Atlantic American (AAME) 10-Q 8 Aug 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Jul. 31, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
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		20,402,288

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 24,247	$ 28,863
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost: $235,013 and $236,766; no allowance for credit losses)	208,472	208,729
Equity securities, at fair value (cost: $4,905 and $4,907)	9,679	11,562
Other invested assets (cost: $6,982 and $5,628)	6,724	5,386
Policy loans	1,811	1,759
Real estate	38	38
Investment in unconsolidated trusts	1,238	1,238
Total investments	227,962	228,712
Receivables:
Reinsurance (net of allowance for uncollectible reinsurance of $66 and $0)	22,261	25,913
Insurance premiums and other (net of allowance for expected credit losses $213 and net of allowance for doubtful accounts $177)	30,825	15,386
Deferred income taxes, net	15,149	14,163
Deferred acquisition costs	41,211	42,281
Other assets	8,756	9,202
Intangibles	2,544	2,544
Total assets	372,955	367,064
Insurance reserves and policyholder funds:
Future policy benefits	84,506	85,564
Unearned premiums	37,875	28,348
Losses and claims	85,984	87,484
Other policy liabilities	939	1,255
Total insurance reserves and policyholder funds	209,304	202,651
Accounts payable and accrued expenses	23,427	26,473
Revolving credit facility	3,000	2,009
Junior subordinated debenture obligations, net	33,738	33,738
Total liabilities	269,469	264,871
Commitments and contingencies (Note 11)
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: 20,402,288 and 20,407,229	22,401	22,401
Additional paid-in capital	57,425	57,425
Retained earnings	52,006	51,982
Accumulated other comprehensive income	(20,967)	(22,149)
Unearned stock grant compensation	(33)	(132)
Treasury stock, at cost: 1,998,606 and 1,993,665 shares	(7,401)	(7,389)
Total shareholders' equity	103,486	102,193
Total liabilities and shareholders' equity	$ 372,955	$ 367,064

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Investments:
Fixed maturities, cost	$ 235,013	$ 236,766
Allowance for credit losses	0	0
Equity securities, cost	4,905	4,907
Other invested assets, cost	6,982	5,628
Receivables:
Reinsurance, allowance for uncollectible reinsurance	66	0
Insurance premiums and other, allowance for expected credit losses/allowance for doubtful accounts	$ 213	$ 177
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)	20,402,288	20,407,229
Treasury stock, at cost (in shares)	1,998,606	1,993,665

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Insurance premiums, net	$ 46,060	$ 47,065	$ 92,160	$ 94,146
Net investment income	2,559	2,529	5,100	4,869
Realized investment gains (losses), net	70	(62)	70	(72)
Unrealized gains (losses) on equity securities, net	494	(4,866)	(1,881)	(2,673)
Other income	5	3	8	7
Total revenue	49,188	44,669	95,457	96,277
Benefits and expenses:
Insurance benefits and losses incurred	29,365	32,753	59,825	63,922
Commissions and underwriting expenses	12,848	10,215	25,766	23,051
Interest expense	807	414	1,557	768
Other expense	3,951	3,402	7,910	6,855
Total benefits and expenses	46,971	46,784	95,058	94,596
Income (loss) before income taxes	2,217	(2,115)	399	1,681
Income tax expense (benefit)	473	(436)	101	518
Net income (loss)	1,744	(1,679)	298	1,163
Preferred stock dividends	(100)	(100)	(199)	(199)
Net income (loss) applicable to common shareholders	$ 1,644	$ (1,779)	$ 99	$ 964
Earnings (loss) per common share (basic) (in dollars per share)	$ 0.08	$ (0.09)	$ 0	$ 0.05
Earnings (loss) per common share (diluted) (in dollars per share)	$ 0.08	$ (0.09)	$ 0	$ 0.05

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract]
Net income (loss)	$ 1,744	$ (1,679)	$ 298	$ 1,163
Available-for-sale fixed maturity securities:
Gross unrealized holding gains (losses) arising in the period	(3,167)	(19,748)	1,566	(41,561)
Related income tax effect	665	4,147	(329)	8,728
Subtotal	(2,502)	(15,601)	1,237	(32,833)
Less: reclassification adjustment for net realized gains (losses) included in net income (loss)	(70)	43	(70)	53
Related income tax effect	15	(8)	15	(11)
Subtotal	(55)	35	(55)	42
Total other comprehensive income (loss), net of tax	(2,557)	(15,566)	1,182	(32,791)
Total comprehensive income (loss)	$ (813)	$ (17,245)	$ 1,480	$ (31,628)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Unearned Stock Grant Compensation [Member]	Treasury Stock [Member]	Total
Balance, beginning of period at Dec. 31, 2021	$ 55	$ 22,401	$ 57,441	$ 51,264		$ 17,688	$ (73)	$ (7,490)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				1,163					$ 1,163
Other comprehensive income (loss), net of tax						(32,791)			(32,791)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(199)
Restricted stock grants, net of forfeitures			2				(71)	69
Amortization of unearned compensation							65
Net shares acquired related to employee share-based compensation plans								(15)
Balance, end of period at Jun. 30, 2022	55	$ 22,401	57,443	51,820		(15,103)	(79)	(7,436)	$ 109,101
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, 2021		20,378,576
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(5,079)
Restricted stock grants, net of forfeitures (in shares)		25,000
Balance, end of period (in shares) at Jun. 30, 2022		20,398,497
Balance, beginning of period at Mar. 31, 2022	55	$ 22,401	57,443	53,599		463	(117)	(7,421)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(1,679)					$ (1,679)
Other comprehensive income (loss), net of tax						(15,566)			(15,566)
Dividends on common stock				0
Dividends accrued on preferred stock				(100)
Restricted stock grants, net of forfeitures			0				0	0
Amortization of unearned compensation							38
Net shares acquired related to employee share-based compensation plans								(15)
Balance, end of period at Jun. 30, 2022	55	$ 22,401	57,443	51,820		(15,103)	(79)	(7,436)	$ 109,101
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 Mar. 31, 2022		20,403,576
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(5,079)
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Jun. 30, 2022		20,398,497
Balance, beginning of period at Dec. 31, 2022	55	$ 22,401	57,425	51,982	$ (75)	(22,149)	(132)	(7,389)	$ 102,193
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]					ASU 2016-13 [Member]
Net income (loss)				298					298
Other comprehensive income (loss), net of tax						1,182			1,182
Dividends on common stock				0
Dividends accrued on preferred stock				(199)
Restricted stock grants, net of forfeitures			0				0	0
Amortization of unearned compensation							99
Net shares acquired related to employee share-based compensation plans								(12)
Balance, end of period at Jun. 30, 2023	55	$ 22,401	57,425	52,006		(20,967)	(33)	(7,401)	$ 103,486
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, 2022		20,407,229							20,407,229
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(4,941)
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Jun. 30, 2023		20,402,288							20,402,288
Balance, beginning of period at Mar. 31, 2023	55	$ 22,401	57,425	50,362		(18,410)	(59)	(7,395)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				1,744					$ 1,744
Other comprehensive income (loss), net of tax						(2,557)			(2,557)
Dividends on common stock				0
Dividends accrued on preferred stock				(100)
Restricted stock grants, net of forfeitures			0				0	0
Amortization of unearned compensation							26
Net shares acquired related to employee share-based compensation plans								(6)
Balance, end of period at Jun. 30, 2023	$ 55	$ 22,401	$ 57,425	$ 52,006		$ (20,967)	$ (33)	$ (7,401)	$ 103,486
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 Mar. 31, 2023		20,404,699
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(2,411)
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Jun. 30, 2023		20,402,288							20,402,288

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 298	$ 1,163
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of (additions to) acquisition costs, net	1,070	(3,546)
Realized investment (gains) losses, net	(70)	72
Unrealized losses on equity securities, net	1,881	2,673
Losses from equity method investees	16	18
Compensation expense related to share awards	99	65
Depreciation and amortization	357	465
Deferred income tax benefit	(1,300)	(694)
Increase in receivables, net	(11,787)	(12,729)
Increase in insurance reserves and policyholder funds	6,653	10,077
Decrease in accounts payable and accrued expenses	(3,246)	(2,104)
Other, net	1,133	124
Net cash used in operating activities	(4,896)	(4,416)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold	3,685	221
Proceeds from investments matured, called or redeemed	7,675	6,241
Investments purchased	(12,000)	(11,398)
Additions to property and equipment	(68)	(68)
Net cash used in investing activities	(708)	(5,004)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends on common stock	0	(408)
Treasury stock acquired - net employee share-based compensation	(12)	(15)
Proceeds from revolving credit facility, net	1,000	1,000
Net cash provided by financing activities	988	577
Net decrease in cash and cash equivalents	(4,616)	(8,843)
Cash and cash equivalents at beginning of period	28,863	24,753
Cash and cash equivalents at end of period	24,247	15,910
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	1,547	726
Cash paid for income taxes	$ 776	$ 899

