Core Viewpoint - AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) for American Southern Insurance Company and its subsidiary, as well as the FSR of A- (Excellent) for Bankers Fidelity Life Insurance Company, indicating strong financial health and stability across these companies [1][5]. Group 1: American Southern Group - The ratings reflect American Southern Group's very strong balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management (ERM) [2]. - The group's balance sheet strength is supported by the strongest level of risk-adjusted capitalization, with an adjusted debt-to-capital ratio of 22.9% as of September 30, 2023, and sufficient financial flexibility [3]. - Operating profitability has been historically positive, driven by underwriting income and net investment income, although underwriting results declined in the first nine months of 2023 due to increased claims in auto liability and general liability lines [4]. Group 2: Bankers Fidelity Life Insurance Group (BFLIG) - BFLIG's ratings reflect very strong balance sheet strength, marginal operating performance, neutral business profile, and appropriate ERM [5]. - The organization maintains the strongest level of risk-adjusted capitalization for its insurance and investment risks, supported by capital contributions from its parent company [6]. - Operating performance has fluctuated, particularly in the Medicare supplement segment, but has trended favorably since 2022 due to corrective measures such as rate increases and diversification into lower-risk products [6].

Financial Performance - For the three-month period ended September 30, 2023, net income was $1.8 million, or $0.08 per diluted share, compared to a net loss of $0.7 million, or $(0.04) per diluted share, for the same period in 2022[104]. - Total revenue for the three-month period ended September 30, 2023, was $44.6 million, down from $46.3 million in the same period in 2022[101]. - Operating income increased by $1.9 million for the three-month period ended September 30, 2023, while it decreased by $0.3 million for the nine-month period compared to the same periods in 2022[106]. - The Parent's insurance subsidiaries reported statutory net income of $8.9 million for the nine-month period ended September 30, 2023, compared to $5.7 million for the same period in 2022[130]. Revenue and Premiums - Premium revenue decreased by $2.6 million, or 5.7%, to $43.7 million for the three-month period ended September 30, 2023, and decreased by $4.6 million, or 3.3%, to $135.9 million for the nine-month period[105]. - Net earned premiums decreased by $1.1 million, or 6.1%, during the three-month period ended September 30, 2023, and by $2.1 million, or 3.9%, during the nine-month period compared to the same periods in 2022[113]. - Gross written premiums at American Southern decreased by $1.5 million, or 12.4%, for the three-month period and by $5.2 million, or 8.2%, for the nine-month period ended September 30, 2023[109]. - Net earned premium revenue at Bankers Fidelity decreased by $1.6 million, or 5.4%, for the three-month period and by $2.5 million, or 2.9%, for the nine-month period ended September 30, 2023[119]. - Gross earned premiums from the Medicare supplement line decreased by $3.8 million, or 10.4%, for the three-month period and by $11.2 million, or 10.0%, for the nine-month period ended September 30, 2023[119]. Loss Ratios and Expenses - The loss ratio for American Southern was 71.7% for the three-month period ended September 30, 2023, compared to 68.2% for the same period in 2022[109]. - The loss ratio increased to 71.7% for the three-month period ended September 30, 2023, compared to 68.2% for the same period in 2022, and to 73.7% for the nine-month period from 68.0%[115]. - Insurance benefits and losses incurred were $26.8 million for the three-month period ended September 30, 2023, compared to $30.6 million for the same period in 2022[101]. - Insurance benefits and losses incurred at American Southern decreased by $0.2 million, or 1.2%, for the three-month period ended September 30, 2023, and increased by $1.5 million, or 4.2%, for the nine-month period[115]. - Commissions and underwriting expenses decreased by $0.3 million, or 6.1%, for the three-month period and by $2.4 million, or 15.8%, for the nine-month period ended September 30, 2023[116]. Ratios and Profitability - The combined ratio for American Southern was 97.9% for the three-month period ended September 30, 2023, indicating an underwriting profit[114]. - The combined ratio improved to 87.4% for the three-month period ended September 30, 2023, compared to 99.1% for the same period in 2022, and to 93.7% from 96.8% for the nine-month period[119]. Interest and Investment Income - Interest expense increased to $850,000 for the three-month period ended September 30, 2023, compared to $523,000 for the same period in 2022[101]. - Interest expense increased by $0.3 million, or 62.5%, for the three-month period and by $1.1 million, or 86.4%, for the nine-month period ended September 30, 2023[127]. - Investment income decreased by $0.3 million, or 12.0%, for the three-month period and by $0.1 million, or 1.1%, for the nine-month period ended September 30, 2023[122]. Cash and Debt Management - The Company reported a decrease in cash and cash equivalents from $28.9 million at December 31, 2022, to $23.9 million at September 30, 2023, primarily due to net cash used in operating activities of $3.5 million[139]. - The Company had outstanding borrowings of $3.0 million under a Revolving Credit Agreement as of