Atlantic American (AAME) 10-Q 10 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Oct. 31, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Document Transition Report	false
Entity File Number	0-3722
Entity Registrant Name	ATLANTIC AMERICAN CORP
Entity Central Index Key	0000008177
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	58-1027114
Entity Address, Address Line One	4370 Peachtree Road, N.E.
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30319
City Area Code	404
Local Phone Number	266-5500
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	AAME
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		20,378,576

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
ASSETS
Cash and cash equivalents	$ 14,327	$ 19,319
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost: $232,974 and $222,461)	257,011	254,106
Equity securities, at fair value (cost: $4,907 and $6,393)	22,688	18,716
Other invested assets (cost: $3,765 and $3,765)	3,095	3,238
Policy loans	1,900	1,975
Real estate	38	38
Investment in unconsolidated trusts	1,238	1,238
Total investments	285,970	279,311
Receivables:
Reinsurance	29,889	29,086
Insurance premiums and other (net of allowance for doubtful accounts: $198 and $198)	22,479	27,512
Deferred income taxes, net	321	0
Deferred acquisition costs	38,495	39,611
Other assets	10,052	7,804
Intangibles	2,544	2,544
Total assets	404,077	405,187
LIABILITIES AND SHAREHOLDERS' EQUITY
Future policy benefits	87,825	90,872
Unearned premiums	29,923	27,131
Losses and claims	87,173	79,147
Other policy liabilities	836	1,526
Total insurance reserves and policyholder funds	205,757	198,676
Accounts payable and accrued expenses	24,587	26,412
Deferred income taxes, net	0	1,301
Junior subordinated debenture obligations, net	33,738	33,738
Total liabilities	264,082	260,127
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: 20,378,576 and 20,415,243	22,401	22,401
Additional paid-in capital	57,441	57,437
Retained earnings	48,699	47,790
Accumulated other comprehensive income	18,989	25,000
Unearned stock grant compensation	(100)	(284)
Treasury stock, at cost: 2,022,318 and 1,985,651 shares	(7,490)	(7,339)
Total shareholders' equity	139,995	145,060
Total liabilities and shareholders' equity	$ 404,077	$ 405,187

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Investments:
Fixed maturities, cost	$ 232,974	$ 222,461
Equity securities, cost	4,907	6,393
Other invested assets, cost	3,765	3,765
Receivables:
Insurance premiums and other, allowance for doubtful accounts	$ 198	$ 198
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)	20,378,576	20,415,243
Treasury stock, at cost (in shares)	2,022,318	1,985,651

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue:
Insurance premiums, net	$ 46,092	$ 44,978	$ 137,315	$ 137,027
Net investment income	2,137	1,828	6,516	5,717
Realized investment gains, net	349	183	520	432
Unrealized gains (losses) on equity securities, net	711	(731)	5,458	(7,831)
Other income	1	11	13	71
Total revenue	49,290	46,269	149,822	135,416
Benefits and expenses:
Insurance benefits and losses incurred	35,045	29,219	100,020	89,878
Commissions and underwriting expenses	11,927	11,202	36,670	34,682
Interest expense	347	363	1,040	1,253
Other expense	3,264	3,052	10,178	9,116
Total benefits and expenses	50,583	43,836	147,908	134,929
Income (loss) before income taxes	(1,293)	2,433	1,914	487
Income tax expense (benefit)	(378)	557	298	166
Net income (loss)	(915)	1,876	1,616	321
Preferred stock dividends	(100)	(100)	(299)	(299)
Net income (loss) applicable to common shareholders	$ (1,015)	$ 1,776	$ 1,317	$ 22
Earnings (loss) per common share (basic) (in dollars per share)	$ (0.05)	$ 0.09	$ 0.06	$ 0
Earnings (loss) per common share (diluted) (in dollars per share)	$ (0.05)	$ 0.09	$ 0.06	$ 0

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract]
Net income (loss)	$ (915)	$ 1,876	$ 1,616	$ 321
Available-for-sale fixed maturity securities:
Gross unrealized holding gain (loss) arising in the period	(1,281)	3,016	(7,088)	12,133
Related income tax effect	269	(633)	1,488	(2,548)
Subtotal	(1,012)	2,383	(5,600)	9,585
Less: reclassification adjustment for net realized gains included in net income (loss)	(349)	(95)	(520)	(344)
Related income tax effect	73	20	109	72
Subtotal	(276)	(75)	(411)	(272)
Total other comprehensive income (loss), net of tax	(1,288)	2,308	(6,011)	9,313
Total comprehensive income (loss)	$ (2,203)	$ 4,184	$ (4,395)	$ 9,634