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Basis of Presentation and Significant Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Note 1. Basis of Presentation and Significant Accounting Policies 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, Bankers Fidelity Assurance Company and Atlantic Capital Life 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, 2022 (the “2022 Annual Report”). The Company’s financial condition and results of operations and cash flows as of and for the three month and six month periods ended June 30, 2023 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, 2023 or for any other future period. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	6 Months Ended
	Jun. 30, 2023
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 2 Recently Issued Accounting Standards Adoption of New Accounting Standards Reference Rate Reform Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (including reinsurance recoverables, premium and other receivables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. The updated guidance also amends the previous other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the updated guidance as of January 1, 2023. The updated guidance was applied by a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the period of adoption. The adoption of this guidance resulted in the recognition of an after-tax cumulative effect adjustment of $0.1 million to reflect the impact of recognizing expected credit losses, as compared to incurred credit losses recognized under the previous guidance. This adjustment is primarily associated with reinsurance recoverables, premium and other receivables. The cumulative effect adjustment decreased retained earnings as of January 1, 2023 and increased the allowance for estimated uncollectible reinsurance. Impact of Adoption on Condensed Consolidated Balance Sheet Reinsurance Recoverables The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at January 1, 2023 and June 30, 2023, and the changes in the allowance for estimated uncollectible reinsurance for the six months ended June 30, 2023. At and for the six months ended June 30, 2023 (in thousands) Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Balance, beginning of period $ 25,913 $ — Cumulative effect of adoption of updated accounting guidance for — 75 Current period change for estimated uncollectible reinsurance — (9 ) Write-offs of uncollectible reinsurance recoverables — — Balance, end of period $ 22,261 $ 66 Insurance Premium and Other Receivables The following table presents the balances of insurance premiums and other, net of the allowance for expected credit losses, at January 1, 2023 and June 30, 2023, and the changes in the allowance for doubtful accounts/expected credit losses for the six months ended June 30, 2023. At and for the six months ended June 30, 2023 (in thousands) Insurance Premiums and Other, Net of Expected Credit Losses Allowance for Doubtful Accounts/Expected Credit Losses Balance, beginning of period $ 15,386 $ 177 Cumulative effect of adoption of updated accounting guidance for — — Current period change for expected credit losses — 36 Write-offs of uncollectible insurance premiums and other receivables — — Balance, end of period $ 30,825 $ 213 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 2022 Annual Report. Accounting Policies The following accounting policies have been updated to reflect the Company’s adoption of Financial Instruments - Credit Losses, as described above. Credit Impairments of Fixed Maturities The Company’s investments in fixed maturities, which include bonds and redeemable preferred stocks, are classified as “available-for-sale” and, accordingly, are carried at fair value with the after-tax difference from amortized cost, less allowance for credit losses (“ACL”), as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The Company’s equity securities, which include common and non-redeemable preferred stocks, are carried at fair value with changes in fair value reported in net income. The fair values of fixed maturities and equity securities are largely determined from publicly quoted market prices, when available, or independent broker quotations. Values that are not determined using quoted market prices inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market prices. Prior to January 1, 2023, the Company applied other than temporary impairment (“OTTI”) guidance for securities in an unrealized loss position. An OTTI was recognized in earnings within realized investment gains (losses) when it was anticipated that the amortized cost would not be recovered. When either: (i) the Company had the intent to sell the security, or (ii) it was more likely than not that the Company would be required to sell the security before recovery, the reduction of amortized cost and the OTTI recognized in earnings was the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions existed, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected was recognized as a reduction of amortized cost and an OTTI in earnings. If the estimated fair value was less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors was recorded in OCI. On January 1, 2023, the Company adopted accounting standards update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using a modified retrospective approach. Under ASU 2016-13, for securities in an unrealized loss position, a credit loss is recognized in earnings within realized investment gains (losses) when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the reduction of amortized cost and the loss recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as a credit loss by establishing an ACL with a corresponding charge to earnings in realized investment gains (losses). However, the ACL is limited by the amount that the fair value is less than the amortized cost. This limitation is known as the “fair value floor.” If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors (“noncredit loss”) is recorded in OCI. Reinsurance Recoverables The Company’s insurance subsidiaries from time to time purchase reinsurance from unaffiliated insurers and reinsurers to reduce their potential liability on individual risks and to protect against catastrophic losses. In a reinsurance transaction, an insurance company transfers, or “cedes,” a portion or all of its exposure on insurance policies to a reinsurer. The reinsurer assumes the exposure in return for a portion of the premiums. The ceding of insurance does not legally discharge the insurer from primary liability for the full amount of the policies written by it, and the ceding company will incur a loss if the reinsurer fails to meet its obligations under the reinsurance agreement. Amounts currently recoverable under reinsurance agreements are included in reinsurance receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. Insurance Premiums and Other Receivables Receivables amounts due from insureds and agents are evaluated periodically for collectibility. Allowances for expected credit losses are established, as and when a loss has been determined probable, against the related receivable. An allowance for expected credit loss is recognized by the Company when determined on a specific account basis and a general provision for loss is made based on the Company’s historical and expected experience.

