Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 17, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ATLANTIC AMERICAN CORP | ||
Entity Central Index Key | 8177 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $17,958,941 | ||
Entity Common Stock, Shares Outstanding | 20,582,006 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $16,375 | $33,102 |
Investments | 240,285 | 228,961 |
Receivables: | ||
Reinsurance | 14,348 | 14,314 |
Insurance premiums and other, net of allowance for doubtful accounts of $439 and $339 in 2014 and 2013, respectively | 10,728 | 9,343 |
Deferred income taxes, net | 0 | 363 |
Deferred acquisition costs | 26,981 | 27,509 |
Other assets | 5,747 | 3,245 |
Intangibles | 2,544 | 2,544 |
Total assets | 317,008 | 319,381 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Insurance reserves and policyholder funds | 164,094 | 162,373 |
Accounts payable and accrued expenses | 13,586 | 14,843 |
Deferred income taxes, net | 1,395 | 0 |
Junior subordinated debenture obligations, net (Note 6) | 33,738 | 41,238 |
Total liabilities | 212,813 | 218,454 |
Commitments and contingencies (Note 7) | ||
Shareholders' equity: | ||
Preferred stock, $1 par, 4,000,000 shares authorized; Series D preferred, 55,000 and 65,000 shares issued and outstanding in 2014 and 2013, respectively; $5,500 and $6,500 redemption value in 2014 and 2013, respectively | 55 | 65 |
Common stock, $1 par, 50,000,000 shares authorized; 22,400,894 shares issued; 20,600,039 and 21,117,874 shares outstanding in 2014 and 2013, respectively | 22,401 | 22,401 |
Additional paid-in capital | 56,491 | 57,103 |
Retained earnings | 21,866 | 18,738 |
Accumulated other comprehensive income | 9,279 | 6,204 |
Unearned stock grant compensation | -460 | -485 |
Treasury stock, at cost, 1,800,855 and 1,283,020 shares in 2014 and 2013, respectively | -5,437 | -3,099 |
Total shareholders' equity | 104,195 | 100,927 |
Total liabilities and shareholders' equity | $317,008 | $319,381 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Receivables: | ||
Insurance premiums and other, allowance for doubtful accounts | $439 | $339 |
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 | 65,000 |
Preferred stock, shares outstanding (in shares) | 55,000 | 65,000 |
Preferred stock, redemption value | $5,500 | $6,500 |
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) | 20,600,039 | 21,117,874 |
Treasury stock, at cost (in shares) | 1,800,855 | 1,283,020 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Revenue: | ||
Insurance premiums | $153,488 | $145,630 |
Investment income | 10,367 | 10,809 |
Realized investment gains, net | 1,571 | 8,741 |
Other income (Note 6) | 895 | 189 |
Total revenue | 166,321 | 165,369 |
Benefits and expenses: | ||
Insurance benefits and losses incurred | 106,195 | 100,372 |
Commissions and underwriting expenses | 40,923 | 40,556 |
Interest expense | 1,607 | 1,898 |
Other expense | 12,692 | 11,337 |
Total benefits and expenses | 161,417 | 154,163 |
Income before income taxes | 4,904 | 11,206 |
Income tax expense | 474 | 184 |
Net income | 4,430 | 11,022 |
Preferred stock dividends | -468 | -482 |
Net income applicable to common shareholders | $3,962 | $10,540 |
Basic earnings per common share (in dollars per share) | $0.19 | $0.50 |
Diluted earnings per common share (in dollars per share) | $0.19 | $0.48 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $4,430 | $11,022 | ||
Available-for-sale securities: | ||||
Gross unrealized holding gain (loss) arising in the period | 6,302 | -11,965 | ||
Related income tax effect | -2,206 | 4,188 | ||
Less: reclassification adjustment for net realized gains included in net income (1) | -1,571 | [1] | -8,741 | [1] |
Related income tax effect (2) | 550 | [2] | 3,059 | [2] |
Net effect on other comprehensive income (loss) | 3,075 | -13,459 | ||
Derivative financial instrument: | ||||
Fair value adjustment to derivative financial instrument | 0 | 141 | ||
Related income tax effect | 0 | -49 | ||
Net effect on other comprehensive income (loss) | 0 | 92 | ||
Total other comprehensive income (loss), net of tax | 3,075 | -13,367 | ||
Total comprehensive income (loss) | $7,505 | ($2,345) | ||
[1] | Realized gains on available-for-sale securities recognized in realized investment gains, net on the accompanying consolidated statements of operations. | |||
[2] | Income tax effect on reclassification adjustment for net realized gains included in income tax expense on the accompanying consolidated statements of operations. |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Unearned Stock Grant Compensation [Member] | Treasury Stock [Member] | Total |
In Thousands, unless otherwise specified | ||||||||
Balance at Dec. 31, 2012 | $70 | $22,401 | $57,180 | $8,621 | $19,571 | $0 | ($2,107) | $105,736 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 0 | 0 | 0 | 11,022 | 0 | 0 | 0 | 11,022 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | -13,367 | 0 | 0 | -13,367 |
Preferred stock redeemed | -5 | 0 | -495 | 0 | 0 | 0 | 0 | -500 |
Dividends on common stock | 0 | 0 | 0 | -423 | 0 | 0 | 0 | -423 |
Dividends on preferred stock | 0 | 0 | 0 | -482 | 0 | 0 | 0 | -482 |
Restricted stock grants | 0 | 0 | 393 | 0 | 0 | -704 | 311 | 0 |
Amortization of unearned compensation | 0 | 0 | 0 | 0 | 0 | 219 | 0 | 219 |
Purchase of shares for treasury | 0 | 0 | 0 | 0 | 0 | 0 | -1,416 | -1,416 |
Issuance of shares under stock plans | 0 | 0 | 25 | 0 | 0 | 0 | 113 | 138 |
Balance at Dec. 31, 2013 | 65 | 22,401 | 57,103 | 18,738 | 6,204 | -485 | -3,099 | 100,927 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 0 | 0 | 0 | 4,430 | 0 | 0 | 0 | 4,430 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 3,075 | 0 | 0 | 3,075 |
Preferred stock redeemed | -10 | 0 | -990 | 0 | 0 | 0 | 0 | -1,000 |
Dividends on common stock | 0 | 0 | 0 | -834 | 0 | 0 | 0 | -834 |
Dividends on preferred stock | 0 | 0 | 0 | -468 | 0 | 0 | 0 | -468 |
Restricted stock grants | 0 | 0 | 328 | 0 | 0 | -559 | 231 | 0 |
Amortization of unearned compensation | 0 | 0 | 0 | 0 | 0 | 584 | 0 | 584 |
Purchase of shares for treasury | 0 | 0 | 0 | 0 | 0 | 0 | -2,603 | -2,603 |
Issuance of shares under stock plans | 0 | 0 | 50 | 0 | 0 | 0 | 34 | 84 |
Balance at Dec. 31, 2014 | $55 | $22,401 | $56,491 | $21,866 | $9,279 | ($460) | ($5,437) | $104,195 |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Treasury shares purchased (in shares) | 687,964 | 371,220 |
Shares issued under stock plans (in shares) | 21,629 | 72,552 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | ||
Net income | $4,430 | $11,022 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred acquisition costs | 10,678 | 8,960 |
Acquisition costs deferred | -10,150 | -10,336 |
Realized investment gains, net | -1,571 | -8,741 |
Gain on purchase of debt securities (Note 6) | -750 | 0 |
Increase in insurance reserves and policyholder funds | 1,721 | 7,815 |
Compensation expense related to share awards | 584 | 219 |
Depreciation and amortization | 932 | 600 |
Deferred income tax expense (benefit) | 102 | -329 |
(Increase) decrease in receivables, net | -1,419 | 1,448 |
(Decrease) increase in other liabilities | -47 | 2,292 |
Other, net | -57 | 70 |
Net cash provided by operating activities | 4,453 | 13,020 |
Cash flows from investing activities: | ||
Proceeds from investments sold | 75,441 | 108,745 |
Proceeds from investments matured, called or redeemed | 1,916 | 11,414 |
Investments purchased | -82,836 | -112,466 |
Additions to property and equipment | -4,127 | -1,338 |
Acquisition of Bankers Fidelity Assurance, net of $1,317 acquired | 0 | -2,540 |
Net cash (used in) provided by investing activities | -9,606 | 3,815 |
Cash flows from financing activities: | ||
Payment for debt securities (Note 6) | -6,750 | 0 |
Redemption of Series D preferred stock | -1,000 | -500 |
Payment of dividends on Series D Preferred Stock | -471 | -483 |
Payment of dividends on common stock | -834 | -423 |
Proceeds from shares issued under stock plans | 84 | 138 |
Purchase of shares for treasury | -2,603 | -1,416 |
Net cash used in financing activities | -11,574 | -2,684 |
Net (decrease) increase in cash | -16,727 | 14,151 |
Cash and cash equivalents at beginning of year | 33,102 | 18,951 |
Cash and cash equivalents at end of year | 16,375 | 33,102 |
Supplemental cash flow information: | ||
Cash paid for interest | 1,649 | 1,961 |
Cash paid for income taxes | $445 | $536 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from investing activities: | ||
Acquisition of Bankers Fidelity Assurance, acquired | $0 | $1,317 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies |
Principles of Consolidation | |
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which, for insurance companies, differ in some respects from the statutory accounting practices prescribed or permitted by regulatory authorities. These financial statements include the accounts of Atlantic American Corporation (“Atlantic American” or the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Operating results achieved in any historical period are not necessarily indicative of results to be expected in any future period. | |
At December 31, 2014, the Parent owned four insurance subsidiaries, Bankers Fidelity Life Insurance Company and its wholly-owned subsidiary, Bankers Fidelity Assurance Company (“BFAC”) (together known as “Bankers Fidelity”), and American Southern Insurance Company and its wholly-owned subsidiary, American Safety Insurance Company (together known as “American Southern”), in addition to one non-insurance subsidiary, xCalibre Risk Services, Inc. BFAC was acquired on December 18, 2013. The results of operations of BFAC are included from the date of acquisition. The Parent has issued a guarantee of all liabilities of Bankers Fidelity. | |
Premium Revenue and Cost Recognition | |
Life insurance premiums are recognized as revenue when due; accident and health insurance premiums are recognized as revenue over the premium paying period and property and casualty insurance premiums are recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. Benefits and expenses are accrued as incurred and are associated with premiums as they are earned so as to result in recognition of profits over the lives of the contracts. For traditional life insurance and long-duration health insurance, this association is accomplished by the provision of a future policy benefits reserve and the deferral and subsequent amortization of the costs of acquiring business, “deferred policy acquisition costs” (principally commissions, premium taxes, and other incremental direct costs of issuing policies). Deferred policy acquisition costs are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the policy benefits reserve. The Company provides for insurance benefits and losses on accident, health, and property-casualty claims based upon estimates of projected ultimate losses. Deferred policy acquisition costs for property and casualty insurance and short-duration health insurance are amortized over the effective period of the related insurance policies. Contingent commissions, if contractually applicable, are ultimately payable to agents based on the underlying profitability of a particular insurance contract or a group of insurance contracts, and are periodically evaluated and accrued as earned. In periods in which revisions are made to the estimated loss reserves related to the particular insurance contract or group of insurance contracts subject to such commissions, corresponding adjustments are also made to the related accruals. Deferred policy acquisition costs are expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for property and casualty and short-duration health insurance). | |
Intangibles | |
Intangibles consist of goodwill and other indefinite-lived intangibles. Goodwill represents the excess of cost over the fair value of net assets acquired and is not amortized. Other indefinite-lived intangibles represent the value of licenses acquired in the 2013 acquisition of BFAC (Note 16) and are not amortized. The Company periodically reviews its goodwill and other indefinite-lived intangibles to determine if any adverse conditions exist that could indicate impairment. Conditions that could trigger impairment include, but are not limited to, a significant change in business climate that could affect the value of the related asset, an adverse action, or an assessment by a regulator. No impairment of the Company’s recorded intangibles was identified during the periods presented. | |
Investments | |
The Company’s investments in both fixed maturities, which include bonds and redeemable preferred stocks, and equity securities, which include common and non-redeemable preferred stocks, are classified as “available-for-sale” and, accordingly, are carried at fair value with the after-tax difference from amortized cost, as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The fair values for fixed maturities and equity securities are largely determined by either independent methods prescribed by the National Association of Insurance Commissioners (“NAIC”), which do not differ materially from publicly quoted market prices, when available, or independent broker quotations. The Company owns certain fixed maturities that do not have publicly quoted market values, but had an estimated fair value as determined by management of $2,214 at December 31, 2014. Such values inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market values. Policy loans and real estate are carried at historical cost. Other invested assets are comprised of investments in limited partnerships, limited liability companies, and real estate joint ventures, and are accounted for using the equity method. If the value of a common stock, preferred stock, other invested asset, or publicly traded bond declines below its cost or amortized cost, if applicable, and the decline is considered to be other than temporary, a realized loss is recorded to reduce the carrying value of the investment to its estimated fair value, which becomes the new cost basis. The evaluation for an other than temporary impairment is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold the securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status. Premiums and discounts related to investments are amortized or accreted over the life of the related investment as an adjustment to yield using the effective interest method. Dividends and interest income are recognized when earned or declared. The cost of securities sold is based on specific identification. Unrealized gains (losses) in the value of invested assets are accounted for as a direct increase (decrease) in accumulated other comprehensive income in shareholders’ equity, net of deferred tax and, accordingly, have no effect on net income. | |
Income Taxes | |
Deferred income taxes represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. They arise from differences between the financial reporting and tax basis of assets and liabilities and are adjusted for changes in tax laws and tax rates as those changes are enacted. The provision for income taxes represents the total amount of income taxes due related to the current year, plus the change in deferred income taxes during the year. A valuation allowance is recognized if, based on management’s assessment of the relevant facts, it is more likely than not that some portion of a deferred tax asset will not be realized. | |
Earnings Per Common Share | |
Basic earnings per common share are based on the weighted average number of common shares outstanding during the relevant period. Diluted earnings per common share are based on the weighted average number of common shares outstanding during the relevant period, plus options and share awards outstanding using the treasury stock method and the assumed conversion of the Series D preferred stock, if dilutive. Unless otherwise indicated, earnings per common share amounts are presented on a diluted basis. | |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash on hand and investments in short-term, highly liquid securities with original maturities of three months or less from date of purchase. | |
Recently Issued Accounting Standards | |
In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary | |
Items (“ASU 2015-01”). The main objective of ASU 2015-01 is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. ASU 2015-01 eliminates from GAAP the concept of extraordinary items. Presently, if an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. Although the amendments in ASU 2015-01 will eliminate requirements for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company adopted ASU 2015-01 effective January 1, 2014. Since ASU 2015-01 was a disclosure only update, its adoption did not have a material impact on the Company’s financial condition or results of operations. | |
Use of Estimates in the Preparation of Financial Statements | |
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Significant estimates and assumptions are used in developing and evaluating deferred income taxes, deferred acquisition costs, insurance reserves, investments, and commitments and contingencies, among others, and actual results could differ materially from management’s estimates. |
Investments
Investments | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Investments [Abstract ] | |||||||||||||||||||
Investments | Note 2. Investments | ||||||||||||||||||
The following tables set forth the carrying value, gross unrealized gains, gross unrealized losses and amortized cost of the Company’s investments, aggregated by type and industry, as of December 31, 2014 and December 31, 2013. | |||||||||||||||||||
Investments were comprised of the following: | |||||||||||||||||||
2014 | |||||||||||||||||||
Carrying | Gross | Gross | Amortized | ||||||||||||||||
Value | Unrealized | Unrealized | Cost | ||||||||||||||||
Gains | Losses | ||||||||||||||||||
Fixed maturities: | |||||||||||||||||||
Bonds: | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 33,898 | $ | 1,459 | $ | 30 | $ | 32,469 | |||||||||||
Obligations of states and political subdivisions | 11,459 | 681 | — | 10,778 | |||||||||||||||
Corporate securities: | |||||||||||||||||||
Utilities and telecom | 13,980 | 2,355 | — | 11,625 | |||||||||||||||
Financial services | 59,224 | 3,404 | 588 | 56,408 | |||||||||||||||
Other business – diversified | 70,139 | 2,076 | 1,830 | 69,893 | |||||||||||||||
Other consumer – diversified | 25,388 | 332 | 547 | 25,603 | |||||||||||||||
Total corporate securities | 168,731 | 8,167 | 2,965 | 163,529 | |||||||||||||||
Redeemable preferred stocks: | |||||||||||||||||||
Financial services | 608 | 8 | — | 600 | |||||||||||||||
Other consumer – diversified | 192 | — | — | 192 | |||||||||||||||
Total redeemable preferred stocks | 800 | 8 | — | 792 | |||||||||||||||
Total fixed maturities | 214,888 | 10,315 | 2,995 | 207,568 | |||||||||||||||
Equity securities: | |||||||||||||||||||
Common and non-redeemable preferred stocks: | |||||||||||||||||||
Utilities and telecom | 1,403 | 439 | — | 964 | |||||||||||||||
Financial services | 6,083 | 739 | — | 5,344 | |||||||||||||||
Other business – diversified | 226 | 179 | — | 47 | |||||||||||||||
Other consumer – diversified | 11,212 | 5,598 | — | 5,614 | |||||||||||||||
Total equity securities | 18,924 | 6,955 | — | 11,969 | |||||||||||||||
Other invested assets | 2,995 | — | — | 2,995 | |||||||||||||||
Policy loans | 2,202 | — | — | 2,202 | |||||||||||||||
Real estate | 38 | — | — | 38 | |||||||||||||||
Investments in unconsolidated trusts | 1,238 | — | — | 1,238 | |||||||||||||||
Total investments | $ | 240,285 | $ | 17,270 | $ | 2,995 | $ | 226,010 | |||||||||||
2013 | |||||||||||||||||||
Carrying | Gross | Gross | Amortized | ||||||||||||||||
Value | Unrealized | Unrealized | Cost | ||||||||||||||||
Gains | Losses | ||||||||||||||||||
Fixed maturities: | |||||||||||||||||||
Bonds: | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 17,240 | $ | 576 | $ | 210 | $ | 16,874 | |||||||||||
Obligations of states and political subdivisions | 7,611 | 402 | 17 | 7,226 | |||||||||||||||
Corporate securities: | |||||||||||||||||||
Utilities and telecom | 16,532 | 1,353 | 7 | 15,186 | |||||||||||||||