September 30, 2023, with a total credit facility of $10.0 million[138]. - The Company has accrued but unpaid dividends on Series D Preferred Stock totaling $0.3 million as of September 30, 2023[135]. - The Company has access to approximately $8.0 million in credit availability from the Federal Home Loan Bank of Atlanta as of September 30, 2023[136]. - The Company has a debt to capital ratio covenant that restricts consolidated indebtedness to not exceed 35% of consolidated capitalization[138]. Internal Controls and Compliance - The Company successfully completed testing to conclude that a previously identified material weakness in internal control over financial reporting has been remediated[144]. - The Company intends to meet its obligations under the Junior Subordinated Debentures using existing cash balances and potential future financing arrangements[134]. - As of September 30, 2023, the Company had outstanding Junior Subordinated Debentures totaling $33.7 million, with an effective interest rate of 9.70%[133]. - The Company has pledged bonds with an amortized cost of $6.9 million to the Federal Home Loan Bank as of September 30, 2023[136]. - The Company has not made any purchases of common stock during the three-month period ended September 30, 2023, under its Repurchase Plan, which allows for the repurchase of up to 750,000 shares[148].

Financial Performance - For the three months ended June 30, 2023, net income was $1.7 million, or $0.08 per diluted share, compared to a net loss of $1.7 million, or $0.09 per diluted share, for the same period in 2022[52]. - Total revenue for the three months ended June 30, 2023, was $49.2 million, an increase from $44.7 million in the comparable period in 2022[51]. - Operating income decreased by $1.2 million for the three months ended June 30, 2023, primarily due to ancillary costs related to a new actuarial valuation system[52]. - The Parent's insurance subsidiaries reported statutory net income of $4.1 million for the six months ended June 30, 2023, compared to $2.2 million for the same period in 2022[59]. Revenue and Premiums - Premium revenue decreased by $1.0 million, or 2.1%, to $46.1 million for the three months ended June 30, 2023, compared to $47.1 million in the same period in 2022[52]. - Net earned premiums decreased by $0.9 million, or 4.7%, during the three months ended June 30, 2023, primarily due to a decrease in the automobile physical damage line of business[54]. - Gross earned premiums from the Medicare supplement line decreased by $3.7 million, or 9.8%, for the three months ended June 30, 2023, and by $7.4 million, or 9.8%, for the six months ended June 30, 2023[56]. - Net earned premium revenue decreased by $0.1 million, or 0.4%, for the three months ended June 30, 2023, and by $1.0 million, or 1.7%, for the six months ended June 30, 2023, compared to the same periods in 2022[56]. Insurance Benefits and Losses - Insurance benefits and losses incurred decreased by $3.4 million, or 10.4%, to $29.4 million for the three months ended June 30, 2023, compared to $32.8 million in the same period in 2022[51]. - Insurance benefits and losses incurred decreased by $2.9 million, or 15.5%, for the three months ended June 30, 2023, and by $5.8 million, or 14.7%, for the six months ended June 30, 2023[56]. - The loss ratio improved to 56.1% for the three months ended June 30, 2023, down from 66.1% in the same period in 2022, and to 58.9% for the six months ended June 30, 2023, down from 67.9%[57]. Expenses - Commissions and underwriting expenses decreased by $0.4 million, or 8.2%, during the three months ended June 30, 2023, compared to the same period in 2022[54]. - Commissions and underwriting expenses increased by $3.5 million, or 47.1%, for the three months ended June 30, 2023, and by $5.4 million, or 33.8%, for the six months ended June 30, 2023[56]. - Interest expense increased by $0.4 million, or 94.9%, for the three months ended June 30, 2023, and by $0.8 million, or 102.7%, for the six months ended June 30, 2023, due to changes in LIBOR[58]. Cash and Liquidity - As of June 30, 2023, the Company had cash and cash equivalents of $24.2 million, down from $28.9 million at December 31, 2022, primarily due to net cash used in operating activities of $4.9 million[61]. - The Company believes existing cash balances and expected dividends will meet liquidity requirements for the foreseeable future[61]. - The Company has credit availability of approximately $7.8 million from the Federal Home Loan Bank of Atlanta as of June 30, 2023[61]. - The Company had outstanding borrowings of $3.0 million under a $10.0 million revolving credit facility as of June 30, 2023[61]. Internal Controls and Compliance - The Company identified a material weakness in internal control over financial reporting related to actuarial models, but no material misstatements were identified in financial statements[64]. - The Company has implemented enhanced controls over actuarial models and hired additional actuarial staff to improve financial reporting processes[65]. - The Credit Agreement requires compliance with a debt to capital ratio that restricts consolidated indebtedness to no more than 35% of consolidated capitalization[61]. Share Repurchase and Regulatory Matters - The Company did not repurchase any shares of common stock during the three-month period ended June 30, 2023, leaving 325,129 shares available for repurchase under its plan[68]. - The Company is not aware of any current regulatory recommendations that would materially affect its liquidity or operations[61].

