Atlantic American Corporation Reports Third Quarter Results for 2024
ATLANTA, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net loss of $2.0 million, or $(0.10) per diluted share, for the three month period ended September 30, 2024, compared to net income of $1.8 million, or $0.08 per diluted share, for the three month period ended September 30, 2023. The Company had net loss of $4.7 million, or $(0.24) per diluted share, for the nine month period ended September 30, 2024, compared to net income of $2.1 million, or $0.09 per diluted share, for the nine month period ended September 30, 2023. The increase in net loss for the three month and nine month periods ended September 30, 2024 was primarily the result of unfavorable loss experience in the Company's life and health operations due to an increase in incurred losses in the group life and Medicare supplement lines of business, as well as unfavorable loss experience in the Company's property and casualty operations due to the frequency and severity of claims in the automobile liability line of business, compared to the prior year periods.
For the three month period ended September 30, 2024, premium revenue increased slightly to $43.8 million from $43.7 million in the comparable period in 2023. For the nine month period ended September 30, 2024, premium revenue decreased $2.6 million, or 1.9%, to $133.3 million from $135.9 million in the comparable period in 2023. The decrease in premium revenue during the nine month period ended September 30, 2024 was primarily attributable to a decrease in the Medicare supplement insurance premiums in the Company's life and health operations.
Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, "As we enter the fourth quarter, I am encouraged by the strong sales momentum within our life and health operations. Our newest charter has made a promising entrance into the market, supported by enhanced underwriting and distribution strategies that we believe will drive long-term improvements in our bottom-line performance. At the same time, our property and casualty business continues to navigate a highly inflationary automobile market, though we expect conditions to stabilize and return to historical norms in the near term. While we have work ahead of us, we remain confident in our ability to execute our strategy and are optimistic about the path forward." Atlantic American Corporation is an insurance holding company involved through its subsidiary companies in specialty markets of the life, health, and property and casualty insurance industries. Its principal insurance subsidiaries are American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company.
Note regarding non-GAAP financial measure: Atlantic American Corporation presents its consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP). However, from time to time, the Company may present, in its public statements, press releases and filings with the Securities and Exchange Commission, non-GAAP financial measures such as operating income (loss). We define operating income (loss) as net income (loss) excluding: (i) income tax expense (benefit); (ii) realized investment (gains) losses, net; and (iii) unrealized (gains) losses on equity securities, net. Management believes operating income (loss) is a useful metric for investors, potential investors, securities analysts and others because it isolates the "core" operating results of the Company before considering certain items that are either beyond the control of management (such as income tax expense (benefit), which is subject to timing, regulatory and rate changes depending on the timing of the associated revenues and expenses) or are not expected to regularly impact the Company's operating results (such as any realized and unrealized investment gains (losses), which are not a part of the Company's primary operations and are, to a limited extent, subject to discretion in terms of timing of realization). The financial data attached includes a reconciliation of operating income (loss) to net income (loss), the most comparable GAAP financial measure. The Company's definition of operating income (loss) may differ from similarly titled financial measures used by others. This non-GAAP financial measure should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.
Note regarding forward-looking statements: Except for historical information contained herein, this press release contains forward-looking statements that involve a number of risks and uncertainties. Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks, including the Company's ability to remediate the identified material weakness in its internal control over financial reporting as described in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10Q, and those other risks and uncertainties detailed in statements and reports that the Company files from time to time with the Securities and Exchange Commission.
For further information contact:
J. Ross Franklin
Hilton H. Howell, Jr.
Chief Financial Officer
Chairman, President & CEO
Atlantic American Corporation
Atlantic American Corporation
404-266-5580
404-266-5505
Atlantic American Corporation
Financial Data
Three Months Ended
Nine Months Ended
September 30,
September 30,
(Unaudited; In thousands, except per share data)
2024
2023
2024
2023
Insurance premiums
Life and health
$
27,568
$
27,175
$
81,691
$
84,244
Property and casualty
16,214
16,571
51,636
51,662
Insurance premiums, net
43,782
43,746
133,327
135,906
Net investment income
2,477
2,325
7,449
7,425
Realized investment gains, net
4
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