Financial services | 50,531 | 1,736 | 320 | 49,115 | |||||||||||||||
Other business – diversified | 70,326 | 870 | 2,906 | 72,362 | |||||||||||||||
Other consumer – diversified | 36,712 | 391 | 1,745 | 38,066 | |||||||||||||||
Total corporate securities | 174,101 | 4,350 | 4,978 | 174,729 | |||||||||||||||
Redeemable preferred stocks: | |||||||||||||||||||
Financial services | 2,159 | 4 | 41 | 2,196 | |||||||||||||||
Other consumer – diversified | 192 | — | — | 192 | |||||||||||||||
Total redeemable preferred stocks | 2,351 | 4 | 41 | 2,388 | |||||||||||||||
Total fixed maturities | 201,303 | 5,332 | 5,246 | 201,217 | |||||||||||||||
Equity securities: | |||||||||||||||||||
Common and non-redeemable preferred stocks: | |||||||||||||||||||
Utilities and telecom | 1,474 | 510 | — | 964 | |||||||||||||||
Financial services | 5,761 | 514 | 560 | 5,807 | |||||||||||||||
Other business – diversified | 178 | 131 | — | 47 | |||||||||||||||
Other consumer – diversified | 14,477 | 8,863 | — | 5,614 | |||||||||||||||
Total equity securities | 21,890 | 10,018 | 560 | 12,432 | |||||||||||||||
Other invested assets | 2,123 | — | — | 2,123 | |||||||||||||||
Policy loans | 2,369 | — | — | 2,369 | |||||||||||||||
Real estate | 38 | — | — | 38 | |||||||||||||||
Investments in unconsolidated trusts | 1,238 | — | — | 1,238 | |||||||||||||||
Total investments | $ | 228,961 | $ | 15,350 | $ | 5,806 | $ | 219,417 | |||||||||||
Bonds having an amortized cost of $10,615 and $10,101 and included in the tables above were on deposit with insurance regulatory authorities at December 31, 2014 and 2013, respectively, in accordance with statutory requirements. | |||||||||||||||||||
The following table sets forth the carrying value, amortized cost, and net unrealized gains (losses) of the Company’s investments aggregated by industry as of December 31, 2014 and 2013. | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Carrying | Amortized | Unrealized | Carrying | Amortized | Unrealized | ||||||||||||||
Value | Cost | Gains | Value | Cost | Gains (Losses) | ||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 33,898 | $ | 32,469 | $ | 1,429 | $ | 17,240 | $ | 16,874 | $ | 366 | |||||||
Obligations of states and political subdivisions | 11,459 | 10,778 | 681 | 7,611 | 7,226 | 385 | |||||||||||||
Utilities and telecom | 15,383 | 12,589 | 2,794 | 18,006 | 16,150 | 1,856 | |||||||||||||
Financial services | 65,915 | 62,352 | 3,563 | 58,451 | 57,118 | 1,333 | |||||||||||||
Other business – diversified | 70,365 | 69,940 | 425 | 70,504 | 72,409 | (1,905 | ) | ||||||||||||
Other consumer – diversified | 36,792 | 31,409 | 5,383 | 51,381 | 43,872 | 7,509 | |||||||||||||
Other investments | 6,473 | 6,473 | — | 5,768 | 5,768 | — | |||||||||||||
Investments | $ | 240,285 | $ | 226,010 | $ | 14,275 | $ | 228,961 | $ | 219,417 | $ | 9,544 | |||||||
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 December 31, 2014 and 2013. | |||||||||||||||||||
2014 | |||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||
Losses | Losses | Losses | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 3,695 | $ | 7 | $ | 2,692 | $ | 23 | $ | 6,387 | $ | 30 | |||||||
Corporate securities | 43,996 | 1,604 | 9,293 | 1,361 | 53,289 | 2,965 | |||||||||||||
Total temporarily impaired securities | $ | 47,691 | $ | 1,611 | $ | 11,985 | $ | 1,384 | $ | 59,676 | $ | 2,995 | |||||||
2013 | |||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||
Losses | Losses | Losses | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 8,326 | $ | 210 | $ | — | $ | — | $ | 8,326 | $ | 210 | |||||||
Obligations of states and political subdivisions | 1,018 | 17 | — | — | 1,018 | 17 | |||||||||||||
Corporate securities | 92,049 | 3,714 | 6,938 | 1,264 | 98,987 | 4,978 | |||||||||||||
Redeemable preferred stocks | 704 | 41 | — | — | 704 | 41 | |||||||||||||
Common and non-redeemable preferred stocks | 3,724 | 560 | — | — | 3,724 | 560 | |||||||||||||
Total temporarily impaired securities | $ | 105,821 | $ | 4,542 | $ | 6,938 | $ | 1,264 | $ | 112,759 | $ | 5,806 | |||||||
The evaluation for an other than temporary impairment is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold the securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status. | |||||||||||||||||||
During the years ended December 31, 2014 and 2013, the Company recorded impairments related to the following investments. | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Common and non-redeemable preferred stocks | $ | 196 | $ | — | |||||||||||||||
As of December 31, 2014, securities in an unrealized loss position primarily included certain of the Company’s investments in fixed maturities within the other diversified business, other diversified consumer and financial services sectors. Securities in an unrealized loss position reported in the other diversified business sector included gross unrealized losses of $1,416 related to investments in fixed maturities in the oil and gas industry. The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, including those described above, the Company has deemed these securities to be temporarily impaired as of December 31, 2014. | |||||||||||||||||||
The following describes the fair value hierarchy and provides information as to the extent to which the Company uses fair value to measure the value of its financial instruments and information about the inputs used to value those financial instruments. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three broad levels. | |||||||||||||||||||
Level 1 | Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. The Company’s financial instruments valued using Level 1 criteria include cash equivalents and exchange traded common stocks. | ||||||||||||||||||
Level 2 | Observable inputs, other than quoted prices included in Level 1, for an asset or liability or prices for similar assets or liabilities. The Company’s financial instruments valued using Level 2 criteria include significantly all of its fixed maturities, which consist of U.S. Treasury securities and U.S. Government securities, obligations of states and political subdivisions, and certain corporate fixed maturities, as well as its non-redeemable preferred stocks. In determining fair value measurements using Level 2 criteria, the Company utilizes various external pricing sources. | ||||||||||||||||||
Level 3 | Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Fair value is based on criteria that use assumptions or other data that are not readily observable from objective sources. The Company’s financial instruments valued using Level 3 criteria consist of a limited number of fixed maturities. As of December 31, 2014 and 2013, the value of the Company’s fixed maturities valued using Level 3 criteria was $2,214 and $1,991, respectively. The use of different criteria or assumptions regarding data may have yielded materially different valuations. | ||||||||||||||||||
As of December 31, 2014, financial instruments carried at fair value were measured on a recurring basis as summarized below: | |||||||||||||||||||
Assets: | Quoted | Significant | Significant | Total | |||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||||
for Identical | (Level 2) | ||||||||||||||||||
Assets | |||||||||||||||||||
(Level 1) | |||||||||||||||||||
Fixed maturities | $ | — | $ | 212,674 | $ | 2,214 | $ | 214,888 | |||||||||||
Equity securities | 13,148 | 5,776 | — | 18,924 | |||||||||||||||
Cash equivalents | 15,009 | — | — | 15,009 | |||||||||||||||
Total | $ | 28,157 | $ | 218,450 | $ | 2,214 | $ | 248,821 | |||||||||||
As of December 31, 2013, financial instruments carried at fair value were measured on a recurring basis as summarized below: | |||||||||||||||||||
Assets: | Quoted | Significant | Significant | Total | |||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||||
for Identical | (Level 2) | ||||||||||||||||||
Assets | |||||||||||||||||||
(Level 1) | |||||||||||||||||||
Fixed maturities | $ | — | $ | 199,312 | $ | 1,991 | $ | 201,303 | |||||||||||
Equity securities | 16,406 | 5,484 | — | 21,890 | |||||||||||||||
Cash equivalents | 31,618 | — | — | 31,618 | |||||||||||||||
Total | $ | 48,024 | $ | 204,796 | $ | 1,991 | $ | 254,811 | |||||||||||
The following is a roll-forward of the Company’s financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) from January 1, 2013 to December 31, 2014. | |||||||||||||||||||
Fixed | Derivative | ||||||||||||||||||
Maturities | (Liability) | ||||||||||||||||||
Balance, January 1, 2013 | $ | 2,124 | $ | (141 | ) | ||||||||||||||
Total unrealized gains (losses) included in comprehensive income | (133 | ) | 141 | ||||||||||||||||
Balance, December 31, 2013 | 1,991 | — | |||||||||||||||||
Total unrealized gains included in comprehensive income | 223 | — | |||||||||||||||||
Balance, December 31, 2014 | $ | 2,214 | $ | — | |||||||||||||||
The Company’s fixed maturities valued using Level 3 inputs consist solely of issuances of pooled debt obligations of multiple, smaller financial services companies. They are not actively traded and valuation techniques used to measure fair value are based on future estimated cash flows (based on current cash flows) discounted at reasonable estimated rates of interest. There are no assumed prepayments and/or default probability assumptions as a majority of these instruments contain certain U.S. government agency strips to support repayment of the principal. Other qualitative and quantitative information received from the original underwriter of the pooled offerings is also considered, as applicable. The Company’s derivative financial instrument was an interest rate collar which terminated on March 4, 2013, the stated maturity date, by its terms. | |||||||||||||||||||
The amortized cost and carrying value of fixed maturities at December 31, 2014 and 2013 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Carrying | Amortized | Carrying | Amortized | ||||||||||||||||
Value | Cost | Value | Cost | ||||||||||||||||
Due in one year or less | $ | 1,000 | $ | 1,000 | $ | — | $ | — | |||||||||||
Due after one year through five years | 16,523 | 15,891 | 11,709 | 11,097 | |||||||||||||||
Due after five years through ten years | 114,620 | 112,381 | 108,358 | 107,846 | |||||||||||||||
Due after ten years | 64,990 | 61,704 | 76,882 | 77,884 | |||||||||||||||
Varying maturities | 17,755 | 16,592 | 4,354 | 4,390 | |||||||||||||||
Totals | $ | 214,888 | $ | 207,568 | $ | 201,303 | $ | 201,217 | |||||||||||
Investment income was earned from the following sources: | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Fixed maturities | $ | 9,720 | $ | 9,890 | |||||||||||||||
Equity securities | 510 | 632 | |||||||||||||||||
Other | 137 | 287 | |||||||||||||||||
Total investment income | 10,367 | 10,809 | |||||||||||||||||
Less investment expenses, included in other expenses | (536 | ) | (474 | ) | |||||||||||||||
Net investment income | $ | 9,831 | $ | 10,335 | |||||||||||||||
A summary of realized investment gains (losses) follows: | |||||||||||||||||||
2014 | |||||||||||||||||||
Fixed | Equity | Total | |||||||||||||||||
Maturities | Securities | ||||||||||||||||||
Gains | $ | 2,449 | $ | — | $ | 2,449 | |||||||||||||
Losses | (665 | ) | (213 | ) | (878 | ) | |||||||||||||
Realized investment gains, net | $ | 1,784 | $ | (213 | ) | $ | 1,571 | ||||||||||||
2013 | |||||||||||||||||||
Fixed | Equity | Total | |||||||||||||||||
Maturities | Securities | ||||||||||||||||||
Gains | $ | 8,521 | $ | 293 | $ | 8,814 | |||||||||||||
Losses | (45 | ) | (28 | ) | (73 | ) | |||||||||||||
Realized investment gains, net | $ | 8,476 | $ | 265 | $ | 8,741 | |||||||||||||
Proceeds from the sales of investments were as follows: | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Fixed maturities | $ | 75,244 | $ | 107,728 | |||||||||||||||
Equity securities | — | 972 | |||||||||||||||||
Other investments | 197 | 45 | |||||||||||||||||
Total proceeds | $ | 75,441 | $ | 108,745 | |||||||||||||||
The Company’s bond portfolio included 83% investment grade securities, as defined by the NAIC, at December 31, 2014. |
Insurance_Reserves_and_Policyh
Insurance Reserves and Policyholder Funds | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance Reserves And Policyholder Funds [Abstract] | |||||||||||||
Insurance Reserves and Policyholder Funds | Note 3. Insurance Reserves and Policyholder Funds | ||||||||||||
The following table presents the Company’s reserves for life, accident and health, and property and casualty losses, claims and loss adjustment expenses. | |||||||||||||
Amount of Insurance | |||||||||||||
In Force, Net | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Future policy benefits | |||||||||||||
Life insurance policies: | |||||||||||||
Ordinary | $ | 53,555 | $ | 52,915 | $ | 235,856 | $ | 237,694 | |||||
Mass market | 2,475 | 2,715 | 3,148 | 3,504 | |||||||||
Individual annuities | 130 | 135 | — | — | |||||||||
56,160 | 55,765 | $ | 239,004 | $ | 241,198 | ||||||||
Accident and health insurance policies | 14,685 | 14,099 | |||||||||||
70,845 | 69,864 | ||||||||||||
Unearned premiums | 24,544 | 27,415 | |||||||||||
Losses, claims and loss adjustment expenses | 66,625 | 63,018 | |||||||||||
Other policy liabilities | 2,080 | 2,076 | |||||||||||
Total insurance reserves and policyholder funds | $ | 164,094 | $ | 162,373 | |||||||||
Annualized premiums for accident and health insurance policies were $88,956 and $91,359 at December 31, 2014 and 2013, respectively. | |||||||||||||
Future Policy Benefits | |||||||||||||
Liabilities for life insurance future policy benefits are based upon assumed future investment yields, mortality rates, and withdrawal rates after giving effect to possible risks of unexpected claim experience. The assumed mortality and withdrawal rates are based upon the Company’s experience. The interest rates assumed for life, accident and health future policy benefits are generally: (i) 2.5% to 5.5% for issues prior to 1977, (ii) 7% graded to 5.5% for 1977 through 1979 issues, (iii) 9% for 1980 through 1987 issues, (iv) 5% to 7% for 1988 through 2009 issues, (v) 4% for 2010 through 2012 issues, and (vi) 3.5% for 2013 to 2014 issues. | |||||||||||||
Loss and Claim Reserves | |||||||||||||
Loss and claim reserves represent estimates of projected ultimate losses and are based upon: (a) management’s estimate of ultimate liability and claims adjusters’ evaluations for unpaid claims reported prior to the close of the accounting period, (b) estimates of incurred but not reported (“IBNR”) claims based on past experience, and (c) estimates of loss adjustment expenses. The estimated liability is periodically reviewed by management and updated, with changes to the estimated liability recorded in the statement of operations in the year in which such changes are known. | |||||||||||||
Activity in the liability for unpaid loss and claim reserves is summarized as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at January 1 | $ | 63,018 | $ | 62,873 | |||||||||
Less: Reinsurance receivable on unpaid losses | (14,314 | ) | (18,743 | ) | |||||||||
Net balance at January 1 | 48,704 | 44,130 | |||||||||||
Incurred related to: | |||||||||||||
Current year | 104,225 | 97,904 | |||||||||||
Prior years | (483 | ) | (1,657 | ) | |||||||||
Total incurred | 103,742 | 96,247 | |||||||||||
Paid related to: | |||||||||||||
Current year | 72,443 | 66,705 | |||||||||||
Prior years | 27,680 | 24,968 | |||||||||||
Total paid | 100,123 | 91,673 | |||||||||||
Net balance at December 31 | 52,323 | 48,704 | |||||||||||
Plus: Reinsurance receivable on unpaid losses | 14,302 | 14,314 | |||||||||||
Balance at December 31 | $ | 66,625 | $ | 63,018 | |||||||||
Prior years’ development was primarily the result of better than expected development on prior years IBNR reserves for certain lines of business. | |||||||||||||
Following is a reconciliation of total incurred claims to total insurance benefits and losses incurred: | |||||||||||||
2014 | 2013 | ||||||||||||
Total incurred claims | $ | 103,742 | $ | 96,247 | |||||||||
Cash surrender value and matured endowments | 1,574 | 1,215 | |||||||||||
Benefit reserve changes | 879 | 2,910 | |||||||||||
Total insurance benefits and losses incurred | $ | 106,195 | $ | 100,372 |
Reinsurance
Reinsurance | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Reinsurance [Abstract] | |||||||
Reinsurance | Note 4. Reinsurance | ||||||
In accordance with general practice in the insurance industry, portions of the life, property and casualty insurance written by the Company are reinsured; however, the Company remains liable with respect to reinsurance ceded should any reinsurer be unable or unwilling to meet its obligations. Approximately 99% of the Company’s reinsurance receivables were due from two reinsurers as of December 31, 2014. Reinsurance receivables of $1,218 were due from Swiss Reinsurance Corporation, rated “AA-” by Standard & Poor’s and “A+” (Superior) by A.M. Best and $12,986 were due from General Reinsurance Corporation, rated “AA+” by Standard & Poor’s and “A++” (Superior) by A.M. Best. Allowances for uncollectible amounts are established against reinsurance receivables, if appropriate. | |||||||
The effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred were as follows: | |||||||
2014 | 2013 | ||||||
Direct premiums written | $ | 138,276 | $ | 141,313 | |||
Assumed premiums written | 18,231 | 16,702 | |||||
Ceded premiums written | (5,890 | ) | (7,607 | ) | |||
Net premiums written | $ | 150,617 | $ | 150,408 | |||
Direct premiums earned | $ | 141,212 | $ | 141,720 | |||
Assumed premiums earned | 18,166 | 11,517 | |||||
Ceded premiums earned | (5,890 | ) | (7,607 | ) | |||
Net premiums earned | $ | 153,488 | $ | 145,630 | |||
Provision for benefits and losses incurred | $ | 110,912 | $ | 105,828 | |||
Reinsurance loss recoveries | (4,717 | ) | (5,456 | ) | |||
Insurance benefits and losses incurred | $ | 106,195 | $ | 100,372 | |||
Components of reinsurance receivables were as follows: | |||||||
2014 | 2013 | ||||||
Receivable on unpaid losses | $ | 14,302 | $ | 14,314 | |||
Receivable on paid losses | 46 | — | |||||
Total reinsurance receivables | $ | 14,348 | $ | 14,314 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Income Taxes [Abstract] | |||||||
Income Taxes | Note 5. Income Taxes | ||||||
Total income taxes were allocated as follows: | |||||||
2014 | 2013 | ||||||
Total tax expense on income | $ | 474 | $ | 184 | |||
Tax expense (benefit) on components of shareholders’ equity: | |||||||
Net unrealized gains (losses) on investment securities | 1,656 | (7,247 | ) | ||||
Fair value adjustment to derivative financial instrument | — | 49 | |||||
Total tax expense (benefit) on shareholders’ equity | 1,656 | (7,198 | ) | ||||
Total tax expense (benefit) | $ | 2,130 | $ | (7,014 | ) | ||
A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax expense is as follows: | |||||||
2014 | 2013 | ||||||
Federal income tax provision at statutory rate of 35% | $ | 1,717 | $ | 3,922 | |||
Dividends-received deduction | (115 | ) | (149 | ) | |||
Small life insurance company deduction | (600 | ) | (586 | ) | |||
Other | 53 | 50 | |||||
Change in asset valuation allowance due to change in judgment relating to realizability of deferred tax assets | (651 | ) | (3,059 | ) | |||
Adjustment for prior years’ estimates to actual | 70 | 6 | |||||
Income tax expense | $ | 474 | $ | 184 | |||
The primary differences between the effective tax rate and the federal statutory income tax rate resulted from the dividends-received deduction (“DRD”), the small life insurance company deduction (“SLD”) and the change in deferred tax asset valuation allowance. The current estimated DRD is adjusted as underlying factors change and can vary from estimates based on, but not limited to, actual distributions from investments as well as the amount of the Company’s taxable income. The SLD varies in amount and is determined at a rate of 60 percent of the tentative life insurance company taxable income (“LICTI”). The SLD for any taxable year is reduced (but not below zero) by 15 percent of the tentative LICTI for such taxable year as it exceeds $3,000 and is ultimately phased out at $15,000. The change in deferred tax asset valuation allowance was due to the unanticipated utilization of certain capital loss carryforward benefits that had been previously reserved. | |||||||
