Premiums and Revenue - American Southern's net earned premiums for automobile liability increased to $39,788,000 in 2024 from $38,821,000 in 2023, reflecting a growth of 2.5%[16] - Total net earned premiums for Bankers Fidelity reached $111,042,000 in 2024, slightly up from $110,382,000 in 2023, indicating a growth of 0.6%[22] - Bankers Fidelity's Medicare supplement insurance accounted for 82% of its net earned premiums in 2024, while life insurance represented the remaining 18%[21] - Bankers Fidelity's group life insurance premiums increased to $14,700,000 in 2024 from $12,431,000 in 2023, marking a growth of 18.3%[22] Agent and Market Strategy - The number of licensed agents for Bankers Fidelity was approximately 6,243 as of December 31, 2024, with 1,429 agents actively writing policies during the year[25] - The company emphasizes a marketing strategy based on diversification, with unique product offerings such as Vantage Flex Plus® and Vantage Recovery®[28] - The company actively manages its agent selection process and offers profit-sharing arrangements linked to the profitability of the underlying business[23] Claims and Reserves - Approximately 72% of the losses and claims reserves at December 31, 2024, were related to property and casualty operations, while 28% were related to life and health[42] - Bankers Fidelity's claims processing is efficient, with properly documented claims generally paid within five business days of receipt[41] - The Company maintains loss reserves for claims based on known facts and circumstances, with periodic reviews by independent consulting actuaries[49] - The range of reserve estimates for December 31, 2024, indicated that reserves could be as much as 5.2% lower or as much as 25.0% higher than recorded amounts[48] - American Southern had one IRIS ratio outside the usual range due to adverse reserve developments on prior year claims in the commercial automobile liability line[74] Financial Performance - Bankers Fidelity experienced a net loss for the year, primarily due to federal income taxes, which decreased surplus levels[75] - Bankers Fidelity Life Insurance Company saw capital and surplus fall greater than 10% from 2023 to 2024, primarily due to an extraordinary dividend paid to its parent[76] - The Company's insurance subsidiaries' risk-based capital levels exceeded the required regulatory levels as of December 31, 2024[79] - The Company believes it is in compliance with all regulatory requirements concerning reserve levels and financial practices[67] Investments - Total investments decreased from $237,067 thousand in 2023 to $230,126 thousand in 2024, a decline of approximately 2.0%[81] - Average yield on investments slightly decreased from 3.6% in 2023 to 3.5% in 2024[84] - Net investment income decreased from $10,058 thousand in 2023 to $9,791 thousand in 2024, a decline of about 2.7%[84] - Total fixed maturities accounted for 92.4% of total investments in 2024, up from 92.0% in 2023[81] - The total amortized cost of fixed maturities was $236.3 million in 2024, down from $238.6 million in 2023[81] - The total cost of equity securities remained stable at $4.9 million for both 2024 and 2023[82] - Realized investment gains increased significantly from $70 thousand in 2023 to $1,210 thousand in 2024[84] - Other invested assets increased from $7,000 thousand in 2023 to $7,900 thousand in 2024, a growth of approximately 12.9%[82] - The company focuses on quality and diversification in its investment strategy to improve the risk versus return profile[85] Workforce - The company employed 156 people as of December 31, 2024, with 153 being full-time employees[86] Risk Management - American Southern is licensed to operate in 32 states and the District of Columbia, focusing on tailored commercial automobile insurance for large motor pools and fleets[15] - American Southern maintains a property catastrophe treaty with a limit of $5.5 million excess of $500,000 retention[56]

Financial Performance - Atlantic American Corporation reported a net income of $0.4 million, or $0.02 per diluted share, for Q4 2024, compared to a net loss of $2.2 million, or $(0.11) per diluted share, for Q4 2023[2]. - For the full year 2024, the company had a net loss of $4.3 million, or $(0.23) per diluted share, compared to a net loss of $0.2 million, or $(0.03) per diluted share, for 2023[2]. - The increase in net income for Q4 2024 was primarily due to favorable loss experience in life and health operations, particularly in group life and Medicare supplement lines[2]. - The company experienced unfavorable loss experience in property and casualty operations, particularly in the automobile liability line, contributing to the annual net loss[2]. - The non-GAAP operating loss for the year was $(4.958) million, compared to an operating income of $1.542 million in 2023[8]. Revenue and Premiums - Insurance premiums for life and health increased to $29.351 million in Q4 2024 from $26.138 million in Q4 2023, while property and casualty premiums decreased to $16.053 million from $16.781 million[8]. - Total revenue for Q4 2024 was $49.043 million, up from $46.745 million in Q4 2023, with total revenue for the year at $188.227 million compared to $186.793 million in 2023[8]. Dividends and Shareholder Equity - The company declared an annual dividend of $0.02 per share, payable on April 23, 2025, to shareholders of record as of April 9, 2025[3]. - The company's total shareholders' equity decreased to $99.613 million in 2024 from $107.275 million in 2023[8]. Assets - Total assets increased to $393.428 million as of December 31, 2024, compared to $381.265 million in 2023[8].

