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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 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.
Atlantic American Corporation (Nasdaq: AAME) reported a significant rise in net income for Q4 2020, reaching $11.8 million or $0.54 per diluted share, compared to $1.3 million or $0.06 in Q4 2019. For the full year, net income was $12.2 million or $0.56 per diluted share, recovering from a net loss of $0.4 million in 2019. Key factors included a $7.0 million increase in realized gains and improved loss experience in insurance operations. The Board announced the reinstatement of the annual dividend at $0.02 per share, payable on April 27, 2021.
Atlantic American Corporation (Nasdaq-AAME) reported a net income of $1.9 million, or $0.09 per diluted share, for the three months ended September 30, 2020, a sign of recovery from a net loss of $1.4 million during the same period in 2019. Year-to-date, net income reached $0.3 million versus a loss of $1.7 million in 2019. Key factors include a $5.5 million decrease in insurance benefits and a significant drop in claims in the Medicare supplement line, attributed to COVID-19 restrictions. The company anticipates strong performance in the property and casualty sector as they celebrate 65 years of Bankers Fidelity Life Insurance.
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