Atlantic American (AAME) 10-Q 10 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 22, 2020
Cover [Abstract]
Entity Registrant Name	ATLANTIC AMERICAN CORP
Entity Central Index Key	0000008177
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		20,414,279
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Address, State or Province	GA

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 8,940	$ 12,893
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost: $222,969 and $219,233)	247,997	232,472
Equity securities, at fair value (cost: $6,400 and $7,168)	14,323	22,922
Other invested assets (cost: $9,908 and $9,908)	9,097	9,960
Policy loans	1,964	2,007
Real estate	38	38
Investment in unconsolidated trusts	1,238	1,238
Total investments	274,657	268,637
Receivables:
Reinsurance	29,961	32,135
Insurance premiums and other (net of allowance for doubtful accounts: $198 and $183)	20,039	13,134
Deferred income taxes, net	679	314
Deferred acquisition costs	39,769	38,861
Other assets	8,363	9,108
Intangibles	2,544	2,544
Total assets	384,952	377,626
LIABILITIES AND SHAREHOLDERS' EQUITY
Future policy benefits	91,694	92,490
Unearned premiums	30,198	26,035
Losses and claims	78,157	81,448
Other policy liabilities	1,015	1,933
Total insurance reserves and policyholder funds	201,064	201,906
Accounts payable and accrued expenses	22,135	23,588
Junior subordinated debenture obligations, net	33,738	33,738
Total liabilities	256,937	259,232
Commitments and contingencies (Note 10)
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: 20,414,279 and 20,472,162	22,401	22,401
Additional paid-in capital	57,436	57,820
Retained earnings	36,042	36,020
Accumulated other comprehensive income	19,772	10,459
Unearned stock grant compensation	(350)	(781)
Treasury stock, at cost: 1,986,615 and 1,928,732 shares	(7,341)	(7,580)
Total shareholders' equity	128,015	118,394
Total liabilities and shareholders' equity	$ 384,952	$ 377,626

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investments:
Fixed maturities, cost	$ 222,969	$ 219,233
Equity securities, cost	6,400	7,168
Other invested assets, cost	9,908	9,908
Receivables:
Insurance premiums and other, allowance for doubtful accounts	$ 198	$ 183
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)	20,414,279	20,472,162
Treasury stock, at cost (in shares)	1,986,615	1,928,732

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue:
Insurance premiums, net	$ 44,978	$ 45,005	$ 137,027	$ 135,256
Net investment income	1,828	2,187	5,717	6,834
Realized investment gains (losses), net	183	(430)	432	1,565
Unrealized gains (losses) on equity securities, net	(731)	944	(7,831)	2,096
Other income	11	39	71	139
Total revenue	46,269	47,745	135,416	145,890
Benefits and expenses:
Insurance benefits and losses incurred	29,219	34,719	89,878	104,177
Commissions and underwriting expenses	11,202	11,471	34,682	33,995
Interest expense	363	533	1,253	1,624
Other expense	3,052	2,766	9,116	8,142
Total benefits and expenses	43,836	49,489	134,929	147,938
Income (loss) before income taxes	2,433	(1,744)	487	(2,048)
Income tax expense (benefit)	557	(352)	166	(392)
Net income (loss)	1,876	(1,392)	321	(1,656)
Preferred stock dividends	(100)	(100)	(299)	(299)
Net income (loss) applicable to common shareholders	$ 1,776	$ (1,492)	$ 22	$ (1,955)
Earnings (loss) per common share (basic) (in dollars per share)	$ 0.09	$ (0.07)	$ 0	$ (0.10)
Earnings (loss) per common share (diluted) (in dollars per share)	$ 0.09	$ (0.07)	$ 0	$ (0.10)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income (loss)	$ 1,876	$ (1,392)	$ 321	$ (1,656)
Available-for-sale fixed maturity securities:
Gross unrealized holding gain arising in the period	3,016	5,871	12,133	22,275
Related income tax effect	(633)	(1,232)	(2,548)	(4,677)
Subtotal	2,383	4,639	9,585	17,598
Less: reclassification adjustment for net realized gains (losses) included in net income (loss)	(95)	538	(344)	(344)
Related income tax effect	20	(113)	72	72
Subtotal	(75)	425	(272)	(272)
Total other comprehensive income, net of tax	2,308	5,064	9,313	17,326
Total comprehensive income	$ 4,184	$ 3,672	$ 9,634	$ 15,670

CONDENSED CONSOLIDATED STATEM_3

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 (Loss) [Member]	Unearned Stock Grant Compensation [Member]	Treasury Stock [Member]	Total
Balance, beginning of period at Dec. 31, 2018	$ 55	$ 22,401	$ 57,414	$ 37,208	$ (7,535)	$ (186)	$ (7,985)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(1,656)				$ (1,656)
Other comprehensive income, net of tax					17,326			17,326
Dividends on common stock				(403)
Dividends accrued on preferred stock				(299)
Restricted stock grants, net of forfeitures			396			(948)	552
Amortization of unearned compensation						191
Purchase of shares for treasury							(71)
Net shares acquired related to employee share-based compensation plans							(72)
Issuance of shares under stock plans			9				14
Balance, end of period at Sep. 30, 2019	55	22,401	57,819	34,850	9,791	(943)	(7,562)	$ 116,411
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock (in dollars per share)								$ (0.02)
Balance, beginning of period at Jun. 30, 2019	55	22,401	57,444	36,342	4,727	(150)	(8,049)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(1,392)				$ (1,392)
Other comprehensive income, net of tax					5,064			5,064
Dividends on common stock				0
Dividends accrued on preferred stock				(100)
Restricted stock grants, net of forfeitures			372			(877)	505
Amortization of unearned compensation						84
Purchase of shares for treasury							0
Net shares acquired related to employee share-based compensation plans							(23)
Issuance of shares under stock plans			3				5
Balance, end of period at Sep. 30, 2019	55	22,401	57,819	34,850	9,791	(943)	(7,562)	$ 116,411
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock (in dollars per share)								$ 0
Balance, beginning of period at Dec. 31, 2019	55	22,401	57,820	36,020	10,459	(781)	(7,580)	$ 118,394
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				321				321
Other comprehensive income, net of tax					9,313			9,313
Dividends on common stock				0
Dividends accrued on preferred stock				(299)
Restricted stock grants, net of forfeitures			(377)			61	316
Amortization of unearned compensation						370
Purchase of shares for treasury							0
Net shares acquired related to employee share-based compensation plans							(91)
Issuance of shares under stock plans			(7)				14
Balance, end of period at Sep. 30, 2020	55	22,401	57,436	36,042	19,772	(350)	(7,341)	$ 128,015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock (in dollars per share)								$ 0
Balance, beginning of period at Jun. 30, 2020	55	22,401	57,435	34,266	17,464	(466)	(7,261)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				1,876				$ 1,876
Other comprehensive income, net of tax					2,308			2,308
Dividends on common stock				0
Dividends accrued on preferred stock				(100)
Restricted stock grants, net of forfeitures			0			0	0
Amortization of unearned compensation						116
Purchase of shares for treasury							0
Net shares acquired related to employee share-based compensation plans							(81)
Issuance of shares under stock plans			1				1
Balance, end of period at Sep. 30, 2020	$ 55	$ 22,401	$ 57,436	$ 36,042	$ 19,772	$ (350)	$ (7,341)	$ 128,015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock (in dollars per share)								$ 0