Financial Performance - Atlantic American Corporation reported a net income of $0.4 million, or $0.02 per diluted share, for the three months ended December 31, 2024, compared to a net loss of $2.2 million, or $(0.11) per diluted share, for the same period in 2023 [1] - For the year ended December 31, 2024, the company had a net loss of $4.3 million, or $(0.23) per diluted share, compared to a net loss of $0.2 million, or $(0.03) per diluted share, for the year ended December 31, 2023 [1] - The increase in net income for the fourth quarter was primarily due to favorable loss experience in life and health operations, particularly in group life and Medicare supplement lines [1] Business Segments - The company experienced exceptional new sales in its Medicare supplement business during the fourth quarter annual enrollment period, with strong momentum continuing into the new year [2] - Rising costs in the commercial automobile market have affected profitability, prompting the company to take steps to improve rates for that line of business [2] Revenue and Expenses - Total revenue for the three months ended December 31, 2024, was $49.043 million, compared to $46.745 million for the same period in 2023 [7] - Insurance premiums for life and health increased to $29.351 million in Q4 2024 from $26.138 million in Q4 2023, while property and casualty premiums decreased slightly from $16.781 million to $16.053 million [7] - Total benefits and expenses for the three months ended December 31, 2024, were $48.498 million, down from $49.847 million in the same period in 2023 [7] Dividends and Shareholder Value - The Board of Directors approved an annual dividend of $0.02 per share, payable on April 23, 2025, to shareholders of record as of April 9, 2025 [2] Balance Sheet Highlights - As of December 31, 2024, total assets were $393.428 million, an increase from $381.265 million in 2023 [8] - Total shareholders' equity decreased to $99.613 million from $107.275 million in the previous year [8] - The book value per common share was $4.61, down from $4.99 in 2023 [8]

Financial Performance - For the three-month period ended September 30, 2024, net income was a loss of $1.998 million, or $(0.10) per diluted share, compared to net income of $1.759 million, or $0.08 per diluted share for the same period in 2023[94]. - Total revenue for the three-month period was $44.519 million, slightly down from $44.591 million in the comparable period in 2023[92]. - The Parent's insurance subsidiaries reported statutory net income of $2.0 million for the nine-month period ended September 30, 2024, down from $8.9 million in the same period of 2023[115]. Revenue and Premiums - Premium revenue for the three-month period increased slightly to $43.782 million from $43.746 million in the comparable period in 2023, while for the nine-month period, it decreased by $2.6 million, or 1.9%, to $133.327 million from $135.906 million[95]. - Net earned premium revenue at Bankers Fidelity increased by $0.4 million, or 1.4%, during the three-month period ended September 30, 2024, but decreased by $2.6 million, or 3.0%, for the nine-month period[105]. - Gross earned premiums from the Medicare supplement line decreased by $1.7 million, or 5.2%, for the three-month period and by $7.4 million, or 7.3%, for the nine-month period ended September 30, 2024[105]. Expenses and Losses - Operating income decreased by $4.3 million for the three-month period and by $10.0 million for the nine-month period ended September 30, 2024, primarily due to unfavorable loss experience in life and health operations[96]. - Insurance benefits and losses incurred increased to $30.760 million for the three-month period ended September 30, 2024, compared to $26.818 million for the same period in 2023[92]. - Insurance benefits and losses incurred at American Southern increased by $2.1 million, or 17.7%, for the three-month period ended September 30, 2024, and by $2.9 million, or 7.7%, for the nine-month period[102]. Ratios and Underwriting - The combined ratio for American Southern was 109.8% for the three-month period ended September 30, 2024, indicating an underwriting loss, compared to 97.9% for the same period in 2023[98]. - The loss ratio for the three-month period ended September 30, 2024, was 86.2%, up from 71.7% in the same period of 2023, while for the nine-month period, it increased to 79.5% from 73.7%[102]. - Commissions