Deferred tax liabilities and assets at December 31, 2014 and 2013 were comprised of the following: | |||||||
2014 | 2013 | ||||||
Deferred tax liabilities: | |||||||
Deferred acquisition costs | $ | (2,832 | ) | $ | (3,766 | ) | |
Deferred and uncollected premiums | (704 | ) | (734 | ) | |||
Net unrealized investment gains | (4,997 | ) | (3,341 | ) | |||
Other | (37 | ) | (8 | ) | |||
Total deferred tax liabilities | (8,570 | ) | (7,849 | ) | |||
Deferred tax assets: | |||||||
Net operating loss carryforwards | 20 | 844 | |||||
Insurance reserves | 4,676 | 5,109 | |||||
Capital loss carryforwards | — | 2,177 | |||||
Impaired assets | 1,474 | 1,406 | |||||
Alternative minimum tax credit | 239 | 309 | |||||
Bad debts and other | 766 | 576 | |||||
Total deferred tax assets | 7,175 | 10,421 | |||||
Asset valuation allowance | — | (2,209 | ) | ||||
Net deferred tax asset (liability) | $ | (1,395 | ) | $ | 363 | ||
The components of income tax expense were: | |||||||
2014 | 2013 | ||||||
Current - Federal | $ | 372 | $ | 513 | |||
Deferred - Federal | 753 | 2,730 | |||||
Change in deferred tax asset valuation allowance | (651 | ) | (3,059 | ) | |||
Total | $ | 474 | $ | 184 | |||
As of December 31, 2014, the Company had regular federal net operating loss carryforwards (“NOLs”) of approximately $58 expiring in 2032. Currently, the Company believes that deferred income tax benefits relating to the NOLs will be realized. However, expected realization of the NOLs is assessed periodically based on the Company’s then current and anticipated results of operations, and amounts could increase or decrease if estimates of future taxable income change. | |||||||
At December 31, 2013, a valuation allowance of $2,209 was established against deferred income tax benefits relating primarily to capital loss carryforwards that may not be realized. During 2014, the valuation allowance was decreased to zero. The decrease was primarily due to the write off of certain expired capital loss carryforward benefits that had been previously reserved for through an existing valuation allowance. | |||||||
The Company has formal tax-sharing agreements, and files a consolidated income tax return, with its subsidiaries. |
Junior_Subordinated_Debentures
Junior Subordinated Debentures | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Junior Subordinated Debentures [Abstract] | |||||||
Junior Subordinated Debentures | Note 6. Junior Subordinated Debentures | ||||||
The Company has two unconsolidated Connecticut statutory business trusts, which exist for the exclusive purposes of: (i) issuing trust preferred securities (“Trust Preferred Securities”) representing undivided beneficial interests in the assets of the trusts; (ii) investing the gross proceeds of the Trust Preferred Securities in junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) of Atlantic American; and (iii) engaging in only those activities necessary or incidental thereto. | |||||||
The financial structure of each of Atlantic American Statutory Trust I and II, as of December 31, 2014 and 2013, was as follows: | |||||||
Atlantic American | Atlantic American | ||||||
Statutory Trust I | Statutory Trust II | ||||||
JUNIOR SUBORDINATED DEBENTURES(1)(2) | |||||||
Principal amount owed | $ | 18,042 | $ | 23,196 | |||
Balance December 31, 2014 | $ | 18,042 | $ | 23,196 | |||
Less: Treasury debt(3) | — | (7,500 | ) | ||||
Net balance December 31, 2014 | $ | 18,042 | $ | 15,696 | |||
Net balance December 31, 2013 | $ | 18,042 | $ | 23,196 | |||
Coupon rate | LIBOR + 4.00% | LIBOR + 4.10% | |||||
Interest payable | Quarterly | Quarterly | |||||
Maturity date | 4-Dec-32 | 15-May-33 | |||||
Redeemable by issuer | Yes | Yes | |||||
TRUST PREFERRED SECURITIES | |||||||
Issuance date | 4-Dec-02 | 15-May-03 | |||||
Securities issued | 17,500 | 22,500 | |||||
Liquidation preference per security | $ | 1 | $ | 1 | |||
Liquidation value | 17,500 | 22,500 | |||||
Coupon rate | LIBOR + 4.00% | LIBOR + 4.10% | |||||
Distribution payable | Quarterly | Quarterly | |||||
Distribution guaranteed by(4) | Atlantic | Atlantic | |||||
American | American | ||||||
Corporation | 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. Consideration tendered, upon settlement, was $6,750 plus accrued interest resulting in a gain of $750 recognized in other income on the accompanying consolidated statements of operations in 2014. | ||||||
-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. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies [Abstract] | ||||
Commitments and Contingencies | Note 7. 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. | ||||
Operating Lease Commitments | ||||
The Company’s rental expense, including common area charges, for operating leases was $1,229 and $1,215 in 2014 and 2013, respectively. The Company’s future minimum base lease obligations under non-cancelable operating leases are as follows: | ||||
Year Ending December 31, | ||||
2015 | $ | 896 | ||
2016 | 435 | |||
2017 | 446 | |||
2018 | 457 | |||
2019 | 193 | |||
Thereafter | — | |||
Total | $ | 2,427 |
Benefit_Plans
Benefit Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Benefit Plans [Abstract] | |||||||||||||
Benefit Plans | Note 8. Benefit Plans | ||||||||||||
Equity Incentive Plan | |||||||||||||
On May 1, 2012, the Company’s shareholders approved the 2012 Equity Incentive Plan (the “2012 Plan”). The 2012 Plan authorizes the grant of up to 2,000,000 stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units and other awards for the purpose of providing the Company’s non-employee directors, consultants, officers and other employees incentives and rewards for superior performance. In 2014, a total of 148,500 restricted shares, with an estimated fair value of $559, were issued to officers under the 2012 Plan. In 2013, a total of 200,000 restricted shares, with an estimated fair value of $704, were issued to officers and directors under the 2012 Plan. The estimated fair value of the restricted shares issued under the 2012 Plan for 2014 and 2013 was based on the common stock price at date of grant. | |||||||||||||
A summary of the status of the Company’s stock options at December 31, 2014 and 2013 is as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Options | Shares | Weighted | Shares | Weighted | |||||||||
Average | Average | ||||||||||||
Exercise | Exercise | ||||||||||||
Price | Price | ||||||||||||
Options outstanding, beginning of year | — | $ | — | 77,000 | $ | 1.59 | |||||||
Options exercised | — | — | (62,500 | ) | 1.59 | ||||||||
Options canceled or expired | — | — | (14,500 | ) | 1.59 | ||||||||
Options outstanding, end of year | — | — | — | — | |||||||||
Options available for future grant | 1,651,500 | 1,800,000 | |||||||||||
401(k) Plan | |||||||||||||
The Company initiated an employees’ savings plan (the “Plan”) qualified under Section 401(k) of the Internal Revenue Code in May 1995. The Plan covers substantially all of the Company’s employees. Effective January 1, 2009, the Company modified the Plan such that the Plan would operate on a safe harbor basis. Under the Plan, employees may defer up to 50% of their compensation, not to exceed the annual deferral limit. The Company’s total matching contribution for 2014 and 2013 was $186 and $173, respectively, and consisted of a contribution equal to 50% of up to the first 4% of each participant’s contributions. In addition to the matching contribution, the Company also provided a 3% safe harbor non-elective contribution in 2014 and 2013 of $391 and $369, respectively. The employer match and safe harbor contribution were made in cash. | |||||||||||||
Agent Stock Purchase Plan | |||||||||||||
The Company initiated a nonqualified stock purchase plan (the “Agent Stock Purchase Plan”) in May 2012. The purpose of the Agent Stock Purchase Plan is to promote and advance the interests of the Company and its stockholders by providing independent agents who qualify as participants with an opportunity to purchase the common stock of the Company. Under the Agent Stock Purchase Plan, payment for shares of common stock of the Company is made by either deduction from an agent’s commission payment or a direct cash payment. Stock purchases are made at the end of each calendar quarter at the then current market value. |
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2014 | |
Preferred Stock [Abstract] | |
Preferred Stock | Note 9. Preferred Stock |
The Company had 55,000 and 65,000 shares of Series D preferred stock (“Series D Preferred Stock”) outstanding at December 31, 2014 and 2013, respectively. All of the shares of Series D Preferred Stock are held by an affiliate of the Company’s controlling shareholder. The outstanding shares of Series D Preferred Stock have a stated value of $100 per share; accrue annual dividends at a rate of $7.25 per share (payable in cash or shares of the Company’s common stock at the option of the board of directors of the Company) and are cumulative. In certain circumstances, the shares of the Series D Preferred Stock may be convertible into an aggregate of approximately 1,378,000 shares of the Company’s common stock, subject to certain adjustments and provided that such adjustments do not result in the Company issuing more than approximately 2,703,000 shares of common stock without obtaining prior shareholder approval; and are redeemable solely at the Company’s option. The Series D Preferred Stock is not currently convertible. The Company redeemed 10,000 shares of the Series D Preferred Stock in 2014 and 5,000 shares of the Series D Preferred Stock in 2013 at the stated value of $100 per share, for aggregate payments of $1,000 and $500, respectively. As of December 31, 2014 and 2013, the Company had accrued, but unpaid, dividends, on the Series D Preferred Stock of $18 and $21, respectively. During 2014 and 2013, the Company paid Series D Preferred Stock dividends of $471 and 483, respectively. |
Earnings_Per_Common_Share
Earnings Per Common Share | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Common Share [Abstract] | ||||||||||
Earnings Per Common Share | Note 10. Earnings Per Common Share | |||||||||
A reconciliation of the numerator and denominator of the earnings per common share calculations is as follows: | ||||||||||
For the Year Ended December 31, 2014 | ||||||||||
Income | Shares | Per Share | ||||||||
(In thousands) | Amount | |||||||||
Basic and Diluted Earnings Per Common Share | ||||||||||
Net income before preferred stock dividends | $ | 4,430 | 20,818 | |||||||
Less preferred stock dividends | (468 | ) | — | |||||||
Net income applicable to common shareholders | $ | 3,962 | 20,818 | $ | 0.19 | |||||
For the Year Ended December 31, 2013 | ||||||||||
Income | Shares | Per Share | ||||||||
(In thousands) | Amount | |||||||||
Basic Earnings Per Common Share | ||||||||||
Net income before preferred stock dividends | $ | 11,022 | 21,236 | |||||||
Less preferred stock dividends | (482 | ) | — | |||||||
Net income applicable to common shareholders | 10,540 | 21,236 | $ | 0.5 | ||||||
Diluted Earnings Per Common Share | ||||||||||
Effect of dilutive stock options | — | 10 | ||||||||
Effect of Series D Preferred Stock | 482 | 1,629 | ||||||||
Net income applicable to common shareholders | $ | 11,022 | 22,875 | $ | 0.48 | |||||
The assumed conversion of the Company’s Series D Preferred Stock was excluded from the earnings per common share calculation for 2014 since its impact would have been antidilutive. |
Statutory_Reporting
Statutory Reporting | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Statutory Reporting [Abstract] | |||||||
Statutory Reporting | Note 11. Statutory Reporting | ||||||
The assets, liabilities and results of operations have been reported on the basis of GAAP, which varies in some respects from statutory accounting practices (“SAP”) prescribed or permitted by insurance regulatory authorities. The principal differences between SAP and GAAP are that under SAP: (i) certain assets that are non-admitted assets are eliminated from the balance sheet; (ii) acquisition costs for policies are expensed as incurred, while they are deferred and amortized over the estimated life of the policies under GAAP; (iii) the provision that is made for deferred income taxes is different than under GAAP; (iv) the timing of establishing certain reserves is different than under GAAP; and (v) certain valuation allowances attributable to certain investments are different. | |||||||
The amount of reported statutory net income and surplus (shareholders’ equity) for the Parent’s insurance subsidiaries for the years ended December 31 was as follows: | |||||||
2014 | 2013 | ||||||
Life and Health, net income | $ | 2,738 | $ | 3,013 | |||
Property and Casualty, net income | 4,813 | 6,224 | |||||
Statutory net income | $ | 7,551 | $ | 9,237 | |||
Life and Health, surplus | $ | 34,004 | $ | 34,530 | |||
Property and Casualty, surplus | 39,012 | 39,092 | |||||
Statutory surplus | $ | 73,016 | $ | 73,622 | |||
Under the insurance code of the state in which each insurance subsidiary is domiciled, dividend payments to the Parent by its insurance subsidiaries are subject to certain limitations without the prior approval of the applicable state’s Insurance Commissioner. The Parent received dividends of $6,468 and $6,646 in 2014 and 2013, respectively, from its subsidiaries. In 2015, dividend payments to the Parent by the insurance subsidiaries in excess of $7,640 would require prior approval. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12. Related Party Transactions |
In the normal course of business the Company has engaged in transactions with entities affiliated with the controlling shareholder of the Company. These transactions include the leasing of office space as well as certain investing and financing activities. At December 31, 2014, two members of the Company’s board of directors, including our chairman, president and chief executive officer, were considered to be affiliates of the majority shareholder, who is also a member of the Company’s board of directors. | |
The Company leases approximately 49,586 square feet of office and covered garage space from one such controlled entity. During the years ended December 31, 2014 and 2013, the Company paid $852 and $864, respectively, under this lease. | |
Certain financing for the Company has also been provided by this entity in the form of an investment in the Series D Preferred Stock (See Note 9). During the years ended December 31, 2014 and 2013, the Company paid this entity $471 and $483, respectively, in dividends on the Series D Preferred Stock. During the years ended December 31, 2014 and 2013, the Company redeemed $1,000 and $500, respectively, of the Series D Preferred Stock. | |
Certain members of the Company’s management and board of directors are shareholders and on the board of directors of Gray Television, Inc. (“Gray”). As of December 31, 2014 and 2013, the Company owned 880,272 shares of Gray Class A common stock and 106,000 shares of Gray common stock. The aggregate carrying value of these investments in Gray at December 31, 2014 and 2013 was $9,242 and $12,942, respectively. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Information [Abstract] | ||||||||||||||||
Segment Information | Note 13. Segment Information | |||||||||||||||
The Parent’s primary insurance subsidiaries operate with relative autonomy and each company is evaluated based on its individual performance. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each segment derives revenue from the collection of premiums, as well as from investment income. Substantially all revenue other than that in the corporate and other segment is from external sources. | ||||||||||||||||
2014 | ||||||||||||||||
American | Bankers | Corporate | Adjustments | Consolidated | ||||||||||||
Southern | Fidelity | & Other | & Eliminations | |||||||||||||
Insurance premiums | $ | 52,654 | $ | 100,834 | $ | — | $ | — | $ | 153,488 | ||||||
Insurance benefits and losses incurred | 38,179 | 68,016 | — | — | 106,195 | |||||||||||
Expenses deferred | (7,845 | ) | (2,305 | ) | — | — | (10,150 | ) | ||||||||
Amortization and depreciation expense | 8,646 | 2,457 | 507 | — | 11,610 | |||||||||||
Other expenses | 13,644 | 33,725 | 15,601 | (9,208 | ) | 53,762 | ||||||||||
Total expenses | 52,624 | 101,893 | 16,108 | (9,208 | ) | 161,417 | ||||||||||
Underwriting income (loss) | 30 | (1,059 | ) | |||||||||||||
Investment income | 4,447 | 5,507 | 2,152 | (1,739 | ) | 10,367 | ||||||||||
Other income | 8 | 11 | 7,595 | (7,469 | ) | 145 | ||||||||||
Operating income (loss) | 4,485 | 4,459 | (6,361 | ) | — | 2,583 | ||||||||||
Net realized gains | 527 | 694 | 350 | — | 1,571 | |||||||||||
Gain on purchase of debt securities (Note 6) | — | — | 750 | — | 750 | |||||||||||
Income (loss) before income taxes | $ | 5,012 | $ | 5,153 | $ | (5,261 | ) | $ | — | $ | 4,904 | |||||
Total revenues | $ | 57,636 | $ | 107,046 | $ | 10,847 | $ | (9,208 | ) | $ | 166,321 | |||||
Intangibles | $ | 1,350 | $ | 1,194 | $ | — | $ | — | $ | 2,544 | ||||||
Total assets | $ | 129,517 | $ | 161,729 | $ | 139,271 | $ | (113,509 | ) | $ | 317,008 | |||||
2013 | ||||||||||||||||
American | Bankers | Corporate | Adjustments | Consolidated | ||||||||||||
Southern | Fidelity | & Other | & Eliminations | |||||||||||||
Insurance premiums | $ | 45,851 | $ | 99,779 | $ | — | $ | — | $ | 145,630 | ||||||
Insurance benefits and losses incurred | 30,197 | 70,175 | — | — | 100,372 | |||||||||||
Expenses deferred | (7,106 | ) | (3,230 | ) | — | — | (10,336 | ) | ||||||||
Amortization and depreciation expense | 7,440 | 2,120 | — | — | 9,560 | |||||||||||
Other expenses | 15,777 | 31,742 | 15,076 | (8,028 | ) | 54,567 | ||||||||||
Total expenses | 46,308 | 100,807 | 15,076 | (8,028 | ) | 154,163 | ||||||||||
Underwriting loss | (457 | ) | (1,028 | ) | ||||||||||||
Investment income | 4,308 | 5,920 | 2,338 | (1,757 | ) | 10,809 | ||||||||||
Other income | 12 | 40 | 6,408 | (6,271 | ) | 189 | ||||||||||
Operating income (loss) | 3,863 | 4,932 | (6,330 | ) | — | 2,465 | ||||||||||
Net realized gains | 3,767 | 4,330 | 644 | — | 8,741 | |||||||||||
Income (loss) before income taxes | $ | 7,630 | $ | 9,262 | $ | (5,686 | ) | $ | — | $ | 11,206 | |||||
Total revenues | $ | 53,938 | $ | 110,069 | $ | 9,390 | $ | (8,028 | ) | $ | 165,369 | |||||
Intangibles | $ | 1,350 | $ | 1,194 | $ | — | $ | — | $ | 2,544 | ||||||
Total assets | $ | 126,861 | $ | 156,484 | $ | 141,304 | $ | (105,268 | ) | $ | 319,381 |
Disclosures_About_Fair_Value_o
Disclosures About Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosures About Fair Value of Financial Instruments [Abstract] | ||||||||||||||||
Disclosures About Fair Value of Financial Instruments | Note 14. Disclosures About Fair Value 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. | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Level in | Carrying | Estimated | Carrying | Estimated | ||||||||||||
Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||
Hierarchy(1) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 16,375 | $ | 16,375 | $ | 33,102 | $ | 33,102 | |||||||
Fixed maturities | -1 | 214,888 | 214,888 | 201,303 | 201,303 | |||||||||||
Equity securities | -1 | 18,924 | 18,924 | 21,890 | 21,890 | |||||||||||
Other invested assets | Level 3 | 2,995 | 2,995 | 2,123 | 2,123 | |||||||||||
Policy loans | Level 2 | 2,202 | 2,202 | 2,369 | 2,369 | |||||||||||
Real estate | Level 2 | 38 | 38 | 38 | 38 | |||||||||||
Investments in unconsolidated trusts | Level 2 | 1,238 | 1,238 | 1,238 | 1,238 | |||||||||||
Liabilities: | ||||||||||||||||
Junior Subordinated Debentures, net | Level 2 | 33,738 | 33,738 | 41,238 | 41,238 | |||||||||||
-1 | See Note 2 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. | |||||||||||||||
The following describes the methods and assumptions used by the Company in estimating fair values: | ||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||
The carrying amount approximates fair value due to the short-term nature of the instruments. | ||||||||||||||||
Fixed Maturities and Common and Non-Redeemable Preferred Stocks | ||||||||||||||||
