Premiums and Revenue - American Southern's net earned premiums for automobile liability increased to 38,821,000 in 2023, reflecting a growth of 2.5%[16] - Total net earned premiums for Bankers Fidelity reached 110,382,000 in 2023, indicating a growth of 0.6%[22] - Bankers Fidelity's Medicare supplement insurance accounted for 82% of its net earned premiums in 2024, while life insurance represented the remaining 18%[21] - Bankers Fidelity's group life insurance premiums increased to 12,431,000 in 2023, marking a growth of 18.3%[22] Agent and Market Strategy - The number of licensed agents for Bankers Fidelity was approximately 6,243 as of December 31, 2024, with 1,429 agents actively writing policies during the year[25] - The company emphasizes a marketing strategy based on diversification, with unique product offerings such as Vantage Flex Plus® and Vantage Recovery®[28] - The company actively manages its agent selection process and offers profit-sharing arrangements linked to the profitability of the underlying business[23] Claims and Reserves - Approximately 72% of the losses and claims reserves at December 31, 2024, were related to property and casualty operations, while 28% were related to life and health[42] - Bankers Fidelity's claims processing is efficient, with properly documented claims generally paid within five business days of receipt[41] - The Company maintains loss reserves for claims based on known facts and circumstances, with periodic reviews by independent consulting actuaries[49] - The range of reserve estimates for December 31, 2024, indicated that reserves could be as much as 5.2% lower or as much as 25.0% higher than recorded amounts[48] - American Southern had one IRIS ratio outside the usual range due to adverse reserve developments on prior year claims in the commercial automobile liability line[74] Financial Performance - Bankers Fidelity experienced a net loss for the year, primarily due to federal income taxes, which decreased surplus levels[75] - Bankers Fidelity Life Insurance Company saw capital and surplus fall greater than 10% from 2023 to 2024, primarily due to an extraordinary dividend paid to its parent[76] - The Company's insurance subsidiaries' risk-based capital levels exceeded the required regulatory levels as of December 31, 2024[79] - The Company believes it is in compliance with all regulatory requirements concerning reserve levels and financial practices[67] Investments - Total investments decreased from 230,126 thousand in 2024, a decline of approximately 2.0%[81] - Average yield on investments slightly decreased from 3.6% in 2023 to 3.5% in 2024[84] - Net investment income decreased from 9,791 thousand in 2024, a decline of about 2.7%[84] - Total fixed maturities accounted for 92.4% of total investments in 2024, up from 92.0% in 2023[81] - The total amortized cost of fixed maturities was 238.6 million in 2023[81] - The total cost of equity securities remained stable at 70 thousand in 2023 to 7,000 thousand in 2023 to 5.5 million excess of $500,000 retention[56]
Atlantic American(AAME) - 2024 Q4 - Annual Report