Atlantic American Corporation Reports First Quarter Results for 2025
Rhea-AI Summary
Positive
- Net income improved to $0.8M from -$2.0M loss year-over-year
- Premium revenue grew 5.3% to $46.9M
- Operating income turned positive at $0.3M from -$2.4M loss
- Book value per share increased to $4.80 from $4.61
- Strong new business momentum in life and health segments
Negative
- Property and casualty operations experienced elevated losses
- Net investment income declined to $2.44M from $2.56M
- Total expenses remained high at $49.1M
Insights
AAME reversed losses to post $0.8M profit as premium growth and improved life/health performance overcame property/casualty challenges.
Atlantic American Corporation has shown a remarkable turnaround in Q1 2025, posting
The improvement was driven by two key factors: premium revenue growth of
Looking at segment performance, the company's life and health premiums increased to
The balance sheet remains stable with total assets of
Management's comments about "rate adjustments" in the property and casualty segment suggest they've implemented pricing increases to address the elevated losses, which should improve future performance if effective. Overall, this represents a meaningful financial improvement, though challenges remain in the property and casualty operations.
ATLANTA, May 13, 2025 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income of
The Company reported operating income (as defined below) of
Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are pleased to report strong quarterly results, highlighted by improved profitability and solid growth in insurance premiums. New business momentum within our life and health segments remains robust, reinforcing our confidence in the Company’s long-term growth trajectory. While our property and casualty operations faced elevated losses this quarter, we expect recent rate adjustments to begin positively impacting results in the coming periods. Looking ahead, we see significant opportunities and remain confident in our outlook for the remainder of 2025.”
Atlantic American Corporation is an insurance holding company involved through its subsidiary companies in specialty markets of the life, health, and property and casualty insurance industries. Its principal insurance subsidiaries are American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company.
Note regarding non-GAAP financial measure: Atlantic American Corporation presents its consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP). However, from time to time, the Company may present, in its public statements, press releases and filings with the Securities and Exchange Commission, non-GAAP financial measures such as operating income (loss). We define operating income (loss) as net income (loss) excluding: (i) income tax expense (benefit); (ii) realized investment (gains) losses, net; and (iii) unrealized (gains) losses on equity securities, net. Management believes operating income (loss) is a useful metric for investors, potential investors, securities analysts and others because it isolates the “core” operating results of the Company before considering certain items that are either beyond the control of management (such as income tax expense (benefit), which is subject to timing, regulatory and rate changes depending on the timing of the associated revenues and expenses) or are not expected to regularly impact the Company’s operating results (such as any realized and unrealized investment gains (losses), which are not a part of the Company’s primary operations and are, to a limited extent, subject to discretion in terms of timing of realization). The financial data attached includes a reconciliation of operating income (loss) to net income (loss), the most comparable GAAP financial measure. The Company’s definition of operating income (loss) may differ from similarly titled financial measures used by others. This non-GAAP financial measure should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.
Note regarding forward-looking statements: Except for historical information contained herein, this press release contains forward-looking statements that involve a number of risks and uncertainties. Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks, including, among others: the effects of macroeconomic conditions and general economic uncertainty; unexpected developments in the health care or insurance industries affecting providers or individuals, including the cost or availability of services, or the tax consequences related thereto; disruption to the financial markets; unanticipated increases in the rate, number and amounts of claims outstanding; our ability to remediate the identified material weakness in our internal control over financial reporting; the level of performance of reinsurance companies under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect the Company against losses; changes in the stock markets, interest rates or other financial markets, including the potential effect on the Company’s statutory capital levels; the uncertain effect on the Company of regulatory and market-driven changes in practices relating to the payment of incentive compensation to brokers, agents and other producers; the potential impact of public health emergencies; the incidence and severity of catastrophes, both natural and man-made; the possible occurrence of terrorist attacks; stronger than anticipated competitive activity; unfavorable judicial or legislative developments; the potential effect of regulatory developments, including those which could increase the Company’s business costs and required capital levels; the Company’s ability to distribute its products through distribution channels, both current and future; the uncertain effect of emerging claim and coverage issues; the effect of assessments and other surcharges for guaranty funds and other mandatory pooling arrangements; information technology system failures or network disruptions; risks related to cybersecurity matters, such as breaches of our computer network or those of other parties or the loss of or unauthorized access to the data we maintain; and those other risks and uncertainties detailed in statements and reports that the Company files from time to time with the Securities and Exchange Commission. As a result, undue reliance should not be placed upon forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update any forward-looking statements as a result of subsequent developments, changes in underlying assumptions or facts or otherwise, except as may be required by law.
