Atlantic Amer Stock Price, News & Analysis

Atlantic American (AAME) reported mixed financial results for Q4 and full-year 2024. The company posted a Q4 net income of $0.4 million ($0.02 per diluted share), compared to a net loss of $2.2 million in Q4 2023. However, the full-year 2024 resulted in a net loss of $4.3 million ($0.23 per diluted share), versus a $0.2 million loss in 2023.

The Q4 improvement was attributed to favorable loss experience in life and health operations, particularly in group life and Medicare supplement lines. The increased annual loss stemmed from unfavorable property and casualty operations, specifically in automobile liability claims. The company reported strong Medicare supplement sales during Q4's annual enrollment period.

The Board of Directors declared an annual dividend of $0.02 per share, payable on April 23, 2025, to shareholders of record as of April 9, 2025.

AM Best has affirmed strong credit ratings for Atlantic American (NASDAQ: AAME) and its subsidiaries. The Financial Strength Rating of A (Excellent) was affirmed for American Southern Insurance Group, while Bankers Fidelity Life Insurance Group (BFLIG) maintained an A- (Excellent) rating. The parent company received a Long-Term ICR of 'bbb-' (Good).

American Southern Group demonstrates very strong balance sheet strength with the highest risk-adjusted capitalization levels. However, they reported an underwriting loss in the first nine months of 2024 due to increased auto liability claims. BFLIG maintains strong capitalization but faces challenges with fluctuating operating performance, particularly in Medicare supplement underwriting results. The company's adjusted debt-to-capital ratio stands at 19.9% as of September 2024.

Atlantic American (AAME) reported a net loss of $2.0 million, or $(0.10) per diluted share, for Q3 2024, compared to net income of $1.8 million in Q3 2023. For the nine-month period, losses reached $4.7 million versus $2.1 million profit last year. The decline was primarily due to increased losses in life, health, and property operations. Q3 premium revenue slightly increased to $43.8 million, while nine-month premium revenue decreased 1.9% to $133.3 million, mainly due to lower Medicare supplement insurance premiums.

Atlantic American (Nasdaq: AAME) reported a net loss of $0.7 million, or $(0.04) per diluted share, for Q2 2024, compared to a net income of $1.7 million in Q2 2023. The company's six-month net loss increased to $2.7 million in 2024 from $0.3 million in 2023. The losses were primarily due to unfavorable loss experience in both life and health operations and property and casualty operations. Operating income decreased by $2.8 million in Q2 and $5.7 million for the six-month period. Despite challenges, CEO Hilton H. Howell Jr. expressed optimism about recent product launches and the company's long-term strategy.

Atlantic American (Nasdaq: AAME) reported a net loss of $2.0 million for Q1 2024, translating to a loss of $0.10 per share. This is an increase from a net loss of $1.4 million, or $0.08 per share, in Q1 2023. The loss was mainly due to a 3.4% decrease in premium revenue in the life and health operations, totaling $44.6 million, down from $46.1 million the previous year. Additionally, the company experienced unfavorable loss experience in these operations, resulting in an operating loss of $2.4 million, compared to an operating income of $0.6 million in the same period last year.

Despite the decline in life and health premiums, the property and casualty division saw an increase in insurance premiums while keeping benefits and losses relatively flat. CEO Hilton H. Howell, Jr. cited new business initiatives and market expansions for Atlantic Capital Life Assurance Company as reasons for optimism.