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Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended
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Dec. 31, 2022
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, |
|  | 2022 |  |  | 2021 |
|  | (In thousands) |
Cash and cash equivalents |  | $ | 2,680 |  |  | $ | 1,718 |
Investments |  |  | 2,278 |  |  |  | 2,749 |
Investment in subsidiaries |  |  | 113,079 |  |  |  | 164,535 |
Investments in unconsolidated trusts |  |  | 1,238 |  |  |  | 1,238 |
Deferred tax asset, net |  |  | 14,163 |  |  |  | 1,237 |
Income taxes receivable from subsidiaries |  |  | 1,951 |  |  |  | 2,171 |
Other assets |  |  | 6,681 |  |  |  | 5,791 |
Total assets |  | $ | 142,070 |  |  | $ | 179,439 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |
Other payables |  | $ | 4,130 |  |  | $ | 4,415 |
Revolving credit facility |  |  | 2,009 |  |  |  | — |
Junior subordinated debentures |  |  | 33,738 |  |  |  | 33,738 |
Total liabilities |  |  | 39,877 |  |  |  | 38,153 |
Shareholders’ equity |  |  | 102,193 |  |  |  | 141,286 |
Total liabilities and shareholders’ equity |  | $ | 142,070 |  |  | $ | 179,439 |
Schedule II Page 2 of 3 CONDENSED FINANCIAL INFORMATION OF REGISTRANT ATLANTIC AMERICAN CORPORATION (Parent Company Only) STATEMENTS OF OPERATIONS
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |
|  | (In thousands) |
REVENUE |  |  |  |  |  |
Fee income from subsidiaries |  | $ | 7,624 |  |  | $ | 7,380 |
Distributed earnings from subsidiaries |  |  | 7,200 |  |  |  | 8,400 |
Unrealized gains (losses) on equity securities, net |  |  | (484 | ) |  |  | 230 |
Other |  |  | 93 |  |  |  | (247 | )
Total revenue |  |  | 14,433 |  |  |  | 15,763 |
GENERAL AND ADMINISTRATIVE EXPENSES |  |  | 13,583 |  |  |  | 13,654 |
INTEREST EXPENSE |  |  | 1,952 |  |  |  | 1,387 |
|  |  | (1,102 | ) |  |  | 722 |
INCOME TAX BENEFIT(1) |  |  | (3,934 | ) |  |  | (2,840 | )
|  |  | 2,832 |  |  |  | 3,562 |
EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES, NET |  |  | (1,307 | ) |  |  | 719 |
NET INCOME |  | $ | 1,525 |  |  | $ | 4,281 |
(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.
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, |
|  | 2022 |  |  | 2021 |
|  | (In thousands) |
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |  |
Net Income |  | $ | 1,525 |  |  | $ | 4,281 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |
Unrealized losses (gains) on equity securities, net |  |  | 484 |  |  |  | (230 | )
Depreciation and amortization |  |  | 515 |  |  |  | 538 |
Compensation expense related to share awards |  |  | 134 |  |  |  | 211 |
Earnings from equity method investees |  |  | (294 | ) |  |  | — |
Equity in undistributed earnings of subsidiaries, net |  |  | 1,307 |  |  |  | (719 | )
Decrease (increase) in intercompany taxes |  |  | 220 |  |  |  | (489 | )
Deferred income tax benefit |  |  | (2,336 | ) |  |  | (1,058 | )
(Decrease) increase in accounts payable and accrued expenses |  |  | (285 | ) |  |  | 63 |
Other, net |  |  | (1,348 | ) |  |  | (1,966 | )
Net cash (used in) provided by operating activities |  |  | (78 | ) |  |  | 631 |
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |  |  |  |
Additions to property and equipment |  |  | (45 | ) |  |  | (49 | )
Net cash used in investing activities |  |  | (45 | ) |  |  | (49 | )
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |  |  |  |
Payment of dividends on Series D preferred stock |  |  | (399 | ) |  |  | (399 | )
Payment of dividends on common stock |  |  | (408 | ) |  |  | (408 | )
Proceeds from shares issued under stock plans |  |  | — |  |  |  | 6 |
Proceeds from revolving credit facility, net |  |  | 2,000 |  |  |  | — |
Treasury stock acquired — net employee share-based compensation |  |  | (108 | ) |  |  | (153 | )
Net cash provided by (used in) financing activities |  |  | 1,085 |  |  |  | (954 | )
Net increase (decrease) in cash |  |  | 962 |  |  |  | (372 | )
Cash and cash equivalents at beginning of year |  |  | 1,718 |  |  |  | 2,090 |
Cash and cash equivalents at end of year |  | $ | 2,680 |  |  | $ | 1,718 |
Supplemental disclosure: |  |  |  |  |  |  |  |
Cash paid for interest |  | $ | 1,794 |  |  | $ | 1,389 |
Cash paid for income taxes |  | $ | 2,764 |  |  | $ | 3,202 |
Intercompany tax settlement from subsidiaries |  | $ | 3,946 |  |  | $ | 6,734 |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI https://asc.fasb.org/extlink&oid=126898705&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=126929396&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
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