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 [Member]	Unearned Stock Grant Compensation [Member]	Treasury Stock [Member]	Total
Balance, beginning of period at Dec. 31, 2019	$ 55	$ 22,401	$ 57,820	$ 36,020	$ 10,459	$ (781)	$ (7,580)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				321				$ 321
Other comprehensive income (loss), 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
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 per share (in dollars per share)								$ 0
Balance, beginning of period (in shares) at Dec. 31, 2019		20,472,162
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(46,620)
Issuance of shares under stock plans (in shares)		3,737
Restricted stock grants, net of forfeitures (in shares)		(15,000)
Balance, end of period (in shares) at Sep. 30, 2020		20,414,279
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 (loss), 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
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 per share (in dollars per share)								$ 0
Balance, beginning of period (in shares) at Jun. 30, 2020		20,454,001
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(40,718)
Issuance of shares under stock plans (in shares)		996
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Sep. 30, 2020		20,414,279
Balance, beginning of period at Dec. 31, 2020	55	$ 22,401	57,437	47,790	25,000	(284)	(7,339)	$ 145,060
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				1,616				1,616
Other comprehensive income (loss), net of tax					(6,011)			(6,011)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(299)
Restricted stock grants, net of forfeitures			0			0	0
Amortization of unearned compensation						184
Net shares acquired related to employee share-based compensation plans							(153)
Issuance of shares under stock plans			4				2
Balance, end of period at Sep. 30, 2021	55	$ 22,401	57,441	48,699	18,989	(100)	(7,490)	$ 139,995
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock per share (in dollars per share)								$ 0.02
Balance, beginning of period (in shares) at Dec. 31, 2020		20,415,243						20,415,243
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(38,147)
Issuance of shares under stock plans (in shares)		1,480
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Sep. 30, 2021		20,378,576						20,378,576
Balance, beginning of period at Jun. 30, 2021	55	$ 22,401	57,439	49,714	20,277	(150)	(7,361)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(915)				$ (915)
Other comprehensive income (loss), net of tax					(1,288)			(1,288)
Dividends on common stock				0
Dividends accrued on preferred stock				(100)
Restricted stock grants, net of forfeitures			0			0	0
Amortization of unearned compensation						50
Net shares acquired related to employee share-based compensation plans							(129)
Issuance of shares under stock plans			2				0
Balance, end of period at Sep. 30, 2021	$ 55	$ 22,401	$ 57,441	$ 48,699	$ 18,989	$ (100)	$ (7,490)	$ 139,995
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock per share (in dollars per share)								$ 0
Balance, beginning of period (in shares) at Jun. 30, 2021		20,410,763
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(32,668)
Issuance of shares under stock plans (in shares)		481
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Sep. 30, 2021		20,378,576						20,378,576

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,616	$ 321
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of (additions to) acquisition costs, net	1,116	(908)
Realized investment gains, net	(520)	(432)
Unrealized (gains) losses on equity securities, net	(5,458)	7,831
Compensation expense related to share awards	184	370
Depreciation and amortization	753	772
Deferred income tax benefit	(25)	(2,841)
Increase in receivables, net	(8,448)	(4,731)
Increase (decrease) in insurance reserves and policyholder funds	7,081	(842)
Decrease in accounts payable and accrued expenses	(3,374)	(1,752)
Other, net	(2,479)	1,308
Net cash used in operating activities	(9,554)	(904)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold	19,261	8,916
Proceeds from investments matured, called or redeemed	8,065	5,584
Investments purchased	(22,120)	(17,277)
Additions to property and equipment	(89)	(188)
Net cash provided by (used in) investing activities	5,117	(2,965)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends on common stock	(408)	0
Proceeds from shares issued under stock plans	6	7
Treasury stock acquired - net employee share-based compensation	(153)	(91)
Net cash used in financing activities	(555)	(84)
Net decrease in cash and cash equivalents	(4,992)	(3,953)
Cash and cash equivalents at beginning of period	19,319	12,893
Cash and cash equivalents at end of period	14,327	8,940
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	1,045	1,309
Cash paid for income taxes	$ 3,202	$ 3,310

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2021
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, 2020 (the “2020 Annual Report”). The Company’s financial condition and results of operations and cash flows as of and for the three and nine month periods ended September 30, 2021 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, 2021 or for any other future period. The Company’s significant accounting policies have not changed materially from those set out in the 2020 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 the ultimate impact cannot be predicted with any 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.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2021
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 2 . Recently Issued Accounting Standards Adoption of New Accounting Standards Income Taxes – Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2020, although earlier adoption is permitted. The Company adopted ASU 2019-12 as of January 1, 2021. The adoption of this ASU did not have an impact on the Company’s consolidated financial statements. Future Adoption of New Accounting Standards For more information regarding accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2020 Annual Report.

