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Atlantic American Corporation Reports Second Quarter Results for 2024
AAMEAtlantic American(AAME) GlobeNewswire News Room·2024-08-14 16:11

Core Viewpoint - Atlantic American Corporation reported a net loss of 0.7millionforQ22024,asignificantdeclinefromanetincomeof0.7 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 2.8millioncomparedtothesameperiodin2023,andforthesixmonthperiod,itdecreasedby2.8 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 49.188million,comparedto49.188 million, compared to 47.668 million in Q2 2023, indicating a slight increase [7]. - Insurance premiums for life and health decreased from 27.449millioninQ22023to27.449 million in Q2 2023 to 28.180 million in Q2 2024, while property and casualty premiums increased from 17.544millionto17.544 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 15.817millioninQ22024,downfrom15.817 million in Q2 2024, down from 17.579 million in Q2 2023, while property and casualty losses decreased from 14.228millionto14.228 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 256.525million,adecreasefrom256.525 million, a decrease from 265.368 million at the end of 2023 [8]. - Total assets increased to 386.007millionfrom386.007 million from 381.265 million, while total shareholders' equity decreased from 107.275millionto107.275 million to 100.672 million [8].