The carrying amount is determined in accordance with methods prescribed by the NAIC, which do not differ materially from publicly quoted market prices. Certain fixed maturities do not have publicly quoted values and consist solely of issuances of pooled debt obligations of multiple, smaller financial services companies. They are not actively traded and valuation techniques used to measure fair value are based on future estimated cash flows discounted at a reasonably estimated rate of interest. Other qualitative and quantitative information received from the original underwriter of the pooled offerings is also considered, as applicable. | ||||||||||||||||
Non-publicly Traded Invested Assets | ||||||||||||||||
The fair value of investments in certain limited partnerships which are included in other invested assets on the consolidated balance sheet were determined by officers of those limited partnerships. | ||||||||||||||||
Junior Subordinated Debentures | ||||||||||||||||
The fair value is estimated based on the quoted market prices for similar issues and the current rates offered for debt having similar returns and remaining maturities. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accumulated Other Comprehensive Income [Abstract] | ||||
Accumulated Other Comprehensive Income | Note 15. Accumulated Other Comprehensive Income | |||
The following table sets forth the balance of each component of accumulated other comprehensive income as of December 31, 2014 and 2013, and the changes in the balance of each component thereof during 2014. | ||||
Unrealized | ||||
Gains on | ||||
Available- | ||||
for-Sale | ||||
Securities | ||||
Balance, December 31, 2013 | $ | 6,204 | ||
Other comprehensive income before reclassifications | 4,096 | |||
Amounts reclassified from accumulated other comprehensive income | (1,021 | ) | ||
Net current-period other comprehensive income | 3,075 | |||
Balance, December 31, 2014 | $ | 9,279 |
Acquisitions
Acquisitions | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Acquisitions [Abstract] | ||||
Acquisitions | Note 16. Acquisitions | |||
On December 18, 2013, the Company acquired 100% of the outstanding stock of Direct Life Insurance Company (“DLIC”) for $3,857 and changed the name of the company to Bankers Fidelity Assurance Company. The acquisition will allow Bankers Fidelity to offer additional similar products to those it already writes permitting greater diversification of product and pricing as well as opportunity for future expansion in other states. The purchase was not significant to the financial position or results of operations of the Company in 2013 and DLIC had no significant recent operations prior to acquisition. In connection with the acquisition the following assets and liabilities were acquired: | ||||
2013 | ||||
Cash and cash equivalents | $ | 1,317 | ||
Investments | 2,123 | |||
Receivables | 7 | |||
Intangibles | 416 | |||
Total assets | $ | 3,863 | ||
Accounts payable and accrued expenses | $ | 6 | ||
Total liabilities | $ | 6 |
Schedule_II_CONDENSED_FINANCIA
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |||||||
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | Schedule II | ||||||
Page 1 of 3 | |||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||
ATLANTIC AMERICAN CORPORATION | |||||||
(Parent Company Only) | |||||||
BALANCE SHEETS | |||||||
ASSETS | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
Cash and cash equivalents | $ | 5,947 | $ | 13,936 | |||
Investments | 13,766 | 18,043 | |||||
Investment in subsidiaries | 113,509 | 105,268 | |||||
Investments in unconsolidated trusts | 1,238 | 1,238 | |||||
Income taxes receivable from subsidiaries | 2,271 | 4,530 | |||||
Other assets | 5,113 | 2,676 | |||||
Total assets | $ | 141,844 | $ | 145,691 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Deferred tax liability, net | $ | 2,055 | $ | 297 | |||
Other payables | 1,856 | 3,229 | |||||
Junior subordinated debentures | 33,738 | 41,238 | |||||
Total liabilities | 37,649 | 44,764 | |||||
Shareholders’ equity | 104,195 | 100,927 | |||||
Total liabilities and shareholders’ equity | $ | 141,844 | $ | 145,691 | |||
See accompanying report of independent registered public accounting firm. | |||||||
Schedule II | |||||||
Page 2 of 3 | |||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||
ATLANTIC AMERICAN CORPORATION | |||||||
(Parent Company Only) | |||||||
STATEMENTS OF OPERATIONS | |||||||
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
REVENUE | |||||||
Fee income from subsidiaries | $ | 7,469 | $ | 6,271 | |||
Distributed earnings from subsidiaries | 6,468 | 6,646 | |||||
Other | 1,622 | 1,330 | |||||
Total revenue | 15,559 | 14,247 | |||||
GENERAL AND ADMINISTRATIVE EXPENSES | 12,478 | 11,106 | |||||
INTEREST EXPENSE | 1,607 | 1,898 | |||||
1,474 | 1,243 | ||||||
INCOME TAX BENEFIT(1) | (2,040 | ) | (4,504 | ) | |||
3,514 | 5,747 | ||||||
EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES, NET | 916 | 5,275 | |||||
NET INCOME | $ | 4,430 | $ | 11,022 | |||
-1 | Under the terms of a tax-sharing agreement, income tax provisions for the subsidiary companies are computed on a separate company basis. Accordingly, the Company’s income tax benefit results from the utilization of the Parent’s separate return loss to reduce the consolidated taxable income of the Company. | ||||||
See accompanying report of independent registered public accounting firm. | |||||||
Schedule II | |||||||
Page 3 of 3 | |||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||
ATLANTIC AMERICAN CORPORATION | |||||||
(Parent Company Only) | |||||||
STATEMENTS OF CASH FLOWS | |||||||
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 4,430 | $ | 11,022 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Realized investment gains, net | (350 | ) | (644 | ) | |||
Gain on purchase of debt securities (Note 6) | (750 | ) | — | ||||
Depreciation and amortization | 507 | 117 | |||||
Compensation expense related to share awards | 584 | 219 | |||||
Equity in undistributed earnings of consolidated subsidiaries | (916 | ) | (5,275 | ) | |||
Decrease (increase) in intercompany taxes | 2,259 | (2,541 | ) | ||||
Deferred income tax expense (benefit) | 102 | (329 | ) | ||||
(Decrease) increase in other liabilities | (164 | ) | 846 | ||||
Other, net | 4 | 161 | |||||
Net cash provided by operating activities | 5,706 | 3,576 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from investments sold, called or matured | 2,106 | 5,568 | |||||
Investments purchased | — | (4,438 | ) | ||||
Capital contribution to subsidiaries | (100 | ) | (200 | ) | |||
Additions to property and equipment | (4,127 | ) | (1,192 | ) | |||
Net cash used in investing activities | (2,121 | ) | (262 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Payment for debt securities (Note 6) | (6,750 | ) | — | ||||
Redemption of Series D preferred stock | (1,000 | ) | (500 | ) | |||
Payment of dividends on Series D preferred stock | (471 | ) | (483 | ) | |||
Payment of dividends on common stock | (834 | ) | (423 | ) | |||
Proceeds from shares issued under stock plans | 84 | 138 | |||||
Purchase of shares for treasury | (2,603 | ) | (1,416 | ) | |||
Net cash used in financing activities | (11,574 | ) | (2,684 | ) | |||
Net (decrease) increase in cash | (7,989 | ) | 630 | ||||
Cash and cash equivalents at beginning of year | 13,936 | 13,306 | |||||
Cash and cash equivalents at end of year | $ | 5,947 | $ | 13,936 | |||
Supplemental disclosure: | |||||||
Cash paid for interest | $ | 1,649 | $ | 1,961 | |||
Cash paid for income taxes | $ | 445 | $ | 536 | |||
Intercompany tax settlement from subsidiaries | $ | 4,695 | $ | 2,574 | |||
See accompanying report of independent registered public accounting firm. |
Schedule_III_SUPPLEMENTARY_INS
Schedule III SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Schedule III SUPPLEMENTARY INSURANCE INFORMATION [Abstract] | |||||||||||||||||||
Schedule III SUPPLEMENTARY INSURANCE INFORMATION | Schedule III | ||||||||||||||||||
Page 1 of 2 | |||||||||||||||||||
ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||
Segment | Deferred | Future Policy | Unearned | Other Policy | |||||||||||||||
Acquisition | Benefits, | Premiums | Claims and | ||||||||||||||||
Costs | Losses, | Benefits | |||||||||||||||||
Claims and | Payable | ||||||||||||||||||
Loss | |||||||||||||||||||
Reserves | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
December 31, 2014: | |||||||||||||||||||
Bankers Fidelity | $ | 24,360 | $ | 82,453 | $ | 3,884 | $ | 2,080 | |||||||||||
American Southern | 2,621 | 55,017 | 20,660 | — | |||||||||||||||
$ | 26,981 | $ | 137,470 | -1 | $ | 24,544 | $ | 2,080 | |||||||||||
December 31, 2013: | |||||||||||||||||||
Bankers Fidelity | $ | 24,275 | $ | 81,682 | $ | 4,419 | $ | 2,076 | |||||||||||
American Southern | 3,234 | 51,200 | 22,996 | — | |||||||||||||||
$ | 27,509 | $ | 132,882 | -2 | $ | 27,415 | $ | 2,076 | |||||||||||
-1 | Includes future policy benefits of $70,845 and losses and claims of $66,625. | ||||||||||||||||||
-2 | Includes future policy benefits of $69,864 and losses and claims of $63,018. | ||||||||||||||||||
See accompanying report of independent registered public accounting firm. | |||||||||||||||||||
Schedule III | |||||||||||||||||||
Page 2 of 2 | |||||||||||||||||||
ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||
Segment | Premium | Net | Benefits, | Amortization | Other | Casualty | |||||||||||||
Revenue | Investment | Claims, | of Deferred | Operating | Premiums | ||||||||||||||
Income | Losses and | Acquisition | Expenses | Written | |||||||||||||||
Settlement | Costs | ||||||||||||||||||
Expenses | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
December 31, 2014: | |||||||||||||||||||
Bankers Fidelity | $ | 100,834 | $ | 4,989 | $ | 68,016 | $ | 2,220 | $ | 31,657 | $ | — | |||||||
American Southern | 52,654 | 4,429 | 38,179 | 8,458 | 5,987 | 50,318 | |||||||||||||
Other | — | 413 | — | — | 6,900 | — | |||||||||||||
$ | 153,488 | $ | 9,831 | $ | 106,195 | $ | 10,678 | $ | 44,544 | $ | 50,318 | ||||||||
December 31, 2013: | |||||||||||||||||||
Bankers Fidelity | $ | 99,779 | $ | 5,466 | $ | 70,175 | $ | 1,820 | $ | 28,812 | $ | — | |||||||
American Southern | 45,851 | 4,288 | 30,197 | 7,140 | 8,971 | 50,774 | |||||||||||||
Other | — | 581 | — | — | 7,048 | — | |||||||||||||
$ | 145,630 | $ | 10,335 | $ | 100,372 | $ | 8,960 | $ | 44,831 | $ | 50,774 | ||||||||
See accompanying report of independent registered public accounting firm. |
Schedule_IV_REINSURANCE
Schedule IV REINSURANCE | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Schedule IV REINSURANCE [Abstract] | ||||||||||||||||
Schedule IV REINSURANCE | Schedule IV | |||||||||||||||
ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES | ||||||||||||||||
REINSURANCE | ||||||||||||||||
Direct | Ceded To | Assumed | Net | Percentage of | ||||||||||||
Amount | Other | From Other | Amounts | Amount | ||||||||||||
Companies | Companies | Assumed | ||||||||||||||
To Net | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Year ended December 31, 2014: | ||||||||||||||||
Life insurance in force | $ | 257,988 | $ | (18,984 | ) | $ | — | $ | 239,004 | |||||||
Premiums -- | ||||||||||||||||
Bankers Fidelity | $ | 100,799 | $ | (43 | ) | $ | 78 | $ | 100,834 | 0.1 | % | |||||
American Southern | 40,413 | (5,847 | ) | 18,088 | 52,654 | 34.4 | % | |||||||||
Total premiums | $ | 141,212 | $ | (5,890 | ) | $ | 18,166 | $ | 153,488 | 11.8 | % | |||||
Year ended December 31, 2013: | ||||||||||||||||
Life insurance in force | $ | 259,723 | $ | (18,525 | ) | $ | — | $ | 241,198 | |||||||
Premiums -- | ||||||||||||||||
Bankers Fidelity | $ | 99,745 | $ | (54 | ) | $ | 88 | $ | 99,779 | 0.1 | % | |||||
American Southern | 41,975 | (7,553 | ) | 11,429 | 45,851 | 24.9 | % | |||||||||
Total premiums | $ | 141,720 | $ | (7,607 | ) | $ | 11,517 | $ | 145,630 | 7.9 | % | |||||
See accompanying report of independent registered public accounting firm. |
Schedule_VI_SUPPLEMENTAL_INFOR
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS [Abstract] | |||||||||||||||||||||||||||||||
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS | Schedule VI | ||||||||||||||||||||||||||||||
ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION CONCERNING | |||||||||||||||||||||||||||||||
PROPERTY-CASUALTY INSURANCE OPERATIONS | |||||||||||||||||||||||||||||||
Deferred | Reserves | Unearned | Earned | Net | Claims and Claim | Amortization | Paid Claims | Premiums | |||||||||||||||||||||||
Policy | Premiums | Premiums | Investment | Adjustment | of Deferred | and Claim | Written | ||||||||||||||||||||||||
Acquisition | Income | Expenses Incurred | Acquisition | Adjustment | |||||||||||||||||||||||||||
Costs | Related To | Costs | Expenses | ||||||||||||||||||||||||||||
Year Ended | Current | Prior | |||||||||||||||||||||||||||||
Year | Years | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||
31-Dec-14 | $ | 2,621 | $ | 55,017 | $ | 20,660 | $ | 52,654 | $ | 4,429 | $ | 38,337 | $ | (158 | ) | $ | 8,458 | $ | 34,336 | $ | 50,318 | ||||||||||
31-Dec-13 | $ | 3,234 | $ | 51,200 | $ | 22,996 | $ | 45,851 | $ | 4,288 | $ | 32,672 | $ | (2,475 | ) | $ | 7,140 | $ | 27,339 | $ | 50,774 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which, for insurance companies, differ in some respects from the statutory accounting practices prescribed or permitted by regulatory authorities. These financial statements include the accounts of Atlantic American Corporation (“Atlantic American” or the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Operating results achieved in any historical period are not necessarily indicative of results to be expected in any future period. | |
At December 31, 2014, the Parent owned four insurance subsidiaries, Bankers Fidelity Life Insurance Company and its wholly-owned subsidiary, Bankers Fidelity Assurance Company (“BFAC”) (together known as “Bankers Fidelity”), and American Southern Insurance Company and its wholly-owned subsidiary, American Safety Insurance Company (together known as “American Southern”), in addition to one non-insurance subsidiary, xCalibre Risk Services, Inc. BFAC was acquired on December 18, 2013. The results of operations of BFAC are included from the date of acquisition. The Parent has issued a guarantee of all liabilities of Bankers Fidelity. | |
Premium Revenue and Cost Recognition | Premium Revenue and Cost Recognition |
Life insurance premiums are recognized as revenue when due; accident and health insurance premiums are recognized as revenue over the premium paying period and property and casualty insurance premiums are recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. Benefits and expenses are accrued as incurred and are associated with premiums as they are earned so as to result in recognition of profits over the lives of the contracts. For traditional life insurance and long-duration health insurance, this association is accomplished by the provision of a future policy benefits reserve and the deferral and subsequent amortization of the costs of acquiring business, “deferred policy acquisition costs” (principally commissions, premium taxes, and other incremental direct costs of issuing policies). Deferred policy acquisition costs are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the policy benefits reserve. The Company provides for insurance benefits and losses on accident, health, and property-casualty claims based upon estimates of projected ultimate losses. Deferred policy acquisition costs for property and casualty insurance and short-duration health insurance are amortized over the effective period of the related insurance policies. Contingent commissions, if contractually applicable, are ultimately payable to agents based on the underlying profitability of a particular insurance contract or a group of insurance contracts, and are periodically evaluated and accrued as earned. In periods in which revisions are made to the estimated loss reserves related to the particular insurance contract or group of insurance contracts subject to such commissions, corresponding adjustments are also made to the related accruals. Deferred policy acquisition costs are expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for property and casualty and short-duration health insurance). | |
Intangibles | Intangibles |
Intangibles consist of goodwill and other indefinite-lived intangibles. Goodwill represents the excess of cost over the fair value of net assets acquired and is not amortized. Other indefinite-lived intangibles represent the value of licenses acquired in the 2013 acquisition of BFAC (Note 16) and are not amortized. The Company periodically reviews its goodwill and other indefinite-lived intangibles to determine if any adverse conditions exist that could indicate impairment. Conditions that could trigger impairment include, but are not limited to, a significant change in business climate that could affect the value of the related asset, an adverse action, or an assessment by a regulator. No impairment of the Company’s recorded intangibles was identified during the periods presented. | |
Investments | Investments |
The Company’s investments in both fixed maturities, which include bonds and redeemable preferred stocks, and equity securities, which include common and non-redeemable preferred stocks, are classified as “available-for-sale” and, accordingly, are carried at fair value with the after-tax difference from amortized cost, as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The fair values for fixed maturities and equity securities are largely determined by either independent methods prescribed by the National Association of Insurance Commissioners (“NAIC”), which do not differ materially from publicly quoted market prices, when available, or independent broker quotations. The Company owns certain fixed maturities that do not have publicly quoted market values, but had an estimated fair value as determined by management of $2,214 at December 31, 2014. Such values inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market values. Policy loans and real estate are carried at historical cost. Other invested assets are comprised of investments in limited partnerships, limited liability companies, and real estate joint ventures, and are accounted for using the equity method. If the value of a common stock, preferred stock, other invested asset, or publicly traded bond declines below its cost or amortized cost, if applicable, and the decline is considered to be other than temporary, a realized loss is recorded to reduce the carrying value of the investment to its estimated fair value, which becomes the new cost basis. The evaluation for an other than temporary impairment is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold the securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status. Premiums and discounts related to investments are amortized or accreted over the life of the related investment as an adjustment to yield using the effective interest method. Dividends and interest income are recognized when earned or declared. The cost of securities sold is based on specific identification. Unrealized gains (losses) in the value of invested assets are accounted for as a direct increase (decrease) in accumulated other comprehensive income in shareholders’ equity, net of deferred tax and, accordingly, have no effect on net income. | |
Income Taxes | Income Taxes |
Deferred income taxes represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. They arise from differences between the financial reporting and tax basis of assets and liabilities and are adjusted for changes in tax laws and tax rates as those changes are enacted. The provision for income taxes represents the total amount of income taxes due related to the current year, plus the change in deferred income taxes during the year. A valuation allowance is recognized if, based on management’s assessment of the relevant facts, it is more likely than not that some portion of a deferred tax asset will not be realized. | |
Earnings Per Common Share | Earnings Per Common Share |
