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 99.8% of the Company’s reinsurance recoverables were due from a single reinsurer as of December 31, 2025. Reinsurance recoverables of $25,539 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.

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 $2,000 less retentions that may vary from $100,000 to $700,000 depending on the account. American Southern maintains a property catastrophe treaty with a $5,500 limit excess of $500,000 retention.

Bankers Fidelity has entered into reinsurance contracts ceding the excess of its life retention. The maximum retention by Bankers Fidelity on any one individual life insurance policyholder is $200. As of December 31, 2025, $5,700 of the $1,040,300 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 2025, the liability of the reinsurer was 71% of all new Medicare Supplement business issued by the Company. This percentage is calculated based on a cession percentage of 50% on amounts of new business of up to $30,000 of annualized premium, and 100% of all new Medicare Supplement business in excess of $30,000 of annualized premium. Accordingly, $36,900 of the Company’s $51,900 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 Dec 31, 2025
	American Southern			Bankers Fidelity			Total
Direct premiums written	$	54,146		$	177,947		$	232,093
Assumed premiums written		42,453			-			42,453
Ceded premiums written		(6,165	)		(68,234	)		(74,399	)
Net premiums written		90,434			109,713			200,147

Direct premiums earned		54,268			179,872			234,140
Assumed premiums earned		36,401			-			36,401
Ceded premiums earned		(6,165	)		(68,234	)		(74,399	)
Net premiums earned		84,504			111,638			196,142

Provision for benefits and losses incurred		69,390			107,904			177,294
Reinsurance loss recoveries		(4,136	)		(40,483	)		(44,619	)
Insurance benefits and losses incurred	$	65,254		$	67,421		$	132,675	(1)

⁽¹⁾ This line is net of LFPB remeasurement gain of $4,866 for 2025.

	For the Year Ended Dec 31, 2024
				(Restated)
	American			Bankers
	Southern			Fidelity			Total
Direct premiums written	$	45,837		$	164,469		$	210,306
Assumed premiums written		27,834			-			27,834
Ceded premiums written		(5,979	)		(53,236	)		(59,215	)
Net premiums written		67,692			111,233			178,925

Direct premiums earned		46,149			164,135			210,284
Assumed premiums earned		27,519			-			27,519
Ceded premiums earned		(5,979	)		(53,236	)		(59,215	)
Net premiums earned		67,689			110,899			178,588

Provision for benefits and losses incurred		58,024			103,272			161,296
Reinsurance loss recoveries		(2,257	)		(37,295	)		(39,552	)
Insurance benefits and losses incurred	$	55,767		$	65,977		$	121,744	(2)

⁽²⁾ This line is net of LFPB remeasurement gain of $2,334 for 2024.