Investments

Investments	6 Months Ended
	Jun. 30, 2023
Investments [Abstract]
Investments	Note 3. Investments The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses, ACL and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of June 30, 2023 and December 31, 2022. Fixed maturities were comprised of the following: June 30, 2023 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Cost or Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 48,880 $ 1 $ 5,948 $ — $ 54,827 Obligations of states and political subdivisions 8,148 — 1,370 — 9,518 Corporate securities: Utilities and telecom 20,195 86 3,146 — 23,255 Financial services 57,242 439 6,948 — 63,751 Other business – diversified 31,871 173 4,107 — 35,805 Other consumer – diversified 41,909 42 5,797 — 47,664 Total corporate securities 151,217 740 19,998 — 170,475 Redeemable preferred stocks: Other consumer – diversified 227 34 — — 193 Total redeemable preferred stocks 227 34 — — 193 Total fixed maturities $ 208,472 $ 775 $ 27,316 $ — $ 235,013 December 31, 2022 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 $ 44,412 $ 5 $ 5,926 $ 50,333 Obligations of states and political subdivisions 9,187 4 1,702 10,885 Corporate securities: Utilities and telecom 22,090 120 3,299 25,269 Financial services 59,054 397 7,085 65,742 Other business – diversified 31,058 161 4,689 35,586 Other consumer – diversified 42,705 35 6,089 48,759 Total corporate securities 154,907 713 21,162 175,356 Redeemable preferred stocks: Other consumer – diversified 223 31 — 192 Total redeemable preferred stocks 223 31 — 192 Total fixed maturities $ 208,729 $ 753 $ 28,790 $ 236,766 Bonds having an amortized cost of $11,766 and $12,333 and included in the tables above were on deposit with insurance regulatory authorities as of June 30, 2023 and December 31, 2022, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $7,548 and $7,221 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta (“FHLB”) at June 30, 2023 and December 31, 2022, respectively. Equity securities were comprised of the following: June 30, 2023 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 842 $ 570 $ — $ 272 Other business – diversified 8,837 4,204 — 4,633 Total equity securities $ 9,679 $ 4,774 $ — $ 4,905 December 31, 2022 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 790 $ 516 $ — $ 274 Other business – diversified 10,772 6,139 — 4,633 Total equity securities $ 11,562 $ 6,655 $ — $ 4,907 The carrying value and amortized cost of the Company’s investments in fixed maturities at June 30, 2023 and December 31, 2022 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. June 30, 2023 December 31, 2022 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 123 $ 125 $ 3,776 $ 3,797 Due after one year through five years 56,828 59,924 40,150 42,174 Due after five years through ten years 35,227 39,835 44,044 49,711 Due after ten years 81,244 95,113 87,719 103,095 Asset backed securities 35,050 40,016 33,040 37,989 Totals $ 208,472 $ 235,013 $ 208,729 $ 236,766 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 June 30, 2023 and December 31, 2022. June 30, 2023 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 11,404 $ 287 $ 36,608 $ 5,661 $ 48,012 $ 5,948 Obligations of states and political subdivisions 2,143 18 6,005 1,352 8,148 1,370 Corporate securities 16,587 554 126,125 19,444 142,712 19,998 Total temporarily impaired securities $ 30,134 $ 859 $ 168,738 $ 26,457 $ 198,872 $ 27,316 December 31, 2022 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 23,763 $ 2,410 $ 19,259 $ 3,516 $ 43,022 $ 5,926 Obligations of states and political subdivisions 8,183 1,702 — — 8,183 1,702 Corporate securities 127,928 16,214 14,514 4,948 142,442 21,162 Total temporarily impaired securities $ 159,874 $ 20,326 $ 33,773 $ 8,464 $ 193,647 $ 28,790 Analysis of Securities in Unrealized Loss Positions As of June 30, 2023 and December 31, 2022, there were 248 and 237 securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the utilities and telecom, financial services, other diversified business and other diversified consumer sectors. The unrealized losses on the Company’s fixed maturity securities investments have been primarily related to general market changes in interest rates and/or the levels of credit spreads rather than specific concerns with the issuer’s ability to pay interest and repay principal. For any of its fixed maturity securities with significant declines in fair value, the Company performs detailed analyses to identify whether the drivers of the declines are due to general market drivers, such as the recent rise in interest rates, or due to credit-related factors. Identifying the drivers of the declines in fair value helps to align and allocate the Company’s resources to securities with real credit-related concerns that could impact the ultimate collection of principal and interest. For any significant declines in fair value determined to be non-interest rate or market related, the Company performs a more focused review of the related issuers’ specific credit profile. For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security it owns including seniority in the issuer’s capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers’ continued ability to service the Company’s investment through payment of interest and principal. Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company, and the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. However, from time to time the Company identifies certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a result, a credit allowance will be estimated. The Company had no ACL on its available-for-sale fixed maturities as of June 30, 2023. The following tables summarize realized investment gains (losses) for the three month and six month periods ended June 30, 2023 and 2022. Three Months Ended June 30, 2023 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 70 $ — $ — $ 70 Losses — — — — Realized investment losses, net $ 70 $ — $ — $ 70 Three Months Ended June 30, 2022 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ — $ — $ — $ — Losses (43 ) — (19 ) (62 ) Realized investment gains, net $ (43 ) $ — $ (19 ) $ (62 ) Six Months Ended June 30, 2023 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 70 $ — $ — $ 70 Losses — — — — Realized investment gains, net $ 70 $ — $ — $ 70 Six Months Ended June 30, 2022 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ — $ — $ — $ — Losses (53 ) — (19 ) (72 ) Realized investment gains, net $ (53 ) $ — $ (19 ) $ (72 ) The following table presents the change in unrealized gains (losses) related to equity securities still held for the three month and six month periods ended June 30, 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net realized and unrealized gains (losses) recognized during the period on equity securities $ 494 $ (4,866 ) $ (1,881 ) $ (2,673 ) Less: Net realized gains recognized during the period on equity securities sold during the period — — — — Unrealized gains (losses) recognized during the reporting period on equity securities, net $ 494 $ (4,866 ) $ (1,881 ) $ (2,673 ) 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 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 $6,724 and $5,386 as of June 30, 2023 and December 31, 2022, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of June 30, 2023 and December 31, 2022. 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 $7,962 and $6,624, as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, the Company had outstanding commitments totaling $4,518 and $5,872, respectively, 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	6 Months Ended
	Jun. 30, 2023
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 one equity security. As of June 30, 2023 and December 31, 2022, the value of the equity security valued using Level 3 criteria was $154 and $156, 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 June 30, 2023, 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 $ — $ 208,472 $ — $ 208,472 Equity securities 9,525 — 154 9,679 Cash equivalents 15,051 — — 15,051 Total $ 24,576 $ 208,472 $ 154 $ 233,202 As of December 31, 2022, 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 $ — $ 208,729 $ — $ 208,729 Equity securities 11,406 — 156 11,562 Cash equivalents 18,861 — — 18,861 Total $ 30,267 $ 208,729 $ 156 $ 239,152 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 June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 Level in Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 24,247 $ 24,247 $ 28,863 $ 28,863 Fixed maturities (1 ) 208,472 208,472 208,729 208,729 Equity securities (1 ) 9,679 9,679 11,562 11,562 Other invested assets Level 3 6,724 6,724 5,386 5,386 Policy loans Level 2 1,811 1,811 1,759 1,759 Investment in unconsolidated trusts Level 2 1,238 1,238 1,238 1,238 Liabilities: Junior subordinated debentures, net Level 2 33,738 32,724 33,738 33,810 Revolving credit facility Level 2 3,000 3,000 2,009 2,009 (1) See the aforementioned information for a description of the fair value hierarchy as well as a description of levels for classes of these financial assets.

Internal-Use Software

Internal-Use Software	6 Months Ended
	Jun. 30, 2023
Internal-Use Software [Abstract]
Internal-Use Software	Note 5. Internal-Use Software On March 3, 2021, the Company entered into a hosting arrangement through a service contract with a third party software solutions vendor to provide a suite of policy, billing, claim, and customer management services. The software is managed, hosted, supported, and delivered as a cloud-based software service product offering (software-as-a-service). The initial term of the arrangement is five years from the effective date with a renewal term of an additional five years. Service fees related to the hosting arrangement are recorded as an expense in the Company’s condensed consolidated statement of operations as incurred. Implementation expenses incurred related to third party professional and consulting services have been capitalized. The Company will begin amortizing, on a straight-line basis over the expected ten year term of the hosting arrangement, when the software is substantially ready for its intended use. The Company incurred and capitalized implementation costs of $628 and $958 during the six months ended June 30, 2023 and 2022, respectively. As a result, the Company has capitalized $3,650 in implementation costs in other assets within its condensed consolidated balance sheet as of June 30, 2023. The Company expects the software will be substantially ready for its intended use in the three months ended September 30,

Insurance Reserves for Losses a

Insurance Reserves for Losses and Claims	6 Months Ended
	Jun. 30, 2023
Insurance Reserves for Losses and Claims [Abstract]
Insurance Reserves for Losses and Claims	Note 6. Insurance Reserves for Losses and Claims The roll-forward of insurance reserves for losses and claims for the six months ended June 30, 2023 and 2022 is as follows: Six Months Ended June 30, 2023 2022 Beginning insurance reserves for losses and claims, gross $ 87,484 $ 85,620 Less: Reinsurance recoverable on unpaid losses (17,647 ) (17,690 ) Beginning insurance reserves for losses and claims, net 69,837 67,930 Incurred related to: Current accident year 57,320 66,260 Prior accident year development (1) 1,636 (2) (3,195 ) (3) Total incurred 58,956 63,065 Paid related to: Current accident year 25,834 32,630 Prior accident years 33,019 28,754 Total paid 58,853 61,384 Ending insurance reserves for losses and claims, net 69,940 69,611 Plus: Reinsurance recoverable on unpaid losses 16,044 17,487 Ending insurance reserves for losses and claims, gross $ 85,984 $ 87,098 (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. (2) Prior years’ development was primarily the result of unfavorable development in the property and casualty operations due to inflationary factors. (3) Prior years’ development was primarily the result of favorable development in the property and casualty operations, as well as favorable development in the Medicare supplement line of business in the life and health operations. Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred: Six Months Ended June 30, 2023 2022 Total incurred losses $ 58,956 $ 63,065 Cash surrender value and matured endowments 812 1,154 Benefit reserve changes 57 (297 ) Total insurance benefits and losses incurred $ 59,825 $ 63,922