Investments

Investments	9 Months Ended
	Sep. 30, 2021
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, 2021 and December 31, 2020. Fixed maturities were comprised of the following: September 30, 2021 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 $ 42,235 $ 837 $ 195 $ 41,593 Obligations of states and political subdivisions 11,760 862 — 10,898 Corporate securities: Utilities and telecom 30,439 3,098 27 27,368 Financial services 73,138 7,509 65 65,694 Other business – diversified 40,429 4,833 110 35,706 Other consumer – diversified 58,760 7,338 101 51,523 Total corporate securities 202,766 22,778 303 180,291 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 257,011 $ 24,535 $ 498 $ 232,974 December 31, 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 $ 30,762 $ 1,381 $ 26 $ 29,407 Obligations of states and political subdivisions 11,802 898 — 10,904 Corporate securities: Utilities and telecom 30,359 4,423 — 25,936 Financial services 78,258 9,811 6 68,453 Other business – diversified 41,145 5,689 15 35,471 Other consumer – diversified 61,530 9,479 47 52,098 Total corporate securities 211,292 29,402 68 181,958 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 254,106 $ 31,739 $ 94 $ 222,461 Bonds having an amortized cost of $10,923 and $10,670 and included in the tables above were on deposit with insurance regulatory authorities as of September 30, 2021 and December 31, 2020, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $5,898 and $1,997 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta ("FHLB") at September 30, 2021 and December 31, 2020, respectively. Equity securities were comprised of the following: September 30, 2021 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 754 $ 480 $ — $ 274 Other business – diversified 21,934 17,301 — 4,633 Total equity securities $ 22,688 $ 17,781 $ — $ 4,907 December 31, 2020 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 2,111 $ 351 $ — $ 1,760 Other business – diversified 16,605 11,972 — 4,633 Total equity securities $ 18,716 $ 12,323 $ — $ 6,393 The carrying value and amortized cost of the Company’s investments in fixed maturities at September 30, 2021 and December 31, 2020 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, 2021 December 31, 2020 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 2,510 $ 2,500 $ 2,041 $ 2,015 Due after one year through five years 21,419 20,060 18,373 17,039 Due after five years through ten years 80,244 73,420 89,892 79,993 Due after ten years 122,463 106,667 124,609 104,527 Asset backed securities 30,375 30,327 19,191 18,887 Totals $ 257,011 $ 232,974 $ 254,106 $ 222,461 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, 2021 and December 31, 2020. September 30, 2021 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 $ 15,275 $ 195 $ — $ — $ 15,275 $ 195 Corporate securities 6,166 162 1,923 141 8,089 303 Total temporarily impaired securities $ 21,441 $ 357 $ 1,923 $ 141 $ 23,364 $ 498 December 31, 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 $ 7,045 $ 26 $ — $ — $ 7,045 $ 26 Corporate securities 4,602 68 — — 4,602 68 Total temporarily impaired securities $ 11,647 $ 94 $ — $ — $ 11,647 $ 94 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, 2021 and 2020. As of September 30, 2021 and December 31, 2020, there were thirty and twenty 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 increase in the number of securities in an unrealized loss position during the nine month period ended September 30, 2021, was primarily attributable to a decline in market values in certain of the Company’s fixed maturity securities as a result of a rising 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, 2021. The following tables summarize realized investment gains for the three month and nine month periods ended September 30, 2021 and 2020. Three Months Ended September 30, 2021 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 349 $ — $ — $ 349 Losses — — — — Realized investment gains, net $ 349 $ — $ — $ 349 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 Nine Months Ended September 30, 2021 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 520 $ — $ — $ 520 Losses — — — — Realized investment gains, net $ 520 $ — $ — $ 520 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 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, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net realized and unrealized gains (losses) recognized during the period on equity securities $ 711 $ (643 ) $ 5,458 $ (7,743 ) Less: Net realized gains recognized during the period on equity securities sold during the period — 88 — 88 Unrealized gains (losses) recognized during the reporting period on equity securities, net $ 711 $ (731 ) $ 5,458 $ (7,831 ) 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 $3,095 and $3,238 as of September 30, 2021 and December 31, 2020, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of September 30, 2021 and December 31, 2020. 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 $4,333 and $4,476, as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021 and December 31, 2020, 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, 2021
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. The Company’s financial instruments valued using Level 3 criteria consist of two fixed maturity securities and one equity security. As of September 30, 2021 and December 31, 2020, the value of the fixed maturities valued using Level 3 criteria was $ in each period. As of September and $ , respectively. The equity security is not traded and is valued at cost. The use of different criteria or assumptions regarding data may have yielded materially different valuations. As of September 30, 2021, 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 $ 250 $ 256,761 $ — $ 257,011 Equity securities 22,531 — 157 22,688 Cash equivalents 7,384 — — 7,384 Total $ 30,165 $ 256,761 $ 157 $ 287,083 As of December 31, 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 $ — $ 254,106 $ — $ 254,106 Equity securities 18,573 — 143 18,716 Cash equivalents 12,010 — — 12,010 Total $ 30,583 $ 254,106 $ 143 $ 284,832 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, 2021 and December 31, 2020. September 30, 2021 December 31, 2020 Level in Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 14,327 $ 14,327 $ 19,319 $ 19,319 Fixed maturities (1) 257,011 257,011 254,106 254,106 Equity securities (1) 22,688 22,688 18,716 18,716 Other invested assets Level 3 3,095 3,095 3,238 3,238 Policy loans Level 2 1,900 1,900 1,975 1,975 Investment in unconsolidated trusts Level 2 1,238 1,238 1,238 1,238 Liabilities: Junior subordinated debentures, net Level 2 33,738 34,061 33,738 32,297 (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.

Insurance Reserves for Losses a

Insurance Reserves for Losses and Claims	9 Months Ended
	Sep. 30, 2021
Insurance Reserves for Losses and Claims [Abstract]
Insurance Reserves for Losses and Claims	Note 5. Insurance Reserves for Losses and Claims The roll-forward of insurance reserves for losses and claims for the nine months ended September 30, 2021 and 2020 is as follows: Nine Months Ended September 30, 2021 2020 Beginning insurance reserves for losses and claims, gross $ 79,147 $ 81,448 Less: Reinsurance recoverable on unpaid losses (17,600 ) (18,339 ) Beginning insurance reserves for losses and claims, net 61,547 63,109 Incurred related to: Current accident year 98,972 91,788 Prior accident year development (1) 678 (2) (2,740 ) (3) Total incurred 99,650 89,048 Paid related to: Current accident year 59,492 57,676 Prior accident years 33,060 34,435 Total paid 92,552 92,111 Ending insurance reserves for losses and claims, net 68,645 60,046 Plus: Reinsurance recoverable on unpaid losses 18,528 18,111 Ending insurance reserves for losses and claims, gross $ 87,173 $ 78,157 (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 unfavorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Partially offsetting the unfavorable development was favorable development in the property and casualty operations. (3) 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. Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred: Nine Months Ended September 30, 2021 2020 Total incurred losses $ 99,650 $ 89,048 Cash surrender value and matured endowments 1,961 962 Benefit reserve changes (1,591 ) (132 ) Total insurance benefits and losses incurred $ 100,020 $ 89,878

