Welcome to our dedicated page for Atlantic Amer news (Ticker: AAME), a resource for investors and traders seeking the latest updates and insights on Atlantic Amer stock.
Introduction
Atlantic American Corp (AAME) is a publicly traded holding company that operates across well-defined specialty markets in the insurance industry. It is structured into two main segments: a life and health division and a property and casualty division. Utilizing a robust network of independent agents and brokers, the company offers specialized insurance products designed to meet the diverse needs of individual policyholders, commercial clients, state governments, and local municipalities.
Business Model and Operations
The company fundamentally generates revenue from the collection of premiums as well as from investment income derived from its financial portfolio. Its operational framework is built around two key subsidiaries which each focus on different aspects of the insurance sector. By doing so, Atlantic American has crafted a business model that emphasizes risk management, specialized underwriting, and tailored coverage solutions. The firm’s strategic emphasis on specialty insurance allows it to address niche markets where detailed knowledge of underwriting practices and regulatory compliance is essential.
Life and Health Insurance Division
Under its life and health operations, Atlantic American administers a range of products through its flagship subsidiary Bankers Fidelity. This division is responsible for offering ordinary and term life insurance products, along with supplemental health options such as Medicare supplements and related health insurance policies. The focus of this segment is on providing personalized life and health coverage that addresses the unique needs of diverse demographic groups, supported by a comprehensive underwriting process and rigorous risk assessment techniques.
Property and Casualty Division
Complementing its life and health initiatives, the property and casualty division, operated primarily by American Southern, offers coverage solutions that include bodily injury liability, property damage liability, uninsured motorist protection, and physical damage coverage. This segment caters to commercial clients as well as state and local government entities by providing specialized product offerings, including tailored business automobile coverage on multi-year contracts. The division’s focus on these niche insurance products underlines the firm’s commitment to delivering dedicated and specialized risk management solutions.
Market Position and Competitive Landscape
Atlantic American Corp has established a reliable market position by concentrating on specialty insurance segments that require deep underwriting expertise and a customized approach to risk management. With licenses in 46 states and the District of Columbia, the company benefits from a broad reach and diverse market insights. Its subsidiaries have received A.M. Best ratings ranging from A- to B+ and B++, affirming the underlying financial and operational strength of their insurance offerings. This recognition helps differentiate Atlantic American from broader, less specialized competitors, as the company’s deep industry knowledge is reflected in its specialized product lines and comprehensive market coverage.
Revenue Model and Investment Approach
The revenue model of Atlantic American is anchored on sustainable premium collections coupled with prudent investment strategies that underpin its financial resilience. By focusing on well-defined segments within the insurance spectrum, the company is able to maintain consistent premium streams and generate ancillary income from its investment activities. These mechanisms collectively support the company’s ability to deliver reliable coverage options while ensuring adequate capital reserves to meet regulatory and operational requirements.
Operational Excellence and Risk Management
Risk management forms a core pillar of Atlantic American’s operations. The company employs intricate underwriting practices and risk assessment frameworks that are critical in the complex insurance landscape. The emphasis on operational excellence is not only evident in its stringent underwriting standards but also in its proactive approach to market changes and regulatory adjustments. This dual focus on operational and financial prudence underscores the trust and reliability that clients and independent agents have come to expect from its insurance products.
Regulatory Environment and Licensing
Operating within a heavily regulated environment, Atlantic American ensures adherence to all relevant state and federal guidelines. With licenses across a majority of states and the District of Columbia, the company has built a network that supports its nationwide operational capabilities. This extensive presence across multiple geographies allows it to tap into varied market segments, thereby maintaining a balanced and diversified portfolio of insurance products.
Conclusion
In summary, Atlantic American Corp exemplifies a specialized approach to the insurance industry. Through its focused segments in life and health insurance via Bankers Fidelity and property and casualty insurance through American Southern, the company offers tailored and reliable insurance products underpinned by rigorous underwriting and risk management practices. Its operational strategy, anchored by sustainable premium collection and investment income, reinforces the company’s position as a dependable entity in niche insurance markets. This comprehensive structure not only fosters operational resilience but also instills confidence among its independent agents, brokers, and policyholders.
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.