Basic earnings per common share are based on the weighted average number of common shares outstanding during the relevant period. Diluted earnings per common share are based on the weighted average number of common shares outstanding during the relevant period, plus options and share awards outstanding using the treasury stock method and the assumed conversion of the Series D preferred stock, if dilutive. Unless otherwise indicated, earnings per common share amounts are presented on a diluted basis. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents consist of cash on hand and investments in short-term, highly liquid securities with original maturities of three months or less from date of purchase. | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards |
In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary | |
Items (“ASU 2015-01”). The main objective of ASU 2015-01 is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. ASU 2015-01 eliminates from GAAP the concept of extraordinary items. Presently, if an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. Although the amendments in ASU 2015-01 will eliminate requirements for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company adopted ASU 2015-01 effective January 1, 2014. Since ASU 2015-01 was a disclosure only update, its adoption did not have a material impact on the Company’s financial condition or results of operations. | |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements |
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Significant estimates and assumptions are used in developing and evaluating deferred income taxes, deferred acquisition costs, insurance reserves, investments, and commitments and contingencies, among others, and actual results could differ materially from management’s estimates. |
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Investments [Abstract ] | |||||||||||||||||||
Schedule of investments aggregated by type and industry | Investments were comprised of the following: | ||||||||||||||||||
2014 | |||||||||||||||||||
Carrying | Gross | Gross | Amortized | ||||||||||||||||
Value | Unrealized | Unrealized | Cost | ||||||||||||||||
Gains | Losses | ||||||||||||||||||
Fixed maturities: | |||||||||||||||||||
Bonds: | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 33,898 | $ | 1,459 | $ | 30 | $ | 32,469 | |||||||||||
Obligations of states and political subdivisions | 11,459 | 681 | — | 10,778 | |||||||||||||||
Corporate securities: | |||||||||||||||||||
Utilities and telecom | 13,980 | 2,355 | — | 11,625 | |||||||||||||||
Financial services | 59,224 | 3,404 | 588 | 56,408 | |||||||||||||||
Other business – diversified | 70,139 | 2,076 | 1,830 | 69,893 | |||||||||||||||
Other consumer – diversified | 25,388 | 332 | 547 | 25,603 | |||||||||||||||
Total corporate securities | 168,731 | 8,167 | 2,965 | 163,529 | |||||||||||||||
Redeemable preferred stocks: | |||||||||||||||||||
Financial services | 608 | 8 | — | 600 | |||||||||||||||
Other consumer – diversified | 192 | — | — | 192 | |||||||||||||||
Total redeemable preferred stocks | 800 | 8 | — | 792 | |||||||||||||||
Total fixed maturities | 214,888 | 10,315 | 2,995 | 207,568 | |||||||||||||||
Equity securities: | |||||||||||||||||||
Common and non-redeemable preferred stocks: | |||||||||||||||||||
Utilities and telecom | 1,403 | 439 | — | 964 | |||||||||||||||
Financial services | 6,083 | 739 | — | 5,344 | |||||||||||||||
Other business – diversified | 226 | 179 | — | 47 | |||||||||||||||
Other consumer – diversified | 11,212 | 5,598 | — | 5,614 | |||||||||||||||
Total equity securities | 18,924 | 6,955 | — | 11,969 | |||||||||||||||
Other invested assets | 2,995 | — | — | 2,995 | |||||||||||||||
Policy loans | 2,202 | — | — | 2,202 | |||||||||||||||
Real estate | 38 | — | — | 38 | |||||||||||||||
Investments in unconsolidated trusts | 1,238 | — | — | 1,238 | |||||||||||||||
Total investments | $ | 240,285 | $ | 17,270 | $ | 2,995 | $ | 226,010 | |||||||||||
2013 | |||||||||||||||||||
Carrying | Gross | Gross | Amortized | ||||||||||||||||
Value | Unrealized | Unrealized | Cost | ||||||||||||||||
Gains | Losses | ||||||||||||||||||
Fixed maturities: | |||||||||||||||||||
Bonds: | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 17,240 | $ | 576 | $ | 210 | $ | 16,874 | |||||||||||
Obligations of states and political subdivisions | 7,611 | 402 | 17 | 7,226 | |||||||||||||||
Corporate securities: | |||||||||||||||||||
Utilities and telecom | 16,532 | 1,353 | 7 | 15,186 | |||||||||||||||
Financial services | 50,531 | 1,736 | 320 | 49,115 | |||||||||||||||
Other business – diversified | 70,326 | 870 | 2,906 | 72,362 | |||||||||||||||
Other consumer – diversified | 36,712 | 391 | 1,745 | 38,066 | |||||||||||||||
Total corporate securities | 174,101 | 4,350 | 4,978 | 174,729 | |||||||||||||||
Redeemable preferred stocks: | |||||||||||||||||||
Financial services | 2,159 | 4 | 41 | 2,196 | |||||||||||||||
Other consumer – diversified | 192 | — | — | 192 | |||||||||||||||
Total redeemable preferred stocks | 2,351 | 4 | 41 | 2,388 | |||||||||||||||
Total fixed maturities | 201,303 | 5,332 | 5,246 | 201,217 | |||||||||||||||
Equity securities: | |||||||||||||||||||
Common and non-redeemable preferred stocks: | |||||||||||||||||||
Utilities and telecom | 1,474 | 510 | — | 964 | |||||||||||||||
Financial services | 5,761 | 514 | 560 | 5,807 | |||||||||||||||
Other business – diversified | 178 | 131 | — | 47 | |||||||||||||||
Other consumer – diversified | 14,477 | 8,863 | — | 5,614 | |||||||||||||||
Total equity securities | 21,890 | 10,018 | 560 | 12,432 | |||||||||||||||
Other invested assets | 2,123 | — | — | 2,123 | |||||||||||||||
Policy loans | 2,369 | — | — | 2,369 | |||||||||||||||
Real estate | 38 | — | — | 38 | |||||||||||||||
Investments in unconsolidated trusts | 1,238 | — | — | 1,238 | |||||||||||||||
Total investments | $ | 228,961 | $ | 15,350 | $ | 5,806 | $ | 219,417 | |||||||||||
Schedule of investments aggregated by industry | The following table sets forth the carrying value, amortized cost, and net unrealized gains (losses) of the Company’s investments aggregated by industry as of December 31, 2014 and 2013. | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Carrying | Amortized | Unrealized | Carrying | Amortized | Unrealized | ||||||||||||||
Value | Cost | Gains | Value | Cost | Gains (Losses) | ||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 33,898 | $ | 32,469 | $ | 1,429 | $ | 17,240 | $ | 16,874 | $ | 366 | |||||||
Obligations of states and political subdivisions | 11,459 | 10,778 | 681 | 7,611 | 7,226 | 385 | |||||||||||||
Utilities and telecom | 15,383 | 12,589 | 2,794 | 18,006 | 16,150 | 1,856 | |||||||||||||
Financial services | 65,915 | 62,352 | 3,563 | 58,451 | 57,118 | 1,333 | |||||||||||||
Other business – diversified | 70,365 | 69,940 | 425 | 70,504 | 72,409 | (1,905 | ) | ||||||||||||
Other consumer – diversified | 36,792 | 31,409 | 5,383 | 51,381 | 43,872 | 7,509 | |||||||||||||
Other investments | 6,473 | 6,473 | — | 5,768 | 5,768 | — | |||||||||||||
Investments | $ | 240,285 | $ | 226,010 | $ | 14,275 | $ | 228,961 | $ | 219,417 | $ | 9,544 | |||||||
Schedule of 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 December 31, 2014 and 2013. | ||||||||||||||||||
2014 | |||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||
Losses | Losses | Losses | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 3,695 | $ | 7 | $ | 2,692 | $ | 23 | $ | 6,387 | $ | 30 | |||||||
Corporate securities | 43,996 | 1,604 | 9,293 | 1,361 | 53,289 | 2,965 | |||||||||||||
Total temporarily impaired securities | $ | 47,691 | $ | 1,611 | $ | 11,985 | $ | 1,384 | $ | 59,676 | $ | 2,995 | |||||||
2013 | |||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||
Losses | Losses | Losses | |||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $ | 8,326 | $ | 210 | $ | — | $ | — | $ | 8,326 | $ | 210 | |||||||
Obligations of states and political subdivisions | 1,018 | 17 | — | — | 1,018 | 17 | |||||||||||||
Corporate securities | 92,049 | 3,714 | 6,938 | 1,264 | 98,987 | 4,978 | |||||||||||||
Redeemable preferred stocks | 704 | 41 | — | — | 704 | 41 | |||||||||||||
Common and non-redeemable preferred stocks | 3,724 | 560 | — | — | 3,724 | 560 | |||||||||||||
Total temporarily impaired securities | $ | 105,821 | $ | 4,542 | $ | 6,938 | $ | 1,264 | $ | 112,759 | $ | 5,806 | |||||||
Schedule of other than temporary impairments | During the years ended December 31, 2014 and 2013, the Company recorded impairments related to the following investments. | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Common and non-redeemable preferred stocks | $ | 196 | $ | — | |||||||||||||||
Financial instruments carried at fair value measured on a recurring basis | As of December 31, 2014, financial instruments carried at fair value were measured on a recurring basis as summarized below: | ||||||||||||||||||
Assets: | Quoted | Significant | Significant | Total | |||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||||
for Identical | (Level 2) | ||||||||||||||||||
Assets | |||||||||||||||||||
(Level 1) | |||||||||||||||||||
Fixed maturities | $ | — | $ | 212,674 | $ | 2,214 | $ | 214,888 | |||||||||||
Equity securities | 13,148 | 5,776 | — | 18,924 | |||||||||||||||
Cash equivalents | 15,009 | — | — | 15,009 | |||||||||||||||
Total | $ | 28,157 | $ | 218,450 | $ | 2,214 | $ | 248,821 | |||||||||||
As of December 31, 2013, financial instruments carried at fair value were measured on a recurring basis as summarized below: | |||||||||||||||||||
Assets: | Quoted | Significant | Significant | Total | |||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||||
for Identical | (Level 2) | ||||||||||||||||||
Assets | |||||||||||||||||||
(Level 1) | |||||||||||||||||||
Fixed maturities | $ | — | $ | 199,312 | $ | 1,991 | $ | 201,303 | |||||||||||
Equity securities | 16,406 | 5,484 | — | 21,890 | |||||||||||||||
Cash equivalents | 31,618 | — | — | 31,618 | |||||||||||||||
Total | $ | 48,024 | $ | 204,796 | $ | 1,991 | $ | 254,811 | |||||||||||
Roll-forward of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The following is a roll-forward of the Company’s financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) from January 1, 2013 to December 31, 2014. | ||||||||||||||||||
Fixed | Derivative | ||||||||||||||||||
Maturities | (Liability) | ||||||||||||||||||
Balance, January 1, 2013 | $ | 2,124 | $ | (141 | ) | ||||||||||||||
Total unrealized gains (losses) included in comprehensive income | (133 | ) | 141 | ||||||||||||||||
Balance, December 31, 2013 | 1,991 | — | |||||||||||||||||
Total unrealized gains included in comprehensive income | 223 | — | |||||||||||||||||
Balance, December 31, 2014 | $ | 2,214 | $ | — | |||||||||||||||
Amortized cost and carrying value of fixed maturities by contractual maturity | The amortized cost and carrying value of fixed maturities at December 31, 2014 and 2013 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Carrying | Amortized | Carrying | Amortized | ||||||||||||||||
Value | Cost | Value | Cost | ||||||||||||||||
Due in one year or less | $ | 1,000 | $ | 1,000 | $ | — | $ | — | |||||||||||
Due after one year through five years | 16,523 | 15,891 | 11,709 | 11,097 | |||||||||||||||
Due after five years through ten years | 114,620 | 112,381 | 108,358 | 107,846 | |||||||||||||||
Due after ten years | 64,990 | 61,704 | 76,882 | 77,884 | |||||||||||||||
Varying maturities | 17,755 | 16,592 | 4,354 | 4,390 | |||||||||||||||
Totals | $ | 214,888 | $ | 207,568 | $ | 201,303 | $ | 201,217 | |||||||||||
Investment income earned | Investment income was earned from the following sources: | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Fixed maturities | $ | 9,720 | $ | 9,890 | |||||||||||||||
Equity securities | 510 | 632 | |||||||||||||||||
Other | 137 | 287 | |||||||||||||||||
Total investment income | 10,367 | 10,809 | |||||||||||||||||
Less investment expenses, included in other expenses | (536 | ) | (474 | ) | |||||||||||||||
Net investment income | $ | 9,831 | $ | 10,335 | |||||||||||||||
Summary of realized investment gains (losses) | A summary of realized investment gains (losses) follows: | ||||||||||||||||||
2014 | |||||||||||||||||||
Fixed | Equity | Total | |||||||||||||||||
Maturities | Securities | ||||||||||||||||||
Gains | $ | 2,449 | $ | — | $ | 2,449 | |||||||||||||
Losses | (665 | ) | (213 | ) | (878 | ) | |||||||||||||
Realized investment gains, net | $ | 1,784 | $ | (213 | ) | $ | 1,571 | ||||||||||||
2013 | |||||||||||||||||||
Fixed | Equity | Total | |||||||||||||||||
Maturities | Securities | ||||||||||||||||||
Gains | $ | 8,521 | $ | 293 | $ | 8,814 | |||||||||||||
Losses | (45 | ) | (28 | ) | (73 | ) | |||||||||||||
Realized investment gains, net | $ | 8,476 | $ | 265 | $ | 8,741 | |||||||||||||
Proceeds from sales of investments | Proceeds from the sales of investments were as follows: | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Fixed maturities | $ | 75,244 | $ | 107,728 | |||||||||||||||
Equity securities | — | 972 | |||||||||||||||||
Other investments | 197 | 45 | |||||||||||||||||
Total proceeds | $ | 75,441 | $ | 108,745 |
Insurance_Reserves_and_Policyh1
Insurance Reserves and Policyholder Funds (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance Reserves And Policyholder Funds [Abstract] | |||||||||||||
Reserves for life, accident, health and property and casualty losses, including loss adjustment expenses | The following table presents the Company’s reserves for life, accident and health, and property and casualty losses, claims and loss adjustment expenses. | ||||||||||||
Amount of Insurance | |||||||||||||
In Force, Net | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Future policy benefits | |||||||||||||
Life insurance policies: | |||||||||||||
Ordinary | $ | 53,555 | $ | 52,915 | $ | 235,856 | $ | 237,694 | |||||
Mass market | 2,475 | 2,715 | 3,148 | 3,504 | |||||||||
Individual annuities | 130 | 135 | — | — | |||||||||
56,160 | 55,765 | $ | 239,004 | $ | 241,198 | ||||||||
Accident and health insurance policies | 14,685 | 14,099 | |||||||||||
70,845 | 69,864 | ||||||||||||
Unearned premiums | 24,544 | 27,415 | |||||||||||
Losses, claims and loss adjustment expenses | 66,625 | 63,018 | |||||||||||
Other policy liabilities | 2,080 | 2,076 | |||||||||||
Total insurance reserves and policyholder funds | $ | 164,094 | $ | 162,373 | |||||||||
Summary of activity in liabilities for unpaid loss and claim reserved | Activity in the liability for unpaid loss and claim reserves is summarized as follows: | ||||||||||||
2014 | 2013 | ||||||||||||
Balance at January 1 | $ | 63,018 | $ | 62,873 | |||||||||
Less: Reinsurance receivable on unpaid losses | (14,314 | ) | (18,743 | ) | |||||||||
Net balance at January 1 | 48,704 | 44,130 | |||||||||||
Incurred related to: | |||||||||||||
Current year | 104,225 | 97,904 | |||||||||||
Prior years | (483 | ) | (1,657 | ) | |||||||||
Total incurred | 103,742 | 96,247 | |||||||||||
Paid related to: | |||||||||||||
Current year | 72,443 | 66,705 | |||||||||||
Prior years | 27,680 | 24,968 | |||||||||||
Total paid | 100,123 | 91,673 | |||||||||||
Net balance at December 31 | 52,323 | 48,704 | |||||||||||
Plus: Reinsurance receivable on unpaid losses | 14,302 | 14,314 | |||||||||||
Balance at December 31 | $ | 66,625 | $ | 63,018 | |||||||||
Reconciliation of total incurred claims to total insurance benefits and losses | Following is a reconciliation of total incurred claims to total insurance benefits and losses incurred: | ||||||||||||
2014 | 2013 | ||||||||||||
Total incurred claims | $ | 103,742 | $ | 96,247 | |||||||||
Cash surrender value and matured endowments | 1,574 | 1,215 | |||||||||||
Benefit reserve changes | 879 | 2,910 | |||||||||||
Total insurance benefits and losses incurred | $ | 106,195 | $ | 100,372 | |||||||||
Note 4. Reinsurance |
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Reinsurance [Abstract] | |||||||
Effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred | The effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred were as follows: | ||||||
2014 | 2013 | ||||||
Direct premiums written | $ | 138,276 | $ | 141,313 | |||
Assumed premiums written | 18,231 | 16,702 | |||||
Ceded premiums written | (5,890 | ) | (7,607 | ) | |||
Net premiums written | $ | 150,617 | $ | 150,408 | |||
Direct premiums earned | $ | 141,212 | $ | 141,720 | |||
Assumed premiums earned | 18,166 | 11,517 | |||||
Ceded premiums earned | (5,890 | ) | (7,607 | ) | |||
Net premiums earned | $ | 153,488 | $ | 145,630 | |||
Provision for benefits and losses incurred | $ | 110,912 | $ | 105,828 | |||
Reinsurance loss recoveries | (4,717 | ) | (5,456 | ) | |||
Insurance benefits and losses incurred | $ | 106,195 | $ | 100,372 | |||
Components of reinsurance receivables | Components of reinsurance receivables were as follows: | ||||||
2014 | 2013 | ||||||
Receivable on unpaid losses | $ | 14,302 | $ | 14,314 | |||
Receivable on paid losses | 46 | — | |||||
Total reinsurance receivables | $ | 14,348 | $ | 14,314 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Income Taxes [Abstract] | |||||||
Allocation of total income taxes | Total income taxes were allocated as follows: | ||||||
2014 | 2013 | ||||||
Total tax expense on income | $ | 474 | $ | 184 | |||
Tax expense (benefit) on components of shareholders’ equity: | |||||||
Net unrealized gains (losses) on investment securities | 1,656 | (7,247 | ) | ||||
Fair value adjustment to derivative financial instrument | — | 49 | |||||
Total tax expense (benefit) on shareholders’ equity | 1,656 | (7,198 | ) | ||||
Total tax expense (benefit) | $ | 2,130 | $ | (7,014 | ) | ||
Reconciliation of income tax expense | A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax expense is as follows: | ||||||
2014 | 2013 | ||||||
Federal income tax provision at statutory rate of 35% | $ | 1,717 | $ | 3,922 | |||
Dividends-received deduction | (115 | ) | (149 | ) | |||
Small life insurance company deduction | (600 | ) | (586 | ) | |||
Other | 53 | 50 | |||||
Change in asset valuation allowance due to change in judgment relating to realizability of deferred tax assets | (651 | ) | (3,059 | ) | |||
Adjustment for prior years’ estimates to actual | 70 | 6 | |||||
Income tax expense | $ | 474 | $ | 184 | |||
Deferred tax liabilities and assets | Deferred tax liabilities and assets at December 31, 2014 and 2013 were comprised of the following: | ||||||
2014 | 2013 | ||||||
Deferred tax liabilities: | |||||||
Deferred acquisition costs | $ | (2,832 | ) | $ | (3,766 | ) | |
Deferred and uncollected premiums | (704 | ) | (734 | ) | |||
Net unrealized investment gains | (4,997 | ) | (3,341 | ) | |||
Other | (37 | ) | (8 | ) | |||
Total deferred tax liabilities | (8,570 | ) | (7,849 | ) | |||
Deferred tax assets: | |||||||
Net operating loss carryforwards | 20 | 844 | |||||
Insurance reserves | 4,676 | 5,109 | |||||
Capital loss carryforwards | — | 2,177 | |||||
Impaired assets | 1,474 | 1,406 | |||||
Alternative minimum tax credit | 239 | 309 | |||||
Bad debts and other | 766 | 576 | |||||
Total deferred tax assets | 7,175 | 10,421 | |||||
Asset valuation allowance | — | (2,209 | ) | ||||
Net deferred tax asset (liability) | $ | (1,395 | ) | $ | 363 | ||
Components of income tax expense | The components of income tax expense were: | ||||||
2014 | 2013 | ||||||
Current - Federal | $ | 372 | $ | 513 | |||
Deferred - Federal | 753 | 2,730 | |||||
Change in deferred tax asset valuation allowance | (651 | ) | (3,059 | ) | |||
Total | $ | 474 | $ | 184 |
Junior_Subordinated_Debentures1
Junior Subordinated Debentures (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Junior Subordinated Debentures [Abstract] | |||||||
Financial structure of statutory business trusts | The financial structure of each of Atlantic American Statutory Trust I and II, as of December 31, 2014 and 2013, was as follows: | ||||||
Atlantic American | Atlantic American | ||||||
Statutory Trust I | Statutory Trust II | ||||||
JUNIOR SUBORDINATED DEBENTURES(1)(2) | |||||||
Principal amount owed | $ | 18,042 | $ | 23,196 | |||
Balance December 31, 2014 | $ | 18,042 | $ | 23,196 | |||
Less: Treasury debt(3) | — | (7,500 | ) | ||||
Net balance December 31, 2014 | $ | 18,042 | $ | 15,696 | |||
Net balance December 31, 2013 | $ | 18,042 | $ | 23,196 | |||