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury shares purchased (in shares)	0	26,210

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 321	$ (1,656)
Adjustments to reconcile income (loss) to net cash used in operating activities:
Additions to acquisition costs, net	(908)	(1,707)
Realized investment gains, net	(432)	(1,565)
Unrealized losses (gains) on equity securities, net	7,831	(2,096)
Distributions received from equity method investees	0	379
Compensation expense related to share awards	370	191
Depreciation and amortization	772	588
Deferred income tax benefit	(2,841)	(596)
Increase in receivables, net	(4,731)	(7,917)
(Decrease) increase in insurance reserves and policyholder funds	(842)	9,276
(Decrease) increase in accounts payable and accrued expenses	(1,752)	3,271
Other, net	1,308	(5,738)
Net cash used in operating activities	(904)	(7,570)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold	8,916	119,929
Proceeds from investments matured, called or redeemed	5,584	5,907
Investments purchased	(17,277)	(94,316)
Additions to property and equipment	(188)	(44)
Net cash (used in) provided by investing activities	(2,965)	31,476
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends on common stock	0	(403)
Proceeds from shares issued under stock plans	7	23
Treasury stock acquired - share repurchase authorization	0	(71)
Treasury stock acquired - net employee share-based compensation	(91)	(72)
Net cash used in financing activities	(84)	(523)
Net (decrease) increase in cash and cash equivalents	(3,953)	23,383
Cash and cash equivalents at beginning of period	12,893	12,630
Cash and cash equivalents at end of period	8,940	36,013
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	1,309	1,644
Cash paid for income taxes	$ 3,310	$ 1,625

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2020
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, 2019 (the “2019 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, 2020 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, 2020 or for any other future period. The Company’s significant accounting policies have not changed materially from those set out in the 2019 Annual Report, except as noted below for the adoption of new accounting standards. 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. On March 11, 2020, the World Health Organization declared the Novel Coronavirus (“COVID-19”) outbreak a global pandemic. The impact of COVID-19 and related actions to attempt to control its spread began to impact the Company’s business operations in March 2020, and we expect that the pandemic, actions that have been or will be taken in response to it and its overall impact on the economy, will continue to have an effect on our business operations and our operating results. The Company’s insurance subsidiaries may experience difficulties collecting premiums from some policyholders, and policyholders with financial difficulties may decide not to renew insurance policies with the Company. Although it cannot be predicted with certainty at this time, the Company’s insurance subsidiaries do not expect a direct material impact from the outbreak of COVID-19 in terms of increased claims and losses, but that may change as more information becomes available. In addition, economic uncertainty related to COVID-19 has led to, and may continue to create, increased volatility in the investment markets. The impact of COVID-19 on the economy and on the Company continues to evolve and its future effects are uncertain. The Company continues to monitor the effects and risks of COVID-19 to assess its impact on the Company’s business, financial condition, results of operations, liquidity and capital position. On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which is intended to provide fast and direct economic assistance for American workers and families, small businesses, and to preserve jobs in American industries. The CARES Act includes, among other things, provisions relating to payroll tax credits and deferrals, net operating loss carryback periods, alternative minimum tax credits and technical corrections to tax depreciation methods for qualified improvement property. The Company does not qualify as a small business under the CARES Act and therefore did not apply for any of the government loan programs; however, the Company intends to monitor and assess the availability of resources and other benefits that might be available to the Company under the CARES Act and through other programs.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2020
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 2 . Recently Issued Accounting Standards Adoption of New Accounting Standards Fair Value Measurement – Changes to the Disclosure Requirements for Fair Value Measurement. Goodwill. Future Adoption of New Accounting Standards Reference Rate Reform Investments – Equity Securities. For more information regarding other accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2019 Annual Report.