Credit Arrangements

Credit Arrangements	9 Months Ended
	Sep. 30, 2021
Credit Arrangements [Abstract]
Credit Arrangements	Note 6. Credit Arrangements Bank Debt On May 12, 2021, the Company entered into a Revolving Credit Agreement (the “Credit Agreement”) with Truist Bank as the lender (the “Lender”). The Credit Agreement provides for an unsecured $10 million revolving credit facility that matures on April 12, 2024. Under the Credit Agreement, the Company will pay interest on the unpaid principal balance of outstanding revolving loans at the LIBOR Rate (as defined in the Credit Agreement) plus 2.00%, subject to a LIBOR floor rate of 1.00%. The Credit Agreement requires the Company to comply with certain covenants, including a debt to capital ratio that restricts the Company from incurring consolidated indebtedness that exceeds 35% of the Company’s consolidated capitalization at any time. The Credit Agreement also contains customary representations and warranties and events of default. Events of default include, among others, (a) the failure by the Company to pay any amounts owed under the Credit Agreement when due, (b) the failure to perform and not timely remedy certain covenants, (c) a change in control of the Company and (d) the occurrence of bankruptcy or insolvency events. Upon an event of default, the Lender may, among other things, declare all obligations under the Credit Agreement immediately due and payable and terminate the revolving commitments. As of September 30, 2021, the Company does not have any outstanding borrowings under the Credit Agreement. Junior Subordinated Debentures The The financial structure of each of Atlantic American Statutory Trust I and II as of September 30, 2021 was as follows: Atlantic American Statutory Trust I Atlantic American Statutory Trust II JUNIOR SUBORDINATED DEBENTURES (1) (2) Principal amount owed September 30, 2021 $ 18,042 $ 23,196 Less: Treasury debt (3) — (7,500 ) Net balance September 30, 2021 $ 18,042 $ 15,696 Net balance December 31, 2020 $ 18,042 $ 15,696 Coupon rate LIBOR + LIBOR + 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 + LIBOR + 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 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 $ 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, 2021
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 2021 Loss Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Loss Per Common Share: Net loss $ (915 ) 20,401 Less preferred stock dividends (100 ) — Net loss applicable to common shareholders $ (1,015 ) 20,401 $ (0.05 ) 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 $ 0.09 Diluted Earnings Per Common Share: Effect of Series D preferred stock 100 1,378 Net income applicable to common shareholders $ 1,876 21,816 $ 0.09 Nine Months Ended September 30, 2021 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 1,616 20,410 Less preferred stock dividends (299 ) — Net income applicable to common shareholders $ 1,317 20,410 $ 0.06 Nine Months Ended September 30, 2020 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 321 20,450 Less preferred stock dividends (299 ) — Net income applicable to common shareholders $ 22 20,450 $ — 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, 2021
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, 2021 2020 2021 2020 Federal income tax provision at statutory rate of 21 $ (271 ) $ 511 $ 402 $ 102 Dividends-received deduction (7 ) (3 ) (21 ) (9 ) Meals & entertainment 8 3 22 16 Vested stock & club dues (27 ) 24 (32 ) 27 Parking disallowance 4 4 12 12 Adjustment for prior years' estimates to actual (85 ) 18 (85 ) 18 Income tax expense (benefit) $ (378 ) $ 557 $ 298 $ 166 The components of income tax expense (benefit) were: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Current – Federal $ (746 ) $ 705 $ 323 $ 3,007 Deferred – Federal 368 (148 ) (25 ) (2,841 ) Total $ (378 ) $ 557 $ 298 $ 166 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, 2021
Leases [Abstract]
Leases	Note 9. Leases The Company has two operating lease agreements, each for the use of office space in the ordinary course of business. The first lease renews annually on an automatic basis and based on original assumptions, management is reasonably certain to exercise the renewal option through 2026. The original term of the second lease was ten years and amended in January 2017 to provide for an additional seven years, with a termination date on September 30, 2026. The rate used in determining the present value of lease payments is based upon an estimate of the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Lease expense reported for the nine months ended September 30, 2021 and September 30, 2020 was $761. Additional information regarding the Company’s real estate operating leases is as follows: Nine Months Ended September 30, Other information on operating leases: 2021 2020 Cash payments included in the measurement of lease liabilities reported in operating cash flows $ 760 $ 726 Right-of-use assets included in other assets 4,320 4,997 Weighted average discount rate 6.8 % 6.8 % Weighted average remaining lease term in years 5.1 years 6.1 years The following table presents maturities and present value of the Company’s lease liabilities: Lease Liability Remainder of 2021 $ 255 2022 1,031 2023 1,048 2024 1,065 2025 1,083 Thereafter 942 Total undiscounted lease payments 5,424 Less: present value adjustment 867 Operating lease liability included in accounts payable and accrued expenses $ 4,557 As of September 30, 2021, the Company has no operating leases that have not yet commenced.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
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, 2021
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 2021 and 2020. Assets September 30, 2021 December 31, 2020 American Southern $ 160,651 $ 158,808 Bankers Fidelity 231,346 236,197 Corporate and Other 12,080 10,182 Total assets $ 404,077 $ 405,187 Revenues Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 American Southern $ 18,206 $ 15,649 $ 53,254 $ 47,772 Bankers Fidelity 31,181 30,875 96,401 88,619 Corporate and Other (97 ) (255 ) 167 (975 ) Total revenue $ 49,290 $ 46,269 $ 149,822 $ 135,416 In come (Loss) Before Income Taxes Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 American Southern $ 1,682 $ 1,857 $ 5,245 $ 4,822 Bankers Fidelity (1,149 ) 2,765 2,362 2,023 Corporate and Other (1,826 ) (2,189 ) (5,693 ) (6,358 ) Income (loss) before income taxes $ (1,293 ) $ 2,433 $ 1,914 $ 487

Recently Issued Accounting St_2

Recently Issued Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2021
Recently Issued Accounting Standards [Abstract]
Adoption of New Accounting Standards	Adoption of New Accounting Standards Income Taxes – Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2020, although earlier adoption is permitted. The Company adopted ASU 2019-12 as of January 1, 2021. The adoption of this ASU did not have an impact on the Company’s consolidated financial statements. Future Adoption of New Accounting Standards For more information regarding accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2020 Annual Report.