Coupon rate | LIBOR + 4.00% | LIBOR + 4.10% | |||||
Interest payable | Quarterly | Quarterly | |||||
Maturity date | 4-Dec-32 | 15-May-33 | |||||
Redeemable by issuer | Yes | Yes | |||||
TRUST PREFERRED SECURITIES | |||||||
Issuance date | 4-Dec-02 | 15-May-03 | |||||
Securities issued | 17,500 | 22,500 | |||||
Liquidation preference per security | $ | 1 | $ | 1 | |||
Liquidation value | 17,500 | 22,500 | |||||
Coupon rate | LIBOR + 4.00% | LIBOR + 4.10% | |||||
Distribution payable | Quarterly | Quarterly | |||||
Distribution guaranteed by(4) | Atlantic | Atlantic | |||||
American | American | ||||||
Corporation | 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. Consideration tendered, upon settlement, was $6,750 plus accrued interest resulting in a gain of $750 recognized in other income on the accompanying consolidated statements of operations in 2014. | ||||||
-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. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies [Abstract] | ||||
Operating lease commitments | The Company’s rental expense, including common area charges, for operating leases was $1,229 and $1,215 in 2014 and 2013, respectively. The Company’s future minimum base lease obligations under non-cancelable operating leases are as follows: | |||
Year Ending December 31, | ||||
2015 | $ | 896 | ||
2016 | 435 | |||
2017 | 446 | |||
2018 | 457 | |||
2019 | 193 | |||
Thereafter | — | |||
Total | $ | 2,427 |
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Benefit Plans [Abstract] | |||||||||||||
Summary of status of the stock options | A summary of the status of the Company’s stock options at December 31, 2014 and 2013 is as follows: | ||||||||||||
2014 | 2013 | ||||||||||||
Options | Shares | Weighted | Shares | Weighted | |||||||||
Average | Average | ||||||||||||
Exercise | Exercise | ||||||||||||
Price | Price | ||||||||||||
Options outstanding, beginning of year | — | $ | — | 77,000 | $ | 1.59 | |||||||
Options exercised | — | — | (62,500 | ) | 1.59 | ||||||||
Options canceled or expired | — | — | (14,500 | ) | 1.59 | ||||||||
Options outstanding, end of year | — | — | — | — | |||||||||
Options available for future grant | 1,651,500 | 1,800,000 |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Common Share [Abstract] | ||||||||||
Reconciliation of numerator and denominator used in earnings per common share calculations | A reconciliation of the numerator and denominator of the earnings per common share calculations is as follows: | |||||||||
For the Year Ended December 31, 2014 | ||||||||||
Income | Shares | Per Share | ||||||||
(In thousands) | Amount | |||||||||
Basic and Diluted Earnings Per Common Share | ||||||||||
Net income before preferred stock dividends | $ | 4,430 | 20,818 | |||||||
Less preferred stock dividends | (468 | ) | — | |||||||
Net income applicable to common shareholders | $ | 3,962 | 20,818 | $ | 0.19 | |||||
For the Year Ended December 31, 2013 | ||||||||||
Income | Shares | Per Share | ||||||||
(In thousands) | Amount | |||||||||
Basic Earnings Per Common Share | ||||||||||
Net income before preferred stock dividends | $ | 11,022 | 21,236 | |||||||
Less preferred stock dividends | (482 | ) | — | |||||||
Net income applicable to common shareholders | 10,540 | 21,236 | $ | 0.5 | ||||||
Diluted Earnings Per Common Share | ||||||||||
Effect of dilutive stock options | — | 10 | ||||||||
Effect of Series D Preferred Stock | 482 | 1,629 | ||||||||
Net income applicable to common shareholders | $ | 11,022 | 22,875 | $ | 0.48 |
Statutory_Reporting_Tables
Statutory Reporting (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Statutory Reporting [Abstract] | |||||||
Reported statutory net income and surplus for the Parent's insurance subsidiaries | The amount of reported statutory net income and surplus (shareholders’ equity) for the Parent’s insurance subsidiaries for the years ended December 31 was as follows: | ||||||
2014 | 2013 | ||||||
Life and Health, net income | $ | 2,738 | $ | 3,013 | |||
Property and Casualty, net income | 4,813 | 6,224 | |||||
Statutory net income | $ | 7,551 | $ | 9,237 | |||
Life and Health, surplus | $ | 34,004 | $ | 34,530 | |||
Property and Casualty, surplus | 39,012 | 39,092 | |||||
Statutory surplus | $ | 73,016 | $ | 73,622 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Information [Abstract] | ||||||||||||||||
Revenue and income (loss) before tax for each business unit | The Parent’s primary insurance subsidiaries operate with relative autonomy and each company is evaluated based on its individual performance. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each segment derives revenue from the collection of premiums, as well as from investment income. Substantially all revenue other than that in the corporate and other segment is from external sources. | |||||||||||||||
2014 | ||||||||||||||||
American | Bankers | Corporate | Adjustments | Consolidated | ||||||||||||
Southern | Fidelity | & Other | & Eliminations | |||||||||||||
Insurance premiums | $ | 52,654 | $ | 100,834 | $ | — | $ | — | $ | 153,488 | ||||||
Insurance benefits and losses incurred | 38,179 | 68,016 | — | — | 106,195 | |||||||||||
Expenses deferred | (7,845 | ) | (2,305 | ) | — | — | (10,150 | ) | ||||||||
Amortization and depreciation expense | 8,646 | 2,457 | 507 | — | 11,610 | |||||||||||
Other expenses | 13,644 | 33,725 | 15,601 | (9,208 | ) | 53,762 | ||||||||||
Total expenses | 52,624 | 101,893 | 16,108 | (9,208 | ) | 161,417 | ||||||||||
Underwriting income (loss) | 30 | (1,059 | ) | |||||||||||||
Investment income | 4,447 | 5,507 | 2,152 | (1,739 | ) | 10,367 | ||||||||||
Other income | 8 | 11 | 7,595 | (7,469 | ) | 145 | ||||||||||
Operating income (loss) | 4,485 | 4,459 | (6,361 | ) | — | 2,583 | ||||||||||
Net realized gains | 527 | 694 | 350 | — | 1,571 | |||||||||||
Gain on purchase of debt securities (Note 6) | — | — | 750 | — | 750 | |||||||||||
Income (loss) before income taxes | $ | 5,012 | $ | 5,153 | $ | (5,261 | ) | $ | — | $ | 4,904 | |||||
Total revenues | $ | 57,636 | $ | 107,046 | $ | 10,847 | $ | (9,208 | ) | $ | 166,321 | |||||
Intangibles | $ | 1,350 | $ | 1,194 | $ | — | $ | — | $ | 2,544 | ||||||
Total assets | $ | 129,517 | $ | 161,729 | $ | 139,271 | $ | (113,509 | ) | $ | 317,008 | |||||
2013 | ||||||||||||||||
American | Bankers | Corporate | Adjustments | Consolidated | ||||||||||||
Southern | Fidelity | & Other | & Eliminations | |||||||||||||
Insurance premiums | $ | 45,851 | $ | 99,779 | $ | — | $ | — | $ | 145,630 | ||||||
Insurance benefits and losses incurred | 30,197 | 70,175 | — | — | 100,372 | |||||||||||
Expenses deferred | (7,106 | ) | (3,230 | ) | — | — | (10,336 | ) | ||||||||
Amortization and depreciation expense | 7,440 | 2,120 | — | — | 9,560 | |||||||||||
Other expenses | 15,777 | 31,742 | 15,076 | (8,028 | ) | 54,567 | ||||||||||
Total expenses | 46,308 | 100,807 | 15,076 | (8,028 | ) | 154,163 | ||||||||||
Underwriting loss | (457 | ) | (1,028 | ) | ||||||||||||
Investment income | 4,308 | 5,920 | 2,338 | (1,757 | ) | 10,809 | ||||||||||
Other income | 12 | 40 | 6,408 | (6,271 | ) | 189 | ||||||||||
Operating income (loss) | 3,863 | 4,932 | (6,330 | ) | — | 2,465 | ||||||||||
Net realized gains | 3,767 | 4,330 | 644 | — | 8,741 | |||||||||||
Income (loss) before income taxes | $ | 7,630 | $ | 9,262 | $ | (5,686 | ) | $ | — | $ | 11,206 | |||||
Total revenues | $ | 53,938 | $ | 110,069 | $ | 9,390 | $ | (8,028 | ) | $ | 165,369 | |||||
Intangibles | $ | 1,350 | $ | 1,194 | $ | — | $ | — | $ | 2,544 | ||||||
Total assets | $ | 126,861 | $ | 156,484 | $ | 141,304 | $ | (105,268 | ) | $ | 319,381 |
Disclosures_About_Fair_Value_o1
Disclosures About Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosures About Fair Value of Financial Instruments [Abstract] | ||||||||||||||||
Carrying amount, estimated fair value and level within the fair value hierarchy 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. | |||||||||||||||
2014 | 2013 | |||||||||||||||
Level in | Carrying | Estimated | Carrying | Estimated | ||||||||||||
Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||
Hierarchy(1) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 16,375 | $ | 16,375 | $ | 33,102 | $ | 33,102 | |||||||
Fixed maturities | -1 | 214,888 | 214,888 | 201,303 | 201,303 | |||||||||||
Equity securities | -1 | 18,924 | 18,924 | 21,890 | 21,890 | |||||||||||
Other invested assets | Level 3 | 2,995 | 2,995 | 2,123 | 2,123 | |||||||||||
Policy loans | Level 2 | 2,202 | 2,202 | 2,369 | 2,369 | |||||||||||
Real estate | Level 2 | 38 | 38 | 38 | 38 | |||||||||||
Investments in unconsolidated trusts | Level 2 | 1,238 | 1,238 | 1,238 | 1,238 | |||||||||||
Liabilities: | ||||||||||||||||
Junior Subordinated Debentures, net | Level 2 | 33,738 | 33,738 | 41,238 | 41,238 | |||||||||||
-1 | See Note 2 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accumulated Other Comprehensive Income [Abstract] | ||||
Changes in balances of each component of accumulated other comprehensive income, net of taxes | The following table sets forth the balance of each component of accumulated other comprehensive income as of December 31, 2014 and 2013, and the changes in the balance of each component thereof during 2014. | |||
Unrealized | ||||
Gains on | ||||
Available- | ||||
for-Sale | ||||
Securities | ||||
Balance, December 31, 2013 | $ | 6,204 | ||
Other comprehensive income before reclassifications | 4,096 | |||
Amounts reclassified from accumulated other comprehensive income | (1,021 | ) | ||
Net current-period other comprehensive income | 3,075 | |||
Balance, December 31, 2014 | $ | 9,279 | ||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Acquisitions [Abstract] | ||||
Assets and liabilities acquired | On December 18, 2013, the Company acquired 100% of the outstanding stock of Direct Life Insurance Company (“DLIC”) for $3,857 and changed the name of the company to Bankers Fidelity Assurance Company. The acquisition will allow Bankers Fidelity to offer additional similar products to those it already writes permitting greater diversification of product and pricing as well as opportunity for future expansion in other states. The purchase was not significant to the financial position or results of operations of the Company in 2013 and DLIC had no significant recent operations prior to acquisition. In connection with the acquisition the following assets and liabilities were acquired: | |||
2013 | ||||
Cash and cash equivalents | $ | 1,317 | ||
Investments | 2,123 | |||
Receivables | 7 | |||
Intangibles | 416 | |||
Total assets | $ | 3,863 | ||
Accounts payable and accrued expenses | $ | 6 | ||
Total liabilities | $ | 6 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Subsidiary | |
Principles of Consolidation [Abstract] | |
Number of insurance subsidiaries owned by the Parent | 4 |
Number of non-insurance subsidiaries owned by the Parent | 1 |
Investments [Abstract] | |
Estimated fair value | $2,214 |
Investments_Details
Investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | $240,285 | $228,961 |
Gross Unrealized Gains | 17,270 | 15,350 |
Gross Unrealized Losses | 2,995 | 5,806 |
Amortized Cost | 226,010 | 219,417 |
Amortized cost of bonds on deposit with insurance regulatory authorities | 10,615 | 10,101 |
U.S. Treasury securities and obligations of U.S. Government agencies and authorities [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 33,898 | 17,240 |
Amortized Cost | 32,469 | 16,874 |
Obligations of states and political subdivisions [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 11,459 | 7,611 |
Amortized Cost | 10,778 | 7,226 |
Utilities and telecom [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 15,383 | 18,006 |
Amortized Cost | 12,589 | 16,150 |
Financial services [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 65,915 | 58,451 |
Amortized Cost | 62,352 | 57,118 |
Other business - diversified [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 70,365 | 70,504 |
Amortized Cost | 69,940 | 72,409 |
Other consumer - diversified [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 36,792 | 51,381 |
Amortized Cost | 31,409 | 43,872 |
Fixed maturities [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 214,888 | 201,303 |
Gross Unrealized Gains | 10,315 | 5,332 |
Gross Unrealized Losses | 2,995 | 5,246 |
Amortized Cost | 207,568 | 201,217 |
Fixed maturities [Member] | Oil and Gas Properties [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Gross Unrealized Losses | 1,416 | |
Fixed maturities [Member] | Bonds [Member] | U.S. Treasury securities and obligations of U.S. Government agencies and authorities [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 33,898 | 17,240 |
Gross Unrealized Gains | 1,459 | 576 |
Gross Unrealized Losses | 30 | 210 |
Amortized Cost | 32,469 | 16,874 |
Fixed maturities [Member] | Bonds [Member] | Obligations of states and political subdivisions [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 11,459 | 7,611 |
Gross Unrealized Gains | 681 | 402 |
Gross Unrealized Losses | 0 | 17 |
Amortized Cost | 10,778 | 7,226 |
Fixed maturities [Member] | Corporate securities [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 168,731 | 174,101 |
Gross Unrealized Gains | 8,167 | 4,350 |
Gross Unrealized Losses | 2,965 | 4,978 |
Amortized Cost | 163,529 | 174,729 |
Fixed maturities [Member] | Corporate securities [Member] | Utilities and telecom [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 13,980 | 16,532 |
Gross Unrealized Gains | 2,355 | 1,353 |
Gross Unrealized Losses | 0 | 7 |
Amortized Cost | 11,625 | 15,186 |
Fixed maturities [Member] | Corporate securities [Member] | Financial services [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 59,224 | 50,531 |
Gross Unrealized Gains | 3,404 | 1,736 |
Gross Unrealized Losses | 588 | 320 |
Amortized Cost | 56,408 | 49,115 |
Fixed maturities [Member] | Corporate securities [Member] | Other business - diversified [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 70,139 | 70,326 |
Gross Unrealized Gains | 2,076 | 870 |
Gross Unrealized Losses | 1,830 | 2,906 |
Amortized Cost | 69,893 | 72,362 |
Fixed maturities [Member] | Corporate securities [Member] | Other consumer - diversified [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 25,388 | 36,712 |
Gross Unrealized Gains | 332 | 391 |
Gross Unrealized Losses | 547 | 1,745 |
Amortized Cost | 25,603 | 38,066 |
Fixed maturities [Member] | Redeemable preferred stocks [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 800 | 2,351 |
Gross Unrealized Gains | 8 | 4 |
Gross Unrealized Losses | 0 | 41 |
Amortized Cost | 792 | 2,388 |
Fixed maturities [Member] | Redeemable preferred stocks [Member] | Financial services [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 608 | 2,159 |
Gross Unrealized Gains | 8 | 4 |
Gross Unrealized Losses | 0 | 41 |
Amortized Cost | 600 | 2,196 |
Fixed maturities [Member] | Redeemable preferred stocks [Member] | Other consumer - diversified [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 192 | 192 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 192 | 192 |
Equity securities [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 18,924 | 21,890 |
Gross Unrealized Gains | 6,955 | 10,018 |
Gross Unrealized Losses | 0 | 560 |
Amortized Cost | 11,969 | 12,432 |
Equity securities [Member] | Common and non-redeemable preferred stocks [Member] | Utilities and telecom [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 1,403 | 1,474 |
Gross Unrealized Gains | 439 | 510 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 964 | 964 |
Equity securities [Member] | Common and non-redeemable preferred stocks [Member] | Financial services [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 6,083 | 5,761 |
Gross Unrealized Gains | 739 | 514 |
Gross Unrealized Losses | 0 | 560 |
Amortized Cost | 5,344 | 5,807 |
Equity securities [Member] | Common and non-redeemable preferred stocks [Member] | Other business - diversified [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 226 | 178 |
Gross Unrealized Gains | 179 | 131 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 47 | 47 |
Equity securities [Member] | Common and non-redeemable preferred stocks [Member] | Other consumer - diversified [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 11,212 | 14,477 |
Gross Unrealized Gains | 5,598 | 8,863 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 5,614 | 5,614 |
Other invested assets [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 2,995 | 2,123 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 2,995 | 2,123 |
Policy loans [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 2,202 | 2,369 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 2,202 | 2,369 |
Real estate [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 38 | 38 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | 38 | 38 |
Investments in unconsolidated trusts [Member] | ||
Schedule of investments aggregated by type and industry [Abstract] | ||
Carrying Value | 1,238 | 1,238 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Amortized Cost | $1,238 | $1,238 |
Investments_Part_II_Details
Investments, Part II (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of investments aggregated by industry [Abstract] | ||
Carrying Value | $240,285 | $228,961 |
Amortized Cost | 226,010 | 219,417 |
Unrealized Gains (Losses) | 14,275 | 9,544 |
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months | 47,691 | 105,821 |
12 months or longer | 11,985 | 6,938 |
Total Fair Value | 59,676 | 112,759 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ||
Less than 12 months | 1,611 | 4,542 |
12 months or longer | 1,384 | 1,264 |
Total Unrealized Losses | 2,995 | 5,806 |
U.S. Treasury securities and obligations of U.S. Government agencies and authorities [Member] | ||
Schedule of investments aggregated by industry [Abstract] | ||
Carrying Value | 33,898 | 17,240 |
Amortized Cost | 32,469 | 16,874 |
Unrealized Gains (Losses) | 1,429 | 366 |
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months | 3,695 | 8,326 |
12 months or longer | 2,692 | 0 |
Total Fair Value | 6,387 | 8,326 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ||
Less than 12 months | 7 | 210 |
12 months or longer | 23 | 0 |
Total Unrealized Losses | 30 | 210 |
Obligations of states and political subdivisions [Member] | ||
Schedule of investments aggregated by industry [Abstract] | ||
Carrying Value | 11,459 | 7,611 |
Amortized Cost | 10,778 | 7,226 |
Unrealized Gains (Losses) | 681 | 385 |
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months | 1,018 | |
12 months or longer | 0 | |
Total Fair Value | 1,018 | |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ||
Less than 12 months | 17 | |
12 months or longer | 0 | |
Total Unrealized Losses | 17 | |
Utilities and telecom [Member] | ||
Schedule of investments aggregated by industry [Abstract] | ||
Carrying Value | 15,383 | 18,006 |
Amortized Cost | 12,589 | 16,150 |
Unrealized Gains (Losses) | 2,794 | 1,856 |
Financial services [Member] | ||
Schedule of investments aggregated by industry [Abstract] | ||
Carrying Value | 65,915 | 58,451 |
Amortized Cost | 62,352 | 57,118 |
Unrealized Gains (Losses) | 3,563 | 1,333 |
Other business - diversified [Member] | ||
Schedule of investments aggregated by industry [Abstract] | ||
Carrying Value | 70,365 | 70,504 |
Amortized Cost | 69,940 | 72,409 |
Unrealized Gains (Losses) | 425 | -1,905 |
Other consumer - diversified [Member] | ||
Schedule of investments aggregated by industry [Abstract] | ||
Carrying Value | 36,792 | 51,381 |
Amortized Cost | 31,409 | 43,872 |
Unrealized Gains (Losses) | 5,383 | 7,509 |
Other investments [Member] | ||
Schedule of investments aggregated by industry [Abstract] | ||
Carrying Value | 6,473 | 5,768 |
Amortized Cost | 6,473 | 5,768 |
Unrealized Gains (Losses) | 0 | 0 |
Corporate securities [Member] | ||
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months | 43,996 | 92,049 |
12 months or longer | 9,293 | 6,938 |
Total Fair Value | 53,289 | 98,987 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ||
Less than 12 months | 1,604 | 3,714 |
12 months or longer | 1,361 | 1,264 |
Total Unrealized Losses | 2,965 | 4,978 |
Redeemable preferred stocks [Member] | ||