Investments

Investments	9 Months Ended
	Sep. 30, 2020
Investments [Abstract]
Investments	Note 3. Investments The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of September 30, 2020 and December 31, 2019. Fixed maturities were comprised of the following: September 30, 2020 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 21,039 $ 1,598 $ 21 $ 19,462 Obligations of states and political subdivisions 11,752 845 — 10,907 Corporate securities: Utilities and telecom 31,491 4,404 14 27,101 Financial services 77,366 7,573 149 69,942 Other business – diversified 45,067 4,030 960 41,997 Other consumer – diversified 61,032 7,903 239 53,368 Total corporate securities 214,956 23,910 1,362 192,408 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 247,997 $ 26,411 $ 1,383 $ 222,969 December 31, 2019 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 20,259 $ 467 $ 53 $ 19,845 Obligations of states and political subdivisions 11,940 371 53 11,622 Corporate securities: Utilities and telecom 26,648 2,404 32 24,276 Financial services 73,917 4,249 57 69,725 Other business – diversified 41,706 2,335 98 39,469 Other consumer – diversified 57,752 3,702 54 54,104 Total corporate securities 200,023 12,690 241 187,574 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 232,472 $ 13,586 $ 347 $ 219,233 Bonds having an amortized cost of $10,444 and $10,669 and included in the tables above were on deposit with insurance regulatory authorities as of September 30, 2020 and December 31, 2019, respectively, in accordance with statutory requirements. Equity securities were comprised of the following: September 30, 2020 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 2,080 $ 316 $ 3 $ 1,767 Other business – diversified 12,243 7,610 — 4,633 Total equity securities $ 14,323 $ 7,926 $ 3 $ 6,400 December 31, 2019 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 3,159 624 — 2,535 Other business – diversified 19,763 15,130 — 4,633 Total equity securities $ 22,922 $ 15,754 $ — $ 7,168 The carrying value and amortized cost of the Company’s investments in fixed maturities at September 30, 2020 and December 31, 2019 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, 2020 December 31, 2019 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 1,040 $ 1,019 $ — $ — Due after one year through five years 20,424 19,301 14,664 14,280 Due after five years through ten years 94,670 86,920 77,934 73,521 Due after ten years 122,558 106,788 130,680 122,321 Asset backed securities 9,305 8,941 9,194 9,111 Totals $ 247,997 $ 222,969 $ 232,472 $ 219,233 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, 2020 and December 31, 2019. September 30, 2020 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 $ 2,053 $ 21 $ — $ — $ 2,053 $ 21 Corporate securities 19,743 1,362 — — 19,743 1,362 Total temporarily impaired securities $ 21,796 $ 1,383 $ — $ — $ 21,796 $ 1,383 December 31, 2019 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 $ 3,432 $ 22 $ 3,533 $ 31 $ 6,965 $ 53 Obligations of states and political subdivisions 3,106 53 — — 3,106 53 Corporate securities 23,245 145 2,504 96 25,749 241 Total temporarily impaired securities $ 29,783 $ 220 $ 6,037 $ 127 $ 35,820 $ 347 The evaluation for an other than temporary impairment (“OTTI”) 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. There were no OTTI charges recorded during the three month and nine month periods ended September 30, 2020 and 2019. As of September 30, 2020 and December 31, 2019, there were twenty and thirty securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the financial services, other diversified business and other diversified consumer sectors. The decrease in the number of securities in an unrealized loss position during the nine month period ended September 30, 2020, was primarily attributable to improvement in market values in certain of the Company’s fixed maturity securities as a result of a declining interest rate environment. 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, 2020. The following tables summarize realized investment gains (losses) for the three month and nine month periods ended September 30, 2020 and 2019. Three Months Ended September 30, 2020 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 95 $ 88 $ — $ 183 Losses — — — — Realized investment gains, net $ 95 $ 88 $ — $ 183 Three Months Ended September 30, 2019 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 1,112 $ 108 $ — $ 1,220 Losses (1,650 ) — — (1,650 ) Realized investment gains (losses), net $ (538 ) $ 108 $ — $ (430 ) Nine Months Ended September 30, 2020 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 344 $ 88 $ — $ 432 Losses — — — — Realized investment gains, net $ 344 $ 88 $ — $ 432 Nine Months Ended September 30, 2019 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 1,994 $ 1,221 $ — $ 3,215 Losses (1,650 ) — — (1,650 ) Realized investment gains, net $ 344 $ 1,221 $ — $ 1,565 The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month and nine month periods ended September 30, 2020 and 2019. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net realized and unrealized gains (losses) recognized during the period on equity securities $ (643 ) $ 1,052 $ (7,743 ) $ 3,317 Less: Net realized gains (losses) recognized during the period on equity securities sold during the period 88 108 88 1,221 Unrealized gains (losses) recognized during the reporting period on equity securities, net $ (731 ) $ 944 $ (7,831 ) $ 2,096 Variable Interest Entities The Company holds passive interests in a number of entities that are considered to be variable interest entities (“VIEs”) under GAAP guidance. The Company’s VIE interests principally consist of interests in limited partnerships and limited liability companies formed for the purpose of achieving diversified equity returns. The Company’s VIE interests, carried as a part of other invested assets, totaled $9,097 and $9,960 as of September 30, 2020 and December 31, 2019, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of September 30, 2020 and December 31, 2019. The Company does not have power over the activities that most significantly impact the economic performance of these VIEs and thus is not the primary beneficiary. Therefore, the Company has not consolidated these VIEs. The Company’s involvement with each VIE is limited to its direct ownership interest in the VIE. The Company has no arrangements with any of the VIEs to provide other financial support to or on behalf of the VIE. The Company’s maximum loss exposure relative to these investments was limited to the carrying value of the Company’s investment in the VIEs, which amount to $10,335 and $11,198, as of September 30, 2020 and December 31, 2019, respectively. As of September 30, 2020 and December 31, 2019, the Company had outstanding commitments totaling $1,997, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.

Fair Values of Financial Instru

Fair Values of Financial Instruments	9 Months Ended
	Sep. 30, 2020
Fair Values of Financial Instruments [Abstract]
Fair Values of Financial Instruments	Note 4. Fair Values of Financial Instruments The estimated fair values have been determined by the Company using available market information from various market sources and appropriate valuation methodologies as of the respective dates. However, considerable judgment is necessary to interpret market data and to develop the estimates of fair value. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, the estimates presented herein are not necessarily indicative of the amounts which the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The following describes the fair value hierarchy and provides information as to the extent to which the Company uses fair value to measure the value of its financial instruments and information about the inputs used to value those financial instruments. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three broad levels. Level 1 Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. The Company’s financial instruments valued using Level 1 criteria include cash equivalents and exchange traded common stocks. Level 2 Observable inputs, other than quoted prices included in Level 1, for an asset or liability or prices for similar assets or liabilities. The Company’s financial instruments valued using Level 2 criteria include significantly most of its fixed maturities, which consist of U.S. Treasury securities, U.S. Government securities, obligations of states and political subdivisions, and certain corporate fixed maturities, as well as its non-redeemable preferred stocks. In determining fair value measurements of its fixed maturities and non-redeemable preferred stocks using Level 2 criteria, the Company utilizes data from outside sources, including nationally recognized pricing services and broker/dealers. Prices for the majority of the Company’s Level 2 fixed maturities and non-redeemable preferred stocks were determined using unadjusted prices received from pricing services that utilize models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data. Level 3 Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Fair value is based on criteria that use assumptions or other data that are not readily observable from objective sources. With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. As of September 30, 2020, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Fixed maturities $ — $ 247,997 $ — $ 247,997 Equity securities 14,180 — 143 14,323 Cash equivalents 7,769 — — 7,769 Total $ 21,949 $ 247,997 $ 143 $ 270,089 As of December 31, 2019, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Fixed maturities $ — $ 232,472 $ — $ 232,472 Equity securities 22,922 — — 22,922 Cash equivalents 7,173 — — 7,173 Total $ 30,095 $ 232,472 $ — $ 262,567 The Company does not have any fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of September 30, 2020 and December 31, 2019. 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, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 Level in Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 8,940 $ 8,940 $ 12,893 $ 12,893 Fixed maturities (1) 247,997 247,997 232,472 232,472 Equity securities (1) 14,323 14,323 22,922 22,922 Other invested assets Level 3 9,097 9,097 9,960 9,960 Policy loans Level 2 1,964 1,964 2,007 2,007 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 31,901 33,738 35,977 (1) See the aforementioned information for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.