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2021
Investments [Abstract]
Investments Aggregated by Type and Industry	Fixed maturities were comprised of the following: September 30, 2021 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 $ 42,235 $ 837 $ 195 $ 41,593 Obligations of states and political subdivisions 11,760 862 — 10,898 Corporate securities: Utilities and telecom 30,439 3,098 27 27,368 Financial services 73,138 7,509 65 65,694 Other business – diversified 40,429 4,833 110 35,706 Other consumer – diversified 58,760 7,338 101 51,523 Total corporate securities 202,766 22,778 303 180,291 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 257,011 $ 24,535 $ 498 $ 232,974 December 31, 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 $ 30,762 $ 1,381 $ 26 $ 29,407 Obligations of states and political subdivisions 11,802 898 — 10,904 Corporate securities: Utilities and telecom 30,359 4,423 — 25,936 Financial services 78,258 9,811 6 68,453 Other business – diversified 41,145 5,689 15 35,471 Other consumer – diversified 61,530 9,479 47 52,098 Total corporate securities 211,292 29,402 68 181,958 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 254,106 $ 31,739 $ 94 $ 222,461 Bonds having an amortized cost of $10,923 and $10,670 and included in the tables above were on deposit with insurance regulatory authorities as of September 30, 2021 and December 31, 2020, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $5,898 and $1,997 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta ("FHLB") at September 30, 2021 and December 31, 2020, respectively. Equity securities were comprised of the following: September 30, 2021 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 754 $ 480 $ — $ 274 Other business – diversified 21,934 17,301 — 4,633 Total equity securities $ 22,688 $ 17,781 $ — $ 4,907 December 31, 2020 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 2,111 $ 351 $ — $ 1,760 Other business – diversified 16,605 11,972 — 4,633 Total equity securities $ 18,716 $ 12,323 $ — $ 6,393
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, 2021 and December 31, 2020 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, 2021 December 31, 2020 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 2,510 $ 2,500 $ 2,041 $ 2,015 Due after one year through five years 21,419 20,060 18,373 17,039 Due after five years through ten years 80,244 73,420 89,892 79,993 Due after ten years 122,463 106,667 124,609 104,527 Asset backed securities 30,375 30,327 19,191 18,887 Totals $ 257,011 $ 232,974 $ 254,106 $ 222,461
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, 2021 and December 31, 2020. September 30, 2021 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 $ 15,275 $ 195 $ — $ — $ 15,275 $ 195 Corporate securities 6,166 162 1,923 141 8,089 303 Total temporarily impaired securities $ 21,441 $ 357 $ 1,923 $ 141 $ 23,364 $ 498 December 31, 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 $ 7,045 $ 26 $ — $ — $ 7,045 $ 26 Corporate securities 4,602 68 — — 4,602 68 Total temporarily impaired securities $ 11,647 $ 94 $ — $ — $ 11,647 $ 94
Summary of Realized Investment Gains	The following tables summarize realized investment gains for the three month and nine month periods ended September 30, 2021 and 2020. Three Months Ended September 30, 2021 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 349 $ — $ — $ 349 Losses — — — — Realized investment gains, net $ 349 $ — $ — $ 349 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 Nine Months Ended September 30, 2021 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 520 $ — $ — $ 520 Losses — — — — Realized investment gains, net $ 520 $ — $ — $ 520 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
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, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net realized and unrealized gains (losses) recognized during the period on equity securities $ 711 $ (643 ) $ 5,458 $ (7,743 ) Less: Net realized gains recognized during the period on equity securities sold during the period — 88 — 88 Unrealized gains (losses) recognized during the reporting period on equity securities, net $ 711 $ (731 ) $ 5,458 $ (7,831 )

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Values of Financial Instruments [Abstract]
Financial Instruments Carried at Fair Value Measured on a Recurring Basis	As of September 30, 2021, 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 $ 250 $ 256,761 $ — $ 257,011 Equity securities 22,531 — 157 22,688 Cash equivalents 7,384 — — 7,384 Total $ 30,165 $ 256,761 $ 157 $ 287,083 As of December 31, 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 $ — $ 254,106 $ — $ 254,106 Equity securities 18,573 — 143 18,716 Cash equivalents 12,010 — — 12,010 Total $ 30,583 $ 254,106 $ 143 $ 284,832
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, 2021 and December 31, 2020. September 30, 2021 December 31, 2020 Level in Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 14,327 $ 14,327 $ 19,319 $ 19,319 Fixed maturities (1) 257,011 257,011 254,106 254,106 Equity securities (1) 22,688 22,688 18,716 18,716 Other invested assets Level 3 3,095 3,095 3,238 3,238 Policy loans Level 2 1,900 1,900 1,975 1,975 Investment in unconsolidated trusts Level 2 1,238 1,238 1,238 1,238 Liabilities: Junior subordinated debentures, net Level 2 33,738 34,061 33,738 32,297 (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.

Insurance Reserves for Losses_2

Insurance Reserves for Losses and Claims (Tables)	9 Months Ended
	Sep. 30, 2021
Insurance Reserves for Losses and Claims [Abstract]
Roll-forward of Insurance Reserves for Losses and Claims	The roll-forward of insurance reserves for losses and claims for the nine months ended September 30, 2021 and 2020 is as follows: Nine Months Ended September 30, 2021 2020 Beginning insurance reserves for losses and claims, gross $ 79,147 $ 81,448 Less: Reinsurance recoverable on unpaid losses (17,600 ) (18,339 ) Beginning insurance reserves for losses and claims, net 61,547 63,109 Incurred related to: Current accident year 98,972 91,788 Prior accident year development (1) 678 (2) (2,740 ) (3) Total incurred 99,650 89,048 Paid related to: Current accident year 59,492 57,676 Prior accident years 33,060 34,435 Total paid 92,552 92,111 Ending insurance reserves for losses and claims, net 68,645 60,046 Plus: Reinsurance recoverable on unpaid losses 18,528 18,111 Ending insurance reserves for losses and claims, gross $ 87,173 $ 78,157 (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 unfavorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Partially offsetting the unfavorable development was favorable development in the property and casualty operations. (3) 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.
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, 2021 2020 Total incurred losses $ 99,650 $ 89,048 Cash surrender value and matured endowments 1,961 962 Benefit reserve changes (1,591 ) (132 ) Total insurance benefits and losses incurred $ 100,020 $ 89,878

Credit Arrangements (Tables)