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months | 704 | |
12 months or longer | 0 | |
Total Fair Value | 704 | |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ||
Less than 12 months | 41 | |
12 months or longer | 0 | |
Total Unrealized Losses | 41 | |
Common and non-redeemable preferred stocks [Member] | ||
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months | 3,724 | |
12 months or longer | 0 | |
Total Fair Value | 3,724 | |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ||
Less than 12 months | 560 | |
12 months or longer | 0 | |
Total Unrealized Losses | 560 | |
Schedule of Other Than Temporary Impairments [Abstract] | ||
Investment impairments | $196 | $0 |
Investments_Part_III_Details
Investments, Part III (Details) (Recurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | $248,821 | $254,811 |
Fixed maturities [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 214,888 | 201,303 |
Equity securities [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 18,924 | 21,890 |
Cash equivalents [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 15,009 | 31,618 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 28,157 | 48,024 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed maturities [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 13,148 | 16,406 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash equivalents [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 15,009 | 31,618 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 218,450 | 204,796 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed maturities [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 212,674 | 199,312 |
Significant Other Observable Inputs (Level 2) [Member] | Equity securities [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 5,776 | 5,484 |
Significant Other Observable Inputs (Level 2) [Member] | Cash equivalents [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 2,214 | 1,991 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed maturities [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 2,214 | 1,991 |
Significant Unobservable Inputs (Level 3) [Member] | Equity securities [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Cash equivalents [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Assets at fair value | $0 | $0 |
Investments_Part_IV_Details
Investments, Part IV (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fixed maturities [Member] | ||
Assets measured at fair value on a recurring basis [Abstract] | ||
Balance, beginning of period | $1,991 | $2,124 |
Total unrealized gains (losses) included in comprehensive income | 223 | -133 |
Balance, end of period | 2,214 | 1,991 |
Derivative (Liability) [Member] | ||
Liabilities measured at fair value on a recurring basis [Abstract] | ||
Balance, beginning of period | 0 | -141 |
Total unrealized gains included in comprehensive income | 0 | 141 |
Balance, end of period | $0 | $0 |
Investments_Part_V_Details
Investments, Part V (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Carrying Value [Abstract] | ||
Due in one year or less | $1,000 | $0 |
Due after one year through five years | 16,523 | 11,709 |
Due after five years through ten years | 114,620 | 108,358 |
Due after ten years | 64,990 | 76,882 |
Varying maturities | 17,755 | 4,354 |
Totals | 214,888 | 201,303 |
Amortized Cost [Abstract] | ||
Due in one year or less | 1,000 | 0 |
Due after one year through five years | 15,891 | 11,097 |
Due after five years through ten years | 112,381 | 107,846 |
Due after ten years | 61,704 | 77,884 |
Varying maturities | 16,592 | 4,390 |
Totals | 207,568 | 201,217 |
Investment income earned [Abstract] | ||
Total investment income | 10,367 | 10,809 |
Less investment expenses, included in other expenses | -536 | -474 |
Net investment income | 9,831 | 10,335 |
Summary of realized investment gains (losses) [Abstract] | ||
Gains | 2,449 | 8,814 |
Losses | -878 | -73 |
Realized investment gains (losses), net | 1,571 | 8,741 |
Proceeds from sales of investments [Abstract] | ||
Total proceeds | 75,441 | 108,745 |
Percentage of investment grade securities in bond portfolio (in hundredths) | 83.00% | |
Fixed maturities [Member] | ||
Investment income earned [Abstract] | ||
Total investment income | 9,720 | 9,890 |
Summary of realized investment gains (losses) [Abstract] | ||
Gains | 2,449 | 8,521 |
Losses | -665 | -45 |
Realized investment gains (losses), net | 1,784 | 8,476 |
Proceeds from sales of investments [Abstract] | ||
Total proceeds | 75,244 | 107,728 |
Equity securities [Member] | ||
Investment income earned [Abstract] | ||
Total investment income | 510 | 632 |
Summary of realized investment gains (losses) [Abstract] | ||
Gains | 0 | 293 |
Losses | -213 | -28 |
Realized investment gains (losses), net | -213 | 265 |
Proceeds from sales of investments [Abstract] | ||
Total proceeds | 0 | 972 |
Other investments [Member] | ||
Investment income earned [Abstract] | ||
Total investment income | 137 | 287 |
Proceeds from sales of investments [Abstract] | ||
Total proceeds | $197 | $45 |
Insurance_Reserves_and_Policyh2
Insurance Reserves and Policyholder Funds (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reserves for life, accident and health [Abstract] | ||
Future policy benefits | $70,845 | $69,864 |
Amount of Insurance In Force, Net | 239,004 | 241,198 |
Unearned premiums | 24,544 | 27,415 |
Losses, claims and loss adjustment expenses | 66,625 | 63,018 |
Other policy liabilities | 2,080 | 2,076 |
Total insurance reserves and policyholder funds | 164,094 | 162,373 |
Annualized premiums for accident and health insurance policies | 88,956 | 91,359 |
Summary of activity in liability for unpaid loss and claim reserves [Abstract] | ||
Balance at January 1 | 63,018 | 62,873 |
Less: Reinsurance receivable on unpaid losses | -14,314 | -18,743 |
Net balance at January 1 | 48,704 | 44,130 |
Incurred related to [Abstract] | ||
Current year | 104,225 | 97,904 |
Prior years | -483 | -1,657 |
Total incurred | 103,742 | 96,247 |
Paid related to [Abstract] | ||
Current year | 72,443 | 66,705 |
Prior years | 27,680 | 24,968 |
Total paid | 100,123 | 91,673 |
Net balance at December 31 | 52,323 | 48,704 |
Plus: Reinsurance receivable on unpaid losses | 14,302 | 14,314 |
Balance at December 31 | 66,625 | 63,018 |
Reconciliation of total incurred claims to total insurance benefits and losses incurred [Abstract] | ||
Total incurred claims | 103,742 | 96,247 |
Cash surrender value and matured endowments | 1,574 | 1,215 |
Benefit reserve changes | 879 | 2,910 |
Total insurance benefits and losses incurred | 106,195 | 100,372 |
Ordinary [Member] | ||
Reserves for life, accident and health [Abstract] | ||
Future policy benefits | 53,555 | 52,915 |
Amount of Insurance In Force, Net | 235,856 | 237,694 |
Mass market [Member] | ||
Reserves for life, accident and health [Abstract] | ||
Future policy benefits | 2,475 | 2,715 |
Amount of Insurance In Force, Net | 3,148 | 3,504 |
Individual annuities [Member] | ||
Reserves for life, accident and health [Abstract] | ||
Future policy benefits | 130 | 135 |
Amount of Insurance In Force, Net | 0 | 0 |
Life insurance segment [Member] | ||
Reserves for life, accident and health [Abstract] | ||
Future policy benefits | 56,160 | 55,765 |
Amount of Insurance In Force, Net | 239,004 | 241,198 |
Accident and health insurance segment [Member] | ||
Reserves for life, accident and health [Abstract] | ||
Future policy benefits | $14,685 | $14,099 |
Life, accident and health insurance [Member] | Prior to 1977 [Member] | ||
Future policy benefits [Abstract] | ||
Policy issue range for future benefits assumptions | prior to 1977 | |
Life, accident and health insurance [Member] | Prior to 1977 [Member] | Minimum [Member] | ||
Future policy benefits [Abstract] | ||
Interest rates assumed for future policy benefits (in hundredths) | 2.50% | |
Life, accident and health insurance [Member] | Prior to 1977 [Member] | Maximum [Member] | ||
Future policy benefits [Abstract] | ||
Interest rates assumed for future policy benefits (in hundredths) | 5.50% | |
Life, accident and health insurance [Member] | 1977 through 1979 [Member] | ||
Future policy benefits [Abstract] | ||
Policy issue range for future benefits assumptions | 1977 through 1979 | |
Life, accident and health insurance [Member] | 1977 through 1979 [Member] | Minimum [Member] | ||
Future policy benefits [Abstract] | ||
Interest rates assumed for future policy benefits (in hundredths) | 5.50% | |
Life, accident and health insurance [Member] | 1977 through 1979 [Member] | Maximum [Member] | ||
Future policy benefits [Abstract] | ||
Interest rates assumed for future policy benefits (in hundredths) | 7.00% | |
Life, accident and health insurance [Member] | 1980 through 1987 [Member] | ||
Future policy benefits [Abstract] | ||
Interest rates assumed for future policy benefits (in hundredths) | 9.00% | |
Policy issue range for future benefits assumptions | 1980 through 1987 | |
Life, accident and health insurance [Member] | 1988 through 2009 [Member] | ||
Future policy benefits [Abstract] | ||
Policy issue range for future benefits assumptions | 1988 through 2009 | |
Life, accident and health insurance [Member] | 1988 through 2009 [Member] | Minimum [Member] | ||
Future policy benefits [Abstract] | ||
Interest rates assumed for future policy benefits (in hundredths) | 5.00% | |
Life, accident and health insurance [Member] | 1988 through 2009 [Member] | Maximum [Member] | ||
Future policy benefits [Abstract] | ||
Interest rates assumed for future policy benefits (in hundredths) | 7.00% | |
Life, accident and health insurance [Member] | 2010 through 2012 [Member] | ||
Future policy benefits [Abstract] | ||
Interest rates assumed for future policy benefits (in hundredths) | 4.00% | |
Policy issue range for future benefits assumptions | 2010 through 2012 issues | |
Life, accident and health insurance [Member] | 2013 to 2014 [Member] | ||
Future policy benefits [Abstract] | ||
Interest rates assumed for future policy benefits (in hundredths) | 3.50% | |
Policy issue range for future benefits assumptions | 2013 through 2014 issues |
Reinsurance_Details
Reinsurance (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reinsurer | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance receivables due from reinsurers (in hundredths) | 99.00% | |
Number of reinsurers | 2 | |
Summary reconciliation of premiums written and premiums earned [Abstract] | ||
Direct premiums written | $138,276 | $141,313 |
Assumed premiums written | 18,231 | 16,702 |
Ceded premiums written | -5,890 | -7,607 |
Net premiums written | 150,617 | 150,408 |
Direct premiums earned | 141,212 | 141,720 |
Assumed premiums earned | 18,166 | 11,517 |
Ceded premiums earned | -5,890 | -7,607 |
Net premiums earned | 153,488 | 145,630 |
Provision for benefits and losses incurred | 110,912 | 105,828 |
Reinsurance loss recoveries | -4,717 | -5,456 |
Total insurance benefits and losses incurred | 106,195 | 100,372 |
Components of reinsurance receivables [Abstract] | ||
Receivable on unpaid losses | 14,302 | 14,314 |
Receivable on paid losses | 46 | 0 |
Total reinsurance receivables | 14,348 | 14,314 |
Swiss Reinsurance Corporation [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance receivables due | 1,218 | |
General Reinsurance Corporation [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance receivables due | $12,986 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Allocation of total income taxes [Abstract] | ||
Total tax expense on income | $474 | $184 |
Tax expense (benefit) on components of shareholders equity: [Abstract] | ||
Net unrealized gains (losses) on investment securities | 1,656 | -7,247 |
Fair value adjustment to derivative financial instrument | 0 | 49 |
Total tax expense (benefit) on shareholders equity | 1,656 | -7,198 |
Total tax expense (benefit) | 2,130 | -7,014 |
Reconciliation of income tax (benefit) expense [Abstract] | ||
Federal income tax provision at statutory rate of 35% | 1,717 | 3,922 |
Dividends-received deduction | -115 | -149 |
Small life insurance company deduction | -600 | -586 |
Other | 53 | 50 |
Change in asset valuation allowance due to change in judgment relating to realizability of deferred tax assets | -651 | -3,059 |
Adjustment for prior years' estimates to actual | 70 | 6 |
Income tax expense | 474 | 184 |
Federal statutory income tax rate (in hundredths) | 35.00% | |
SLD as percentage of life insurance company taxable income (in hundredths) | 60.00% | |
Percentage of reduction in SLD (in hundredths) | 15.00% | |
Minimum tentative amount of LICTI | 3,000 | |
Maximum tentative amount of LICTI | 15,000 | |
Deferred tax liabilities [Abstract] | ||
Deferred acquisition costs | -2,832 | -3,766 |
Deferred and uncollected premiums | -704 | -734 |
Net unrealized investment gains | -4,997 | -3,341 |
Other | -37 | -8 |
Total deferred tax liabilities | -8,570 | -7,849 |
Deferred tax assets [Abstract] | ||
Net operating loss carryforwards | 20 | 844 |
Insurance reserves | 4,676 | 5,109 |
Capital loss carryforwards | 0 | 2,177 |
Impaired assets | 1,474 | 1,406 |
Alternative minimum tax credit | 239 | 309 |
Bad debts and other | 766 | 576 |
Total deferred tax assets | 7,175 | 10,421 |
Asset valuation allowance | 0 | -2,209 |
Net deferred tax asset (liability) | -1,395 | 363 |
Components of income tax expense [Abstract] | ||
Current - Federal | 372 | 513 |
Deferred - Federal | 753 | 2,730 |
Change in deferred tax asset valuation allowance | -651 | -3,059 |
Income tax expense | 474 | 184 |
Regular federal net operating loss carryforwards subject to expiration | $58 | |
Regular federal net operating loss carryforwards expiration date | 2032 |
Junior_Subordinated_Debentures2
Junior Subordinated Debentures (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Trust | |||
Debt Instrument [Line Items] | |||
Number of Connecticut statutory business trusts | 2 | ||
Financial structure of statutory business trusts [Abstract] | |||
Net balance December 31, 2014 | $33,738 | $41,238 | |
Consideration tendered upon settlement of Junior Subordinated Debentures | 6,750 | 0 | |
Gain on settlement of Junior Subordinated Debentures | 750 | 0 | |
JUNIOR SUBORDINATED DEBENTURES [Member] | |||
Financial structure of statutory business trusts [Abstract] | |||
Consideration tendered upon settlement of Junior Subordinated Debentures | 6,750 | ||
Gain on settlement of Junior Subordinated Debentures | 750 | ||
Number of consecutive quarters for which interest payments can be deferred | 20 | ||
Atlantic American Statutory Trust I [Member] | JUNIOR SUBORDINATED DEBENTURES [Member] | |||
Financial structure of statutory business trusts [Abstract] | |||
Principal amount owed | 18,042 | [1],[2] | |
Balance December 31, 2014 | 18,042 | [1],[2] | |
Less: Treasury debt | 0 | [1],[2],[3] | |
Net balance December 31, 2014 | 18,042 | [1],[2] | |
Net Balance December 31, 2013 | 18,042 | [1],[2] | |
Coupon rate | LIBOR + 4.00% | [1],[2] | |
Interest payable | Quarterly | [1],[2] | |
Maturity date | 4-Dec-32 | [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 (in hundredths) | 4.00% | ||
Atlantic American Statutory Trust I [Member] | TRUST PREFERRED SECURITIES [Member] | |||
Financial structure of statutory business trusts [Abstract] | |||
Issuance date | 4-Dec-02 | ||
Securities issued (in shares) | 17,500 | ||
Liquidation preference per security (in dollars per share) | $1 | ||
Liquidation value | 17,500 | ||
Coupon rate | LIBOR + 4.00% | ||
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 (in hundredths) | 4.00% | ||
Atlantic American Statutory Trust II [Member] | JUNIOR SUBORDINATED DEBENTURES [Member] | |||
Financial structure of statutory business trusts [Abstract] | |||
Principal amount owed | 23,196 | [1],[2] | |
Balance December 31, 2014 | 23,196 | [1],[2] | |
Less: Treasury debt | -7,500 | [1],[2],[3] | |
Net balance December 31, 2014 | 15,696 | [1],[2] | |
Net Balance December 31, 2013 | 23,196 | [1],[2] | |
Coupon rate | LIBOR + 4.10% | [1],[2] | |
Interest payable | Quarterly | [1],[2] | |
Maturity date | 15-May-33 | [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 (in hundredths) | 4.10% | ||
Atlantic American Statutory Trust II [Member] | TRUST PREFERRED SECURITIES [Member] | |||
Financial structure of statutory business trusts [Abstract] | |||
Issuance date | 15-May-03 | ||
Securities issued (in shares) | 22,500 | ||
Liquidation preference per security (in dollars per share) | $1 | ||
Liquidation value | $22,500 | ||
Coupon rate | LIBOR + 4.10% | ||
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 (in hundredths) | 4.10% | ||
[1] | For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures' respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company's common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities. | ||
[2] | The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries. | ||
[3] | On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures. Consideration tendered, upon settlement, was $6,750 plus accrued interest resulting in a gain of $750 recognized in other income on the accompanying consolidated statements of operations in 2014 | ||
[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. |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Commitments and Contingencies [Abstract] | ||
Rental expense for operating leases | $1,229 | $1,215 |
Future minimum base lease obligations under non-cancelable operating leases [Abstract] | ||
2015 | 896 | |
2016 | 435 | |
2017 | 446 | |
2018 | 457 | |
2019 | 193 | |
Thereafter | 0 | |
Total | $2,427 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Stock Options [Member] | ||
Summary of stock options' status, in shares [Roll Forward] | ||
Options outstanding, beginning of year (in shares) | 0 | 77,000 |
Options exercised (in shares) | 0 | -62,500 |
Options canceled or expired (in shares) | 0 | -14,500 |
Options outstanding, end of year (in shares) | 0 | 0 |
Options available for future grant (in shares) | 1,651,500 | 1,800,000 |
Weighted Average Exercise Price [Roll Forward] | ||
Options outstanding, beginning of year (in dollars per share) | $0 | $1.59 |
Options exercised (in dollars per share) | $0 | $1.59 |
Options canceled or expired (in dollars per share) | $0 | $1.59 |
Options outstanding, end of year (in dollars per share) | $0 | $0 |
Plan 2012 [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance (in shares) | 2,000,000 | |
Plan 2012 [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted shares issued (in shares) | 148,500 | 200,000 |
Estimated fair value of shares issued | $559 | $704 |
Benefit_Plans_Sharebased_Compe
Benefit Plans, Share-based Compensation Stock Option by Exercise Price Range (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
401(k) Plan [Abstract] | ||
Maximum percentage of compensation employees may defer (in hundredths) | 50.00% | |
Total matching contribution | $186 | $173 |
Employer maximum contribution to plan (in hundredths) | 50.00% | |
Percentage of participants contribution (in hundredths) | 4.00% | |
Safe harbor non-elective contribution (in hundredths) | 3.00% | |
Safe harbor non-elective contribution | $391 | $369 |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||
Series D Preferred Stock, outstanding (in shares) | 55,000 | 65,000 |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Redemption of preferred stock | $1,000 | $500 |
Dividends paid for Series D Preferred Stock | 468 | 482 |
Series D Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Series D Preferred Stock, outstanding (in shares) | 55,000 | 65,000 |
Preferred stock, par value (in dollars per share) | $100 | $100 |
Accrued annual dividends rate (in dollars per share) | $7.25 | $7.25 |
Number of preferred stock shares convertible to common shares (in shares) | 1,378,000 | |
Maximum number of common stock issuable from conversion of preference shares, without obtaining prior shareholder approval (in shares) | 2,703,000 | |
Company redeemed shares (in shares) | 10,000 | 5,000 |
Redemption of preferred stock | 1,000 | 500 |
Dividends accrued but unpaid | 18 | 21 |
Dividends paid for Series D Preferred Stock | $471 | $483 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income [Abstract] | ||
