Statutory Reporting

12 Months Ended

Dec. 31, 2022

Note 14.

Statutory Reporting

The assets, liabilities and results of operations have been reported on the basis of GAAP, which varies in some respects from statutory accounting practices (“SAP”) prescribed or permitted by insurance regulatory authorities. The principal differences between SAP and GAAP are that under SAP: (i) carrying value of certain investments differ on a GAAP versus SAP basis, such as fixed maturities that are shown at amortized cost for SAP versus fair value for GAAP (ii) certain assets that are non-admitted assets are eliminated from the balance sheet; (iii) acquisition costs for policies are expensed as incurred, while they are deferred and amortized over the estimated life of the policies under GAAP; (iv) the provision that is made for deferred income taxes is different than under GAAP; (v) the timing of establishing certain reserves is different than under GAAP; (vi) reinsurance is shown net on balance sheet for SAP and (vii) certain valuation allowances attributable to certain investments are required under SAP such as asset valuation reserve and interest maintenance reserve.

The Company meets the minimum capital requirements in the states in which it does business. The amount of reported statutory net income and capital and surplus (shareholders’ equity) for the Parent’s insurance subsidiaries for the years ended December 31 was as follows:

	2022		2021
Bankers Fidelity, net income (loss)	$	3,865	$	(364	)
American Southern, net income		5,743		7,688
Statutory net income	$	9,608	$	7,324

Bankers Fidelity, capital and surplus	$	36,672	$	38,625
American Southern, capital and surplus		53,023		52,724
Statutory capital and surplus	$	89,695	$	91,349

Under the insurance code of the state in which each insurance subsidiary is domiciled, dividend payments to the Parent by its insurance subsidiaries are subject to certain limitations without the prior approval of the applicable state’s Insurance Commissioner. The Parent received dividends of $7,200 and $8,400 in the years ended 2022 and 2021, respectively, from its subsidiaries. In 2022, dividend payments to the Parent by the insurance subsidiaries in excess of $8,739 would require prior approval.