and underwriting expenses decreased by $0.5 million, or 11.7%, for the three-month period and by $1.0 million, or 7.7%, for the nine-month period ended September 30, 2024[103]. Investments and Unrealized Losses - Unrealized losses on equity securities were $(1.746) million for the three-month period ended September 30, 2024, compared to $(1.486) million for the same period in 2023[92]. - The Company recognized net unrealized losses on equity securities of $1.7 million during the three-month period ended September 30, 2024, compared to $1.5 million in the same period of 2023[111]. - The Company had net realized investment gains of less than $0.1 million during the three-month period ended September 30, 2024, compared to no gains in the same period of 2023[109]. Cash and Liquidity - As of September 30, 2024, the Company had cash and cash equivalents of $23.0 million, down from $28.3 million at December 31, 2023, primarily due to net cash used in operating activities of $4.8 million[124]. - The Company believes existing cash balances and expected dividends will meet liquidity requirements for the foreseeable future[125]. - The Company has access to low-cost funding through its membership in the Federal Home Loan Bank of Atlanta, with credit availability of approximately $8.2 million as of September 30, 2024[121]. Debt and Borrowings - The Company had outstanding borrowings of $4.0 million under its Revolving Credit Agreement as of September 30, 2024, compared to $3.0 million as of December 31, 2023[123]. - The Company has accrued but unpaid dividends on the Series D Preferred Stock totaling $0.3 million as of September 30, 2024[120]. - The Company has a Revolving Credit Agreement with a maturity date extended to March 22, 2027, and requires maintaining a consolidated net worth of not less than $64.2 million[122]. Internal Controls and Remediation - The Company is in the process of remediating a material weakness in internal control over financial reporting, with remediation efforts ongoing since March 31, 2024[132]. - The Company has implemented a systematic review of underwriting income components for its life products, which includes analytical reports to identify potential anomalies[132]. - The Company is developing a system to perform calculations independently of actuarial models, expected to be operational by December 31, 2024[133]. Stock Repurchase - No common stock purchases were made under the Repurchase Plan during the three-month period ending September 30, 2024, leaving a maximum of 325,129 shares that may yet be purchased[137].

Financial Performance - Atlantic American Corporation reported a net loss of $2.0 million, or $(0.10) per diluted share, for Q3 2024, compared to a net income of $1.8 million, or $0.08 per diluted share, in Q3 2023[1]. - For the nine-month period ended September 30, 2024, the company experienced a net loss of $4.7 million, or $(0.24) per diluted share, compared to a net income of $2.1 million, or $0.09 per diluted share, in the same period of 2023[1]. - The company reported a non-GAAP operating loss of $0.7 million for Q3 2024, down from an operating income of $3.6 million in Q3 2023[6]. Revenue and Premiums - Premium revenue for Q3 2024 slightly increased to $43.8 million from $43.7 million in Q3 2023, while for the nine-month period, it decreased by $2.6 million, or 1.9%, to $133.3 million[2]. - Total revenue for Q3 2024 was $44.5 million, a slight decrease from $44.6 million in Q3 2023[6]. Claims and Expenses - The increase in net loss was primarily due to unfavorable loss experience in life and health operations, particularly in group life and Medicare supplement lines, and in property and casualty operations due to higher claims in automobile liability[1]. - Insurance benefits and losses incurred for life and health operations rose to $16.8 million in Q3 2024 from $14.9 million in Q3 2023, while property and casualty losses increased to $14.0 million from $11.9 million[6]. - Total benefits and expenses for Q3 2024 were $47.0 million, compared to $42.5 million in Q3 2023[6]. Future Outlook - The company remains optimistic about future performance, citing strong sales momentum in life and health operations and expectations for stabilization in the property and casualty market[3]. Assets - Total assets as of September 30, 2024, were $386.99 million, an increase from $381.27 million at the end of 2023[6].