Net income before preferred stock dividends | $4,430 | $11,022 |
Less preferred stock dividends | -468 | -482 |
Net income applicable to common shareholders | 3,962 | 10,540 |
Effect of Series D preferred stock | 482 | |
Net income applicable to common shareholders, diluted | $11,022 | |
Shares [Abstract] | ||
Weighted average shares outstanding (in shares) | 20,818 | |
Weighted average shares outstanding, basic (in shares) | 21,236 | |
Effect of dilutive stock options (in shares) | 10 | |
Effect of Series D preferred stock (in shares) | 1,629 | |
Weighted average shares outstanding, diluted (in shares) | 22,875 | |
Per Share Amount [Abstract] | ||
Net income applicable to common shareholders (in dollars per share) | $0.19 | |
Net income applicable to common shareholders, basic (in dollars per share) | $0.19 | $0.50 |
Net income applicable to common shareholders, diluted (in dollars per share) | $0.19 | $0.48 |
Statutory_Reporting_Details
Statutory Reporting (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Statutory Accounting Practices [Line Items] | ||
Dividends received from its subsidiaries | $6,468 | $6,646 |
Maximum dividend payments by insurance subsidiaries without requiring prior approval | 7,640 | |
Statutory accounting practices [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory net income | 7,551 | 9,237 |
Statutory surplus | 73,016 | 73,622 |
Statutory accounting practices [Member] | Life and Health [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory net income | 2,738 | 3,013 |
Statutory surplus | 34,004 | 34,530 |
Statutory accounting practices [Member] | Property and Casualty [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory net income | 4,813 | 6,224 |
Statutory surplus | $39,012 | $39,092 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Director | ||
Related Party Transaction [Line Items] | ||
Number of board of directors | 2 | |
Rental expense for operating leases | $1,229 | $1,215 |
Payment of dividends on Series D Preferred Stock | 471 | 483 |
Redemption of Series D preferred stock | 1,000 | 500 |
Series D Preferred Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Payment of dividends on Series D Preferred Stock | 471 | 483 |
Redemption of Series D preferred stock | 1,000 | 500 |
Affiliated Entity [Member] | ||
Related Party Transaction [Line Items] | ||
Office and covered garage space leased (in square feet) | 49,586 | |
Rental expense for operating leases | 852 | 864 |
Members of Management [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate carrying value of investments in Gray | $9,242 | $12,942 |
Members of Management [Member] | Class A common stock [Member] | ||
Related Party Transaction [Line Items] | ||
Shares of Gray common stock owned (in shares) | 880,272 | 880,272 |
Members of Management [Member] | Common Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Shares of Gray common stock owned (in shares) | 106,000 | 106,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Revenue and income (loss) before tax for each business unit [Abstract] | ||
Insurance premiums | $153,488 | $145,630 |
Insurance benefits and losses incurred | 106,195 | 100,372 |
Expenses deferred | -10,150 | -10,336 |
Amortization and depreciation expense | 11,610 | 9,560 |
Other expenses | 53,762 | 54,567 |
Total benefits and expenses | 161,417 | 154,163 |
Investment income | 10,367 | 10,809 |
Other income | 145 | 189 |
Operating income (loss) | 2,583 | 2,465 |
Net realized gains | 1,571 | 8,741 |
Gain on purchase of debt securities (Note 6) | 750 | 0 |
Income before income taxes | 4,904 | 11,206 |
Total revenues | 166,321 | 165,369 |
Intangibles | 2,544 | 2,544 |
Total assets | 317,008 | 319,381 |
Corporate and Other [Member] | ||
Revenue and income (loss) before tax for each business unit [Abstract] | ||
Insurance premiums | 0 | 0 |
Insurance benefits and losses incurred | 0 | 0 |
Expenses deferred | 0 | 0 |
Amortization and depreciation expense | 507 | 0 |
Other expenses | 15,601 | 15,076 |
Total benefits and expenses | 16,108 | 15,076 |
Investment income | 2,152 | 2,338 |
Other income | 7,595 | 6,408 |
Operating income (loss) | -6,361 | -6,330 |
Net realized gains | 350 | 644 |
Gain on purchase of debt securities (Note 6) | 750 | |
Income before income taxes | -5,261 | -5,686 |
Total revenues | 10,847 | 9,390 |
Intangibles | 0 | 0 |
Total assets | 139,271 | 141,304 |
Adjustments & Eliminations [Member] | ||
Revenue and income (loss) before tax for each business unit [Abstract] | ||
Insurance premiums | 0 | 0 |
Insurance benefits and losses incurred | 0 | 0 |
Expenses deferred | 0 | 0 |
Amortization and depreciation expense | 0 | 0 |
Other expenses | -9,208 | -8,028 |
Total benefits and expenses | -9,208 | -8,028 |
Investment income | -1,739 | -1,757 |
Other income | -7,469 | -6,271 |
Operating income (loss) | 0 | 0 |
Net realized gains | 0 | 0 |
Gain on purchase of debt securities (Note 6) | 0 | |
Income before income taxes | 0 | 0 |
Total revenues | -9,208 | -8,028 |
Intangibles | 0 | 0 |
Total assets | -113,509 | -105,268 |
American Southern [Member] | Operating Segments [Member] | ||
Revenue and income (loss) before tax for each business unit [Abstract] | ||
Insurance premiums | 52,654 | 45,851 |
Insurance benefits and losses incurred | 38,179 | 30,197 |
Expenses deferred | -7,845 | -7,106 |
Amortization and depreciation expense | 8,646 | 7,440 |
Other expenses | 13,644 | 15,777 |
Total benefits and expenses | 52,624 | 46,308 |
Underwriting income (loss) | 30 | -457 |
Investment income | 4,447 | 4,308 |
Other income | 8 | 12 |
Operating income (loss) | 4,485 | 3,863 |
Net realized gains | 527 | 3,767 |
Gain on purchase of debt securities (Note 6) | 0 | |
Income before income taxes | 5,012 | 7,630 |
Total revenues | 57,636 | 53,938 |
Intangibles | 1,350 | 1,350 |
Total assets | 129,517 | 126,861 |
Bankers Fidelity [Member] | Operating Segments [Member] | ||
Revenue and income (loss) before tax for each business unit [Abstract] | ||
Insurance premiums | 100,834 | 99,779 |
Insurance benefits and losses incurred | 68,016 | 70,175 |
Expenses deferred | -2,305 | -3,230 |
Amortization and depreciation expense | 2,457 | 2,120 |
Other expenses | 33,725 | 31,742 |
Total benefits and expenses | 101,893 | 100,807 |
Underwriting income (loss) | -1,059 | -1,028 |
Investment income | 5,507 | 5,920 |
Other income | 11 | 40 |
Operating income (loss) | 4,459 | 4,932 |
Net realized gains | 694 | 4,330 |
Gain on purchase of debt securities (Note 6) | 0 | |
Income before income taxes | 5,153 | 9,262 |
Total revenues | 107,046 | 110,069 |
Intangibles | 1,194 | 1,194 |
Total assets | $161,729 | $156,484 |
Disclosures_About_Fair_Value_o2
Disclosures About Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Carrying Amount [Member] | ||||
Assets [Abstract] | ||||
Fixed maturities | $214,888 | [1] | $201,303 | [1] |
Equity securities | 18,924 | [1] | 21,890 | [1] |
Carrying Amount [Member] | Level 1 [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 16,375 | 33,102 | ||
Carrying Amount [Member] | Level 2 [Member] | ||||
Assets [Abstract] | ||||
Policy loans | 2,202 | 2,369 | ||
Real estate | 38 | 38 | ||
Investment in unconsolidated trusts | 1,238 | 1,238 | ||
Liabilities [Abstract] | ||||
Junior Subordinated Debentures, net | 33,738 | 41,238 | ||
Carrying Amount [Member] | Level 3 [Member] | ||||
Assets [Abstract] | ||||
Other invested assets | 2,995 | 2,123 | ||
Estimated Fair Value [Member] | ||||
Assets [Abstract] | ||||
Fixed maturities | 214,888 | [1] | 201,303 | [1] |
Equity securities | 18,924 | [1] | 21,890 | [1] |
Estimated Fair Value [Member] | Level 1 [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 16,375 | 33,102 | ||
Estimated Fair Value [Member] | Level 2 [Member] | ||||
Assets [Abstract] | ||||
Policy loans | 2,202 | 2,369 | ||
Real estate | 38 | 38 | ||
Investment in unconsolidated trusts | 1,238 | 1,238 | ||
Liabilities [Abstract] | ||||
Junior Subordinated Debentures, net | 33,738 | 41,238 | ||
Estimated Fair Value [Member] | Level 3 [Member] | ||||
Assets [Abstract] | ||||
Other invested assets | $2,995 | $2,123 | ||
[1] | See Note 2 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward] | ||
Beginning balance | $6,204 | |
Total other comprehensive income (loss), net of tax | 3,075 | -13,367 |
Ending balance | 9,279 | 6,204 |
Unrealized Gains on Available-for-Sale Securities [Member] | ||
Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward] | ||
Beginning balance | 6,204 | |
Other comprehensive income before reclassifications | 4,096 | |
Amounts reclassified from accumulated other comprehensive income | -1,021 | |
Total other comprehensive income (loss), net of tax | 3,075 | |
Ending balance | $9,279 |
Acquisitions_Details
Acquisitions (Details) (Direct Life Insurance Company [Member], USD $) | Dec. 18, 2013 |
In Thousands, unless otherwise specified | |
Direct Life Insurance Company [Member] | |
Business Acquisition [Line Items] | |
Business acquired percentage of outstanding stock (in hundredths) | 100.00% |
Purchase price | $3,857 |
Assets and liabilities acquired [Abstract] | |
Cash and cash equivalents | 1,317 |
Investments | 2,123 |
Receivables | 7 |
Intangibles | 416 |
Total assets | 3,863 |
Accounts payable and accrued expenses | 6 |
Total liabilities | $6 |
Schedule_II_CONDENSED_FINANCIA1
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
ASSETS [Abstract] | |||||
Cash and cash equivalents | $16,375 | $33,102 | |||
Investments | 240,285 | 228,961 | |||
Other assets | 5,747 | 3,245 | |||
Total assets | 317,008 | 319,381 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | |||||
Deferred tax liability, net | 1,395 | 0 | |||
Junior subordinated debentures | 33,738 | 41,238 | |||
Total liabilities | 212,813 | 218,454 | |||
Shareholders' equity | 104,195 | 100,927 | 105,736 | ||
Total liabilities and shareholders' equity | 317,008 | 319,381 | |||
REVENUE [Abstract] | |||||
Other | 895 | 189 | |||
Total revenue | 166,321 | 165,369 | |||
INTEREST EXPENSE | 1,607 | 1,898 | |||
INCOME TAX BENEFIT | -474 | -184 | |||
Net income | 4,430 | 11,022 | |||
CASH FLOWS FROM OPERATING ACTIVITIES [Abstract] | |||||
Net income | 4,430 | 11,022 | |||
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||||
Realized investment gains, net | -1,571 | -8,741 | |||
Gain on purchase of debt securities (Note 6) | -750 | 0 | |||
Depreciation and amortization | 932 | 600 | |||
Compensation expense related to share awards | 584 | 219 | |||
Deferred income tax expense (benefit) | 102 | -329 | |||
(Decrease) increase in other liabilities | -47 | 2,292 | |||
Other, net | -57 | 70 | |||
Net cash provided by operating activities | 4,453 | 13,020 | |||
CASH FLOWS FROM INVESTING ACTIVITIES [Abstract] | |||||
Proceeds from investments sold, called or matured | 1,916 | 11,414 | |||
Investments purchased | -82,836 | -112,466 | |||
Additions to property and equipment | -4,127 | -1,338 | |||
Net cash (used in) provided by investing activities | -9,606 | 3,815 | |||
CASH FLOWS FROM FINANCING ACTIVITIES [Abstract] | |||||
Payment for debt securities (Note 6) | -6,750 | 0 | |||
Redemption of Series D preferred stock | -1,000 | -500 | |||
Payment of dividends on Series D Preferred Stock | -471 | -483 | |||
Payment of dividends on common stock | -834 | -423 | |||
Proceeds from shares issued under stock plans | 84 | 138 | |||
Purchase of shares for treasury | -2,603 | -1,416 | |||
Net cash used in financing activities | -11,574 | -2,684 | |||
Net (decrease) increase in cash | -16,727 | 14,151 | |||
Cash and cash equivalents at beginning of year | 33,102 | 18,951 | |||
Cash and cash equivalents at end of year | 16,375 | 33,102 | |||
Supplemental disclosure [Abstract] | |||||
Cash paid for interest | 1,649 | 1,961 | |||
Cash paid for income taxes | 445 | 536 | |||
Parent Company [Member] | |||||
ASSETS [Abstract] | |||||
Cash and cash equivalents | 5,947 | 13,936 | |||
Investments | 13,766 | 18,043 | |||
Investment in subsidiaries | 113,509 | 105,268 | |||
Investments in unconsolidated trusts | 1,238 | 1,238 | |||
Income taxes receivable from subsidiaries | 2,271 | 4,530 | |||
Other assets | 5,113 | 2,676 | |||
Total assets | 141,844 | 145,691 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | |||||
Deferred tax liability, net | 2,055 | 297 | |||
Other payables | 1,856 | 3,229 | |||
Junior subordinated debentures | 33,738 | 41,238 | |||
Total liabilities | 37,649 | 44,764 | |||
Shareholders' equity | 104,195 | 100,927 | |||
Total liabilities and shareholders' equity | 141,844 | 145,691 | |||
REVENUE [Abstract] | |||||
Fee income from subsidiaries | 7,469 | 6,271 | |||
Distributed earnings from subsidiaries | 6,468 | 6,646 | |||
Other | 1,622 | 1,330 | |||
Total revenue | 15,559 | 14,247 | |||
GENERAL AND ADMINISTRATIVE EXPENSES | 12,478 | 11,106 | |||
INTEREST EXPENSE | 1,607 | 1,898 | |||
Earnings before tax and equity in undistributed earnings (losses) of subsidiaries | 1,474 | 1,243 | |||
INCOME TAX BENEFIT | -2,040 | [1] | -4,504 | [1] | |
Earnings after tax but before equity in undistributed earnings (losses) of subsidiaries | 3,514 | 5,747 | |||
EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES, NET | 916 | 5,275 | |||
Net income | 4,430 | 11,022 | |||
CASH FLOWS FROM OPERATING ACTIVITIES [Abstract] | |||||
Net income | 4,430 | 11,022 | |||
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||||
Realized investment gains, net | -350 | -644 | |||
Gain on purchase of debt securities (Note 6) | -750 | 0 | |||
Depreciation and amortization | 507 | 117 | |||
Compensation expense related to share awards | 584 | 219 | |||
Equity in undistributed earnings of consolidated subsidiaries | -916 | -5,275 | |||
Decrease (increase) in intercompany taxes | 2,259 | -2,541 | |||
Deferred income tax expense (benefit) | 102 | -329 | |||
(Decrease) increase in other liabilities | -164 | 846 | |||
Other, net | 4 | 161 | |||
Net cash provided by operating activities | 5,706 | 3,576 | |||
CASH FLOWS FROM INVESTING ACTIVITIES [Abstract] | |||||
Proceeds from investments sold, called or matured | 2,106 | 5,568 | |||
Investments purchased | 0 | -4,438 | |||
Capital contribution to subsidiaries | -100 | -200 | |||
Additions to property and equipment | -4,127 | -1,192 | |||
Net cash (used in) provided by investing activities | -2,121 | -262 | |||
CASH FLOWS FROM FINANCING ACTIVITIES [Abstract] | |||||
Payment for debt securities (Note 6) | -6,750 | 0 | |||
Redemption of Series D preferred stock | -1,000 | -500 | |||
Payment of dividends on Series D Preferred Stock | -471 | -483 | |||
Payment of dividends on common stock | -834 | -423 | |||
Proceeds from shares issued under stock plans | 84 | 138 | |||
Purchase of shares for treasury | -2,603 | -1,416 | |||
Net cash used in financing activities | -11,574 | -2,684 | |||
Net (decrease) increase in cash | -7,989 | 630 | |||
Cash and cash equivalents at beginning of year | 13,936 | 13,306 | |||
Cash and cash equivalents at end of year | 5,947 | 13,936 | |||
Supplemental disclosure [Abstract] | |||||
Cash paid for interest | 1,649 | 1,961 | |||
Cash paid for income taxes | 445 | 536 | |||
Intercompany tax settlement from subsidiaries | $4,695 | $2,574 | |||
[1] | Under the terms of a tax-sharing agreement, income tax provisions for the subsidiary companies are computed on a separate company basis. Accordingly, the Company's income tax benefit results from the utilization of the Parent's separate return loss to reduce the consolidated taxable income of the Company. |
Schedule_III_SUPPLEMENTARY_INS1
Schedule III SUPPLEMENTARY INSURANCE INFORMATION (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Supplementary Insurance Information, by Segment [Line Items] | |||||
Deferred Acquisition Costs | $26,981 | $27,509 | |||
Future Policy Benefits, Losses, Claims and Loss Reserves | 137,470 | [1] | 132,882 | [2] | |
Unearned Premiums | 24,544 | 27,415 | |||
Other Policy Claims and Benefits Payable | 2,080 | 2,076 | |||
Liability for future policy benefits | 70,845 | 69,864 | |||
Losses and claims | 66,625 | 63,018 | 62,873 | ||
Premium Revenue | 153,488 | 145,630 | |||
Net Investment Income | 9,831 | 10,335 | |||
Benefits, Claims, Losses and Settlement Expenses | 106,195 | 100,372 | |||
Amortization of Deferred Acquisition Costs | 10,678 | 8,960 | |||
Other Operating Expenses | 44,544 | 44,831 | |||
Casualty Premiums Written | 50,318 | 50,774 | |||
Bankers Fidelity [Member] | |||||
Supplementary Insurance Information, by Segment [Line Items] | |||||
Deferred Acquisition Costs | 24,360 | 24,275 | |||
Future Policy Benefits, Losses, Claims and Loss Reserves | 82,453 | 81,682 | |||
Unearned Premiums | 3,884 | 4,419 | |||
Other Policy Claims and Benefits Payable | 2,080 | 2,076 | |||
Premium Revenue | 100,834 | 99,779 | |||
Net Investment Income | 4,989 | 5,466 | |||
Benefits, Claims, Losses and Settlement Expenses | 68,016 | 70,175 | |||
Amortization of Deferred Acquisition Costs | 2,220 | 1,820 | |||
Other Operating Expenses | 31,657 | 28,812 | |||
Casualty Premiums Written | 0 | 0 | |||
American Southern [Member] | |||||
Supplementary Insurance Information, by Segment [Line Items] | |||||
Deferred Acquisition Costs | 2,621 | 3,234 | |||
Future Policy Benefits, Losses, Claims and Loss Reserves | 55,017 | 51,200 | |||
Unearned Premiums | 20,660 | 22,996 | |||
Other Policy Claims and Benefits Payable | 0 | 0 | |||
Premium Revenue | 52,654 | 45,851 | |||
Net Investment Income | 4,429 | 4,288 | |||
Benefits, Claims, Losses and Settlement Expenses | 38,179 | 30,197 | |||
Amortization of Deferred Acquisition Costs | 8,458 | 7,140 | |||
Other Operating Expenses | 5,987 | 8,971 | |||
Casualty Premiums Written | 50,318 | 50,774 | |||
Other [Member] | |||||
Supplementary Insurance Information, by Segment [Line Items] | |||||
Premium Revenue | 0 | 0 | |||
Net Investment Income | 413 | 581 | |||
Benefits, Claims, Losses and Settlement Expenses | 0 | 0 | |||
Amortization of Deferred Acquisition Costs | 0 | 0 | |||
Other Operating Expenses | 6,900 | 7,048 | |||
Casualty Premiums Written | 0 | 0 | |||
Bankers Fidelity and American Southern [Member] | |||||
Supplementary Insurance Information, by Segment [Line Items] | |||||
Liability for future policy benefits | 70,845 | 69,864 | |||
Losses and claims | $66,625 | $63,018 | |||
[1] | Includes future policy benefits of $70,845 and losses and claims of $66,625. | ||||
[2] | Includes future policy benefits of $69,864 and losses and claims of $63,018. |
Schedule_IV_REINSURANCE_Detail
Schedule IV REINSURANCE (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Life Insurance in Force [Abstract] | ||
Direct Amount | $257,988 | $259,723 |
Ceded To Other Companies | -18,984 | -18,525 |
Assumed From Other Companies | 0 | 0 |
Net Amounts | 239,004 | 241,198 |
Premiums [Abstract] | ||
Direct Amount | 141,212 | 141,720 |
Ceded to Other Companies | -5,890 | -7,607 |
Assumed From Other Companies | 18,166 | 11,517 |
Net premiums earned | 153,488 | 145,630 |
Percentage of Amount Assumed to Net (in hundredths) | 11.80% | 7.90% |
Bankers Fidelity [Member] | ||
Premiums [Abstract] | ||
Direct Amount | 100,799 | 99,745 |
Ceded to Other Companies | -43 | -54 |
Assumed From Other Companies | 78 | 88 |
Net premiums earned | 100,834 | 99,779 |
Percentage of Amount Assumed to Net (in hundredths) | 0.10% | 0.10% |
American Southern [Member] | ||
Premiums [Abstract] | ||
Direct Amount | 40,413 | 41,975 |
Ceded to Other Companies | -5,847 | -7,553 |
Assumed From Other Companies | 18,088 | 11,429 |
Net premiums earned | $52,654 | $45,851 |
Percentage of Amount Assumed to Net (in hundredths) | 34.40% | 24.90% |
Schedule_VI_SUPPLEMENTAL_INFOR1
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONSOPERATIONS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS [Abstract] | ||
Deferred Policy Acquisition Costs | $2,621 | $3,234 |
Reserves | 55,017 | 51,200 |
Unearned Premiums | 20,660 | 22,996 |
Earned Premiums | 52,654 | 45,851 |
Net Investment Income | 4,429 | 4,288 |
Claims and Claim Adjustment Expenses Incurred Related To Current Year | 38,337 | 32,672 |
Claims and Claim Adjustment Expenses Incurred Related To Prior Years | -158 | -2,475 |
Amortization of Deferred Acquisition Costs | 8,458 | 7,140 |
Paid Claims and Claim Adjustment Expenses | 34,336 | 27,339 |
Premiums Written | $50,318 | $50,774 |