Atlantic American Corporation (Nasdaq: AAME) reported a net loss of $0.7 million, or $0.04 per diluted share, for Q3 2022, an improvement from a net loss of $0.9 million in Q3 2021. For the first nine months of 2022, net income dropped to $0.5 million, or $0.01 per diluted share, down from $1.6 million in 2021. This dip is attributed to a decline of $10.9 million in unrealized gains, offset by increased operating income of $10.2 million, due to better performance in life and health operations. The company announced the formation of Atlantic Capital Life Assurance Company, now authorized to operate.
Atlantic American Corporation (Nasdaq: AAME) reported a net loss of $1.7 million, or $0.09 per diluted share, for the three months ended June 30, 2022, compared to a net income of $3.0 million, or $0.14 per diluted share, in 2021. However, the company achieved a net income of $1.2 million for the six-month period, down from $2.5 million YoY. Operating income increased significantly by $4.4 million for the quarter and $6.1 million for the half-year due to improved loss experience in life and health insurance, as well as a rise in insurance premiums by 9.5% in the property and casualty segment.
Atlantic American Corporation (Nasdaq: AAME) reported a net income of $2.8 million for Q1 2022, up from a net loss of $0.4 million in Q1 2021, translating to $0.13 per common share. Operating income rose to $1.6 million from a loss of $1.4 million, driven by improved loss experience in its life and health operations. Premium revenue increased by 2.2% to $47.1 million. The company noted positive momentum in its voluntary benefits division and anticipates continued success in future quarters.
Atlantic American Corporation (Nasdaq-AAME) reported a net income of $2.7 million ($0.12 per diluted share) for Q4 2021, down from $11.8 million ($0.54 per diluted share) in Q4 2020. For the full year, net income was $4.3 million ($0.19 per diluted share), a decrease from $12.2 million ($0.56 per diluted share) in 2020. The decline was attributed to an $8 million fall in unrealized gains and an $11.8 million rise in insurance losses. The Board announced an annual dividend of $0.02 per share, payable April 27, 2022. Positive developments included a significant multi-year contract renewal in property and casualty operations.
Atlantic American Corporation (Nasdaq: AAME) reported a net loss of $0.9 million ($0.05 per diluted share) for Q3 2021, a significant decline from a net income of $1.9 million ($0.09 per diluted share) in Q3 2020. For the first nine months of 2021, the Company posted a net income of $1.6 million compared to $0.3 million in 2020. The loss in Q3 was attributed to a $5.8 million rise in insurance benefits, offset by $1.4 million in unrealized gains on equity securities. The increase in operating loss for both periods was driven by higher claims in the Medicare supplement line.
Atlantic American Corporation (Nasdaq- AAME) announced a net income of $3.0 million, or $0.14 per diluted share, for Q2 2021, down from $6.5 million, or $0.30 per share in Q2 2020. For the first half of 2021, net income reached $2.5 million, a turnaround from a net loss of $1.6 million in 2020. The decrease in Q2 net income was attributed to a $4.5 million rise in life and health insurance claims. Conversely, the six-month period benefitted from $4.7 million in unrealized gains on equity securities, highlighting market fluctuations. CEO Hilton H. Howell, Jr. expressed optimism about premium growth and positioning for upcoming enrollment periods.
Atlantic American Corporation (Nasdaq- AAME) reported a net loss of $0.4 million, or $0.03 per share, for Q1 2021, a significant improvement from a loss of $8.1 million or $0.40 per share in Q1 2020. This change was driven by unrealized gains on equity securities of $0.7 million, contrasting with losses of $8.5 million in the prior year. Premium revenue rose by 1.2% to $46.1 million, largely due to growth in automobile insurance lines. The operating loss decreased by $0.6 million to $1.4 million, attributed to better performance in life and health operations.
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (ICR) of 'a' for American Southern Insurance Company and its subsidiary. The FSR of A- (Excellent) and ICRs of 'a-' were also affirmed for Bankers Fidelity Life Insurance Company. Atlantic American Corporation (NASDAQ: AAME) received a Long-Term ICR of 'bbb-'. The outlook for all ratings is stable, reflecting strong balance sheet strength, adequate operating performance, and disciplined underwriting, despite some financial leverage and dividends paid to service debt.
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