Atlantic American Corporation Reports Third Quarter Results for 2023
- Net income increased for the three and nine month periods ended September 30, 2023, compared to the same periods in 2022.
- Operating income also increased for the three month period ended September 30, 2023, primarily due to a more favorable loss experience in life and health operations.
- The company's newest legal entity, Atlantic Capital Life Assurance Company, has recently launched products in select states and expects additional state releases over the remainder of the year.
- None.
ATLANTA, Nov. 13, 2023 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income of
Operating income (as defined below) increased
Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are delighted with the improvements in net income for each of the quarter and year-to-date period. Although our revenue numbers are off slightly compared to prior year, operating income remains quite strong for 2023. Our newest legal entity, Atlantic Capital Life Assurance Company, recently launched product in a select number of states and we expect additional states to be released over the remainder of the year.”
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, 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 Private Securities Litigation Reform Act: 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 those risks and uncertainties detailed in statements and reports that Atlantic American Corporation files from time to time with the Securities and Exchange Commission.
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) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Insurance premiums | |||||||||||||||
Life and health | $ | 27,175 | $ | 28,739 | $ | 84,244 | $ | 86,773 | |||||||
Property and casualty | 16,571 | 17,641 | 51,662 | 53,753 | |||||||||||
Insurance premiums, net | 43,746 | 46,380 | 135,906 | 140,526 | |||||||||||
Net investment income | 2,325 | 2,641 | 7,425 | 7,510 | |||||||||||
Realized investment gains, net | - | 101 | 70 | 29 | |||||||||||
Unrealized losses on equity securities, net | (1,486 | ) | (2,783 | ) | (3,367 | ) | (5,456 | ) | |||||||
Other income | 6 | 4 | 14 | 11 | |||||||||||
Total revenue | 44,591 | 46,343 | 140,048 | 142,620 | |||||||||||
Insurance benefits and losses incurred | |||||||||||||||
Life and health | 14,937 | 18,599 | 48,554 | 58,003 | |||||||||||
Property and casualty | 11,881 | 12,031 | 38,089 | 36,549 | |||||||||||
Commissions and underwriting expenses | 11,064 | 12,843 | 36,830 | 35,894 | |||||||||||
Interest expense | 850 | 523 | 2,407 | 1,291 | |||||||||||
Other expense | 3,721 | 3,296 | 11,631 | 10,151 | |||||||||||
Total benefits and expenses | 42,453 | 47,292 | 137,511 | 141,888 | |||||||||||
Income (loss) before income taxes | 2,138 | (949 | ) | 2,537 | 732 | ||||||||||
Income tax expense (benefit) | 379 | (265 | ) | 480 | 253 | ||||||||||
Net income (loss) | $ | 1,759 | $ | (684 | ) | $ | 2,057 | $ | 479 | ||||||
Earnings (loss) per common share (basic and diluted) | $ | 0.08 | $ | (0.04 | ) | $ | 0.09 | $ | 0.01 | ||||||
Reconciliation of Non-GAAP Financial Measure | |||||||||||||||
Net income (loss) | $ | 1,759 | $ | (684 | ) | $ | 2,057 | $ | 479 | ||||||
Income tax expense (benefit) | 379 | (265 | ) | 480 | 253 | ||||||||||
Realized investment gains, net | - | (101 | ) | (70 | ) | (29 | ) | ||||||||
Unrealized losses on equity securities, net | 1,486 | 2,783 | 3,367 | 5,456 | |||||||||||
Non-GAAP operating income | $ | 3,624 | $ | 1,733 | $ | 5,834 | $ | 6,159 | |||||||
September 30, | December 31, | ||||||||||||||
Selected Balance Sheet Data | 2023 | 2022 | |||||||||||||
Total cash and investments | $ | 244,709 | $ | 257,575 | |||||||||||
Insurance subsidiaries | 238,497 | 251,378 | |||||||||||||
Parent and other | 6,212 | 6,197 | |||||||||||||
Total assets | 361,620 | 367,064 | |||||||||||||
Insurance reserves and policyholder funds | 201,988 | 202,651 | |||||||||||||
Debt | 36,757 | 35,747 | |||||||||||||
Total shareholders' equity | 98,746 | 102,193 | |||||||||||||
Book value per common share | 4.57 | 4.74 | |||||||||||||
Statutory capital and surplus | |||||||||||||||
Life and health | 37,392 | 36,672 | |||||||||||||
Property and casualty | 53,360 | 53,023 | |||||||||||||
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