Atlantic American(AAME) - 2023 Q4 - Annual Report

Premiums and Revenue - American Southern's net earned premiums for 2023 totaled $68,443,000, a decrease of 2$70,276,000 in 2022[14] - Bankers Fidelity's total net earned premiums for 2023 were $110,382,000, down from$115,164,000 in 2022, representing a decrease of approximately 4%[18] - Health insurance products accounted for 83% of Bankers Fidelity's net earned premiums in 2023, with life insurance making up the remaining 17%[17] - Bankers Fidelity's Medicare supplement insurance premiums decreased from $86,970,000 in 2022 to$77,425,000 in 2023, a decline of approximately 11%[18] - Total revenue for 2023 was $186.793 million, a slight decrease of 0.6$187.851 million in 2022[161] - Insurance premiums, net for 2023 were $178.825 million, down from$185.440 million in 2022, indicating a decrease of approximately 3.3%[161] Claims and Reserves - At December 31, 2023, approximately 73% of the losses and claims reserves were related to property and casualty operations, while 27% were related to life and health operations[31] - Claim reserves were reported at $87.5 million as of December 31, 2023, reflecting the company's focus on property casualty lines and Medicare supplement business[151] - Policy reserves for future policy benefits amounted to$92.5 million as of December 31, 2023, highlighting the company's commitments in life and health insurance[153] - The net balance for unpaid loss and claim reserves at December 31, 2023, was $72,800 million, compared to$69,837 million at the beginning of the year[247] - The total outstanding liabilities before 2014, net of reinsurance, amount to $14,352 million, while liabilities for losses, claims, and loss adjustment expenses, net of reinsurance, are reported at$2,853 million[257] - The total gross liability for unpaid losses, claims, and loss adjustment expenses reached $87,478 million[264] Investments and Financial Performance - Total investments increased to$237,067 thousand in 2023, up from $228,712 thousand in 2022, representing a growth of 1.6$10,058 thousand, compared to $9,932 thousand in 2022, reflecting an increase of 1.3$218,219 thousand in 2023, up from $208,729 thousand in 2022, indicating a growth of 4.3$2.177 million in 2023, an improvement from losses of $7.562 million in 2022[161] - The company’s total shareholders' equity increased to$107.275 million in 2023, up from $102.193 million in 2022, showing a growth of about 5$14.6 million on deposit[54] - The Company's insurance subsidiaries' risk-based capital levels exceeded the required regulatory levels as of December 31, 2023[58] - The Company adopted ASU 2016-13 on January 1, 2023, recognizing credit losses in earnings for securities in an unrealized loss position[181] - The cumulative effect adjustment for the adoption of updated accounting guidance for credit losses resulted in a decrease in retained earnings of $0.1 million as of January 1, 2023[196] Reinsurance and Risk Management - The maximum retention by Bankers Fidelity on any one individual life insurance policyholder is$200,000[44] - During 2023, the liability of the reinsurer for new Medicare Supplement business was 50% of all new business issued, with $0.8 million of the Company's$1.5 million new annualized premium ceded[45] - Total reinsurance recoverable on unpaid losses was $14,678 million as of December 31, 2023[264] - Approximately 99.7$114,664 million, a decrease from $121,526 million in 2022, reflecting a reduction of approximately 5.5$122,500 million, slightly lower than $123,456 million in 2022[249] - The allocated loss adjustment expenses for 2023 are$5,397 million, indicating a significant increase in claims handling costs[254] - The adjustment expenses for 2023 are $3,093 million, highlighting the costs associated with claims adjustments and settlements[253]