Credit Arrangements (Tables)	9 Months Ended
	Sep. 30, 2021
Credit Arrangements [Abstract]
Financial Structure of Statutory Business Trusts	The financial structure of each of Atlantic American Statutory Trust I and II as of September 30, 2021 was as follows: Atlantic American Statutory Trust I Atlantic American Statutory Trust II JUNIOR SUBORDINATED DEBENTURES (1) (2) Principal amount owed September 30, 2021 $ 18,042 $ 23,196 Less: Treasury debt (3) — (7,500 ) Net balance September 30, 2021 $ 18,042 $ 15,696 Net balance December 31, 2020 $ 18,042 $ 15,696 Coupon rate LIBOR + LIBOR + 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 + LIBOR + 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 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 $ 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, 2021
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 2021 Loss Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Loss Per Common Share: Net loss $ (915 ) 20,401 Less preferred stock dividends (100 ) — Net loss applicable to common shareholders $ (1,015 ) 20,401 $ (0.05 ) 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 $ 0.09 Diluted Earnings Per Common Share: Effect of Series D preferred stock 100 1,378 Net income applicable to common shareholders $ 1,876 21,816 $ 0.09 Nine Months Ended September 30, 2021 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 1,616 20,410 Less preferred stock dividends (299 ) — Net income applicable to common shareholders $ 1,317 20,410 $ 0.06 Nine Months Ended September 30, 2020 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 321 20,450 Less preferred stock dividends (299 ) — Net income applicable to common shareholders $ 22 20,450 $ —

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2021
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, 2021 2020 2021 2020 Federal income tax provision at statutory rate of 21 $ (271 ) $ 511 $ 402 $ 102 Dividends-received deduction (7 ) (3 ) (21 ) (9 ) Meals & entertainment 8 3 22 16 Vested stock & club dues (27 ) 24 (32 ) 27 Parking disallowance 4 4 12 12 Adjustment for prior years' estimates to actual (85 ) 18 (85 ) 18 Income tax expense (benefit) $ (378 ) $ 557 $ 298 $ 166
Components of Income Tax Expense	The components of income tax expense (benefit) were: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Current – Federal $ (746 ) $ 705 $ 323 $ 3,007 Deferred – Federal 368 (148 ) (25 ) (2,841 ) Total $ (378 ) $ 557 $ 298 $ 166

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2021
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: 2021 2020 Cash payments included in the measurement of lease liabilities reported in operating cash flows $ 760 $ 726 Right-of-use assets included in other assets 4,320 4,997 Weighted average discount rate 6.8 % 6.8 % Weighted average remaining lease term in years 5.1 years 6.1 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 2021 $ 255 2022 1,031 2023 1,048 2024 1,065 2025 1,083 Thereafter 942 Total undiscounted lease payments 5,424 Less: present value adjustment 867 Operating lease liability included in accounts payable and accrued expenses $ 4,557

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Information [Abstract]
Assets, Revenue Loss Before Income Taxes for Each Business Unit	The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2021 and 2020. Assets September 30, 2021 December 31, 2020 American Southern $ 160,651 $ 158,808 Bankers Fidelity 231,346 236,197 Corporate and Other 12,080 10,182 Total assets $ 404,077 $ 405,187 Revenues Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 American Southern $ 18,206 $ 15,649 $ 53,254 $ 47,772 Bankers Fidelity 31,181 30,875 96,401 88,619 Corporate and Other (97 ) (255 ) 167 (975 ) Total revenue $ 49,290 $ 46,269 $ 149,822 $ 135,416 In come (Loss) Before Income Taxes Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 American Southern $ 1,682 $ 1,857 $ 5,245 $ 4,822 Bankers Fidelity (1,149 ) 2,765 2,362 2,023 Corporate and Other (1,826 ) (2,189 ) (5,693 ) (6,358 ) Income (loss) before income taxes $ (1,293 ) $ 2,433 $ 1,914 $ 487

Basis of Presentation (Details)

Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2021Segment
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, 2021	Dec. 31, 2020
Investments aggregated by type and industry [Abstract]
Estimated fair value	$ 257,011	$ 254,106
Gross unrealized gains	24,535	31,739
Gross unrealized losses	498	94
Amortized cost total	232,974	222,461
Estimated fair value	22,688	18,716
Gross unrealized gains	17,781	12,323
Gross unrealized losses	0	0
Cost	4,907	6,393
Amortized cost of bonds on deposit with insurance regulatory authorities	10,923	10,670
Amortized cost pledged as collateral to FHLB	5,898	1,997
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	42,235	30,762
Gross unrealized gains	837	1,381
Gross unrealized losses	195	26
Amortized cost total	41,593	29,407
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	11,760	11,802
Gross unrealized gains	862	898
Gross unrealized losses	0	0
Amortized cost total	10,898	10,904
Fixed Maturities [Member] | Corporate Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	202,766	211,292
Gross unrealized gains	22,778	29,402
Gross unrealized losses	303	68
Amortized cost total	180,291	181,958
Fixed Maturities [Member] | Corporate Securities [Member] | Utilities and Telecom [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	30,439	30,359
Gross unrealized gains	3,098	4,423
Gross unrealized losses	27	0
Amortized cost total	27,368	25,936
Fixed Maturities [Member] | Corporate Securities [Member] | Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	73,138	78,258
Gross unrealized gains	7,509	9,811
Gross unrealized losses	65	6
Amortized cost total	65,694	68,453
Fixed Maturities [Member] | Corporate Securities [Member] | Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	40,429	41,145
Gross unrealized gains	4,833	5,689
Gross unrealized losses	110	15
Amortized cost total	35,706	35,471
Fixed Maturities [Member] | Corporate Securities [Member] | Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	58,760	61,530
Gross unrealized gains	7,338	9,479
Gross unrealized losses	101	47
Amortized cost total	51,523	52,098
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 total	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 total	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	754	2,111
Gross unrealized gains	480	351
Gross unrealized losses	0	0
Cost	274	1,760
Equity Securities [Member] | Common and Non-redeemable Preferred Stocks [Member] | Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	21,934	16,605
Gross unrealized gains	17,301	11,972
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, 2021	Dec. 31, 2020
Carrying Value [Abstract]
Due in one year or less	$ 2,510	$ 2,041
Due after one year through five years	21,419	18,373
Due after five years through ten years	80,244	89,892
Due after ten years	122,463	124,609
Asset backed securities	30,375	19,191
Carrying value total	257,011	254,106
Amortized Cost [Abstract]
Due in one year or less	2,500	2,015
Due after one year through five years	20,060	17,039
Due after five years through ten years	73,420	79,993
Due after ten years	106,667	104,527
Asset backed securities	30,327	18,887
Amortized cost total	$ 232,974	$ 222,461

