Statutory Net Income, Capital and Surplus and Dividend Restrictions

12 Months Ended

Dec. 31, 2019

Statutory Net Income, Capital and Surplus and Dividend Restrictions

14 - Statutory Net Income, Capital and Surplus and Dividend Restrictions

The following table presents selected information, as filed with state insurance regulatory authorities, for our insurance subsidiaries as determined in accordance with accounting practices prescribed or permitted by such insurance regulatory authorities:


	2019			2018			2017
Atlantic States:
Statutory capital and surplus	$	259,030,868		$	230,736,313		$	260,428,754
Statutory unassigned surplus		155,909,822			140,713,118			172,709,955
Statutory net income (loss)		22,282,231			(23,458,516	)		(2,037,672	)
Southern:
Statutory capital and surplus		54,405,568			45,355,785			54,503,581
Statutory unassigned (deficit) surplus		(2,375,794	)		(6,346,270	)		2,914,532
Statutory net income (loss)		5,061,477			(9,822,457	)		(3,375,434	)
Peninsula:
Statutory capital and surplus		39,244,570			32,717,996			39,396,818
Statutory unassigned surplus		20,936,805			14,415,949			21,148,253
Statutory net income (loss)		7,360,378			(6,316,130	)		(841,119	)
MICO:
Statutory capital and surplus		65,768,590			55,708,442			52,796,379
Statutory unassigned surplus		38,910,008			28,949,919			26,162,540
Statutory net income		9,976,610			6,350,686			7,931,774

Our principal source of cash for payment of dividends is dividends from our insurance subsidiaries. State insurance laws require our insurance subsidiaries to maintain certain minimum capital and surplus amounts on a statutory basis. Our insurance subsidiaries are subject to regulations that restrict the payment of dividends from statutory surplus and may require prior approval of their domiciliary insurance regulatory authorities. Our insurance subsidiaries are also subject to risk-based capital (“RBC”) requirements that may further impact their ability to pay dividends. Our insurance subsidiaries’ statutory capital and surplus at December 31, 2019 exceeded the amount of statutory capital and surplus necessary to satisfy regulatory

requirements, including the RBC requirements, by a significant margin. Amounts available for distribution to us as dividends from our insurance subsidiaries without prior approval of insurance regulatory authorities in 2020 are $25.9 million from Atlantic States, $5.4 million from Southern, $2.0 million from Peninsula and $6.6 million from MICO, or a total of approximately $39.9 million.