Credit Arrangements

Credit Arrangements	6 Months Ended
	Jun. 30, 2023
Credit Arrangements [Abstract]
Credit Arrangements	Note 7. Credit Arrangements As expected, discontinuation of LIBOR occurred on June 30, 2023 (“LIBOR Cessation Date”) and will affect the rates used in the Company’s Credit Arrangements after that date. On March 15, 2022, the U.S. Congress enacted the Adjustable Interest Rate LIBOR Act (the “LIBOR Act”) to address LIBOR’s cessation and to establish a clear and uniform process for replacing the overnight and one-, three-, six- and 12-month tenors of USD LIBOR in existing contracts that do not provide for the use of a clearly defined or practicable replacement benchmark rate (“tough legacy contracts”). Further, the Board of Governors of the Federal Reserve System (the “Board”) has issued regulations, 12 C.F.R. Part 253, “Regulations Implementing the Adjustable Interest Rate LIBOR Act (Regulation ZZ)” together with the LIBOR Act, constitute the “Federal LIBOR Legislation,” which relates to the LIBOR transition. 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 $10,000 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%. On June 28, 2023, the Company received a LIBOR cessation notice from the Lender detailing the replacement rates that would be used effective immediately after the LIBOR Cessation Date of June 30, 2023, as provided for in the Credit Agreement. The use of an alternate benchmark rate selected by the Lender (“Benchmark Replacement”) in place of LIBOR will not be used until the first reset date under the terms of the Credit Agreement following the LIBOR Cessation Date. The Benchmark Replacement that will be used is the Term Secured Overnight Financing Rate (“SOFR”) published by CME Group Benchmark Administration Limited (“CME”) and provides an indicative, forward-looking measurement of the SOFR based on market expectations implied from leading derivatives markets. 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 June 30, 2023, the Company had outstanding borrowings of $3,000 under the Credit Agreement. Junior Subordinated Debentures The On May 1, 2023, the Company received notice from its trustee and administrator of the statutory business trusts, that Federal LIBOR Legislation (discussed above) provides that the benchmark rate for tough legacy contracts, such as the statutory trusts contracts, will be replaced by operation of law on the first London banking day after June 30, 2023 with a benchmark replacement selected by the Board, as adjusted by the applicable spread adjustment recommended by the Board. The trustee and administrator has determined that our contracts will be replaced with 3-month CME Term SOFR plus applicable tenor spread of 0.26161 percent. The financial structure of each of Atlantic American Statutory Trust I and II as of June 30, 2023 was as follows: Atlantic American Statutory Trust I Atlantic American Statutory Trust II JUNIOR SUBORDINATED DEBENTURES (1) (2) Principal amount owed June 30 2023 $ 18,042 $ 23,196 Less: Treasury debt (3) — (7,500 ) Net balance June 30 2023 $ 18,042 $ 15,696 Net balance December 31, 2022 $ 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 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	6 Months Ended
	Jun. 30, 2023
Earnings (Loss) Per Common Share [Abstract]
Earnings (Loss) Per Common Share	Note 8 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 June 30 Income Weighted Average Shares (In thousands) Per Share Amount Basic Earnings Per Common Share: Net income $ 1,744 20,404 Less preferred stock dividends (100 ) — Net income applicable to common shareholders 1,644 20,404 0.08 Diluted Earnings Per Common Share: Effect of Series D preferred stock 100 1,378 Net income applicable to common shareholders $ 1,744 21,782 $ 0.08 Three Months Ended June 30 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Loss Per Common Share: Net loss $ (1,679 ) 20,402 Less preferred stock dividends (100 ) — Net loss applicable to common shareholders $ (1,779 ) 20,402 $ (0.09 ) Six Months Ended June 30, 2023 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 298 20,406 Less preferred stock dividends (199 ) — Net income applicable to common shareholders $ 99 20,406 $ — Six Months Ended June 30, 2022 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 1,163 20,391 Less preferred stock dividends (199 ) — Net income applicable to common shareholders $ 964 20,391 $ 0.05 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 June 30, 2023, since its impact would have been antidilutive.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Taxes [Abstract]
Income Taxes	Note 9. 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 Federal income tax provision at statutory rate of 21 $ 466 $ (444 ) $ 84 $ 353 Dividends-received deduction (10 ) (6 ) (17 ) (12 ) Meals and entertainment 11 10 23 20 Vested stock and club dues 2 — 3 — Parking disallowance 4 4 8 8 Penalties and fines — — — 149 Income tax expense (benefit) $ 473 $ (436 ) $ 101 $ 518 The components of income tax expense (benefit) were: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Current – Federal $ 1,221 $ 1,144 $ 1,401 $ 1,212 Deferred – Federal (748 ) (1,580 ) (1,300 ) (694 ) Total $ 473 $ (436 ) $ 101 $ 518

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	Note 10. 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 six months ended June 30, 2023 and June 30, 2022 Additional information regarding the Company’s real estate operating leases is as follows: Six Months Ended June 30, Other information on operating leases: 2023 2022 Cash payments included in the measurement of lease liabilities reported in operating cash flows $ 520 $ 512 Right-of-use assets included in other assets 3,016 3,781 Weighted average discount rate 6.8 % 6.8 % Weighted average remaining lease term in years 3.4 years 4.4 years The following table presents maturities and present value of the Company’s lease liabilities: Lease Liability Remainder of 2023 $ 528 2024 1,065 2025 1,083 2026 942 Thereafter — Total undiscounted lease payments 3,618 Less: present value adjustment 397 Operating lease liability included in accounts payable and accrued expenses $ 3,221 As of June 30, 2023, the Company has no operating leases that have not yet commenced.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 11. Commitments and Contingencies Litigation 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 business. 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. Regulatory Matters Like all domestic insurance companies, the Company’s insurance subsidiaries are subject to regulation and supervision in the jurisdictions in which they do business. Statutes typically delegate regulatory, supervisory, and administrative powers to state insurance commissioners. From time to time, and in the ordinary course of business, the Company receives notices and inquiries from state insurance departments with respect to various matters. In the opinion of management, any such known regulatory matters are not expected to have a material effect on the financial condition or results of operations of the Company.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2023
Segment Information [Abstract]
Segment Information	Note 12. 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 2023 and 2022. Assets June 30, 2023 December 31, 2022 American Southern $ 151,902 $ 144,455 Bankers Fidelity 192,456 195,028 Corporate and Other 28,597 27,581 Total assets $ 372,955 $ 367,064 Revenues Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 American Southern $ 18,965 $ 19,496 $ 37,165 $ 38,002 Bankers Fidelity 30,193 25,569 58,383 58,458 Corporate and Other 30 (396 ) (91 ) (183 ) Total revenue $ 49,188 $ 44,669 $ 95,457 $ 96,277 In come (Loss) Before Income Taxes Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 American Southern $ 2,716 $ 682 $ 2,386 $ 2,767 Bankers Fidelity 1,851 (517 ) 3,203 2,934 Corporate and Other (2,350 ) (2,280 ) (5,190 ) (4,020 ) Income (loss) before income taxes $ 2,217 $ (2,115 ) $ 399 $ 1,681

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Note 13. Subsequent Events On August 8, 2023, the Company’s board of directors declared an annual cash dividend of $0.02 per share of common stock that is payable to shareholders of record as of the close of business on August 22, 2023.