Liabilities for Unpaid Losses,

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses	9 Months Ended
	Sep. 30, 2020
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 for the nine months ended September 30, 2020 and 2019 is as follows: Nine Months Ended September 30, 2020 2019 Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 81,448 $ 72,612 Less: Reinsurance recoverable on unpaid losses (18,339 ) (14,354 ) Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net 63,109 58,258 Incurred related to: Current accident year 91,788 103,017 Prior accident year development (1) (2,740 ) (2) (629 ) Total incurred 89,048 102,388 Paid related to: Current accident year 57,676 66,682 Prior accident years 34,435 34,314 Total paid 92,111 100,996 Ending liabilities for unpaid losses, claims and loss adjustment expenses, net 60,046 59,650 Plus: Reinsurance recoverable on unpaid losses 18,111 16,611 Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 78,157 $ 76,261 (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. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period. (2) Prior years’ development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Rate increases on existing business and the resultant improvement in rate adequacy was more favorable than expected. Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred: Nine Months Ended September 30, 2020 2019 Total incurred losses $ 89,048 $ 102,388 Cash surrender value and matured endowments 962 1,020 Benefit reserve changes (132 ) 769 Total insurance benefits and losses incurred $ 89,878 $ 104,177

Junior Subordinated Debentures

Junior Subordinated Debentures	9 Months Ended
	Sep. 30, 2020
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, 2020 was as follows: Atlantic American Statutory Trust I Atlantic American Statutory Trust II JUNIOR SUBORDINATED DEBENTURES (1) (2) Principal amount owed September 30, 2020 $ 18,042 $ 23,196 Less: Treasury debt (3) — (7,500 ) Net balance September 30, 2020 $ 18,042 $ 15,696 Net balance December 31, 2019 $ 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 (Loss) Per Common Shar

Earnings (Loss) Per Common Share	9 Months Ended
	Sep. 30, 2020
Earnings (Loss) Per Common Share [Abstract]
Earnings (Loss) Per Common Share	Note 7. Earnings (Loss) Per Common Share A reconciliation of the numerator and denominator used in the earnings (loss) per common share calculations is as follows: Three Months Ended September 30, 2020 Income Weighted Average Shares (In thousands) Per Share Amount Basic Earnings Per Common Share: Net income $ 1,876 20,438 Less preferred stock dividends (100 ) — Net income applicable to common shareholders 1,776 20,438 $ .09 Diluted Earnings Per Common Share: Effect of Series D preferred stock 100 1,378 Net income applicable to common shareholders $ 1,876 21,816 $ .09 Three Months Ended September 30, 2019 Loss Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Loss Per Common Share: Net loss $ (1,392 ) 20,250 Less preferred stock dividends (100 ) — Net loss applicable to common shareholders $ (1,492 ) 20,250 $ (.07) Nine Months Ended September 30, 2020 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Income Per Common Share: Net income $ 321 20,450 Less preferred stock dividends (299 ) — Net income applicable to common shareholders $ 22 20,450 $ — Nine Months Ended September 30, 2019 Loss Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Loss Per Common Share: Net loss $ (1,656 ) 20,185 Less preferred stock dividends (299 ) — Net loss applicable to common shareholders $ (1,955 ) 20,185 $ (.10) The assumed conversion of the Company’s Series D preferred stock was excluded from the earnings (loss) per common share calculation for all periods presented, except for the three month period ended September 30, 2020, since its impact would have been antidilutive.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
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, 2020 2019 2020 2019 Federal income tax provision at statutory rate of 21% $ 511 $ (366 ) $ 102 $ (430 ) Dividends-received deduction (3 ) (6 ) (9 ) (20 ) Other permanent differences 31 41 55 79 Adjustment for prior years’ estimates to actual 18 (21 ) 18 (21 ) Income tax expense (benefit) $ 557 $ (352 ) $ 166 $ (392 ) The components of income tax benefit were: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Current – Federal $ 705 $ (368 ) $ 3,007 $ 204 Deferred – Federal (148 ) 16 (2,841 ) (596 ) Total $ 557 $ (352 ) $ 166 $ (392 ) In addition, the Company determined there were no significant tax implications as a result of the CARES Act.

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases	Note 9. Leases The Company has identified two operating lease agreements, each for the use of office space in the ordinary course of business. The first lease renews annually on an automatic basis and based on original assumptions, management is reasonably certain to exercise the renewal option for an additional eight years from the January 1, 2019 effective date of the new lease guidance. The original term of the second lease was ten years and amended in January 2017 to provide for an additional seven years, with a termination date on September 30, 2026. The rate used in determining the present value of lease payments is based upon an estimate of the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Lease expense reported for the nine months ended September 30, 2020 and September 30, 2019 was $507. Additional information regarding the Company’s real estate operating leases is as follows: Nine Months Ended September 30, Other information on operating leases: 2020 2019 Cash payments included in the measurement of lease liabilities reported in operating cash flows $ 726 $ 632 Right-of-use assets included in other assets on the condensed consolidated balance sheet 4,997 5,631 Weighted average discount rate 6.8 % 6.8 % Weighted average remaining lease term in years 6.1 years 7.1 years The following table presents maturities and present value of the Company’s lease liabilities: Lease Liability Remainder of 2020 $ 251 2021 1,015 2022 1,031 2023 1,048 2024 1,065 Thereafter 2,025 Total undiscounted lease payments 6,435 Less: present value adjustment 1,204 Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet $ 5,231 As of September 30, 2020, the Company has no operating leases that have not yet commenced.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 10. 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, 2020
Segment Information [Abstract]
Segment Information	Note 11. Segment Information The Parent’s primary insurance subsidiaries, American Southern and Bankers Fidelity, operate in two principal business units, each focusing on specific products. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each business unit is managed independently and is evaluated on its individual performance. The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2020 and 2019. Assets September 30, 2020 December 31, 2019 American Southern $ 151,865 $ 141,524 Bankers Fidelity 221,982 224,122 Corporate and Other 11,105 11,980 Total assets $ 384,952 $ 377,626 Revenues Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 American Southern $ 15,649 $ 14,605 $ 47,772 $ 45,580 Bankers Fidelity 30,875 32,311 88,619 97,931 Corporate and Other (255 ) 829 (975 ) 2,379 Total revenue $ 46,269 $ 47,745 $ 135,416 $ 145,890 Income (Loss) Before Income Taxes Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 American Southern $ 1,857 $ 471 $ 4,822 $ 3,849 Bankers Fidelity 2,765 (1,334 ) 2,023 (3,828 ) Corporate and Other (2,189 ) (881 ) (6,358 ) (2,069 ) Income (loss) before income taxes $ 2,433 $ (1,744 ) $ 487 $ (2,048 )

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Note 12. Related Party Transactions During the nine month period ended September 30, 2019, the Company transferred its remaining fractional interest in an aircraft arrangement to Gray Television, Inc., a related party, for $151.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 13. Subsequent Events Since September 30, 2020, the COVID-19 pandemic continues to cause material disruption to financial markets and the economy. As a result of the pandemic, the Company could experience future losses in its investment portfolio as a result of the weakened and volatile markets. Additionally, the Company can experience increased risk of loss any time unforeseen infectious diseases impact large portions of a population. Specifically, the Company’s life and health business could experience significant loss due to increased claims volume arising from COVID-19. The duration and impact of the COVID-19 pandemic is unknown at this time and it is not possible to reliably estimate the impact on the financial condition, operating results or liquidity of the Company and its operating subsidiaries in future periods.