Financial Performance - Atlantic American Corporation reported a net loss of $2.0 million, or $(0.10) per diluted share, for the three months ended September 30, 2024, compared to a net income of $1.8 million, or $0.08 per diluted share, for the same period in 2023 [1] - For the nine months ended September 30, 2024, the company had a net loss of $4.7 million, or $(0.24) per diluted share, compared to a net income of $2.1 million, or $0.09 per diluted share, for the same period in 2023 [1] - The increase in net loss was primarily due to unfavorable loss experience in life and health operations and property and casualty operations, particularly in group life, Medicare supplement, and automobile liability lines [1] Revenue and Premiums - Premium revenue for the three months ended September 30, 2024, increased slightly to $43.8 million from $43.7 million in the comparable period in 2023 [2] - For the nine months ended September 30, 2024, premium revenue decreased by $2.6 million, or 1.9%, to $133.3 million from $135.9 million in the comparable period in 2023, mainly due to a decrease in Medicare supplement insurance premiums [2] Management Commentary - The CEO expressed optimism about strong sales momentum in life and health operations and highlighted the promising market entry of the newest charter supported by enhanced underwriting and distribution strategies [3] - The property and casualty business is navigating a highly inflationary automobile market, but the company expects conditions to stabilize soon [3] Insurance Operations - The company operates in specialty markets of life, health, and property and casualty insurance through its subsidiaries [3] - Key subsidiaries include American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company, Bankers Fidelity Assurance Company, and Atlantic Capital Life Assurance Company [3] Financial Data Summary - Total revenue for the three months ended September 30, 2024, was $44.5 million, compared to $44.6 million in 2023 [7] - Total benefits and expenses for the three months ended September 30, 2024, were $47.0 million, compared to $42.5 million in 2023 [7] - The company reported total cash and investments of $263.8 million as of September 30, 2024 [8]

Financial Performance - For the three months ended June 30, 2024, net income was a loss of $0.7 million, or $(0.04) per diluted share, compared to net income of $1.7 million, or $0.08 per diluted share for the same period in 2023[98]. - Total revenue for the three months ended June 30, 2024, was $47.7 million, a decrease of 3.1% from $49.2 million in the same period in 2023[94]. - The company reported a net loss of $2.7 million, or $(0.14) per diluted share, for the six months ended June 30, 2024, compared to net income of $0.3 million for the same period in 2023[98]. Insurance Operations - Insurance premiums, net, decreased by $1.1 million, or 2.3%, to $45.0 million for the three months ended June 30, 2024, compared to $46.1 million in the same period in 2023[99]. - American Southern's gross written premiums decreased by $1.6 million, or 4.1%, during the three months ended June 30, 2024, compared to the same period in 2023[104]. - The loss ratio for American Southern increased to 81.1% for the three months ended June 30, 2024, compared to 75.8% for the same period in 2023[102]. - Net earned premiums for American Southern decreased by $0.3 million, or 1.9%, during the three months ended June 30, 2024, compared to the same period in 2023[106]. - Insurance benefits and losses incurred at American Southern increased by $0.7 million, or 5.0%, for the three-month period ended June 30, 2024, and by $0.8 million, or 3.2%, for the six-month period[108]. - The combined ratio for American Southern was 101.3% for the three months ended June 30, 2024, compared to 100.3% for the same period in 2023[102]. - The loss ratio for the three-month period ended June 30, 2024, was 81.1%, up from 75.8% in the same period in 2023, while for the six-month period, it increased to 76.3% from 74.7%[108]. - Commissions and underwriting expenses decreased by $0.8 million, or 19.1%, for the three-month period ended June 30, 2024, and by $0.5 million, or 5.7%, for the six-month period[109]. - Net earned premium revenue at Bankers Fidelity decreased by $0.7 million, or 2.6%, for the three-month period ended June 30, 2024, and by $2.9 