Recently Issued Accounting St_2

Recently Issued Accounting Standards (Policies)	6 Months Ended
	Jun. 30, 2023
Recently Issued Accounting Standards [Abstract]
Adoption of New Accounting Standards	Adoption of New Accounting Standards Reference Rate Reform Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (including reinsurance recoverables, premium and other receivables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. The updated guidance also amends the previous other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the updated guidance as of January 1, 2023. The updated guidance was applied by a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the period of adoption. The adoption of this guidance resulted in the recognition of an after-tax cumulative effect adjustment of $0.1 million to reflect the impact of recognizing expected credit losses, as compared to incurred credit losses recognized under the previous guidance. This adjustment is primarily associated with reinsurance recoverables, premium and other receivables. The cumulative effect adjustment decreased retained earnings as of January 1, 2023 and increased the allowance for estimated uncollectible reinsurance. Impact of Adoption on Condensed Consolidated Balance Sheet Reinsurance Recoverables The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at January 1, 2023 and June 30, 2023, and the changes in the allowance for estimated uncollectible reinsurance for the six months ended June 30, 2023. At and for the six months ended June 30, 2023 (in thousands) Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Balance, beginning of period $ 25,913 $ — Cumulative effect of adoption of updated accounting guidance for — 75 Current period change for estimated uncollectible reinsurance — (9 ) Write-offs of uncollectible reinsurance recoverables — — Balance, end of period $ 22,261 $ 66 Insurance Premium and Other Receivables The following table presents the balances of insurance premiums and other, net of the allowance for expected credit losses, at January 1, 2023 and June 30, 2023, and the changes in the allowance for doubtful accounts/expected credit losses for the six months ended June 30, 2023. At and for the six months ended June 30, 2023 (in thousands) Insurance Premiums and Other, Net of Expected Credit Losses Allowance for Doubtful Accounts/Expected Credit Losses Balance, beginning of period $ 15,386 $ 177 Cumulative effect of adoption of updated accounting guidance for — — Current period change for expected credit losses — 36 Write-offs of uncollectible insurance premiums and other receivables — — Balance, end of period $ 30,825 $ 213 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 2022 Annual Report.
Credit Impairments of Fixed Maturities	Credit Impairments of Fixed Maturities The Company’s investments in fixed maturities, which include bonds and redeemable preferred stocks, are classified as “available-for-sale” and, accordingly, are carried at fair value with the after-tax difference from amortized cost, less allowance for credit losses (“ACL”), as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The Company’s equity securities, which include common and non-redeemable preferred stocks, are carried at fair value with changes in fair value reported in net income. The fair values of fixed maturities and equity securities are largely determined from publicly quoted market prices, when available, or independent broker quotations. Values that are not determined using quoted market prices inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market prices. Prior to January 1, 2023, the Company applied other than temporary impairment (“OTTI”) guidance for securities in an unrealized loss position. An OTTI was recognized in earnings within realized investment gains (losses) when it was anticipated that the amortized cost would not be recovered. When either: (i) the Company had the intent to sell the security, or (ii) it was more likely than not that the Company would be required to sell the security before recovery, the reduction of amortized cost and the OTTI recognized in earnings was the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions existed, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected was recognized as a reduction of amortized cost and an OTTI in earnings. If the estimated fair value was less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors was recorded in OCI. On January 1, 2023, the Company adopted accounting standards update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using a modified retrospective approach. Under ASU 2016-13, for securities in an unrealized loss position, a credit loss is recognized in earnings within realized investment gains (losses) when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the reduction of amortized cost and the loss recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as a credit loss by establishing an ACL with a corresponding charge to earnings in realized investment gains (losses). However, the ACL is limited by the amount that the fair value is less than the amortized cost. This limitation is known as the “fair value floor.” If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors (“noncredit loss”) is recorded in OCI.
Reinsurance Recoverables	Reinsurance Recoverables The Company’s insurance subsidiaries from time to time purchase reinsurance from unaffiliated insurers and reinsurers to reduce their potential liability on individual risks and to protect against catastrophic losses. In a reinsurance transaction, an insurance company transfers, or “cedes,” a portion or all of its exposure on insurance policies to a reinsurer. The reinsurer assumes the exposure in return for a portion of the premiums. The ceding of insurance does not legally discharge the insurer from primary liability for the full amount of the policies written by it, and the ceding company will incur a loss if the reinsurer fails to meet its obligations under the reinsurance agreement. Amounts currently recoverable under reinsurance agreements are included in reinsurance receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance.
Insurance Premiums and Other Receivables	Insurance Premiums and Other Receivables Receivables amounts due from insureds and agents are evaluated periodically for collectibility. Allowances for expected credit losses are established, as and when a loss has been determined probable, against the related receivable. An allowance for expected credit loss is recognized by the Company when determined on a specific account basis and a general provision for loss is made based on the Company’s historical and expected experience.

Recently Issued Accounting St_3

Recently Issued Accounting Standards (Tables)	6 Months Ended
	Jun. 30, 2023
Recently Issued Accounting Standards [Abstract]
Reinsurance Recoverables	The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at January 1, 2023 and June 30, 2023, and the changes in the allowance for estimated uncollectible reinsurance for the six months ended June 30, 2023. At and for the six months ended June 30, 2023 (in thousands) Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Balance, beginning of period $ 25,913 $ — Cumulative effect of adoption of updated accounting guidance for — 75 Current period change for estimated uncollectible reinsurance — (9 ) Write-offs of uncollectible reinsurance recoverables — — Balance, end of period $ 22,261 $ 66
Insurance Premium and Other Receivables	The following table presents the balances of insurance premiums and other, net of the allowance for expected credit losses, at January 1, 2023 and June 30, 2023, and the changes in the allowance for doubtful accounts/expected credit losses for the six months ended June 30, 2023. At and for the six months ended June 30, 2023 (in thousands) Insurance Premiums and Other, Net of Expected Credit Losses Allowance for Doubtful Accounts/Expected Credit Losses Balance, beginning of period $ 15,386 $ 177 Cumulative effect of adoption of updated accounting guidance for — — Current period change for expected credit losses — 36 Write-offs of uncollectible insurance premiums and other receivables — — Balance, end of period $ 30,825 $ 213

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2023
Investments [Abstract]
Investments Aggregated by Type and Industry	Fixed maturities were comprised of the following: June 30, 2023 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Cost or Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 48,880 $ 1 $ 5,948 $ — $ 54,827 Obligations of states and political subdivisions 8,148 — 1,370 — 9,518 Corporate securities: Utilities and telecom 20,195 86 3,146 — 23,255 Financial services 57,242 439 6,948 — 63,751 Other business – diversified 31,871 173 4,107 — 35,805 Other consumer – diversified 41,909 42 5,797 — 47,664 Total corporate securities 151,217 740 19,998 — 170,475 Redeemable preferred stocks: Other consumer – diversified 227 34 — — 193 Total redeemable preferred stocks 227 34 — — 193 Total fixed maturities $ 208,472 $ 775 $ 27,316 $ — $ 235,013 December 31, 2022 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 $ 44,412 $ 5 $ 5,926 $ 50,333 Obligations of states and political subdivisions 9,187 4 1,702 10,885 Corporate securities: Utilities and telecom 22,090 120 3,299 25,269 Financial services 59,054 397 7,085 65,742 Other business – diversified 31,058 161 4,689 35,586 Other consumer – diversified 42,705 35 6,089 48,759 Total corporate securities 154,907 713 21,162 175,356 Redeemable preferred stocks: Other consumer – diversified 223 31 — 192 Total redeemable preferred stocks 223 31 — 192 Total fixed maturities $ 208,729 $ 753 $ 28,790 $ 236,766 Bonds having an amortized cost of $11,766 and $12,333 and included in the tables above were on deposit with insurance regulatory authorities as of June 30, 2023 and December 31, 2022, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $7,548 and $7,221 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta (“FHLB”) at June 30, 2023 and December 31, 2022, respectively. Equity securities were comprised of the following: June 30, 2023 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 842 $ 570 $ — $ 272 Other business – diversified 8,837 4,204 — 4,633 Total equity securities $ 9,679 $ 4,774 $ — $ 4,905 December 31, 2022 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost Equity securities: Common and non-redeemable preferred stocks: Financial services $ 790 $ 516 $ — $ 274 Other business – diversified 10,772 6,139 — 4,633 Total equity securities $ 11,562 $ 6,655 $ — $ 4,907
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 June 30, 2023 and December 31, 2022 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. June 30, 2023 December 31, 2022 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 123 $ 125 $ 3,776 $ 3,797 Due after one year through five years 56,828 59,924 40,150 42,174 Due after five years through ten years 35,227 39,835 44,044 49,711 Due after ten years 81,244 95,113 87,719 103,095 Asset backed securities 35,050 40,016 33,040 37,989 Totals $ 208,472 $ 235,013 $ 208,729 $ 236,766
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 June 30, 2023 and December 31, 2022. June 30, 2023 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 11,404 $ 287 $ 36,608 $ 5,661 $ 48,012 $ 5,948 Obligations of states and political subdivisions 2,143 18 6,005 1,352 8,148 1,370 Corporate securities 16,587 554 126,125 19,444 142,712 19,998 Total temporarily impaired securities $ 30,134 $ 859 $ 168,738 $ 26,457 $ 198,872 $ 27,316 December 31, 2022 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 23,763 $ 2,410 $ 19,259 $ 3,516 $ 43,022 $ 5,926 Obligations of states and political subdivisions 8,183 1,702 — — 8,183 1,702 Corporate securities 127,928 16,214 14,514 4,948 142,442 21,162 Total temporarily impaired securities $ 159,874 $ 20,326 $ 33,773 $ 8,464 $ 193,647 $ 28,790
Summary of Realized Investment Gains (Losses)	The following tables summarize realized investment gains (losses) for the three month and six month periods ended June 30, 2023 and 2022. Three Months Ended June 30, 2023 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 70 $ — $ — $ 70 Losses — — — — Realized investment losses, net $ 70 $ — $ — $ 70 Three Months Ended June 30, 2022 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ — $ — $ — $ — Losses (43 ) — (19 ) (62 ) Realized investment gains, net $ (43 ) $ — $ (19 ) $ (62 ) Six Months Ended June 30, 2023 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 70 $ — $ — $ 70 Losses — — — — Realized investment gains, net $ 70 $ — $ — $ 70 Six Months Ended June 30, 2022 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ — $ — $ — $ — Losses (53 ) — (19 ) (72 ) Realized investment gains, net $ (53 ) $ — $ (19 ) $ (72 )
Unrealized Gains (Losses) on Equity Securities	The following table presents the change in unrealized gains (losses) related to equity securities still held for the three month and six month periods ended June 30, 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net realized and unrealized gains (losses) recognized during the period on equity securities $ 494 $ (4,866 ) $ (1,881 ) $ (2,673 ) Less: Net realized gains recognized during the period on equity securities sold during the period — — — — Unrealized gains (losses) recognized during the reporting period on equity securities, net $ 494 $ (4,866 ) $ (1,881 ) $ (2,673 )

