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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.