Investments, Securities with Co

Investments, Securities with Continuous Unrealized Loss Position (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021USD ($)Securities	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)Securities	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)Securities
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 21,441		$ 21,441		$ 11,647
12 months or longer	1,923		1,923		0
Total	23,364		23,364		11,647
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	357		357		94
12 months or longer	141		141		0
Total	498		498		$ 94
Gross OTTI losses charged to realized gains	$ 0	$ 0	$ 0	$ 0
Number of securities in unrealized loss position | Securities	30		30		20
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	$ 15,275		$ 15,275		$ 7,045
12 months or longer	0		0		0
Total	15,275		15,275		7,045
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	195		195		26
12 months or longer	0		0		0
Total	195		195		26
Corporate Securities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	6,166		6,166		4,602
12 months or longer	1,923		1,923		0
Total	8,089		8,089		4,602
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	162		162		68
12 months or longer	141		141		0
Total	$ 303		$ 303		$ 68

Investments, Summary of Realize

Investments, Summary of Realized Investment Gains (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Summary of realized investment gains [Abstract]
Gains	$ 349	$ 183	$ 520	$ 432
Losses	0	0	0	0
Realized investment gains, net	349	183	520	432
Fixed Maturities [Member]
Summary of realized investment gains [Abstract]
Gains	349	95	520	344
Losses	0	0	0	0
Realized investment gains, net	349	95	520	344
Equity Securities [Member]
Summary of realized investment gains [Abstract]
Gains	0	88	0	88
Losses	0	0	0	0
Realized investment gains, net	0	88	0	88
Other Invested Assets [Member]
Summary of realized investment gains [Abstract]
Gains	0	0	0	0
Losses	0	0	0	0
Realized investment gains, 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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Investments [Abstract]
Net realized and unrealized gains (losses) recognized during the period on equity securities	$ 711	$ (643)	$ 5,458	$ (7,743)
Less: Net realized gains recognized during the period on equity securities sold during the period	0	88	0	88
Unrealized gains (losses) recognized during the reporting period on equity securities, net	$ 711	$ (731)	$ 5,458	$ (7,831)

Investments, Variable Interest

Investments, Variable Interest Entities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Variable Interest Entities [Abstract]
Carrying amount of interest	$ 3,095	$ 3,238
Investment in unconsolidated trusts	1,238	1,238
VIE, Not Primary Beneficiary [Member] | Other Invested Assets [Member]
Variable Interest Entities [Abstract]
Carrying amount of interest	3,095	3,238
Investment in unconsolidated trusts	1,238	1,238
Maximum loss exposure	4,333	4,476
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, 2021	Dec. 31, 2020
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	$ 257,011	$ 254,106
Equity securities	22,688	18,716
Recurring [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	257,011	254,106
Equity securities	22,688	18,716
Cash equivalents	7,384	12,010
Assets at fair value	287,083	284,832
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	250	0
Equity securities	22,531	18,573
Cash equivalents	7,384	12,010
Assets at fair value	30,165	30,583
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	256,761	254,106
Equity securities	0	0
Cash equivalents	0	0
Assets at fair value	256,761	254,106
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	157	143
Cash equivalents	0	0
Assets at fair value	$ 157	$ 143

Fair Values of Financial Inst_4

Fair Values of Financial Instruments, Estimated Fair Value and Level (Details) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
Assets [Abstract]
Fixed maturities		$ 257,011	$ 254,106
Equity securities		22,688	18,716
Carrying Amount [Member]
Assets [Abstract]
Fixed maturities	[1]	257,011	254,106
Equity securities	[1]	22,688	18,716
Carrying Amount [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents		14,327	19,319
Carrying Amount [Member] | Level 2 [Member]
Assets [Abstract]
Policy loans		1,900	1,975
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		3,095	3,238
Estimated Fair Value [Member]
Assets [Abstract]
Fixed maturities	[1]	257,011	254,106
Equity securities	[1]	22,688	18,716
Estimated Fair Value [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents		14,327	19,319
Estimated Fair Value [Member] | Level 2 [Member]
Assets [Abstract]
Policy loans		1,900	1,975
Investment in unconsolidated trusts		1,238	1,238
Liabilities [Abstract]
Junior subordinated debentures, net		34,061	32,297
Estimated Fair Value [Member] | Level 3 [Member]
Assets [Abstract]
Other invested assets		$ 3,095	$ 3,238
[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.