Financial Performance - For the three-month period ended March 31, 2023, net income was a loss of $1.446 million, or $(0.08) per diluted share, compared to net income of $2.842 million, or $0.13 per diluted share for the same period in 2022[111]. - Total revenue for the three-month period ended March 31, 2023, was $46.269 million, a decrease of $5.339 million, or 10.4%, from $51.608 million in the comparable period in 2022[109]. - Operating income decreased by $1.1 million for the three-month period ended March 31, 2023, primarily due to unfavorable loss experience in property and casualty operations[112]. - The Parent's insurance subsidiaries reported statutory net income of $1.1 million for the three months ended March 31, 2023, compared to $1.3 million in the same period in 2022[134]. Insurance Premiums and Losses - Insurance premiums, net, decreased by $981,000, or 2.1%, to $46.1 million for the three-month period ended March 31, 2023, down from $47.1 million in the same period in 2022[111]. - American Southern's gross written premiums decreased by $2.1 million, or 18.4%, during the three-month period ended March 31, 2023, compared to the same period in 2022[114]. - Bankers Fidelity's gross earned premiums decreased to $43.098 million for the three-month period ended March 31, 2023, down from $45.461 million in the comparable period in 2022[122]. - Insurance benefits and losses incurred at American Southern increased by $2.2 million, or 20.8%, during the three-month period ended March 31, 2023, compared to the same period in 2022[119]. - Gross earned premiums from the Medicare supplement line decreased by $3.7 million, or 9.8%, primarily due to non-renewals exceeding new business writings[125]. - Insurance benefits and losses incurred decreased by $2.9 million, or 14.0%, with a loss ratio of 61.6% for the three months ended March 31, 2023, down from 69.6% in the same period in 2022[126]. Expenses and Ratios - The combined ratio for American Southern was 97.9% for the three-month period ended March 31, 2023, compared to 94.7% for the same period in 2022, indicating an underwriting loss[114]. - The loss ratio for Bankers Fidelity was 61.6% for the three-month period ended March 31, 2023, compared to 69.6% for the same period in 2022[123]. - Commissions and underwriting expenses for Bankers Fidelity increased to $10.720 million for the three-month period ended March 31, 2023, compared to $8.746 million in the same period in 2022[122]. - Commissions and underwriting expenses increased by $2.0 million, or 22.6%, with underwriting expenses as a percentage of earned premiums rising to 37.1%[127]. Investment and Cash Flow - Investment income increased by $0.2 million, or 8.6%, attributed to a rising interest rate environment[128]. - The Company recognized net unrealized losses on equity securities of $2.4 million for the three months ended March 31, 2023[129]. - Interest expense increased by $0.4 million, or 111.9%, primarily due to changes in the London Interbank Offered Rate (LIBOR)[130]. - Cash and cash equivalents decreased from $28.9 million at December 31, 2022, to $13.5 million at March 31, 2023, primarily due to net cash used in operating activities of $11.6 million[144]. Borrowings - At March 31, 2023, the Company had outstanding borrowings of $3.0 million under a revolving credit agreement[143].