| For further information contact: | |
| J. Ross Franklin | Hilton H. Howell, Jr. |
| Chief Financial Officer | Chairman, President & CEO |
| Atlantic American Corporation | Atlantic American Corporation |
| 404-266-5580 | 404-266-5505 |
| Atlantic American Corporation Financial Data | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| (Unaudited; In thousands, except per share data) | 2025 | 2024 | |||||
| Insurance premiums | |||||||
| Life and health | $ | 28,582 | $ | 26,674 | |||
| Property and casualty | 18,331 | 17,878 | |||||
| Insurance premiums, net | 46,913 | 44,552 | |||||
| Net investment income | 2,442 | 2,556 | |||||
| Unrealized gains (losses) on equity securities, net | 767 | (114 | ) | ||||
| Other income | 3 | 3 | |||||
| Total revenue | 50,125 | 46,997 | |||||
| Insurance benefits and losses incurred | |||||||
| Life and health | 17,316 | 19,112 | |||||
| Property and casualty | 14,597 | 12,813 | |||||
| Insurance benefits and losses incurred, net | 31,913 | 31,925 | |||||
| Commissions and underwriting expenses | 11,680 | 12,666 | |||||
| Interest expense | 774 | 855 | |||||
| Other expense | 4,723 | 4,057 | |||||
| Total benefits and expenses | 49,090 | 49,503 | |||||
| Income (loss) before income taxes | 1,035 | (2,506 | ) | ||||
| Income tax expense (benefit) | 233 | (508 | ) | ||||
| Net income (loss) | $ | 802 | $ | (1,998 | ) | ||
| Earnings (loss) per common share (basic & diluted) | $ | 0.03 | $ | (0.10 | ) | ||
| Reconciliation of non-GAAP financial measure | |||||||
| Net income (loss) | $ | 802 | $ | (1,998 | ) | ||
| Income tax expense (benefit) | 233 | (508 | ) | ||||
| Unrealized (gains) losses on equity securities, net | (767 | ) | 114 | ||||
| Non-GAAP operating income (loss) | $ | 268 | $ | (2,392 | ) | ||
| March 31, | December 31, | ||||||
| Selected balance sheet data | 2025 | 2024 | |||||
| Total cash and investments | $ | 268,424 | $ | 265,696 | |||
| Insurance subsidiaries | 263,490 | 258,675 | |||||
| Parent and other | 4,934 | 7,021 | |||||
| Total assets | 388,436 | 393,428 | |||||
| Insurance reserves and policyholder funds | 220,520 | 225,106 | |||||
| Debt | 37,760 | 37,761 | |||||
| Total shareholders' equity | 102,385 | 99,613 | |||||
| Book value per common share | 4.80 | 4.61 | |||||
| Statutory capital and surplus | |||||||
| Life and health | 33,468 | 32,443 | |||||
| Property and casualty | 47,614 | 47,670 | |||||
FAQ
What was Atlantic American's (AAME) earnings per share in Q1 2025?
How much did AAME's premium revenue grow in Q1 2025?
What was Atlantic American's book value per share as of March 31, 2025?
How did AAME's life and health segment perform in Q1 2025?
What challenges did Atlantic American face in Q1 2025?