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Values of Financial Instruments [Abstract]
Financial Instruments Carried at Fair Value Measured on a Recurring Basis	As of June 30, 2023, 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 $ — $ 208,472 $ — $ 208,472 Equity securities 9,525 — 154 9,679 Cash equivalents 15,051 — — 15,051 Total $ 24,576 $ 208,472 $ 154 $ 233,202 As of December 31, 2022, 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 $ — $ 208,729 $ — $ 208,729 Equity securities 11,406 — 156 11,562 Cash equivalents 18,861 — — 18,861 Total $ 30,267 $ 208,729 $ 156 $ 239,152
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 June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 Level in Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 24,247 $ 24,247 $ 28,863 $ 28,863 Fixed maturities (1 ) 208,472 208,472 208,729 208,729 Equity securities (1 ) 9,679 9,679 11,562 11,562 Other invested assets Level 3 6,724 6,724 5,386 5,386 Policy loans Level 2 1,811 1,811 1,759 1,759 Investment in unconsolidated trusts Level 2 1,238 1,238 1,238 1,238 Liabilities: Junior subordinated debentures, net Level 2 33,738 32,724 33,738 33,810 Revolving credit facility Level 2 3,000 3,000 2,009 2,009 (1) See the aforementioned information for a description of the fair value hierarchy as well as a description of levels for classes of these financial assets.

Insurance Reserves for Losses_2

Insurance Reserves for Losses and Claims (Tables)	6 Months Ended
	Jun. 30, 2023
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 six months ended June 30, 2023 and 2022 is as follows: Six Months Ended June 30, 2023 2022 Beginning insurance reserves for losses and claims, gross $ 87,484 $ 85,620 Less: Reinsurance recoverable on unpaid losses (17,647 ) (17,690 ) Beginning insurance reserves for losses and claims, net 69,837 67,930 Incurred related to: Current accident year 57,320 66,260 Prior accident year development (1) 1,636 (2) (3,195 ) (3) Total incurred 58,956 63,065 Paid related to: Current accident year 25,834 32,630 Prior accident years 33,019 28,754 Total paid 58,853 61,384 Ending insurance reserves for losses and claims, net 69,940 69,611 Plus: Reinsurance recoverable on unpaid losses 16,044 17,487 Ending insurance reserves for losses and claims, gross $ 85,984 $ 87,098 (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. (2) Prior years’ development was primarily the result of unfavorable development in the property and casualty operations due to inflationary factors. (3) Prior years’ development was primarily the result of favorable development in the property and casualty operations, as well as favorable development in the Medicare supplement line of business in the life and health operations.
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: Six Months Ended June 30, 2023 2022 Total incurred losses $ 58,956 $ 63,065 Cash surrender value and matured endowments 812 1,154 Benefit reserve changes 57 (297 ) Total insurance benefits and losses incurred $ 59,825 $ 63,922

Credit Arrangements (Tables)

Credit Arrangements (Tables)	6 Months Ended
	Jun. 30, 2023
Credit Arrangements [Abstract]
Financial Structure of Statutory Business Trusts	The financial structure of each of Atlantic American Statutory Trust I and II as of June 30, 2023 was as follows: Atlantic American Statutory Trust I Atlantic American Statutory Trust II JUNIOR SUBORDINATED DEBENTURES (1) (2) Principal amount owed June 30 2023 $ 18,042 $ 23,196 Less: Treasury debt (3) — (7,500 ) Net balance June 30 2023 $ 18,042 $ 15,696 Net balance December 31, 2022 $ 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 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)	6 Months Ended
	Jun. 30, 2023
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 June 30 Income Weighted Average Shares (In thousands) Per Share Amount Basic Earnings Per Common Share: Net income $ 1,744 20,404 Less preferred stock dividends (100 ) — Net income applicable to common shareholders 1,644 20,404 0.08 Diluted Earnings Per Common Share: Effect of Series D preferred stock 100 1,378 Net income applicable to common shareholders $ 1,744 21,782 $ 0.08 Three Months Ended June 30 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Loss Per Common Share: Net loss $ (1,679 ) 20,402 Less preferred stock dividends (100 ) — Net loss applicable to common shareholders $ (1,779 ) 20,402 $ (0.09 ) Six Months Ended June 30, 2023 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 298 20,406 Less preferred stock dividends (199 ) — Net income applicable to common shareholders $ 99 20,406 $ — Six Months Ended June 30, 2022 Income Weighted Average Shares (In thousands) Per Share Amount Basic and Diluted Earnings Per Common Share: Net income $ 1,163 20,391 Less preferred stock dividends (199 ) — Net income applicable to common shareholders $ 964 20,391 $ 0.05

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2023
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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 Federal income tax provision at statutory rate of 21 $ 466 $ (444 ) $ 84 $ 353 Dividends-received deduction (10 ) (6 ) (17 ) (12 ) Meals and entertainment 11 10 23 20 Vested stock and club dues 2 — 3 — Parking disallowance 4 4 8 8 Penalties and fines — — — 149 Income tax expense (benefit) $ 473 $ (436 ) $ 101 $ 518
Components of Income Tax Expense	The components of income tax expense (benefit) were: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Current – Federal $ 1,221 $ 1,144 $ 1,401 $ 1,212 Deferred – Federal (748 ) (1,580 ) (1,300 ) (694 ) Total $ 473 $ (436 ) $ 101 $ 518

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Additional Information of Operating Leases	Additional information regarding the Company’s real estate operating leases is as follows: Six Months Ended June 30, Other information on operating leases: 2023 2022 Cash payments included in the measurement of lease liabilities reported in operating cash flows $ 520 $ 512 Right-of-use assets included in other assets 3,016 3,781 Weighted average discount rate 6.8 % 6.8 % Weighted average remaining lease term in years 3.4 years 4.4 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 2023 $ 528 2024 1,065 2025 1,083 2026 942 Thereafter — Total undiscounted lease payments 3,618 Less: present value adjustment 397 Operating lease liability included in accounts payable and accrued expenses $ 3,221

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2023
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 2023 and 2022. Assets June 30, 2023 December 31, 2022 American Southern $ 151,902 $ 144,455 Bankers Fidelity 192,456 195,028 Corporate and Other 28,597 27,581 Total assets $ 372,955 $ 367,064 Revenues Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 American Southern $ 18,965 $ 19,496 $ 37,165 $ 38,002 Bankers Fidelity 30,193 25,569 58,383 58,458 Corporate and Other 30 (396 ) (91 ) (183 ) Total revenue $ 49,188 $ 44,669 $ 95,457 $ 96,277 In come (Loss) Before Income Taxes Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 American Southern $ 2,716 $ 682 $ 2,386 $ 2,767 Bankers Fidelity 1,851 (517 ) 3,203 2,934 Corporate and Other (2,350 ) (2,280 ) (5,190 ) (4,020 ) Income (loss) before income taxes $ 2,217 $ (2,115 ) $ 399 $ 1,681

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2023 Segment
Basis of Presentation and Significant Accounting Policies [Abstract]
Number of business units	2

Recently Issued Accounting St_4

Recently Issued Accounting Standards, Reinsurance Recoverables (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Financial Instruments - Credit Losses [Abstract]
Allowance for credit losses	$ 66
Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	25,913
Balance, end of period	22,261
Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	0
Current period change for estimated uncollectible reinsurance	(9)
Write-offs of uncollectible reinsurance recoverables	0
Balance, end of period	66
ASU 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Financial Instruments - Credit Losses [Abstract]
Allowance for credit losses
Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	0
Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	$ 75

Recently Issued Accounting St_5

Recently Issued Accounting Standards, Insurance Premium and Other Receivables (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Insurance Premiums and Other, Net of Expected Credit Losses [Abstract]
Balance, beginning of period	$ 15,386
Balance, end of period	30,825
Allowance for Doubtful Accounts/Expected Credit Losses [Abstract]
Balance, beginning of period	177
Current period change for expected credit losses	36
Write-offs of uncollectible insurance premiums and other receivables	0
Balance, end of period	213
ASU 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Insurance Premiums and Other, Net of Expected Credit Losses [Abstract]
Balance, beginning of period	0
Allowance for Doubtful Accounts/Expected Credit Losses [Abstract]
Balance, beginning of period	$ 0