Recently Issued Accounting St_2

Recently Issued Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2020
Recently Issued Accounting Standards [Abstract]
Adoption of New Accounting Standards	Adoption of New Accounting Standards Fair Value Measurement – Changes to the Disclosure Requirements for Fair Value Measurement. Goodwill. Future Adoption of New Accounting Standards Reference Rate Reform Investments – Equity Securities. For more information regarding other accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2019 Annual Report.

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2020
Investments [Abstract]
Investments Aggregated by Type and Industry	Fixed maturities were comprised of the following: September 30, 2020 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 21,039 $ 1,598 $ 21 $ 19,462 Obligations of states and political subdivisions 11,752 845 — 10,907 Corporate securities: Utilities and telecom 31,491 4,404 14 27,101 Financial services 77,366 7,573 149 69,942 Other business – diversified 45,067 4,030 960 41,997 Other consumer – diversified 61,032 7,903 239 53,368 Total corporate securities 214,956 23,910 1,362 192,408 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 247,997 $ 26,411 $ 1,383 $ 222,969 December 31, 2019 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 20,259 $ 467 $ 53 $ 19,845 Obligations of states and political subdivisions 11,940 371 53 11,622 Corporate securities: Utilities and telecom 26,648 2,404 32 24,276 Financial services 73,917 4,249 57 69,725 Other business – diversified 41,706 2,335 98 39,469 Other consumer – diversified 57,752 3,702 54 54,104 Total corporate securities 200,023 12,690 241 187,574 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 232,472 $ 13,586 $ 347 $ 219,233 Bonds having an amortized cost of $10,444 and $10,669 and included in the tables above were on deposit with insurance regulatory authorities as of September 30, 2020 and December 31, 2019, respectively, in accordance with statutory requirements. Equity securities were comprised of the following: September 30, 2020 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 2,080 $ 316 $ 3 $ 1,767 Other business – diversified 12,243 7,610 — 4,633 Total equity securities $ 14,323 $ 7,926 $ 3 $ 6,400 December 31, 2019 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 3,159 624 — 2,535 Other business – diversified 19,763 15,130 — 4,633 Total equity securities $ 22,922 $ 15,754 $ — $ 7,168
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, 2020 and December 31, 2019 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, 2020 December 31, 2019 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 1,040 $ 1,019 $ — $ — Due after one year through five years 20,424 19,301 14,664 14,280 Due after five years through ten years 94,670 86,920 77,934 73,521 Due after ten years 122,558 106,788 130,680 122,321 Asset backed securities 9,305 8,941 9,194 9,111 Totals $ 247,997 $ 222,969 $ 232,472 $ 219,233
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, 2020 and December 31, 2019. September 30, 2020 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 $ 2,053 $ 21 $ — $ — $ 2,053 $ 21 Corporate securities 19,743 1,362 — — 19,743 1,362 Total temporarily impaired securities $ 21,796 $ 1,383 $ — $ — $ 21,796 $ 1,383 December 31, 2019 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 $ 3,432 $ 22 $ 3,533 $ 31 $ 6,965 $ 53 Obligations of states and political subdivisions 3,106 53 — — 3,106 53 Corporate securities 23,245 145 2,504 96 25,749 241 Total temporarily impaired securities $ 29,783 $ 220 $ 6,037 $ 127 $ 35,820 $ 347
Summary of Realized Investment Gains (Losses)	The following tables summarize realized investment gains (losses) for the three month and nine month periods ended September 30, 2020 and 2019. Three Months Ended September 30, 2020 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 95 $ 88 $ — $ 183 Losses — — — — Realized investment gains, net $ 95 $ 88 $ — $ 183 Three Months Ended September 30, 2019 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 1,112 $ 108 $ — $ 1,220 Losses (1,650 ) — — (1,650 ) Realized investment gains (losses), net $ (538 ) $ 108 $ — $ (430 ) Nine Months Ended September 30, 2020 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 344 $ 88 $ — $ 432 Losses — — — — Realized investment gains, net $ 344 $ 88 $ — $ 432 Nine Months Ended September 30, 2019 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 1,994 $ 1,221 $ — $ 3,215 Losses (1,650 ) — — (1,650 ) Realized investment gains, net $ 344 $ 1,221 $ — $ 1,565
Unrealized Gains (Losses) on Equity Securities	The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month and nine month periods ended September 30, 2020 and 2019. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net realized and unrealized gains (losses) recognized during the period on equity securities $ (643 ) $ 1,052 $ (7,743 ) $ 3,317 Less: Net realized gains (losses) recognized during the period on equity securities sold during the period 88 108 88 1,221 Unrealized gains (losses) recognized during the reporting period on equity securities, net $ (731 ) $ 944 $ (7,831 ) $ 2,096

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Values of Financial Instruments [Abstract]
Financial Instruments Carried at Fair Value Measured on a Recurring Basis	As of September 30, 2020, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Fixed maturities $ — $ 247,997 $ — $ 247,997 Equity securities 14,180 — 143 14,323 Cash equivalents 7,769 — — 7,769 Total $ 21,949 $ 247,997 $ 143 $ 270,089 As of December 31, 2019, financial instruments carried at fair value were measured on a recurring basis as summarized below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Fixed maturities $ — $ 232,472 $ — $ 232,472 Equity securities 22,922 — — 22,922 Cash equivalents 7,173 — — 7,173 Total $ 30,095 $ 232,472 $ — $ 262,567
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, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 Level in Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 8,940 $ 8,940 $ 12,893 $ 12,893 Fixed maturities (1) 247,997 247,997 232,472 232,472 Equity securities (1) 14,323 14,323 22,922 22,922 Other invested assets Level 3 9,097 9,097 9,960 9,960 Policy loans Level 2 1,964 1,964 2,007 2,007 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 31,901 33,738 35,977 (1) See the aforementioned information for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.

