ATLANTIC AMERICAN CORP
For the period ended Dec 31, 2024. Filed Mar 25, 2025.
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FY2024 · Filed Mar 25, 2025
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Investments
Investment income represents a significant portion of the Company’s operating and total income. Insurance company investments are subject to state insurance laws and regulations which limit the concentration and types of investments. The following table provides information on the Company’s investments as of the dates indicated.
| December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Amount | Percent | Amount | Percent | |
| (Dollars in thousands) | ||||
| Fixed maturities: | ||||
| U.S. Treasury securities and obligations of U.S. Government agencies and authorities | $22,251 | 9.7% | $22,849 | 9.6% |
| Loan backed and structured securities | 22,290 | 9.7 | 27,210 | 11.5 |
| States, municipalities and political subdivisions | 7,623 | 3.3 | 8,106 | 3.4 |
| All other corporate bonds | 160,261 | 69.6 | 159,849 | 67.4 |
| Redeemable preferred stock | 187 | 0.1 | 205 | 0.1 |
| Total fixed maturities(1) | 212,612 | 92.4 | 218,219 | 92.0 |
| Equity securities(2) | 7,900 | 3.4 | 9,413 | 4.0 |
| Other invested assets(3) | 6,616 | 3.0 | 6,381 | 2.8 |
| Policy loans(4) | 1,722 | 0.7 | 1,778 | 0.7 |
| Real estate | 38 | 0.0 | 38 | 0.0 |
| Investments in unconsolidated trusts | 1,238 | 0.5 | 1,238 | 0.5 |
| Total investments | $230,126 | 100.0% | $237,067 | 100.0% |
| (1) | Fixed maturities are carried on the balance sheet at estimated fair value. Certain fixed maturities do not have publicly quoted prices, and are carried at estimated fair value as determined by management. Total amortized cost of fixed maturities was $236.3 million as of December 31, 2024 and $238.6 million as of December 31, 2023. |
| (2) | Equity securities are carried on the balance sheet at estimated fair value. Total cost of equity securities was $4.9 million as of December 31, 2024 and 2023. |
| (3) | Other invested assets are accounted for using the equity method. Total cost of other invested assets was $7.9 million as of December 31, 2024 and $7.0 million as of December 31, 2023. |
| (4) | Policy loans are valued at unpaid principal balances. |
Estimated fair values are determined as discussed in Note 1 of Notes to Consolidated Financial Statements.
Results of the Company’s investment portfolio for periods shown were as follows:
| Year Ended December 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (Dollars in thousands) | ||
| Average investments(1) | $280,420 | $275,995 |
| Net investment income | 9,791 | 10,058 |
| Average yield on investments | 3.5% | 3.6% |
| Realized investment gains, net | 1,210 | 70 |
| (1) | Calculated as the average of cash and investment balances (at amortized cost) at the beginning of the year and at the end of each of the succeeding four quarters. |
The Company engages a global investment management firm serving the insurance industry to manage the Company’s investment portfolios. Management’s recent investment strategy has been a continued focus on quality and diversification, while improving the overall risk versus return profile of the portfolio.
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