Atlantic American Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Atlantic American Corp. has filed its annual 10-K report for the fiscal year ending December 31, 2023.</b>

AI Summary

ATLANTIC AMERICAN CORP (AAME) filed a Annual Report (10-K) with the SEC on April 1, 2024. Atlantic American Corp. filed its 2023 Form 10-K on April 1, 2024. The company's fiscal year ends on December 31st. The filing covers the period from January 1, 2023, to December 31, 2023. Atlantic American Corp. is classified under Life Insurance (SIC 6311). The company's principal business address is 4370 Peachtree Rd NE, Atlanta, GA 30319.

Why It Matters

For investors and stakeholders tracking ATLANTIC AMERICAN CORP, this filing contains several important signals. This filing provides a comprehensive overview of the company's financial performance, operations, and risk factors for the 2023 fiscal year, crucial for investors to assess the company's health and future prospects. As a life insurance company, the detailed financial statements and disclosures in the 10-K are essential for understanding its regulatory compliance, capital adequacy, and market position within the insurance industry.

Risk Assessment

Risk Level: medium — ATLANTIC AMERICAN CORP shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not immediately highlight any severe or unusual risks that would classify it as high risk without further analysis of the content within the report itself.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Atlantic American Corp.'s performance and potential challenges in the life insurance sector.

Key Numbers

• 20231231 — CONFORMED PERIOD OF REPORT (Fiscal year end)
• 20240401 — FILED AS OF DATE (Filing date)
• 97 — PUBLIC DOCUMENT COUNT (Number of documents in the filing)
• 6311 — STANDARD INDUSTRIAL CLASSIFICATION (Industry code)

Key Players & Entities

• ATLANTIC AMERICAN CORP (company) — FILER
• 0000008177 (company) — CENTRAL INDEX KEY
• LIFE INSURANCE (company) — STANDARD INDUSTRIAL CLASSIFICATION
• GA (company) — STATE OF INCORPORATION
• 4370 PEACHTREE RD NE (company) — BUSINESS ADDRESS STREET 1
• ATLANTA (company) — BUSINESS ADDRESS CITY
• 30319 (company) — BUSINESS ADDRESS ZIP
• 4042665500 (company) — BUSINESS PHONE

FAQ

Industry Context

Atlantic American Corp. operates within the Life Insurance industry, a sector characterized by long-term financial products and significant regulatory oversight.

Regulatory Implications

As a life insurance company, Atlantic American Corp. is subject to state-specific insurance regulations and federal financial reporting requirements, including those mandated by the SEC.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and balance sheet items.
2. Examine the risk factors section for potential business and financial challenges.
3. Review management's discussion and analysis (MD&A) for insights into performance drivers and strategies.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-04-01: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing data extracted. A comparison to a previous filing would require data from a prior period's report.

Key Financial Figures

• $1.00 — ch registered Common Stock, par value $1.00 per share AAME NASDAQ Global Market

Filing Documents

• ef20015279_10k.htm (10-K) — 3615KB
• ef20015279_ex23-1.htm (EX-23.1) — 3KB
• ef20015279_ex31-1.htm (EX-31.1) — 13KB
• ef20015279_ex31-2.htm (EX-31.2) — 14KB
• ef20015279_ex32-1.htm (EX-32.1) — 6KB
• 0001140361-24-016971.txt (&nbsp;) — 18746KB
• aame-20231231.xsd (EX-101.SCH) — 79KB
• aame-20231231_cal.xml (EX-101.CAL) — 121KB
• aame-20231231_def.xml (EX-101.DEF) — 452KB
• aame-20231231_lab.xml (EX-101.LAB) — 1228KB
• aame-20231231_pre.xml (EX-101.PRE) — 719KB
• ef20015279_10k_htm.xml (XML) — 4714KB

Forward-Looking Statements

Forward-Looking Statements 3 PART I Item 1.

Business

Business 4 The Company 4 Marketing 5

Underwriting

Underwriting 6 Policyholder and Claims Services 6 Reserves 7 Reinsurance 8 Competition 9 Ratings 9 Regulation 10 NAIC Ratios 10 Risk-Based Capital 11 Investments 11 Human Capital 12 Financial Information by Industry Segment 12 Available Information 12 Executive Officers of the Registrant 12 Item 1A.

Risk Factors

Risk Factors 13 Item 1B. Unresolved Staff Comments 13 Item 1C. Cybersecurity 13 Item 2.

Properties

Properties 14 Item 3.

Legal Proceedings

Legal Proceedings 14 Item 4. Mine Safety Disclosures 14 PART II Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 15 Item 6. Reserved 15 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 24 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 58 Item 9A.

