gains (losses)	13,422	8,969
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Investments aggregated by industry [Abstract]
Carrying value	32,426	31,102
Cost or amortized cost	32,651	31,458
Unrealized gains (losses)	(225)	(356)
Obligations of States and Political Subdivisions [Member]
Investments aggregated by industry [Abstract]
Carrying value	17,882	17,572
Cost or amortized cost	17,240	17,255
Unrealized gains (losses)	642	317
Utilities and Telecom [Member]
Investments aggregated by industry [Abstract]
Carrying value	21,947	19,635
Cost or amortized cost	19,867	17,624
Unrealized gains (losses)	2,080	2,011
Financial Services [Member]
Investments aggregated by industry [Abstract]
Carrying value	57,506	62,684
Cost or amortized cost	54,960	61,141
Unrealized gains (losses)	2,546	1,543
Other Business - Diversified [Member]
Investments aggregated by industry [Abstract]
Carrying value	41,614	57,663
Cost or amortized cost	41,944	58,732
Unrealized gains (losses)	(330)	(1,069)
Other Consumer - Diversified [Member]
Investments aggregated by industry [Abstract]
Carrying value	68,206	42,271
Cost or amortized cost	59,497	35,748
Unrealized gains (losses)	8,709	6,523
Other Investment [Member]
Investments aggregated by industry [Abstract]
Carrying value	12,556	13,250
Cost or amortized cost	12,556	13,250
Unrealized gains (losses)	$ 0	$ 0

Investments, Securities with Co

Investments, Securities with Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 49,234	$ 91,645
12 months or longer	44,198	20,587
Total	93,432	112,232
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	656	2,985
12 months or longer	3,119	2,556
Total	3,775	5,541
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	15,900	23,494
12 months or longer	9,016	0
Total	24,916	23,494
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	188	553
12 months or longer	226	0
Total	414	553
Obligations of States and Political Subdivisions [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	2,994	8,747
12 months or longer	1,978	0
Total	4,972	8,747
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	17	308
12 months or longer	37	0
Total	54	308
Corporate Securities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	30,340	59,404
12 months or longer	33,204	20,587
Total	63,544	79,991
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	451	2,124
12 months or longer	2,856	2,556
Total	$ 3,307	$ 4,680

Investments, Fair Value Measure

Investments, Fair Value Measured on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value		$ 248,465	$ 240,738
Fixed Maturities [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value		217,999	210,670
Equity Securities [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value		21,582	20,257
Cash Equivalents [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value		8,884	9,811
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		25,117	24,964
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		16,233	15,153
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		8,884	9,811
Significant Other Observable Inputs (Level 2) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value		221,997	214,510
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		216,648	209,406
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]	5,349	5,104
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		1,351	1,264
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]	1,351	1,264
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, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016
Assets measured at fair value on a recurring basis [Abstract]
Balance, beginning of period	$ 1,332	$ 1,302	$ 1,264	$ 2,368	$ 2,300	$ 2,237
Total realized gains included in earnings				57
Total unrealized gains (losses) included in other comprehensive income	19	30	38	(61)	68	63
Settlements				(1,000)
Balance, end of period	$ 1,351	$ 1,332	$ 1,302	$ 1,364	$ 2,368	$ 2,300

Investments, Summary of Realize

Investments, Summary of Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Summary of realized investment gains (losses) [Abstract]
Gross gains	$ 539	$ 543	$ 2,879	$ 1,497
Gross losses	0	(16)	(61)	(86)
Realized investment gains, net	$ 539	$ 527	$ 2,818	$ 1,411

Fair Values of Financial Inst37

Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Carrying Amount [Member]
Assets [Abstract]
Fixed maturities	[1]	$ 217,999	$ 210,670
Equity securities	[1]	21,582	20,257
Carrying Amount [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents		9,473	13,252
Carrying Amount [Member] | Level 2 [Member]
Assets [Abstract]
Policy loans		2,113	2,265
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		9,167	9,709
Estimated Fair Value [Member]
Assets [Abstract]
Fixed maturities	[1]	217,999	210,670
Equity securities	[1]	21,582	20,257
Estimated Fair Value [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents		9,473	13,252
Estimated Fair Value [Member] | Level 2 [Member]
Assets [Abstract]
Policy loans		2,113	2,265
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		$ 9,167	$ 9,709
[1]	See Note 3 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.