Insurance Reserves for Losses_3

Insurance Reserves for Losses and Claims (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021		Sep. 30, 2020
Insurance Reserves for Losses and Claims [Roll Forward]
Beginning insurance reserves for losses and claims, gross				$ 79,147		$ 81,448
Less: Reinsurance recoverable on unpaid losses				(17,600)		(18,339)
Beginning insurance reserves for losses and claims, net				61,547		63,109
Incurred related to [Abstract]
Current accident year				98,972		91,788
Prior accident year development	[1]			678	[2]	(2,740)	[3]
Total incurred				99,650		89,048
Paid related to [Abstract]
Current accident year				59,492		57,676
Prior accident years				33,060		34,435
Total paid				92,552		92,111
Ending insurance reserves for losses and claims, net		$ 68,645	$ 60,046	68,645		60,046
Plus: Reinsurance recoverable on unpaid losses		18,528	18,111	18,528		18,111
Ending insurance reserves for losses and claims, gross		87,173	78,157	87,173		78,157
Reconciliation of total incurred claims to total insurance benefits and losses incurred [Abstract]
Total incurred losses				99,650		89,048
Cash surrender value and matured endowments				1,961		962
Benefit reserve changes				(1,591)		(132)
Total insurance benefits and losses incurred		$ 35,045	$ 29,219	$ 100,020		$ 89,878
[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 unfavorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Partially offsetting the unfavorable development was favorable development in the property and casualty operations.
[3]	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.

Credit Arrangements, Bank Debt

Credit Arrangements, Bank Debt (Details) - Revolving Credit Facility [Member]	May 12, 2021USD ($)	Sep. 30, 2021USD ($)
Bank Debt [Abstract]
Unsecured credit facility	$ 10,000,000
Maturity date		Apr. 12, 2024
Outstanding borrowings		$ 0
Minimum [Member]
Bank Debt [Abstract]
Indebtedness capital ratio	0.35
LIBOR [Member]
Bank Debt [Abstract]
Basis spread on variable rate	2.00%
Interest rate floor	1.00%

Credit Arrangements, Junior Sub

Credit Arrangements, Junior Subordinated Debentures (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)TrustQuarter$ / sharesshares
Debt Instruments [Abstract]
Number of Connecticut statutory business trusts | Trust	2
Financial structure of statutory business trusts [Abstract]
Net balance September 30, 2021	$ 33,738
Net balance December 31, 2020	$ 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, 2021	$ 18,042	[1],[2]
Less: Treasury debt	0	[1],[2],[3]
Net balance September 30, 2021	18,042	[1],[2]
Net balance December 31, 2020	$ 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, 2021	$ 23,196	[1],[2]
Less: Treasury debt	(7,500)	[1],[2],[3]
Net balance September 30, 2021	15,696	[1],[2]
Net balance December 31, 2020	$ 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 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 $ 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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Basic Earnings (Loss) Per Common Share [Abstract]
Net income (loss)	$ (915)	$ 1,876	$ 1,616	$ 321
Less: preferred stock dividends	(100)	(100)	(299)	(299)
Net income (loss) applicable to common shareholders	(1,015)	1,776	1,317	22
Diluted Earnings (Loss) Per Common Share [Abstract]
Net income (loss) applicable to common shareholders, Diluted	$ (1,015)	$ 1,876	$ 1,317	$ 22
Weighted Average Shares [Abstract]
Weighted average shares outstanding, Basic (in shares)	20,401	20,438	20,410	20,450
Weighted average shares outstanding, Diluted (in shares)	20,401	21,816	20,410	20,450
Per Share Amount [Abstract]
Net income (loss) applicable to common shareholders, Basic (in dollars per share)	$ (0.05)	$ 0.09	$ 0.06	$ 0
Net income (loss) applicable to common shareholders, Diluted (in dollars per share)	$ (0.05)	$ 0.09	$ 0.06	$ 0
Series D Preferred Stock [Member]
Diluted Earnings (Loss) 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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of income tax expense (benefit) [Abstract]
Federal income tax provision at statutory rate of 21%	$ (271)	$ 511	$ 402	$ 102
Dividends-received deduction	(7)	(3)	(21)	(9)
Meals & entertainment	8	3	22	16
Vested stock & club dues	(27)	24	(32)	27
Parking disallowance	4	4	12	12
Adjustment for prior years' estimates to actual	(85)	18	(85)	18
Income tax expense (benefit)	(378)	557	$ 298	166
Federal statutory income tax rate			21.00%
Components of income tax expense [Abstract]
Current - Federal	(746)	705	$ 323	3,007
Deferred - Federal	368	(148)	(25)	(2,841)
Income tax expense (benefit)	$ (378)	$ 557	$ 298	$ 166

Leases (Details)

Leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)Lease	Sep. 30, 2020USD ($)
Lease description [Abstract]
Number of operating lease agreements | Lease	2
Lease expense	$ 761	$ 761
Other information on operating leases [Abstract]
Cash payments included in the measurement of lease liabilities reported in operating cash flows	760	726
Right-of-use assets included in other assets on the consolidated balance sheet	$ 4,320	$ 4,997
Weighted average discount rate	6.80%	6.80%
Weighted average remaining lease term in years	5 years 1 month 6 days	6 years 1 month 6 days
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets
Maturities and present value of lease liabilities [Abstract]
Remainder of 2021	$ 255
2022	1,031
2023	1,048
2024	1,065
2025	1,083
Thereafter	942
Total undiscounted lease payments	5,424
Less: present value adjustment	867
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$ 4,557
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accounts Payable and Accrued Liabilities
Second Lease [Member]
Lease description [Abstract]
Lease term	10 years
Renewal option period	7 years

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)Segment	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Segment Information [Abstract]
Number of business units | Segment			2
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	$ 404,077		$ 404,077		$ 405,187
Revenues	49,290	$ 46,269	149,822	$ 135,416
Income (loss) before income taxes	(1,293)	2,433	1,914	487
Operating Segments [Member] | American Southern [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	160,651		160,651		158,808
Revenues	18,206	15,649	53,254	47,772
Income (loss) before income taxes	1,682	1,857	5,245	4,822
Operating Segments [Member] | Bankers Fidelity [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	231,346		231,346		236,197
Revenues	31,181	30,875	96,401	88,619
Income (loss) before income taxes	(1,149)	2,765	2,362	2,023
Corporate and Other [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	12,080		12,080		$ 10,182
Revenues	(97)	(255)	167	(975)
Income (loss) before income taxes	$ (1,826)	$ (2,189)	$ (5,693)	$ (6,358)