PART I [Business Overview](index=3&type=section&id=Item%201.%20Business) This chapter details Atlantic American Corporation's business structure, operations, product lines, market strategies, and financial disclosures as an insurance holding company, operating through its Property & Casualty and Life & Health subsidiaries in specific niche markets - Atlantic American Corporation is an insurance holding company operating in distinct specialty markets through its Property & Casualty (American Southern) and Life & Health (Bankers Fidelity) subsidiaries, focusing on geographic, demographic, and/or product niches[4](index=4&type=chunk) - The parent company has no significant direct business operations, relying primarily on fees, dividends, and other distributions from its operating subsidiaries as its main source of cash flow[4](index=4&type=chunk) [The Company](index=4&type=section&id=The%20Company) Atlantic American Corporation, a Georgia company founded in 1968, operates as a holding company through its subsidiaries in distinct specialty markets within the life and health, and property and casualty insurance industries - Atlantic American Corporation, a Georgia company founded in 1968, operates as a holding company through its subsidiaries in distinct specialty markets within the life and health, and property and casualty insurance industries[4](index=4&type=chunk) - The company's primary operating subsidiaries include American Southern Insurance Company and American Safety Insurance Company in Property & Casualty, and Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance Company in Life & Health[4](index=4&type=chunk) [Property and Casualty Operations](index=4&type=section&id=Property%20and%20Casualty%20Operations) American Southern, the company's Property & Casualty segment, offers commercial auto, general liability, and surety bonds as its main product lines - American Southern, the company's Property & Casualty segment, offers commercial auto, general liability, and surety bonds as its main product lines[5](index=5&type=chunk)[6](index=6&type=chunk) - American Southern is licensed in 32 states and D.C., providing customized commercial auto insurance primarily to state governments, local municipalities, and large fleets[5](index=5&type=chunk) American Southern Net Earned Premiums by Major Product Line (2018 and 2017) | Product Line | 2018 (Thousand USD) | 2017 (Thousand USD) | |:---|:---|:---| | Auto Liability | $28,840 | $29,370 | | Auto Physical Damage | $11,922 | $9,