Atlantic American Corporation Reports Q4 2024 Earnings
ATLANTA, March 25, 2025 – Atlantic American Corporation (Nasdaq: AAME) revealed its financial outcomes for the three months that ended on December 31, 2024, revealing a net income of $0.4 million, equating to $0.02 per diluted share. This is a notable turnaround compared to the net loss of $2.2 million, or $(0.11) per diluted share, recorded during the corresponding period of 2023. For the full year concluding December 31, 2024, the company reported a net loss of $4.3 million, or $(0.23) per diluted share, in contrast to a net loss of $0.2 million, or $(0.03) per diluted share, in the prior year.
The rise in net income for the fourth quarter of 2024 was largely driven by favorable developments in the company’s life and health operations. This was primarily due to reduced losses, particularly within the group life and Medicare supplement lines of business. Conversely, the yearly net loss was significantly influenced by adverse loss experiences in the company’s property and casualty sector, mainly related to the number and severity of claims within its automobile liability line.
In his commentary on these results, Hilton H. Howell, Jr., Chairman, President, and Chief Executive Officer of Atlantic American Corporation, expressed enthusiasm. “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,” Howell stated. He added, “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, through its subsidiaries, is a holding company focused on the specialty markets within the life, health, and property and casualty insurance industries. Its major insurance 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.
Non-GAAP Financial Measure
Atlantic American Corporation presents its consolidated financial statements following U.S. generally accepted accounting principles (GAAP). However, it occasionally presents non-GAAP financial measures, such as operating income (loss), in its public communications. The company defines 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 this measure offers valuable insight for investors by isolating the core operating results, separate from items outside management’s immediate control or those not expected to regularly impact financial results.
The attached financial data includes a reconciliation of operating income (loss) to net income (loss), which is the most comparable GAAP financial measure. It’s important to note that the company’s definition of operating income (loss) may vary from similar measures used by others, and this non-GAAP measure should be considered supplemental to, rather than a substitute for, GAAP-compliant financial information.
Forward-Looking Statements
This press release includes forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those indicated in these statements due to various factors and risks, including economic conditions, market disruptions, claim fluctuations, regulatory changes, and more. Undue reliance should not be placed on forward-looking statements, which are valid only as of the date they were made. Atlantic American Corporation does not intend to update these statements unless required by law.
For further information, contact:
J. Ross Franklin Chief Financial Officer 404-266-5580
Hilton H. Howell, Jr. Chairman, President & CEO 404-266-5505