Liabilities for Unpaid Losses38

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Roll Forward]
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross				$ 62,562
Paid related to [Abstract]
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross		$ 67,184		67,184
Reconciliation of total incurred claims to total insurance benefits and losses incurred [Abstract]
Total incurred losses				83,454	$ 75,840
Cash surrender value and matured endowments				1,167	1,037
Benefit reserve changes				2,825	1,825
Total insurance benefits and losses incurred		30,417	$ 26,955	87,446	78,702
Property and Casualty Insurance Products [Member]
Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Roll Forward]
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross				49,556	51,200
Less: Reinsurance recoverable on unpaid losses				(9,806)	(11,639)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net				39,750	39,561
Incurred related to [Abstract]
Current accident year				27,359	26,534
Prior accident year development	[1]			(1,480)	(1,296)
Total incurred				25,879	25,238
Paid related to [Abstract]
Current accident year				9,858	9,799
Prior accident years				13,720	15,950
Total paid				23,578	25,749
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		42,051	39,050	42,051	39,050
Plus: Reinsurance recoverable on unpaid losses		9,455	9,234	9,455	9,234
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross		51,506	48,284	51,506	48,284
Medicare Supplement Insurance Products [Member]
Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Roll Forward]
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross				11,263	10,547
Less: Reinsurance recoverable on unpaid losses				(990)	0
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net				10,273	10,547
Incurred related to [Abstract]
Current accident year				50,733	46,295
Prior accident year development				720	(1,009)
Total incurred				51,453	45,286
Paid related to [Abstract]
Current accident year				40,801	35,986
Prior accident years				10,445	9,267
Total paid				51,246	45,253
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		10,480	10,580	10,480	10,580
Plus: Reinsurance recoverable on unpaid losses		3,640	0	3,640	0
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross		14,120	10,580	14,120	10,580
Other Life and Health Insurance Products [Member]
Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Roll Forward]
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross				1,743	2,123
Less: Reinsurance recoverable on unpaid losses				0	0
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net				1,743	2,123
Incurred related to [Abstract]
Current accident year				6,226	5,489
Prior accident year development				(104)	(173)
Total incurred				6,122	5,316
Paid related to [Abstract]
Current accident year				4,807	4,206
Prior accident years				1,500	1,494
Total paid				6,307	5,700
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		1,558	1,739	1,558	1,739
Plus: Reinsurance recoverable on unpaid losses		0	0	0	0
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross		$ 1,558	$ 1,739	$ 1,558	$ 1,739
[1]	In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. However, as a result, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.

Junior Subordinated Debenture39

Junior Subordinated Debentures (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)TrustQuarter$ / sharesshares
Debt Instrument [Line Items]
Number of Connecticut statutory business trusts | Trust	2
Financial structure of statutory business trusts [Abstract]
Net balance September 30, 2017	$ 33,738
Net balance December 31, 2016	$ 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, 2017	18,042	[1],[2]
Less: Treasury debt	0	[1],[2],[3]
Net balance September 30, 2017	18,042	[1],[2]
Net balance December 31, 2016	$ 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, 2017	23,196	[1],[2]
Less: Treasury debt	(7,500)	[1],[2],[3]
Net balance September 30, 2017	15,696	[1],[2]
Net balance December 31, 2016	$ 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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income [Abstract]
Net income	$ 747	$ 149	$ 1,986	$ 1,288
Less: preferred stock dividends	(100)	(100)	(299)	(299)
Net income applicable to common shareholders	$ 647	$ 49	$ 1,687	$ 989
Shares [Abstract]
Weighted average shares outstanding (in shares)	20,440	20,451	20,428	20,433
Per Share Amount [Abstract]
Net income applicable to common shareholders (in dollars per share)	$ 0.03	$ 0	$ 0.08	$ 0.05

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reconciliation of income tax expense (benefit) [Abstract]
Federal income tax provision at statutory rate of 35%	$ 221	$ 110	$ 864	$ 717
Dividends-received deduction	(23)	(25)	(71)	(71)
Small life insurance company deduction	(313)	0	(343)	0
Other permanent differences	18	12	52	45
Adjustment for prior years' estimates to actual	(19)	71	(19)	71
Income tax expense (benefit)	(116)	168	$ 483	762
Federal statutory income tax rate			35.00%
Components of income tax expense (benefit) [Abstract]
Current - Federal	(157)	11	$ 906	601
Deferred - Federal	41	157	(423)	161
Income tax expense (benefit)	(116)	$ 168	$ 483	$ 762
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

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)Segment	Sep. 30, 2016USD ($)
Segment Information [Abstract]
Number of business units | Segment			2
Revenue and income before income taxes for each business unit [Abstract]
Total revenue	$ 44,798	$ 42,447	$ 132,289	$ 126,048
Income before income taxes	631	317	2,469	2,050
Operating Segments [Member] | American Southern [Member]
Revenue and income before income taxes for each business unit [Abstract]
Total revenue	15,047	14,112	43,402	43,743
Income before income taxes	1,860	1,855	5,941	5,971
Operating Segments [Member] | Bankers Fidelity [Member]
Revenue and income before income taxes for each business unit [Abstract]
Total revenue	29,661	28,225	87,757	81,947
Income before income taxes	402	164	190	1,111
Corporate and Other [Member]
Revenue and income before income taxes for each business unit [Abstract]
Total revenue	90	110	1,130	358
Income before income taxes	$ (1,631)	$ (1,702)	$ (3,662)	$ (5,032)

Accumulated Other Comprehensi43

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward]
Beginning Balance			$ 105,506	$ 102,492
Total other comprehensive income, net of tax	$ 1,504	$ 855	2,895	5,943
Ending Balance	109,520	108,951	109,520	108,951
AOCI Attributable to Parent [Member]
Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward]
Beginning Balance			5,830	4,584
Total other comprehensive income, net of tax			2,895	5,943
Ending Balance	8,725	$ 10,527	8,725	$ 10,527
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			5,830
Other comprehensive income before reclassifications			4,727
Amounts reclassified from accumulated other comprehensive income			(1,832)
Total other comprehensive income, net of tax			2,895
Ending Balance	$ 8,725		$ 8,725

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Members of Management [Member]
Related Party Transaction [Line Items]
Premiums paid by Gray for group accident plan	$ 448