Premiums and Revenue - American Southern's net earned premiums from health insurance products accounted for 86% of Bankers Fidelity's total net earned premiums in 2022, while life insurance accounted for the remaining 14%[19]. - In 2022, Bankers Fidelity's total net earned premiums were $115.164 million, a slight decrease from $116.234 million in 2021[20]. - Medicare supplement insurance premiums were $86.970 million in 2022, down from $95.314 million in 2021, representing a decrease of approximately 8.5%[20]. - Total revenue for the year ended 2022 was $187,851 thousand, a decrease of 5.4% from $199,554 thousand in 2021[164]. - Net income applicable to common shareholders for 2022 was $1,126 thousand, down 70.1% from $3,882 thousand in 2021[164]. - Earnings per common share (basic and diluted) decreased to $0.06 in 2022 from $0.19 in 2021, representing a decline of 68.4%[164]. - Direct premiums written for the year ended December 31, 2022, totaled $228,523, a decrease from $236,682 in 2021, representing a decline of approximately 3.5%[261]. - Net premiums earned for the year ended December 31, 2022, were $185,440, compared to $184,216 in 2021, reflecting a growth of about 0.7%[261]. Claims and Reserves - Approximately 72% of the losses and claims reserves at December 31, 2022, were related to property and casualty operations, while 28% were related to life and health operations[34]. - The company's insurance reserves for losses and claims were $87.5 million as of December 31, 2022[152]. - The insurance reserves for future policy benefits amounted to $85.6 million as of December 31, 2022[155]. - The balance of unpaid loss and claim reserves at December 31, 2022, was $87,484 million, up from $85,620 million in 2021[241]. - The total gross liability for unpaid losses, claims, and loss adjustment expenses was $87,484 million[257]. - The company established IBNR reserves to account for claims not yet reported, with estimates derived from various analytical techniques[253]. - The incurred losses for the Medicare Supplement line in 2014 were $57,179, showing a slight decrease to $56,938 in 2015[245]. - The total IBNR reserves for the Medicare Supplement line as of December 31, 2022, were $12,666[245]. Investments and Financial Position - Total fixed maturities decreased to $208.729 million in 2022 from $260.986 million in 2021, representing a decline of 20%[68]. - Net investment income increased to $9.932 million in 2022, up from $8.528 million in 2021, reflecting a growth of 16.5%[72]. - Average yield on investments improved to 3.7% in 2022 compared to 3.3% in 2021, indicating a 12.1% increase[72]. - Total investments decreased to $228.712 million in 2022 from $283.442 million in 2021, a reduction of 19.4%[68]. - The total estimated fair value of fixed maturities was $208.7 million as of December 31, 2022, with gross unrealized losses of $28.8 million[201]. - The total estimated fair value of equity securities was $11.6 million as of December 31, 2022, with gross unrealized gains of $6.7 million[204]. - The company reported cash and cash equivalents of $28,863 million in 2022, an increase from $24,753 million in 2021[230]. - The company reported unrealized losses on equity securities of $(7,562) thousand in 2022, compared to unrealized gains of $1,894 thousand in 2021[164]. Operational and Strategic Insights - The number of licensed agents for Bankers Fidelity was approximately 4,337 as of December 31, 2022, with 476 agents actively writing policies during the year[22]. - Bankers Fidelity's marketing strategy emphasizes diversification, with unique product offerings such as Vantage Flex Plus® and Vantage Recovery®[23]. - The company utilizes a simplified issue approach for underwriting individual products, relying on health-related questions and medical claims data[28]. - Claims processing for life and health insurance is generally completed within five business days of receipt, with electronic filing options available for insureds[33]. - The Company has made significant investments in cybersecurity, enhancing intrusion protection and detection technology, and implementing a mandatory security awareness training program[63]. - The Company maintains dedicated cyber liability insurance covering breach event costs, including post-breach remediation and coverage for lost revenue due to reputational damage[66]. - The Company believes its policies are competitive in the market, focusing on strong relationships with agents for new opportunities[49]. Tax and Regulatory Matters - The effective tax rate for 2022 was 27.2%, compared to 19.3% in 2021, showing an increase of approximately 41.0%[265]. - The total income tax expense for 2022 was $571, down from $1,021 in 2021, reflecting a decrease of approximately 44.0%[268]. - The Company had outstanding borrowings of $2,009 under the Revolving Credit Agreement as of December 31, 2022[271]. - The Company is preparing for the expected discontinuation of LIBOR by updating operational processes and evaluating legacy contracts[269]. Employee and Corporate Structure - The company employed 142 people as of December 31, 2022, with 141 being full-time employees[74]. - The company has five insurance subsidiaries, indicating a stable operational structure for future growth[177].