Liabilities for Unpaid Losses_2

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses (Tables)	9 Months Ended
	Sep. 30, 2020
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 for the nine months ended September 30, 2020 and 2019 is as follows: Nine Months Ended September 30, 2020 2019 Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 81,448 $ 72,612 Less: Reinsurance recoverable on unpaid losses (18,339 ) (14,354 ) Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net 63,109 58,258 Incurred related to: Current accident year 91,788 103,017 Prior accident year development (1) (2,740 ) (2) (629 ) Total incurred 89,048 102,388 Paid related to: Current accident year 57,676 66,682 Prior accident years 34,435 34,314 Total paid 92,111 100,996 Ending liabilities for unpaid losses, claims and loss adjustment expenses, net 60,046 59,650 Plus: Reinsurance recoverable on unpaid losses 18,111 16,611 Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross $ 78,157 $ 76,261 (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. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period. (2) Prior years’ development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Rate increases on existing business and the resultant improvement in rate adequacy was more favorable than expected.
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, 2020 2019 Total incurred losses $ 89,048 $ 102,388 Cash surrender value and matured endowments 962 1,020 Benefit reserve changes (132 ) 769 Total insurance benefits and losses incurred $ 89,878 $ 104,177

Junior Subordinated Debentures

Junior Subordinated Debentures (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 was as follows: Atlantic American Statutory Trust I Atlantic American Statutory Trust II JUNIOR SUBORDINATED DEBENTURES (1) (2) Principal amount owed September 30, 2020 $ 18,042 $ 23,196 Less: Treasury debt (3) — (7,500 ) Net balance September 30, 2020 $ 18,042 $ 15,696 Net balance December 31, 2019 $ 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 (Loss) Per Common Sh_2

Earnings (Loss) Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings (Loss) Per Common Share [Abstract]
Reconciliation of Numerator and Denominator used in Earnings (Loss) per Common Share Calculations	A reconciliation of the numerator and denominator used in the earnings (loss) per common share calculations is as follows: Three Months Ended September 30, 2020 Income Weighted Average Shares (In thousands) Per Share Amount Basic Earnings Per Common Share: Net income $ 1,876 20,438 Less preferred stock dividends (100 ) — Net income applicable to common shareholders 1,776 20,438 $ .09 Diluted Earnings Per Common Share: Effect of Series D preferred stock 100 1,378 Net income applicable to common shareholders $ 1,876 21,816 $ .09 Three Months Ended September 30, 2019 Loss Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Loss Per Common Share: Net loss $ (1,392 ) 20,250 Less preferred stock dividends (100 ) — Net loss applicable to common shareholders $ (1,492 ) 20,250 $ (.07) Nine Months Ended September 30, 2020 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Income Per Common Share: Net income $ 321 20,450 Less preferred stock dividends (299 ) — Net income applicable to common shareholders $ 22 20,450 $ — Nine Months Ended September 30, 2019 Loss Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Loss Per Common Share: Net loss $ (1,656 ) 20,185 Less preferred stock dividends (299 ) — Net loss applicable to common shareholders $ (1,955 ) 20,185 $ (.10)

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 2019 2020 2019 Federal income tax provision at statutory rate of 21% $ 511 $ (366 ) $ 102 $ (430 ) Dividends-received deduction (3 ) (6 ) (9 ) (20 ) Other permanent differences 31 41 55 79 Adjustment for prior years’ estimates to actual 18 (21 ) 18 (21 ) Income tax expense (benefit) $ 557 $ (352 ) $ 166 $ (392 )
Components of Income Tax Expense	The components of income tax benefit were: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Current – Federal $ 705 $ (368 ) $ 3,007 $ 204 Deferred – Federal (148 ) 16 (2,841 ) (596 ) Total $ 557 $ (352 ) $ 166 $ (392 )

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Additional Information of Operating Leases	Additional information regarding the Company’s real estate operating leases is as follows: Nine Months Ended September 30, Other information on operating leases: 2020 2019 Cash payments included in the measurement of lease liabilities reported in operating cash flows $ 726 $ 632 Right-of-use assets included in other assets on the condensed consolidated balance sheet 4,997 5,631 Weighted average discount rate 6.8 % 6.8 % Weighted average remaining lease term in years 6.1 years 7.1 years
Maturities and Present Value of Lease Liabilities	The following table presents maturities and present value of the Company’s lease liabilities: Lease Liability Remainder of 2020 $ 251 2021 1,015 2022 1,031 2023 1,048 2024 1,065 Thereafter 2,025 Total undiscounted lease payments 6,435 Less: present value adjustment 1,204 Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet $ 5,231

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2020
Segment Information [Abstract]
Assets, Revenue and Income (Loss) Before Income Taxes for Each Business Unit	The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2020 and 2019. Assets September 30, 2020 December 31, 2019 American Southern $ 151,865 $ 141,524 Bankers Fidelity 221,982 224,122 Corporate and Other 11,105 11,980 Total assets $ 384,952 $ 377,626 Revenues Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 American Southern $ 15,649 $ 14,605 $ 47,772 $ 45,580 Bankers Fidelity 30,875 32,311 88,619 97,931 Corporate and Other (255 ) 829 (975 ) 2,379 Total revenue $ 46,269 $ 47,745 $ 135,416 $ 145,890 Income (Loss) Before Income Taxes Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 American Southern $ 1,857 $ 471 $ 4,822 $ 3,849 Bankers Fidelity 2,765 (1,334 ) 2,023 (3,828 ) Corporate and Other (2,189 ) (881 ) (6,358 ) (2,069 ) Income (loss) before income taxes $ 2,433 $ (1,744 ) $ 487 $ (2,048 )

Basis of Presentation (Details)

Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2020Segment
Basis of Presentation [Abstract]
Number of business units	2