million, or 5.2%, for the six-month period[111]. - Gross earned premiums from the Medicare supplement line decreased by $2.7 million, or 8.2%, for the three-month period ended June 30, 2024, and by $5.7 million, or 8.4%, for the six-month period[111]. - Insurance benefits and losses incurred increased by $1.8 million, or 11.1%, for the three-month period ended June 30, 2024, and by $3.1 million, or 9.1%, for the six-month period[112]. - The combined ratio for the three-month period ended June 30, 2024, was 102.0%, compared to 94.6% in the same period in 2023, while for the six-month period, it was 106.2% compared to 96.7%[111]. Investment and Financing - Unrealized gains on equity securities increased during the six months ended June 30, 2024, partially offsetting the increase in net loss[99]. - Investment income decreased by $0.1 million, or 5.6%, for the three-month period ended June 30, 2024, and by $0.1 million, or 2.5%, for the six-month period[114]. - Interest expense increased by $0.1 million, or 7.4%, for the three-month period ended June 30, 2024, and by $0.2 million, or 10.6%, for the six-month period[118]. - As of June 30, 2024, the Company had outstanding Junior Subordinated Debentures totaling $33.7 million, with an effective interest rate of 9.65%[125]. - The Company had outstanding borrowings of $4.0 million under its Revolving Credit Agreement as of June 30, 2024, compared to $3.0 million as of December 31, 2023[130]. - The Series D Preferred Stock has a stated value of $100 per share and accrues annual dividends at a rate of $7.25 per share, with accrued but unpaid dividends totaling $0.2 million as of June 30, 2024[127]. - The Company has access to approximately $8.2 million in credit availability from the Federal Home Loan Bank of Atlanta as of June 30, 2024[128]. - The Revolving Credit Agreement was amended to extend the maturity date to March 22, 2027, and requires the Company to maintain a consolidated net worth of not less than $64.2 million[129]. - The Company has pledged bonds with an amortized cost of $9.4 million to the Federal Home Loan Bank as of June 30, 2024[128]. Liquidity and Cash Flow - The Company reported a decrease in cash and cash equivalents from $28.3 million at December 31, 2023, to $21.2 million at June 30, 2024, primarily due to net cash used in operating activities of $4.9 million[131]. - The Company believes existing cash balances and expected payments from subsidiaries will meet liquidity requirements for the foreseeable future[132]. Corporate Governance - The Company is in the process of remediating a material weakness in internal control over financial reporting, with expected operational enhancements by September 30, 2024[139]. - The Company has not made any purchases of common stock under its Repurchase Plan during the three-month period ending June 30, 2024, with a maximum of 325,129 shares remaining available for repurchase[144].

Financial Performance - Atlantic American Corporation 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, or $0.08 per diluted share, in Q2 2023[1]. - Operating income decreased by $2.8 million in Q2 2024 compared to Q2 2023, and by $5.7 million for the six-month period ended June 30, 2024[2]. - Total revenue for Q2 2024 was $47.7 million, down from $49.2 million in Q2 2023[6]. - Non-GAAP operating loss for Q2 2024 was $(1.1) million, compared to an operating income of $1.7 million in Q2 2023[6]. Insurance Premiums and Claims - Insurance premiums for life and health decreased to $27.4 million in Q2 2024 from $28.2 million in Q2 2023, while property and casualty premiums decreased to $17.5 million from $17.9 million[6]. - Insurance benefits and losses incurred for life and health increased to $17.6 million in Q2 2024 from $15.8 million in Q2 2023[6]. - The company experienced unfavorable loss experience in both life and health operations and property and casualty operations due to increased claims[2]. Assets and Book Value - The total assets of Atlantic American Corporation increased to $386.0 million as of June 30, 2024, compared to $381.3 million at the end of 2023[6]. - Book value per common share decreased to $4.67 as of June 30, 2024, from $4.99 at the end of 2023[6]. Future Outlook - The company is optimistic about future performance due to strategic investments in technology and recent product launches[3].

