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Atlantic American Corporation Reports Second Quarter Results for 2025

1. AAME posted $3.3 million net income for Q2 2025. 2. Significant increase from $0.7 million loss in Q2 2024. 3. Operating income rose $2.7 million compared to last year. 4. Strong growth in premium revenue across multiple business lines. 5. The company is optimistic about sustained growth in H2 2025.

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$2.4508/13 08:26 PM EDTLatest Updated
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FAQ

Why Very Bullish?

AAME's shift from loss to substantial profit indicates strong operational health, reflecting a potential increase in investor confidence and stock valuation similar to past recoveries following poor financial results.

How important is it?

The financial results and operational optimism presented are likely to attract investor interest and positively affect AAME's stock price.

Why Short Term?

Immediate financial improvements and shareholder communication can positively affect AAME's stock price quickly, similar to other corporate recoveries seen in the insurance sector after earnings reports.

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AAMEAXSTRVPGRCINF
ATLANTA, Aug. 12, 2025 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income of $3.3 million, or $0.15 per diluted share, for the three month period ended June 30, 2025 compared to net loss of ($0.7) million, or ($0.04) per diluted share, for the comparable period in 2024. The Company had net income of $4.1 million, or $0.19 per diluted share, for the six month period ended June 30, 2025, compared to net loss of ($2.7) million, or ($0.14) per diluted share, for the six month period ended June 30, 2024. The increase in net income for the three month and six month periods ended June 30, 2025 was primarily the result of increases in premium revenue, coupled with an increase in unrealized gains on equity securities. Operating income increased $2.7 million in the three month period ended June 30, 2025 from the three month period ended June 30, 2024. For the six month period ended June 30, 2025, operating income increased $5.4 million from the comparable period in 2024. The increase in operating income for the three month and six month periods ended June 30, 2025 was primarily the result of increases in premium revenue within the inland marine line of business in the property and casualty operations, as well as increases in the Medicare supplement and group accident and health lines of business within the life and health operations. Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are pleased to report exceptional financial results this quarter, marked by a significant increase in net income and continued improvement in operating income. Our property & casualty and life & health segments each delivered strong earned premium growth, supported by steady new business momentum and retention of existing contracts. These results underscore the resilience of our business model, the effectiveness of our growth strategy and the benefits of our diversified product offerings. Looking ahead to the second half of the year, we believe we are well-positioned to deliver sustained, profitable growth and drive long-term value creation for our shareholders.” 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 Six Months Ended June 30, June 30,(Unaudited; In thousands, except per share data) 2025   2024   2025   2024 Insurance premiums       Life and health$29,005  $27,449  $57,587  $54,123 Property and casualty 21,141   17,544   39,472   35,422 Insurance premiums, net 50,146   44,993   97,059   89,545         Net investment income 2,516   2,416   4,958   4,972 Realized investment gains, net 16   13   16   13 Unrealized gains on equity securities, net 2,609   243   3,376   129 Other income 3   3   6   6         Total revenue  55,290     47,668     105,415     94,665          Insurance benefits and losses incurred       Life and health 17,634   17,579   34,950   36,691 Property and casualty 16,013   14,228   30,610   27,041 Insurance benefits and losses incurred, net 33,647   31,807   65,560   63,732         Commissions and underwriting expenses 12,870   11,584   24,550   24,250 Interest expense 773   867   1,547   1,722 Other expense 3,784   4,259   8,507   8,316          Total benefits and expenses  51,074     48,517     100,164     98,020          Income (loss) before income taxes 4,216   (849)  5,251   (3,355)Income tax expense (benefit) 900   (165)  1,133   (673)        Net income (loss)$ 3,316   $ (684) $ 4,118   $ (2,682)        Earnings (loss) per common share (basic)$ 0.16   $ (0.04) $ 0.19   $ (0.14)Earnings (loss) per common share (diluted)$ 0.15   $ (0.04) $ 0.19   $ (0.14)        Reconciliation of non-GAAP financial measure               Net income (loss)$3,316  $(684) $4,118  $(2,682)Income tax expense (benefit) 900   (165)  1,133   (673)Realized investment gains, net (16)  (13)  (16)  (13)Unrealized gains on equity securities, net (2,609)  (243)  (3,376)  (129)        Non-GAAP operating income (loss)$ 1,591   $ (1,105) $ 1,859   $ (3,497)             June 30, December 31,    Selected balance sheet data 2025   2024             Total cash and investments$280,282  $265,696     Insurance subsidiaries 274,443   258,675     Parent and other 5,839   7,021     Total assets 429,339   393,428     Insurance reserves and policyholder funds 255,513   225,106     Debt 37,759   37,761     Total shareholders' equity 106,168   99,613     Book value per common share 4.94   4.61     Statutory capital and surplus       Life and health 34,642   32,443     Property and casualty 47,183   47,670                 

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