Investments, Aggregated by Type

Investments, Aggregated by Type and Industry (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investments aggregated by type and industry [Abstract]
Estimated fair value	$ 247,997	$ 232,472
Gross unrealized gains	26,411	13,586
Gross unrealized losses	1,383	347
Amortized cost	222,969	219,233
Estimated fair value	14,323	22,922
Gross unrealized gains	7,926	15,754
Gross unrealized losses	3	0
Cost	6,400	7,168
Amortized cost of bonds on deposit with insurance regulatory authorities	10,444	10,669
Fixed Maturities [Member] | U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	21,039	20,259
Gross unrealized gains	1,598	467
Gross unrealized losses	21	53
Amortized cost	19,462	19,845
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	11,752	11,940
Gross unrealized gains	845	371
Gross unrealized losses	0	53
Amortized cost	10,907	11,622
Fixed Maturities [Member] | Corporate Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	214,956	200,023
Gross unrealized gains	23,910	12,690
Gross unrealized losses	1,362	241
Amortized cost	192,408	187,574
Fixed Maturities [Member] | Corporate Securities [Member] | Utilities and Telecom [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	31,491	26,648
Gross unrealized gains	4,404	2,404
Gross unrealized losses	14	32
Amortized cost	27,101	24,276
Fixed Maturities [Member] | Corporate Securities [Member] | Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	77,366	73,917
Gross unrealized gains	7,573	4,249
Gross unrealized losses	149	57
Amortized cost	69,942	69,725
Fixed Maturities [Member] | Corporate Securities [Member] | Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	45,067	41,706
Gross unrealized gains	4,030	2,335
Gross unrealized losses	960	98
Amortized cost	41,997	39,469
Fixed Maturities [Member] | Corporate Securities [Member] | Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	61,032	57,752
Gross unrealized gains	7,903	3,702
Gross unrealized losses	239	54
Amortized cost	53,368	54,104
Fixed Maturities [Member] | Redeemable Preferred Stocks [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	250	250
Gross unrealized gains	58	58
Gross unrealized losses	0	0
Amortized cost	192	192
Fixed Maturities [Member] | Redeemable Preferred Stocks [Member] | Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	250	250
Gross unrealized gains	58	58
Gross unrealized losses	0	0
Amortized cost	192	192
Equity Securities [Member] | Common and Non-redeemable Preferred Stocks [Member] | Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	2,080	3,159
Gross unrealized gains	316	624
Gross unrealized losses	3	0
Cost	1,767	2,535
Equity Securities [Member] | Common and Non-redeemable Preferred Stocks [Member] | Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	12,243	19,763
Gross unrealized gains	7,610	15,130
Gross unrealized losses	0	0
Cost	$ 4,633	$ 4,633

Investments, Fixed Maturities b

Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Carrying Value [Abstract]
Due in one year or less	$ 1,040	$ 0
Due after one year through five years	20,424	14,664
Due after five years through ten years	94,670	77,934
Due after ten years	122,558	130,680
Asset backed securities	9,305	9,194
Totals	247,997	232,472
Amortized Cost [Abstract]
Due in one year or less	1,019	0
Due after one year through five years	19,301	14,280
Due after five years through ten years	86,920	73,521
Due after ten years	106,788	122,321
Asset backed securities	8,941	9,111
Amortized cost	$ 222,969	$ 219,233

Investments, Securities with Co

Investments, Securities with Continuous Unrealized Loss Position (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)Securities	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Securities	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)Securities
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 21,796		$ 21,796		$ 29,783
12 months or longer	0		0		6,037
Total	21,796		21,796		35,820
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	1,383		1,383		220
12 months or longer	0		0		127
Total	1,383		1,383		$ 347
Gross OTTI losses charged to realized gains	$ 0	$ 0	$ 0	$ 0
Number of securities in unrealized loss position | Securities	20		20		30
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	$ 2,053		$ 2,053		$ 3,432
12 months or longer	0		0		3,533
Total	2,053		2,053		6,965
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	21		21		22
12 months or longer	0		0		31
Total	21		21		53
Obligations of States and Political Subdivisions [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months					3,106
12 months or longer					0
Total					3,106
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months					53
12 months or longer					0
Total					53
Corporate Securities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	19,743		19,743		23,245
12 months or longer	0		0		2,504
Total	19,743		19,743		25,749
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	1,362		1,362		145
12 months or longer	0		0		96
Total	$ 1,362		$ 1,362		$ 241

Investments, Summary of Realize

Investments, Summary of Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Summary of realized investment gains (losses) [Abstract]
Gains	$ 183	$ 1,220	$ 432	$ 3,215
Losses	0	(1,650)	0	(1,650)
Realized investment gains (losses), net	183	(430)	432	1,565
Fixed Maturities [Member]
Summary of realized investment gains (losses) [Abstract]
Gains	95	1,112	344	1,994
Losses	0	(1,650)	0	(1,650)
Realized investment gains (losses), net	95	(538)	344	344
Equity Securities [Member]
Summary of realized investment gains (losses) [Abstract]
Gains	88	108	88	1,221
Losses	0	0	0	0
Realized investment gains (losses), net	88	108	88	1,221
Other Invested Assets [Member]
Summary of realized investment gains (losses) [Abstract]
Gains	0	0	0	0
Losses	0	0	0	0
Realized investment gains (losses), net	$ 0	$ 0	$ 0	$ 0

Investments, Unrealized Gains (

Investments, Unrealized Gains (Losses) on Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Investments [Abstract]
Net realized and unrealized gains (losses) recognized during the period on equity securities	$ (643)	$ 1,052	$ (7,743)	$ 3,317
Less: Net realized gains (losses) recognized during the period on equity securities sold during the period	88	108	88	1,221
Unrealized gains (losses) recognized during the reporting period on equity securities, net	$ (731)	$ 944	$ (7,831)	$ 2,096

Investments, Variable Interest

Investments, Variable Interest Entities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Variable Interest Entities [Abstract]
Carrying amount of interest	$ 9,097	$ 9,960
Investment in unconsolidated trusts	1,238	1,238
VIE, Not Primary Beneficiary [Member]
Variable Interest Entities [Abstract]
Carrying amount of interest	9,097	9,960
Investment in unconsolidated trusts	1,238	1,238
Maximum loss exposure	10,335	11,198
Outstanding commitments	$ 1,997	$ 1,997

Fair Values of Financial Inst_3

Fair Values of Financial Instruments, Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	$ 247,997	$ 232,472
Equity securities	14,323	22,922
Recurring [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	247,997	232,472
Equity securities	14,323	22,922
Cash equivalents	7,769	7,173
Assets at fair value	270,089	262,567
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	0	0
Equity securities	14,180	22,922
Cash equivalents	7,769	7,173
Assets at fair value	21,949	30,095
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	247,997	232,472
Equity securities	0	0
Cash equivalents	0	0
Assets at fair value	247,997	232,472
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	0	0
Equity securities	143	0
Cash equivalents	0	0
Assets at fair value	$ 143	$ 0

Fair Values of Financial Inst_4

Fair Values of Financial Instruments, Estimated Fair Value and Level (Details) - USD ($) $ in Thousands		Sep. 30, 2020	Dec. 31, 2019
Assets [Abstract]
Fixed maturities		$ 247,997	$ 232,472
Equity securities		14,323	22,922
Carrying Amount [Member]
Assets [Abstract]
Fixed maturities	[1]	247,997	232,472
Equity securities	[1]	14,323	22,922
Carrying Amount [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents		8,940	12,893
Carrying Amount [Member] | Level 2 [Member]
Assets [Abstract]
Policy loans		1,964	2,007
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		9,097	9,960
Estimated Fair Value [Member]
Assets [Abstract]
Fixed maturities	[1]	247,997	232,472
Equity securities	[1]	14,323	22,922
Estimated Fair Value [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents		8,940	12,893
Estimated Fair Value [Member] | Level 2 [Member]
Assets [Abstract]
Policy loans		1,964	2,007
Real estate		38	38
Investment in unconsolidated trusts		1,238	1,238
Liabilities [Abstract]
Junior subordinated debentures, net		31,901	35,977
Estimated Fair Value [Member] | Level 3 [Member]
Assets [Abstract]
Other invested assets		$ 9,097	$ 9,960
[1]	See the aforementioned information for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.

