Premiums and Revenue - American Southern's net earned premiums from health insurance products accounted for 86% of Bankers Fidelity's total net earned premiums in 2022, while life insurance accounted for the remaining 14%[19]. - In 2022, Bankers Fidelity's total net earned premiums were 116.234 million in 2021[20]. - Medicare supplement insurance premiums were 95.314 million in 2021, representing a decrease of approximately 8.5%[20]. - Total revenue for the year ended 2022 was 199,554 thousand in 2021[164]. - Net income applicable to common shareholders for 2022 was 3,882 thousand in 2021[164]. - Earnings per common share (basic and diluted) decreased to 0.19 in 2021, representing a decline of 68.4%[164]. - Direct premiums written for the year ended December 31, 2022, totaled 236,682 in 2021, representing a decline of approximately 3.5%[261]. - Net premiums earned for the year ended December 31, 2022, were 184,216 in 2021, reflecting a growth of about 0.7%[261]. Claims and Reserves - Approximately 72% of the losses and claims reserves at December 31, 2022, were related to property and casualty operations, while 28% were related to life and health operations[34]. - The company's insurance reserves for losses and claims were 85.6 million as of December 31, 2022[155]. - The balance of unpaid loss and claim reserves at December 31, 2022, was 85,620 million in 2021[241]. - The total gross liability for unpaid losses, claims, and loss adjustment expenses was 57,179, showing a slight decrease to 12,666[245]. Investments and Financial Position - Total fixed maturities decreased to 260.986 million in 2021, representing a decline of 20%[68]. - Net investment income increased to 8.528 million in 2021, reflecting a growth of 16.5%[72]. - Average yield on investments improved to 3.7% in 2022 compared to 3.3% in 2021, indicating a 12.1% increase[72]. - Total investments decreased to 283.442 million in 2021, a reduction of 19.4%[68]. - The total estimated fair value of fixed maturities was 28.8 million[201]. - The total estimated fair value of equity securities was 6.7 million[204]. - The company reported cash and cash equivalents of 24,753 million in 2021[230]. - The company reported unrealized losses on equity securities of 1,894 thousand in 2021[164]. Operational and Strategic Insights - The number of licensed agents for Bankers Fidelity was approximately 4,337 as of December 31, 2022, with 476 agents actively writing policies during the year[22]. - Bankers Fidelity's marketing strategy emphasizes diversification, with unique product offerings such as Vantage Flex Plus® and Vantage Recovery®[23]. - The company utilizes a simplified issue approach for underwriting individual products, relying on health-related questions and medical claims data[28]. - Claims processing for life and health insurance is generally completed within five business days of receipt, with electronic filing options available for insureds[33]. - The Company has made significant investments in cybersecurity, enhancing intrusion protection and detection technology, and implementing a mandatory security awareness training program[63]. - The Company maintains dedicated cyber liability insurance covering breach event costs, including post-breach remediation and coverage for lost revenue due to reputational damage[66]. - The Company believes its policies are competitive in the market, focusing on strong relationships with agents for new opportunities[49]. Tax and Regulatory Matters - The effective tax rate for 2022 was 27.2%, compared to 19.3% in 2021, showing an increase of approximately 41.0%[265]. - The total income tax expense for 2022 was 1,021 in 2021, reflecting a decrease of approximately 44.0%[268]. - The Company had outstanding borrowings of $2,009 under the Revolving Credit Agreement as of December 31, 2022[271]. - The Company is preparing for the expected discontinuation of LIBOR by updating operational processes and evaluating legacy contracts[269]. Employee and Corporate Structure - The company employed 142 people as of December 31, 2022, with 141 being full-time employees[74]. - The company has five insurance subsidiaries, indicating a stable operational structure for future growth[177].
Atlantic American(AAME) - 2022 Q4 - Annual Report