Investments, Aggregated by Type

Investments, Aggregated by Type and Industry (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Investments aggregated by type and industry [Abstract]
Estimated fair value	$ 208,472	$ 208,729
Allowance for credit losses	0	0
Amortized cost total	235,013	236,766
Estimated fair value	9,679	11,562
Cost	4,905	4,907
Amortized cost of bonds on deposit with insurance regulatory authorities	11,766	12,333
Bonds Pledged as Collateral [Member] | FHLB Advances [Member]
Investments aggregated by type and industry [Abstract]
Amortized cost pledged as collateral to FHLB	7,548	7,221
Fixed Maturities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	208,472	208,729
Gross unrealized gains	775	753
Gross unrealized losses	27,316	28,790
Allowance for credit losses	0
Amortized cost total	235,013	236,766
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	48,880	44,412
Gross unrealized gains	1	5
Gross unrealized losses	5,948	5,926
Allowance for credit losses	0
Amortized cost total	54,827	50,333
Obligations of States and Political Subdivisions [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	8,148	9,187
Gross unrealized gains	0	4
Gross unrealized losses	1,370	1,702
Allowance for credit losses	0
Amortized cost total	9,518	10,885
Corporate Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	151,217	154,907
Gross unrealized gains	740	713
Gross unrealized losses	19,998	21,162
Allowance for credit losses	0
Amortized cost total	170,475	175,356
Corporate Securities [Member] | Utilities and Telecom [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	20,195	22,090
Gross unrealized gains	86	120
Gross unrealized losses	3,146	3,299
Allowance for credit losses	0
Amortized cost total	23,255	25,269
Corporate Securities [Member] | Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	57,242	59,054
Gross unrealized gains	439	397
Gross unrealized losses	6,948	7,085
Allowance for credit losses	0
Amortized cost total	63,751	65,742
Corporate Securities [Member] | Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	31,871	31,058
Gross unrealized gains	173	161
Gross unrealized losses	4,107	4,689
Allowance for credit losses	0
Amortized cost total	35,805	35,586
Corporate Securities [Member] | Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	41,909	42,705
Gross unrealized gains	42	35
Gross unrealized losses	5,797	6,089
Allowance for credit losses	0
Amortized cost total	47,664	48,759
Redeemable Preferred Stocks [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	227	223
Gross unrealized gains	34	31
Gross unrealized losses	0	0
Allowance for credit losses	0
Amortized cost total	193
Redeemable Preferred Stocks [Member] | Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	227	223
Gross unrealized gains	34	31
Gross unrealized losses	0	0
Allowance for credit losses	0
Amortized cost total	193	192
Equity Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	9,679	11,562
Gross unrealized gains	4,774	6,655
Gross unrealized losses	0	0
Cost	4,905	4,907
Common and Non-redeemable Preferred Stocks [Member] | Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	842	790
Gross unrealized gains	570	516
Gross unrealized losses	0	0
Cost	272	274
Common and Non-redeemable Preferred Stocks [Member] | Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	8,837	10,772
Gross unrealized gains	4,204	6,139
Gross unrealized losses	0	0
Cost	$ 4,633	$ 4,633

Investments, Fixed Maturities b

Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Carrying Value [Abstract]
Due in one year or less	$ 123	$ 3,776
Due after one year through five years	56,828	40,150
Due after five years through ten years	35,227	44,044
Due after ten years	81,244	87,719
Asset backed securities	35,050	33,040
Carrying value total	208,472	208,729
Amortized Cost [Abstract]
Due in one year or less	125	3,797
Due after one year through five years	59,924	42,174
Due after five years through ten years	39,835	49,711
Due after ten years	95,113	103,095
Asset backed securities	40,016	37,989
Amortized cost total	$ 235,013	$ 236,766

Investments, Securities with Co

Investments, Securities with Continuous Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2023 USD ($) Securities	Dec. 31, 2022 USD ($) Securities
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 30,134	$ 159,874
12 months or longer	168,738	33,773
Total	198,872	193,647
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	859	20,326
12 months or longer	26,457	8,464
Total	$ 27,316	$ 28,790
Number of securities in unrealized loss position | Securities	248	237
Allowance for expected credit losses on available-for-sale fixed maturities	$ 0	$ 0
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	11,404	23,763
12 months or longer	36,608	19,259
Total	48,012	43,022
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	287	2,410
12 months or longer	5,661	3,516
Total	5,948	5,926
Allowance for expected credit losses on available-for-sale fixed maturities	0
Obligations of States and Political Subdivisions [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	2,143	8,183
12 months or longer	6,005	0
Total	8,148	8,183
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	18	1,702
12 months or longer	1,352	0
Total	1,370	1,702
Allowance for expected credit losses on available-for-sale fixed maturities	0
Corporate Securities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	16,587	127,928
12 months or longer	126,125	14,514
Total	142,712	142,442
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	554	16,214
12 months or longer	19,444	4,948
Total	19,998	$ 21,162
Allowance for expected credit losses on available-for-sale fixed maturities	$ 0

Investments, Summary of Realize

Investments, Summary of Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Summary of realized investment gains (losses) [Abstract]
Gains	$ 70	$ 0	$ 70	$ 0
Losses	0	(62)	0	(72)
Realized investment losses (gains), net	70	(62)	70	(72)
Fixed Maturities [Member]
Summary of realized investment gains (losses) [Abstract]
Gains	70	0	70	0
Losses	0	(43)	0	(53)
Realized investment losses (gains), net	70	(43)	70	(53)
Equity Securities [Member]
Summary of realized investment gains (losses) [Abstract]
Gains	0	0	0	0
Losses	0	0	0	0
Realized investment losses (gains), net	0	0	0	0
Other Invested Assets [Member]
Summary of realized investment gains (losses) [Abstract]
Gains	0	0	0	0
Losses	0	(19)	0	(19)
Realized investment losses (gains), net	$ 0	$ (19)	$ 0	$ (19)

Investments, Unrealized Gains (

Investments, Unrealized Gains (Losses) on Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments [Abstract]
Net realized and unrealized gains (losses) recognized during the period on equity securities	$ 494	$ (4,866)	$ (1,881)	$ (2,673)
Less: Net realized gains recognized during the period on equity securities sold during the period	0	0	0	0
Unrealized gains (losses) recognized during the reporting period on equity securities, net	$ 494	$ (4,866)	$ (1,881)	$ (2,673)

Investments, Variable Interest

Investments, Variable Interest Entities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Variable Interest Entities [Abstract]
Carrying amount of interest	$ 6,724	$ 5,386
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	6,724	5,386
Investment in unconsolidated trusts	1,238	1,238
Maximum loss exposure	7,962	6,624
Outstanding commitments	$ 4,518	$ 5,872

Fair Values of Financial Inst_3

Fair Values of Financial Instruments, Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	$ 208,472	$ 208,729
Equity securities	9,679	11,562
Recurring [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	208,472	208,729
Equity securities	9,679	11,562
Cash equivalents	15,051	18,861
Assets at fair value	233,202	239,152
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	9,525	11,406
Cash equivalents	15,051	18,861
Assets at fair value	24,576	30,267
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	208,472	208,729
Equity securities	0	0
Cash equivalents	0	0
Assets at fair value	208,472	208,729
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	154	156
Cash equivalents	0	0
Assets at fair value	$ 154	$ 156

Fair Values of Financial Inst_4

Fair Values of Financial Instruments, Estimated Fair Value and Level (Details) - USD ($) $ in Thousands		Jun. 30, 2023	Dec. 31, 2022
Assets [Abstract]
Fixed maturities		$ 208,472	$ 208,729
Equity securities		9,679	11,562
Carrying Amount [Member]
Assets [Abstract]
Fixed maturities	[1]	208,472	208,729
Equity securities	[1]	9,679	11,562
Carrying Amount [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents		24,247	28,863
Carrying Amount [Member] | Level 2 [Member]
Assets [Abstract]
Policy loans		1,811	1,759
Investment in unconsolidated trusts		1,238	1,238
Liabilities [Abstract]
Junior subordinated debentures, net		33,738	33,738
Revolving credit facility		3,000	2,009
Carrying Amount [Member] | Level 3 [Member]
Assets [Abstract]
Other invested assets		6,724	5,386
Estimated Fair Value [Member]
Assets [Abstract]
Fixed maturities	[1]	208,472	208,729
Equity securities	[1]	9,679	11,562
Estimated Fair Value [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents		24,247	28,863
Estimated Fair Value [Member] | Level 2 [Member]
Assets [Abstract]
Policy loans		1,811	1,759
Investment in unconsolidated trusts		1,238	1,238
Liabilities [Abstract]
Junior subordinated debentures, net		32,724	33,810
Revolving credit facility		3,000	2,009
Estimated Fair Value [Member] | Level 3 [Member]
Assets [Abstract]
Other invested assets		$ 6,724	$ 5,386
[1] See the aforementioned information for a description of the fair value hierarchy as well as a description of levels for classes of these financial assets.