Liabilities for Unpaid Losses_3

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020		Sep. 30, 2019
Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Roll Forward]
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross				$ 81,448		$ 72,612
Less: Reinsurance recoverable on unpaid losses				(18,339)		(14,354)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net				63,109		58,258
Incurred related to [Abstract]
Current accident year				91,788		103,017
Prior accident year development	[1]			(2,740)	[2]	(629)
Total incurred				89,048		102,388
Paid related to [Abstract]
Current accident year				57,676		66,682
Prior accident years				34,435		34,314
Total paid				92,111		100,996
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		$ 60,046	$ 59,650	60,046		59,650
Plus: Reinsurance recoverable on unpaid losses		18,111	16,611	18,111		16,611
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross		78,157	76,261	78,157		76,261
Reconciliation of total incurred claims to total insurance benefits and losses incurred [Abstract]
Total incurred losses				89,048		102,388
Cash surrender value and matured endowments				962		1,020
Benefit reserve changes				(132)		769
Total insurance benefits and losses incurred		$ 29,219	$ 34,719	$ 89,878		$ 104,177
[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. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.
[2]	Prior years' development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Rate increases on existing business and the resultant improvement in rate adequacy was more favorable than expected.

Junior Subordinated Debenture_2

Junior Subordinated Debentures (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)TrustQuarter$ / sharesshares
Debt Instruments [Abstract]
Number of Connecticut statutory business trusts | Trust	2
Financial structure of statutory business trusts [Abstract]
Net balance September 30, 2020	$ 33,738
Net balance December 31, 2019	$ 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 September 30, 2020	$ 18,042	[1],[2]
Less: Treasury debt	0	[1],[2],[3]
Net balance September 30, 2020	18,042	[1],[2]
Net balance December 31, 2019	$ 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 September 30, 2020	$ 23,196	[1],[2]
Less: Treasury debt	(7,500)	[1],[2],[3]
Net balance September 30, 2020	15,696	[1],[2]
Net balance December 31, 2019	$ 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 (Loss) Per Common Sh_3

Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income (Loss) [Abstract]
Net income (loss)	$ 1,876	$ (1,392)	$ 321	$ (1,656)
Less: preferred stock dividends	(100)	(100)	(299)	(299)
Net income (loss) applicable to common shareholders	1,776	$ (1,492)	$ 22	$ (1,955)
Diluted Earnings Per Common Share [Abstract]
Net income (loss) applicable to common shareholders, Diluted	$ 1,876
Weighted Average Shares [Abstract]
Weighted average shares outstanding, Basic and Diluted (in shares)		20,250	20,450	20,185
Weighted average shares outstanding, Basic (in shares)	20,438
Weighted average shares outstanding, Diluted (in shares)	21,816
Per Share Amount [Abstract]
Net income (loss) applicable to common shareholders, Basic and Diluted (in dollars per share)		$ (0.07)	$ 0	$ (0.10)
Net income (loss) applicable to common shareholders, Basic (in dollars per share)	$ 0.09	(0.07)	0	(0.10)
Net income (loss) applicable to common shareholders, Diluted (in dollars per share)	$ 0.09	$ (0.07)	$ 0	$ (0.10)
Series D Preferred Stock [Member]
Diluted Earnings Per Common Share [Abstract]
Effect of Series D preferred stock	$ 100
Weighted Average Shares [Abstract]
Effect of Series D preferred stock (in shares)	1,378

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Reconciliation of income tax expense (benefit) [Abstract]
Federal income tax provision at statutory rate of 21%	$ 511	$ (366)	$ 102	$ (430)
Dividends-received deduction	(3)	(6)	(9)	(20)
Other permanent differences	31	41	55	79
Adjustment for prior years' estimates to actual	18	(21)	18	(21)
Income tax expense (benefit)	557	(352)	$ 166	(392)
Federal statutory income tax rate			21.00%
Components of income tax expense [Abstract]
Current - Federal	705	(368)	$ 3,007	204
Deferred - Federal	(148)	16	(2,841)	(596)
Income tax expense (benefit)	$ 557	$ (352)	$ 166	$ (392)

Leases (Details)

Leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)Lease	Sep. 30, 2019USD ($)
Lease description [Abstract]
Number of operating lease agreements | Lease	2
Lease expense	$ 507	$ 507
Other information on operating leases [Abstract]
Cash payments included in the measurement of lease liabilities reported in operating cash flows	726	632
Right-of-use assets included in other assets on the condensed consolidated balance sheet	$ 4,997	$ 5,631
Weighted average discount rate	6.80%	6.80%
Weighted average remaining lease term in years	6 years 1 month 6 days	7 years 1 month 6 days
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssets
Maturities and present value of lease liabilities [Abstract]
Remainder of 2020	$ 251
2021	1,015
2022	1,031
2023	1,048
2024	1,065
Thereafter	2,025
Total undiscounted lease payments	6,435
Less: present value adjustment	1,204
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$ 5,231
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
First Lease [Member]
Lease description [Abstract]
Renewal option period	8 years
Second Lease [Member]
Lease description [Abstract]
Renewal option period	7 years
Lease term	10 years

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Segment	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Segment Information [Abstract]
Number of business units | Segment			2
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	$ 384,952		$ 384,952		$ 377,626
Revenue	46,269	$ 47,745	135,416	$ 145,890
Income (loss) before income taxes	2,433	(1,744)	487	(2,048)
Operating Segments [Member] | American Southern [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	151,865		151,865		141,524
Revenue	15,649	14,605	47,772	45,580
Income (loss) before income taxes	1,857	471	4,822	3,849
Operating Segments [Member] | Bankers Fidelity [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	221,982		221,982		224,122
Revenue	30,875	32,311	88,619	97,931
Income (loss) before income taxes	2,765	(1,334)	2,023	(3,828)
Corporate and Other [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	11,105		11,105		$ 11,980
Revenue	(255)	829	(975)	2,379
Income (loss) before income taxes	$ (2,189)	$ (881)	$ (6,358)	$ (2,069)

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Gray Television, Inc [Member]
Related Party Transaction [Abstract]
Remaining fractional interest in aircraft arrangement transferred to related party	$ 151