StockNews.AI
AAME
StockNews.AI
147 days

Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2024; Declares Annual Dividend

1. AAME reported net income of $0.4 million for Q4 2024. 2. Yearly net loss widened to $4.3 million in 2024. 3. Life and health business performed well; automobile claims hurt profitability. 4. Board approved $0.02 annual dividend, enhancing shareholder value. 5. Medicare supplement sales showed strong growth, providing positive momentum.

11m saved
Insight
Article

FAQ

Why Bullish?

AAME’s quarterly profit indicates a recovery and positive outlook, contrasting the past losses. Historical recoveries in similar companies often lead to price increases, particularly after a dividend declaration.

How important is it?

Net income improvement and growing sales in a core segment signals better performance, likely attracting investors. The dividend declaration exemplifies management's commitment, providing additional incentive for stock purchase.

Why Short Term?

The positive earnings report and dividend approval may drive immediate buying interest. Similar past reports have shown quick stock price reactions within days.

Related Companies

AAMEMETUNMAFLHIG
ATLANTA, March 25, 2025 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income of $0.4 million, or $0.02 per diluted share, for the three month period ended December 31, 2024, compared to net loss of $2.2 million, or $(0.11) per diluted share, for the three month period ended December 31, 2023. The Company had net loss of $4.3 million, or $(0.23) per diluted share, for the year ended December 31, 2024, compared to net loss of $0.2 million, or $(0.03) per diluted share, for the year ended December 31, 2023. The increase in net income for the three month period ended December 31, 2024 was primarily the result of favorable loss experience in the Company’s life and health operations due to a decrease in incurred losses, predominantly in the group life and Medicare supplement lines of business. The increase in net loss for the year ended December 31, 2024 was primarily due to 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. Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are thrilled to report exceptional new sales in our Medicare supplement business during the fourth quarter annual enrollment period, with strong momentum carrying into the new year. Although rising costs in the commercial automobile market have affected profitability, we are taking steps to improve rates for that line of business. Additionally, in alignment with our continued commitment to enhancing shareholder value, the Board of Directors has approved the Company’s annual dividend of $0.02 per share. This dividend will be payable on April 23, 2025, to shareholders of record as of April 9, 2025." 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, among others: the effects of macroeconomic conditions and general economic uncertainty; unexpected developments in the health care or insurance industries affecting providers or individuals, including the cost or availability of services, or the tax consequences related thereto; disruption to the financial markets; unanticipated increases in the rate, number and amounts of claims outstanding; our ability to remediate the identified material weakness in our internal control over financial reporting; the level of performance of reinsurance companies under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect the Company against losses; changes in the stock markets, interest rates or other financial markets, including the potential effect on the Company’s statutory capital levels; the uncertain effect on the Company of regulatory and market-driven changes in practices relating to the payment of incentive compensation to brokers, agents and other producers; the potential impact of public health emergencies; the incidence and severity of catastrophes, both natural and man-made; the possible occurrence of terrorist attacks; stronger than anticipated competitive activity; unfavorable judicial or legislative developments; the potential effect of regulatory developments, including those which could increase the Company’s business costs and required capital levels; the Company’s ability to distribute its products through distribution channels, both current and future; the uncertain effect of emerging claim and coverage issues; the effect of assessments and other surcharges for guaranty funds and other mandatory pooling arrangements; information technology system failures or network disruptions; risks related to cybersecurity matters, such as breaches of our computer network or those of other parties or the loss of or unauthorized access to the data we maintain; 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. As a result, undue reliance should not be placed upon forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update any forward-looking statements as a result of subsequent developments, changes in underlying assumptions or facts or otherwise, except as may be required by law.    For further information contact:  J. Ross Franklin Hilton H. Howell, Jr.Chief Financial Officer Chairman, President & CEOAtlantic American Corporation Atlantic American Corporation404-266-5580 404-266-5505    Atlantic American CorporationFinancial Data     Three Months Ended Twelve Months Ended December 31, December 31,(Unaudited; In thousands, except per share data) 2024   2023   2024   2023 Insurance premiums       Life and health$29,351  $26,138  $111,042  $110,382 Property and casualty 16,053   16,781   67,689   68,443 Insurance premiums, net 45,404   42,919   178,731   178,825         Net investment income 2,342   2,633   9,791   10,058 Realized investment gains, net 1,193   -   1,210   70 Unrealized gains (losses) on equity securities, net 101   1,190   (1,516)  (2,177)Other income 3   3   11   17         Total revenue 49,043   46,745   188,227   186,793         Insurance benefits and losses incurred       Life and health 16,597   22,931   70,064   71,485 Property and casualty 14,742   12,926   55,767   51,015 Commissions and underwriting expenses 12,290   9,294   48,030   46,124 Interest expense 828   862   3,419   3,269 Other expense 4,041   3,834   16,211   15,465         Total benefits and expenses 48,498   49,847   193,491   187,358         Income (loss) before income taxes 545   (3,102)  (5,264)  (565)Income tax expense (benefit) 133   (874)  (996)  (394)        Net income (loss)$ 412  $ (2,228) $ (4,268) $ (171)        Earnings (loss) per common share (basic & diluted)$ 0.02  $ (0.11) $ (0.23) $ (0.03)        Reconciliation of non-GAAP financial measure               Net income (loss)$412  $(2,228) $(4,268) $(171)Income tax expense (benefit) 133   (874)  (996)  (394)Realized investment gains, net (1,193)  -   (1,210)  (70)Unrealized (gains) losses on equity securities, net (101)  (1,190)  1,516   2,177         Non-GAAP operating income (loss)$ (749) $ (4,292) $ (4,958) $ 1,542              December 31, December 31,    Selected balance sheet data 2024   2023             Total cash and investments$265,696  $265,368     Insurance subsidiaries 258,675   259,253     Parent and other 7,021   6,115     Total assets 393,428   381,265     Insurance reserves and policyholder funds 225,106   212,422     Debt 37,761   36,757     Total shareholders' equity 99,613   107,275     Book value per common share 4.61   4.99     Statutory capital and surplus       Life and health 32,443   38,299     Property and casualty 47,670   51,774             

Related News