Controls and Procedures

Controls and Procedures 58 Item 9B. Other Information 59 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 59 PART III Item 10. Directors, Executive Officers and Corporate Governance 60 Item 11.

Executive Compensation

Executive Compensation 60 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 60 Item 13. Certain Relationships and Related Transactions, and Director Independence 60 Item 14. Principal Accountant Fees and Services 60 PART IV Item 15. Exhibits and Financial Statement Schedules 61 Item 16. Form 10-K Summary 62

Signatures

Signatures 63 Schedule II 64 Schedule III 67 Schedule IV 69 Schedule VI 70 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain of the statements contained or incorporated by reference herein are forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are all of the Securities Exchange Act of 1934, and include estimates and assumptions related to, among other things, general economic, competitive, operational and legislative developments, expectations and trends. Forward-looking statements are inherently subject to risks and uncertainties which are, in many instances, beyond the Company's control and have been made based upon management's current expectations and beliefs concerning future developments and their potential effect upon the Company. There can be no assurance that future developments will be in accordance with management's expectations or that the effect of future developments on the Company will be those anticipated by management. Actual results could differ materially from those expressed by forward-looking statements, depending on the occurrence or outcome of various factors. These factors include, among others: the effects of macroeconomic conditions and general economic uncertainty; unexpected developments in the health care or insurance industries affecting providers or individuals, including the cost or availability of services, or the tax consequences related thereto; disruption to the financial markets; unanticipated increases in the rate, number and amounts of claims outstanding; our ability to remediate the identified material weakness in our internal control over financial reporting; the level of performance of reinsurance companies under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect the Company agai

Business

Business The Company Atlantic American Corporation, a Georgia corporation incorporated in 1968 (the "Parent" or "Company"), is a holding company that operates through its subsidiaries in well-defined specialty markets within the life and health and property and casualty insurance industries. The Parent's principal operating subsidiaries are American Southern Insurance Company and American Safety Insurance Company (together known as "American Southern") within the property and casualty insurance industry and Bankers Fidelity Life Insurance Company, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company (together known as "Bankers Fidelity") within the life and health insurance industry. Each of American Southern and Bankers Fidelity is managed separately based upon the type of products it offers and is evaluated on its individual performance. The Company's strategy is to focus on well-defined geographic, demographic and/or product niches within the insurance marketplace. Each of American Southern and Bankers Fidelity operates with relative autonomy, which structure is designed to allow for quick reaction to market opportunities. The Parent has no significant business operations of its own and relies on fees, dividends and other distributions from its operating subsidiaries as the principal source of cash flow to meet its obligations. Additional information regarding the cash flow and liquidity needs of the Parent can be found in the Liquidity and Capital Resources section of Management's Discussion and Analysis of Financial Condition and Results of Operations. Property and Casualty Operations American Southern comprises the Company's property and casualty operations and its primary product lines are as follows: Commercial Automobile Insurance policies provide bodily injury and/or property damage liability coverage, uninsured motorist coverage and physical damage coverage for commercial accounts. General Liability Insurance policies co

Underwriting

Underwriting Property and Casualty Operations American Southern specializes in underwriting various risks that are sufficiently large enough to establish separate class experience, relying upon the underwriting expertise of its agents. During the course of the policy life, extensive use is made of risk management representatives to assist commercial underwriters in identifying and correcting potential loss exposures and to physically inspect new accounts. The underwriting results from each insured are reviewed on an individual basis periodically. If results are below expectations, management takes corrective action, which may include adjusting rates, revising underwriting standards, adjusting commissions paid to agents, and/or altering or declining to renew accounts at expiration. Life and Health Operations Bankers Fidelity issues a variety of products that span from the group markets to the individual markets for both life and health insurance. Products offered by Bankers Fidelity include life insurance, typically with small face amounts, Medicare supplement and other accident and health insurance. Bankers Fidelity also provides an array of group products such as accident, cancer, critical illness, hospital indemnity and life insurance that is offered to employers who are looking to provide coverage for their employees and have the related premiums deducted through payroll deductions. The individual products are underwritten on a non-medical basis using a simplified issue approach by which an application containing a variety of health related questions is submitted. Applications for insurance are reviewed to determine the face amount, age, medical history and any other necessary information. Bankers Fidelity utilizes information obtained directly from the insured, the medical claims data, prescription utilization reports as well as telephone interviews to determine whether an applicant meets the Company's underwriting criteria. Bankers Fidelity may also utili

View Full Filing

View this 10-K filing on SEC EDGAR