Core Viewpoint - Atlantic American Corporation reported a net loss of $0.7 million for Q2 2024, a significant decline from a net income of $1.7 million in Q2 2023, primarily due to unfavorable loss experiences in life, health, and property and casualty operations [1][2]. Financial Performance - For the three-month period ended June 30, 2024, operating income decreased by $2.8 million compared to the same period in 2023, and for the six-month period, it decreased by $5.7 million [2]. - The total revenue for Q2 2024 was $49.188 million, compared to $47.668 million in Q2 2023, indicating a slight increase [7]. - Insurance premiums for life and health decreased from $27.449 million in Q2 2023 to $28.180 million in Q2 2024, while property and casualty premiums increased from $17.544 million to $17.880 million [7]. Loss Experience - The increase in net loss was attributed to unfavorable loss experiences in life and health operations, particularly in group life and Medicare supplement lines, as well as in property and casualty operations due to increased claims in automobile liability [2][3]. - Insurance benefits and losses incurred for life and health were $15.817 million in Q2 2024, down from $17.579 million in Q2 2023, while property and casualty losses decreased from $14.228 million to $13.548 million [7]. Strategic Outlook - The company remains optimistic about future performance, citing strategic investments in technology and talent, as well as recent product launches in key states, which are expected to enhance sales during the upcoming annual enrollment period [3]. - The property and casualty division has shown resilience in a softening market, consistently writing profitable business [3]. Balance Sheet Highlights - As of June 30, 2024, total cash and investments amounted to $256.525 million, a decrease from $265.368 million at the end of 2023 [8]. - Total assets increased to $386.007 million from $381.265 million, while total shareholders' equity decreased from $107.275 million to $100.672 million [8].

Financial Performance - For the three-month period ended March 31, 2024, net loss was $1.998 million, or $(0.10) per diluted share, compared to a net loss of $1.446 million, or $(0.08) per diluted share, for the same period in 2023[95]. - Total revenue for the three-month period ended March 31, 2024, was $46.997 million, an increase of 1.6% from $46.269 million in the same period of 2023[93]. - Operating income decreased by $2.9 million for the three-month period ended March 31, 2024, primarily due to unfavorable loss experience in life and health operations[96]. - The Parent's insurance subsidiaries reported a statutory net loss of $1.6 million for the three months ended March 31, 2024, compared to a net income of $1.1 million in the same period in 2023[117]. Insurance Premiums - Insurance premiums, net, decreased by $1.548 million, or 3.4%, to $44.552 million for the three-month period ended March 31, 2024, from $46.100 million in the same period of 2023[96]. - American Southern's gross written premiums decreased by $1.0 million, or 10.2%, to $8.470 million for the three-month period ended March 31, 2024, compared to $9.430 million in the same period of 2023[98]. - Bankers Fidelity's net earned premiums decreased to $26.674 million for the three-month period ended March 31, 2024, from $28.889 million in the same period of 2023[106]. - Net earned premium revenue decreased by $2.2 million, or 7.7%, to $26.4 million for the three months ended March 31, 2024, compared to the same period in 2023[109]. Loss Ratios and Expenses - The loss ratio for American Southern improved to 71.7% for the three-month period ended March 31, 2024, compared to 73.6% in the same period of 2023[103]. - Insurance benefits and losses incurred increased by $1.3 million, or 7.4%, resulting in a loss ratio of 71.7% for the three months ended March 31, 2024, compared to 61.6% in the same period in 2023[110]. - Commissions and underwriting expenses for American Southern increased by $0.3 million, or 8.3%, during the three-month period ended March 31, 2024[104]. - Commissions and underwriting expenses decreased by $0.4 million, or 3.5%, but the expense ratio increased to 38.8% from 37.1% year-over-year[111]. - The combined ratio for American Southern was 97.1% for the three-month period ended March 31, 2024, compared to 97.9% in the same period of 2023[98]. - Bankers Fidelity's combined ratio was 110.5% for the three-month period ended March 31, 2024, compared to 98.7% in the same period of 2023[107]. Cash and Investments - At March 31, 2024, the Parent had approximately $5.9 million of unrestricted cash and investments[116]. - Cash and cash equivalents decreased from $28.3 million at December 31, 2023, to $21.2 million at March 31, 2024, primarily due to net cash used in operating activities of $5.3 million[128]. - The Company had outstanding borrowings of $4.0 million under the Revolving Credit Agreement as of March 31, 2024, an increase from $3.0 million at December 31, 2023[127]. Investment Income - Investment income increased slightly due to higher returns from fixed maturities and equity securities, despite a $0.1 million decrease in earnings from limited partnerships[112]. - The Company recognized net unrealized losses on equity securities of $0.1 million for the three months ended March 31, 2024, compared to $2.4 million in the same period in 2023[113]. - Interest expense increased by $0.1 million, or 14.0%, primarily due to changes in the Secured Overnight Financing Rate (SOFR)[114].