Internal-Use Software (Details)

Internal-Use Software (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Internal Use Software [Abstract]
Period of initial terms of arrangement	5 years
Period of additional renewal term	5 years
Incurred and capitalized implementation costs	$ 628	$ 958
Capitalized implementation costs	3,650
Amortization expense	$ 0
Software Capitalized Implementation Costs [Member]
Internal Use Software [Abstract]
Amortization period	10 years

Insurance Reserves for Losses_3

Insurance Reserves for Losses and Claims (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023		Jun. 30, 2022
Insurance Reserves for Losses and Claims [Roll Forward]
Beginning insurance reserves for losses and claims, gross				$ 87,484		$ 85,620
Less: Reinsurance recoverable on unpaid losses				(17,647)		(17,690)
Beginning insurance reserves for losses and claims, net				69,837		67,930
Incurred related to [Abstract]
Current accident year				57,320		66,260
Prior accident year development	[1]			1,636	[2]	(3,195)	[3]
Total incurred				58,956		63,065
Paid related to [Abstract]
Current accident year				25,834		32,630
Prior accident years				33,019		28,754
Total paid				58,853		61,384
Ending insurance reserves for losses and claims, net		$ 69,940	$ 69,611	69,940		69,611
Plus: Reinsurance recoverable on unpaid losses		16,044	17,487	16,044		17,487
Ending insurance reserves for losses and claims, gross		85,984	87,098	85,984		87,098
Reconciliation of total incurred claims to total insurance benefits and losses incurred [Abstract]
Total incurred losses				58,956		63,065
Cash surrender value and matured endowments				812		1,154
Benefit reserve changes				57		(297)
Total insurance benefits and losses incurred		$ 29,365	$ 32,753	$ 59,825		$ 63,922
[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. Prior years’ development was primarily the result of unfavorable development in the property and casualty operations due to inflationary factors. Prior years’ development was primarily the result of favorable development in the property and casualty operations, as well as favorable development in the Medicare supplement line of business in the life and health operations.

Credit Arrangements, Bank Debt

Credit Arrangements, Bank Debt (Details) - Revolving Credit Facility [Member] $ in Thousands		6 Months Ended
	May 12, 2021 USD ($)	Jun. 30, 2023 USD ($)
Bank Debt [Abstract]
Unsecured credit facility	$ 10,000
Maturity date		Apr. 12, 2024
Outstanding borrowings		$ 3,000
Minimum [Member]
Bank Debt [Abstract]
Indebtedness capital ratio		0.35
LIBOR [Member]
Bank Debt [Abstract]
Basis spread on variable rate	2%
Interest rate floor	1%

Credit Arrangements, Junior Sub

Credit Arrangements, Junior Subordinated Debentures (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) Trust Quarter $ / shares shares
Debt Instruments [Abstract]
Number of Connecticut statutory business trusts | Trust	2
Financial structure of statutory business trusts [Abstract]
Net balance June 30, 2023	$ 33,738
Net balance December 31, 2022	$ 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
Junior Subordinated Debentures [Member] | SOFR [Member]
Financial structure of statutory business trusts [Abstract]
Basis spread on variable rate	0.26161%
Variable rate term	3-month
Atlantic American Statutory Trust I [Member] | Junior Subordinated Debentures [Member]
Financial structure of statutory business trusts [Abstract]
Principal amount owed June 30, 2023	$ 18,042	[1],[2]
Less: Treasury debt	0	[1],[2],[3]
Net balance June 30, 2023	18,042	[1],[2]
Net balance December 31, 2022	$ 18,042	[1],[2]
Coupon rate	LIBOR + 4.00%	[1],[2]
Interest payable	Quarterly	[1],[2]
Maturity date	Dec. 04, 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%
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. 04, 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%
Atlantic American Statutory Trust II [Member] | Junior Subordinated Debentures [Member]
Financial structure of statutory business trusts [Abstract]
Principal amount owed June 30, 2023	$ 23,196	[1],[2]
Less: Treasury debt	(7,500)	[1],[2],[3]
Net balance June 30, 2023	15,696	[1],[2]
Net balance December 31, 2022	$ 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. 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. On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures. 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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Basic Earnings (Loss) Per Common Share [Abstract]
Net income (loss)	$ 1,744	$ (1,679)	$ 298	$ 1,163
Less: preferred stock dividends	(100)	(100)	(199)	(199)
Net income (loss) applicable to common shareholders	1,644	(1,779)	99	964
Diluted Earnings (Loss) Per Common Share [Abstract]
Effect of Series D preferred stock	100
Net income (loss) applicable to common shareholders	$ 1,744	$ (1,779)	$ 99	$ 964
Weighted Average Shares [Abstract]
Weighted average shares outstanding, Basic (in shares)	20,404	20,402	20,406	20,391
Effect of Series D preferred stock (in shares)	1,378
Weighted average shares outstanding, Diluted (in shares)	21,782	20,402	20,406	20,391
Per Share Amount, Basic [Abstract]
Net income (loss) applicable to common shareholders, Basic (in dollars per share)	$ 0.08	$ (0.09)	$ 0	$ 0.05
Per Share Amount, Diluted [Abstract]
Net income (loss) applicable to common shareholders, Diluted (in dollars per share)	$ 0.08	$ (0.09)	$ 0	$ 0.05

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reconciliation of income tax expense (benefit) [Abstract]
Federal income tax provision at statutory rate of 21%	$ 466	$ (444)	$ 84	$ 353
Dividends-received deduction	(10)	(6)	(17)	(12)
Meals and entertainment	11	10	23	20
Vested stock and club dues	2	0	3	0
Parking disallowance	4	4	8	8
Penalties and fines	0	0	0	149
Income tax expense (benefit)	473	(436)	$ 101	518
Federal statutory income tax rate			21%
Components of income tax expense (benefit) [Abstract]
Current - Federal	1,221	1,144	$ 1,401	1,212
Deferred - Federal	(748)	(1,580)	(1,300)	(694)
Income tax expense (benefit)	$ 473	$ (436)	$ 101	$ 518

Leases (Details)

Leases (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) Lease	Jun. 30, 2022 USD ($)
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	520	512
Right-of-use assets included in other assets on the condensed consolidated balance sheet	$ 3,016	$ 3,781
Weighted average discount rate	6.80%	6.80%
Weighted average remaining lease term in years	3 years 4 months 24 days	4 years 4 months 24 days
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
Maturities and present value of lease liabilities [Abstract]
Remainder of 2023	$ 528
2024	1,065
2025	1,083
2026	942
Thereafter	0
Total undiscounted lease payments	3,618
Less: present value adjustment	397
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$ 3,221
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		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) Segment	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Information [Abstract]
Number of business units | Segment			2
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	$ 372,955		$ 372,955		$ 367,064
Revenues	49,188	$ 44,669	95,457	$ 96,277
Income (loss) before income taxes	2,217	(2,115)	399	1,681
Operating Segments [Member] | American Southern [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	151,902		151,902		144,455
Revenues	18,965	19,496	37,165	38,002
Income (loss) before income taxes	2,716	682	2,386	2,767
Operating Segments [Member] | Bankers Fidelity [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	192,456		192,456		195,028
Revenues	30,193	25,569	58,383	58,458
Income (loss) before income taxes	1,851	(517)	3,203	2,934
Corporate and Other [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	28,597		28,597		$ 27,581
Revenues	30	(396)	(91)	(183)
Income (loss) before income taxes	$ (2,350)	$ (2,280)	$ (5,190)	$ (4,020)

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Events [Member]	Aug. 08, 2023 $ / shares
Subsequent Event [Line Items]
Dividend declared	Aug. 08, 2023
Cash dividend declared (in dollars per share)	$ 0.02
Dividend payable	Aug. 22, 2023