Profile: Atlantic American Corp (AAME.OQ)
Atlantic American Corporation, incorporated in 1968, is a holding company that operates through its subsidiaries in specialty markets within the life and health, and property and casualty insurance industries. The Company’s principal operating subsidiaries are American Southern Insurance Company and American Safety Insurance Company (together known as American Southern) and Bankers Fidelity Life Insurance Company (Bankers Fidelity) within the life and health industry. American Southern comprises the Company’s property and casualty operations. Bankers Fidelity consists of the life and health operations of the Company and offers a variety of life and supplemental health products with a focus on the senior markets. American Southern’s product lines include business automobile insurance, general liability insurance, property insurance and surety bonds. Products offered by Bankers Fidelity include ordinary and term life insurance, Medicare supplement and other accident and health insurance products. In December 2013, the Company announced that it has completed the acquisition of Direct Life Insurance Company (DLIC), formerly a non-active subsidiary of Direct General Insurance Company.
Property and Casualty Operations
American Southern is licensed to do business in 32 states and the District of Columbia. While the majority of American Southern’s premiums are derived from its automobile lines of business, American Southern also offers personal property, inland marine and general liability coverages. Additionally, American Southern directly provides surety bond coverage for school bus transportation and subdivision construction, as well as performance and payment bonds.
The Company’s business automobile insurance policies provide bodily injury and/or property damage liability coverage, uninsured motorist coverage and physical damage coverage for commercial accounts. General liability insurance policies cover bodily injury and property damage liability for both premises and completed operations exposures for general classes of business. Property insurance policies provide for payment of losses on personal property caused by fire or other multiple perils. Surety bonds are contracts under which one party, the insurance company issuing the surety bond, guarantees to a third party that the primary party would fulfill an obligation in accordance with a contractual agreement. American Southern provides tailored business automobile insurance coverage, on a multi-year contract basis, to state governments, local municipalities and other motor pools and fleets that can be specifically rated and underwritten.
Life and Health Operations
The Company’s life insurance products include non-participating individual term and whole life insurance policies with a variety of riders and options. Medicare Supplement Insurance includes seven of the 11 standardized Medicare supplement policies, which are designed to provide insurance coverage for certain expenses not covered by the Medicare program, including copayments and deductibles. Other accident and health insurance coverage includes several policies providing for the payment of benefits in connection with the treatment of diagnosed cancer, as well as a number of other policies providing nursing facility care, accident expense, hospital/surgical and disability coverage. Health insurance products, primarily Medicare supplement insurance, accounted for 84.0% of Bankers Fidelity’s net earned premiums in 2011, while life insurance, including both whole and term life insurance policies, accounted for the balance. In terms of the number of policies written in 2011, 82.1% were health insurance policies and 17.9% were life insurance policies.
The Company competes with Blue Cross/Blue Shield, Globe Life and Accident Insurance Company, Lincoln Heritage Life Insurance Company, Mutual of Omaha, Oxford Life Insurance Company, United Commercial Travelers of America, United World Life Insurance Company and Woodman of the World.
Atlantic American Corp
4370 PEACHTREE RD NE
ATLANTA GA 30319