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Atlantic American Corporation Reports Third Quarter Results for 2023

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Atlantic American Corporation (Nasdaq- AAME) reported net income of $1.8 million for the three month period ended September 30, 2023, compared to a net loss of $0.7 million for the same period in 2022. The increase in net income was due to a more favorable loss experience in life and health operations and a decrease in unrealized losses on equity securities. Operating income increased $1.9 million for the three month period ended September 30, 2023, primarily due to a more favorable loss experience in life and health operations. However, ancillary and administrative costs also increased due to the implementation of a new actuarial valuation system and growth in business lines. Atlantic American Corporation is involved in specialty markets of the life, health, and property and casualty insurance industries. 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.
Positive
  • 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.
Negative
  • None.

ATLANTA, Nov. 13, 2023 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income of $1.8 million, or $0.08 per diluted share, for the three month period ended September 30, 2023, compared to net loss of $0.7 million, or $(0.04) per diluted share, for the three month period ended September 30, 2022. The Company had net income of $2.1 million, or $0.09 per diluted share, for the nine month period ended September 30, 2023, compared to net income of $0.5 million, or $0.01 per diluted share, for the nine month period ended September 30, 2022. The increase in net income for the three and nine month periods ended September 30, 2023 was primarily the result of a more favorable loss experience in the life and health operations, from the comparable periods in 2022, coupled with a decrease in unrealized losses on equity securities. Partially offsetting this increase in net income for the nine month period ended September 30, 2023 was an increase in ancillary costs related to the implementation of the new actuarial valuation system, coupled with an increase in administrative costs related to the growth in the group and individual lines of business within the life and health operations.

Operating income (as defined below) increased $1.9 million in the three month period ended September 30, 2023 from the three month period ended September 30, 2022. For the nine month period ended September 30, 2023, operating income decreased $0.3 million from the comparable period in 2022. The increase in operating income for the three month period ended September 30, 2023 was primarily the result of a more favorable loss experience in the life and health operations, from the comparable period in 2022. The decrease in operating income for the nine month period ended September 30, 2023 was primarily attributable to ancillary costs related to the implementation of the new actuarial valuation system, coupled with an increase in administrative costs related to the growth in the group and individual lines of business within the life and health operations, as mentioned above.
   
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     
        


FAQ

What is Atlantic American Corporation's ticker symbol?

Atlantic American Corporation's ticker symbol is Nasdaq- AAME.

What led to the increase in net income for Atlantic American Corporation?

The increase in net income was primarily due to a more favorable loss experience in life and health operations and a decrease in unrealized losses on equity securities.

How has Atlantic American Corporation's operating income changed?

Operating income increased $1.9 million for the three month period ended September 30, 2023, primarily due to a more favorable loss experience in life and health operations.

What is the focus of Atlantic American Corporation's business?

Atlantic American Corporation is involved in specialty markets of the life, health, and property and casualty insurance industries.

Atlantic American Corp

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Insurance - Life
Life Insurance
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United States of America
ATLANTA