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Atlantic American Corporation Reports Third Quarter Results for 2024
AAMEAtlantic American(AAME) GlobeNewswire News Room·2024-11-12 19:00

Financial Performance - Atlantic American Corporation reported a net loss of 2.0million,or2.0 million, or (0.10) per diluted share, for the three months ended September 30, 2024, compared to a net income of 1.8million,or1.8 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 4.7million,or4.7 million, or (0.24) per diluted share, compared to a net income of 2.1million,or2.1 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 43.8millionfrom43.8 million from 43.7 million in the comparable period in 2023 [2] - For the nine months ended September 30, 2024, premium revenue decreased by 2.6million,or1.92.6 million, or 1.9%, to 133.3 million from 135.9millioninthecomparableperiodin2023,mainlyduetoadecreaseinMedicaresupplementinsurancepremiums[2]ManagementCommentary−TheCEOexpressedoptimismaboutstrongsalesmomentuminlifeandhealthoperationsandhighlightedthepromisingmarketentryofthenewestchartersupportedbyenhancedunderwritinganddistributionstrategies[3]−Thepropertyandcasualtybusinessisnavigatingahighlyinflationaryautomobilemarket,butthecompanyexpectsconditionstostabilizesoon[3]InsuranceOperations−Thecompanyoperatesinspecialtymarketsoflife,health,andpropertyandcasualtyinsurancethroughitssubsidiaries[3]−KeysubsidiariesincludeAmericanSouthernInsuranceCompany,AmericanSafetyInsuranceCompany,BankersFidelityLifeInsuranceCompany,BankersFidelityAssuranceCompany,andAtlanticCapitalLifeAssuranceCompany[3]FinancialDataSummary−TotalrevenueforthethreemonthsendedSeptember30,2024,was135.9 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 44.6millionin2023[7]−TotalbenefitsandexpensesforthethreemonthsendedSeptember30,2024,were44.6 million in 2023 [7] - Total benefits and expenses for the three months ended September 30, 2024, were 47.0 million, compared to 42.5millionin2023[7]−Thecompanyreportedtotalcashandinvestmentsof42.5 million in 2023 [7] - The company reported total cash and investments of 263.8 million as of September 30, 2024 [8]