Atlantic American Corporation Reports Third Quarter Results for 2025

Rhea-AI Summary

Atlantic American Corporation (Nasdaq: AAME) reported net income of $0.6M (diluted $0.02) for Q3 2025 and net income of $4.7M (diluted $0.22) for the nine months ended September 30, 2025, versus net losses in comparable 2024 periods. Premium revenue rose nearly 12% year-to-date, driven by automobile liability, inland marine, automobile physical damage, Medicare supplement and group accident and health lines.

Operating income increased by $2.3M in Q3 and $7.7M year-to-date. Unrealized gains on equity securities contributed to results. Selected balance-sheet metrics: total assets $430.9M, cash and investments $289.5M, shareholders' equity $109.5M, book value per share $5.10.

Positive

• Net income $4.7M for nine months ended Sept 30, 2025
• Premium revenue nearly +12% year-to-date
• Operating income +$7.7M nine months, +$2.3M Q3
• Book value per share increased to $5.10 from $4.61

Negative

• Income tax expense $1.3M nine months 2025 versus benefit ($1.1M) in 2024

Insights

Insurance finance analyst

Atlantic American turned to profitability in 2025, driven by higher premiums and investment mark‑to‑market gains.

The company’s core mechanism is underwriting and investment income across its life, health and property & casualty businesses. Premiums rose to $149,031 for the nine months ended September 30, 2025, up from $133,327 a year earlier, and net income moved to $4.7 million for that period versus a loss the prior year. Operating income improved to $3,474 (non‑GAAP) for the nine months and to $1,615 for the quarter, reflecting stronger revenue in automobile liability, inland marine, automobile physical damage, Medicare supplement and group accident and health lines.

Key dependencies and risks tie directly to items the company disclosed: results rely on sustained premium growth, claim experience in property & casualty and life & health lines, reinsurance performance, and investment valuation swings — the press release notes unrealized equity gains materially affected results and lists macroeconomic, regulatory and cybersecurity risks. These factors can quickly change quarterly operating income and statutory capital.

Concrete items to watch over the next few quarters: sequential premium growth and retention rates, quarterly operating income versus net income (to separate core underwriting from unrealized investment effects), unrealized gains/(losses) on equity securities, and statutory capital/book value (current book value per share $5.10). Monitor the company’s next quarterly filing for confirmation that premium momentum and underwriting margins persist into year‑end 2025.

ATLANTA, Nov. 14, 2025 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income of $0.6 million, or $0.02 per diluted share, for the three month period ended September 30, 2025, compared to net loss of ($2.0) million, or ($0.10) per diluted share, for the three month period ended September 30, 2024. The Company had net income of $4.7 million, or $0.22 per diluted share, for the nine month period ended September 30, 2025, compared to net loss of ($4.7) million, or ($0.24) per diluted share, for the nine month period ended September 30, 2024. The increase in net income for the three month and nine month periods ended September 30, 2025 was primarily the result of increases in premium revenue within the automobile liability, inland marine and automobile physical damage lines of business in the property and casualty operations, as well as increases in the Medicare supplement and group accident and health lines of business within the life and health operations. Also contributing to the increase in net income was an increase in unrealized gains on equity securities during the three month and nine month periods ended September 30, 2025.   

Operating income increased $2.3 million in the three month period ended September 30, 2025 from the three month period ended September 30, 2024. For the nine month period ended September 30, 2025, operating income increased $7.7 million from the comparable period in 2024. The increase in operating income for the three month and nine month periods ended September 30, 2025 was primarily the result of increases in premium revenue in the automobile liability, inland marine and automobile physical damage lines of business within the property and casualty operations, as well as increases in the Medicare supplement and group accident and health lines of business within the life and health operations, as previously mentioned.

Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are excited to share that Atlantic American delivered strong year-to-date results, with net income of $4.7 million through the first nine months of 2025, a significant turnaround from prior year results. Premium revenue grew nearly 12% year-to-date, driven by robust momentum across both property & casualty and life & health segments, supported by new business and solid retention. Operating income also rose sharply, underscoring the strength of our diversified portfolio and disciplined execution. With these results, we believe we are well-positioned to sustain profitable growth and create long-term value for our shareholders.”

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; 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								Nine Months Ended
	September 30,								September 30,
(Unaudited; In thousands, except per share data)		2025				2024				2025				2024
Insurance premiums
Life and health	$	29,472			$	27,568			$	87,059			$	81,691
Property and casualty		22,500				16,214				61,972				51,636
Insurance premiums, net		51,972				43,782				149,031				133,327
Net investment income		2,633				2,477				7,591				7,449
Realized investment gains, net		2				4				18				17
Unrealized gains (losses) on equity securities, net		(848	)			(1,746	)			2,528				(1,617	)
Other income		1				2				7				8
Total revenue		53,760				44,519				159,175				139,184
Insurance benefits and losses incurred
Life and health		17,509				16,776				52,459				53,467
Property and casualty		17,962				13,984				48,572				41,025
Insurance benefits and losses incurred, net		35,471				30,760				101,031				94,492
Commissions and underwriting expenses		12,955				11,490				37,505				35,740
Interest expense		779				869				2,326				2,591
Other expense		3,786				3,854				12,293				12,170
Total benefits and expenses		52,991				46,973				153,155				144,993
Income (loss) before income taxes		769				(2,454	)			6,020				(5,809	)
Income tax expense (benefit)		192				(456	)			1,325				(1,129	)
Net income (loss)	$	577			$	(1,998	)		$	4,695			$	(4,680	)
Earnings (loss) per common share (basic)	$	0.02			$	(0.10	)		$	0.22			$	(0.24	)
Earnings (loss) per common share (diluted)	$	0.02			$	(0.10	)		$	0.22			$	(0.24	)
Reconciliation of non-GAAP financial measure
Net income (loss)	$	577			$	(1,998	)		$	4,695			$	(4,680	)
Income tax expense (benefit)		192				(456	)			1,325				(1,129	)
Realized investment gains, net		(2	)			(4	)			(18	)			(17	)
Unrealized (gains) losses on equity securities, net		848				1,746				(2,528	)			1,617
Non-GAAP operating income (loss)	$	1,615			$	(712	)		$	3,474			$	(4,209	)
	September 30,				December 31,
Selected balance sheet data		2025				2024
Total cash and investments	$	289,514			$	265,696
Insurance subsidiaries		283,380				258,675
Parent and other		6,134				7,021
Total assets		430,855				393,428
Insurance reserves and policyholder funds		249,578				225,106
Debt		37,759				37,761
Total shareholders' equity		109,488				99,613
Book value per common share		5.10				4.61
Statutory capital and surplus
Life and health		34,552				32,443
Property and casualty		48,161				47,670

FAQ

What were Atlantic American (AAME) net income and EPS for Q3 2025?

Atlantic American reported Q3 2025 net income of $0.6M, diluted EPS of $0.02.

How did Atlantic American (AAME) perform year-to-date through Sept 30, 2025?

Year-to-date through Sept 30, 2025 AAME reported net income of $4.7M and premium revenue nearly +12%.

What drove Atlantic American's (AAME) revenue growth in 2025?

Growth was driven by higher premiums in automobile liability, inland marine, automobile physical damage, Medicare supplement and group accident and health lines.

How did operating income for Atlantic American (AAME) change in 2025?

Operating income increased by $2.3M in Q3 2025 and by $7.7M for the nine months ended Sept 30, 2025 versus 2024.

What are Atlantic American's (AAME) key balance-sheet figures as of Sept 30, 2025?

As of Sept 30, 2025 AAME reported total assets of $430.9M, cash and investments of $289.5M, and shareholders' equity of $109.5M.

Did Atlantic American (AAME) report any significant investment gains in 2025?

Yes; unrealized gains on equity securities contributed positively for the three and nine month periods ended Sept 30, 2025.