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Reinsurance
 12 Months Ended
Dec. 31, 2023
Reinsurance [Abstract]  
Reinsurance
Note 7.
Reinsurance


In accordance with general practice in the insurance industry, portions of the life, property and casualty insurance written by the Company are reinsured; however, the Company remains liable with respect to reinsurance ceded should any reinsurer be unable or unwilling to meet its obligations. Approximately 99.7% of the Company’s reinsurance recoverables were due from a single reinsurer as of December 31, 2023. Reinsurance recoverables of $21,041 were due from General Re Corporation, rated “AA+” by Standard & Poor’s and “A++” (Superior) by A.M. Best. Allowances for uncollectible amounts are established against reinsurance recoverables, if appropriate.



Property and Casualty Operations


American Southern’s basic reinsurance treaties generally cover all claims in excess of specified per occurrence limitations. Limits per occurrence within the reinsurance treaties are as follows: Inland marine and commercial automobile physical damage - $225,000 excess of $125,000 retention; and automobile liability and general liability - excess coverage of $2.0 million less retentions that may vary from $150,000 to $500,000 depending on the account. American Southern maintains a property catastrophe treaty with a $5.5 million limit excess of $500,000 retention. American Southern also issues individual surety bonds with face amounts generally up to $1.5 million, and limited to $5.0 million in aggregate per account, that are not reinsured.


Life and Health Operations


Bankers Fidelity has entered into reinsurance contracts ceding the excess of its life retention. Maximum retention by Bankers Fidelity on any one individual life insurance policyholder is $200,000. As of December 31, 2023, $8.3 million of the $814.2 million of life insurance in force at Bankers Fidelity was reinsured under a combination of coinsurance and yearly renewable term agreements. Certain prior year reinsurance agreements also remain in force although they no longer provide reinsurance for new business.


Bankers Fidelity has also entered into a reinsurance contract ceding excess new Medicare Supplement business to General Re Life Corporation. Ceding thresholds are set annually. During 2023, the liability of the reinsurer was 50% of all new Medicare Supplement business issued by the Company on amounts up to a maximum retention of $15.0 million of annualized premium. Accordingly, $0.8 million of the Company’s $1.5 million of new annualized Medicare Supplement premium was ceded.



The effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred were as follows:

   
For the Year Ended December 31, 2023
  
   
American
Southern
    
Bankers
Fidelity
    
Total
  
Direct premiums written
  
$
49,580
    
$
166,093
    
$
215,673
  
Assumed premiums written
    
27,987
      
29
      
28,016
  
Ceded premiums written
    
(5,902
)
    
(55,933
)
    
(61,835
)
Net premiums written
  
$
71,665
    
$
110,189
    
$
181,854
  
                         
Direct premiums earned
  
$
46,349
    
$
166,368
    
$
212,717
  
Assumed premiums earned
    
27,996
      
7
      
28,003
  
Ceded premiums earned
    
(5,902
)
    
(55,993
)
    
(61,895
)
Net premiums earned
  
$
68,443
    
$
110,382
    
$
178,825
  
                         
Provision for benefits and losses incurred
  
$
52,899
    
$
110,995
    
$
163,894
  
Reinsurance loss recoveries
    
(1,884
)
    
(39,510
)
    
(41,394
)
Insurance benefits and losses incurred
  
$
51,015
    
$
71,485
    
$
122,500
  

   
For the Year Ended December 31, 2022
  
   
American
Southern
    
Bankers
Fidelity
    
Total
  
Direct premiums written
  
$
52,404
    
$
176,119
    
$
228,523
  
Assumed premiums written
    
26,814
      
9
      
26,823
  
Ceded premiums written
    
(6,547
)
    
(61,701
)
    
(68,248
)
Net premiums written
  
$
72,671
    
$
114,427
    
$
187,098
  
                         
Direct premiums earned
  
$
51,844
    
$
176,995
    
$
228,839
  
Assumed premiums earned
    
24,978
      
8
      
24,986
  
Ceded premiums earned
    
(6,546
)
    
(61,839
)
    
(68,385
)
Net premiums earned
  
$
70,276
    
$
115,164
    
$
185,440
  
                         
Provision for benefits and losses incurred
  
$
49,568
    
$
124,478
    
$
174,046
  
Reinsurance loss recoveries
    
(2,393
)
    
(48,197
)
    
(50,590
)
Insurance benefits and losses incurred
  
$
47,175
    
$
76,281
    
$
123,456
  


Components of reinsurance receivables at December 31, 2023 and 2022 were as follows:

   
December 31, 2023
  
   
American
Southern
    
Bankers
Fidelity
    
Total
  
Recoverable on unpaid losses, net of allowance
  
$
6,415
    
$
8,263
    
$
14,678
  
Recoverable on unpaid benefits
    
—
      
5,470
      
5,470
  
Recoverable on paid losses
    
—
      
108
      
108
  
Ceded unearned premiums
    
—
      
621
      
621
  
Ceded advanced premiums
    
—
      
226
      
226
  
Total reinsurance receivables
  
$
6,415
    
$
14,688
    
$
21,103
  

    December 31, 2022  
   
American
Southern
    
Bankers
Fidelity
    
Total
  
Recoverable on unpaid losses
  
$
8,265
    
$
9,382
    
$
17,647
  
Recoverable on unpaid benefits
    
—
      
6,788
      
6,788
  
Recoverable on paid losses
    
—
      
618
      
618
  
Ceded unearned premiums
    
—
      
681
      
681
  
Ceded advanced premiums
    
—
      
179
      
179
  
Total reinsurance receivables
  
$
8,265
    
$
17,648
    
$
25,913