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Atlantic American Corporation (NASDAQ: AAME) is a publicly traded insurance holding company based in Atlanta, Georgia. Through its subsidiaries, the company operates in the specialty markets of the life, health, and property and casualty insurance industries. The principal subsidiaries include American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company, Bankers Fidelity Assurance Company, and the newly formed Atlantic Capital Life Assurance Company.
The company's core business comprises two primary segments: American Southern and Bankers Fidelity. The American Southern segment focuses on providing property and casualty insurance, offering coverage for bodily injury, property damage, and automobile liability to commercial accounts, state governments, and local municipalities. The Bankers Fidelity segment offers a variety of life and supplemental health products, such as ordinary and term life insurance, Medicare supplement plans, and other health insurance products.
Atlantic American Corp holds licenses to operate in 46 states and the District of Columbia, utilizing an exclusive network of independent agents and brokers to market its products. The company's insurance subsidiaries are highly rated by A.M. Best, with ratings ranging from A- (Excellent) to B+ (Good), reflecting their financial strength and stability.
In recent years, the company has experienced a mixed financial performance, reporting fluctuations in net income due to various factors including market volatility and operational changes. For instance, in the first quarter of 2022, the company reported net income of $2.8 million, a significant improvement from the net loss of $0.4 million in the same period of the previous year. This was primarily attributed to favorable loss experience in the life and health operations and a slight increase in premium revenue.
Notably, the company's life and health segment faced challenges in 2023, resulting in a net operating loss of $2.4 million for the first quarter, driven by decreased premium revenue and unfavorable loss experience. To address these issues, Atlantic American has been investing in human talent and information technology, especially within the life and health segment, aiming to improve top-line results and profitability.
The property and casualty segment continues to show resilience and profitability despite challenges such as increased loss frequency and severity in certain lines of business. The disciplined underwriting approach and strategic rate adjustments in the Medicare supplement business have positively impacted the company's performance.
The company is actively expanding its footprint, with Atlantic Capital Life Assurance Company recently obtaining authorization to operate in additional states. This expansion is expected to drive growth and increase the company's market presence in the coming years.
Despite facing some operational and market challenges, Atlantic American Corporation has maintained a commitment to delivering value to shareholders, recently declaring an annual dividend of $0.02 per share. The company's strategic initiatives and focused investments are aimed at achieving sustainable growth and long-term profitability.
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.
ATLANTA, Ga., April 21, 2023 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq: AAME) announced it received a notice from Nasdaq for failing to file its Annual Report on Form 10-K for the year ended December 31, 2022, thus breaching Nasdaq Listing Rule 5250(c)(1). This notice does not immediately affect the listing or trading of AAME’s common stock, and the company has 60 calendar days to submit a compliance plan to Nasdaq. If accepted, AAME may receive up to 180 additional days to comply. The company is currently working to file the Form 10-K as soon as possible. Atlantic American is an insurance holding company involved in life, health, and property and casualty insurance sectors.
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