Financial Performance - Total revenue for the three months ended September 30, 2022, was $46,343, a decrease of 3.9% compared to $49,290 for the same period in 2021[7] - Net income applicable to common shareholders for the nine months ended September 30, 2022, was $180, compared to $1,317 for the same period in 2021, reflecting a significant decline[7] - Net income for the three months ended September 30, 2022, was a loss of $684 million, compared to a loss of $915 million for the same period in 2021, representing a 25.2% improvement[8] - For the nine months ended September 30, 2022, net income was $479 million, down 70.5% from $1,616 million in the same period of 2021[9] - Total comprehensive loss for the three months ended September 30, 2022, was $11,024 million, compared to a loss of $2,203 million in the same period of 2021[8] - The company reported a net loss applicable to common shareholders of $784 for the three months ended September 30, 2022, compared to a net loss of $1,015 for the same period in 2021, reflecting an improvement of approximately 22.8%[34] Assets and Liabilities - Total assets as of September 30, 2022, were $360,349, down from $402,286 as of December 31, 2021, indicating a decrease of approximately 10.4%[5] - Total liabilities as of September 30, 2022, were $262,438, slightly up from $261,000 as of December 31, 2021[5] - The company’s cash and cash equivalents were $21,876 as of September 30, 2022, down from $24,753 as of December 31, 2021, indicating a decrease of 11.4%[5] - The balance of retained earnings at the end of the period was $51,036 million, an increase from $48,699 million at the end of September 2021[9] - Total shareholders' equity at the end of the period was $97,911 million, down from $139,995 million a year earlier[9] Investment Income - The company reported a net investment income of $2,641 for the three months ended September 30, 2022, an increase of 23.5% from $2,137 in the same period of 2021[7] - The company reported realized investment gains of $101 million for the three months ended September 30, 2022, compared to $349 million for the same period in 2021[20] - For the nine months ended September 30, 2022, the company reported net realized investment gains of $29 million, compared to $520 million for the same period in 2021, reflecting a decrease of approximately 94.4%[21] Insurance Operations - Insurance benefits and losses incurred for the three months ended September 30, 2022, were $30,630, down from $35,045 in the same period of 2021, representing a reduction of 12.3%[7] - Total incurred losses for the nine months ended September 30, 2022, were $93,353, compared to $99,650 for the same period in 2021, representing a decrease of approximately 3.3%[28] - The net insurance reserves for losses and claims as of September 30, 2022, were $69,158, an increase from $68,645 in 2021, indicating a growth of about 0.7%[28] - The total insurance benefits and losses incurred for the nine months ended September 30, 2022, were $94,552, down from $100,020 in 2021, a decrease of about 5.5%[28] Equity Securities - The company reported unrealized losses on equity securities of $(2,783) for the three months ended September 30, 2022, compared to unrealized gains of $711 in the same period of 2021[7] - The company recorded a net realized loss of $5,456 million on equity securities for the nine months ended September 30, 2022, compared to net realized gains of $5,458 million for the same period in 2021, indicating a significant turnaround[22] - The Company reported net unrealized losses on equity securities of $5.5 million for the nine months ended September 30, 2022, compared to unrealized gains of $5.5 million in the same period in 2021[56] Operational Changes - The company formed a new life and health insurance entity, Atlantic Capital Life Assurance Company, which is expected to commence operations in 2023[44] - The company is preparing for the discontinuation of LIBOR by updating operational processes and evaluating legacy contracts for necessary changes[29] Cash Flow and Commitments - The company’s cash used in operating activities for the nine months ended September 30, 2022, was $2,246 million, compared to $9,554 million in the same period of 2021[10] - The company had outstanding commitments totaling $5,872 million as of September 30, 2022, compared to $1,997 million as of December 31, 2021, indicating an increase of approximately 194.5%[21] - The Company expects to meet its liquidity requirements through existing cash balances, dividends, fees, tax-sharing payments, and potential borrowings[25]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 or FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-3722 ATLANTIC AMERICAN CORPORATION (Exact name of registrant as specified in its charter) Georgia 58-1027114 (State or other jurisdiction of incorporation or organization) (I.R ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-3722 ATLANTIC AMERICAN CORPORATION (Exact name of registrant as specified in its charter) Georgia 58-1027114 (State or other jurisdiction of incorporation or organization) (I. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-3722 | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------|----------------------------------- ...