• Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2023; Declares Annual Dividend

    المصدر: Nasdaq GlobeNewswire / 01 أبريل 2024 16:12:31   America/New_York

    ATLANTA, April 01, 2024 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net loss for the three month period ended December 31, 2023 of $2.2 million, or ($0.11) per diluted share, as compared to net income of $1.0 million, or $0.05 per diluted share, for the comparable period in 2022. For the year ended December 31, 2023, the Company reported net loss of $0.2 million, or ($0.03) per diluted share, as compared to net income of $1.5 million, or $0.06 per diluted share, for the year ended December 31, 2022. The decrease in net income for the fourth quarter of 2023 was primarily due to an increase in insurance benefits and losses incurred partially offset by an increase in unrealized gains in equity securities. The decrease in net income for the year ended December 31, 2023 was primarily due to a decrease in earned premiums, as well as an increase in insurance benefits and losses as a percentage of premiums. Also contributing to the decrease in net income is an increase in debt service costs due to rising interest rates. Partially offsetting this decrease was a decline in unrealized losses on equity securities.

    Operating income (loss), as defined below, decreased to a $4.3 million operating loss in the three month period ended December 31, 2023, as compared to $3.5 million operating income for the three month period ended December 31, 2022. For the year ended December 31, 2023, the Company reported operating income of $1.5 million compared to operating income of $9.6 million for the year ended December 31, 2022. The decrease in operating income for the three and twelve month periods was primarily due to an increase in insurance benefits and losses incurred as a percentage of premiums.

    Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “The Company has made significant investments in both human talent and information technology within our Life and Health segment that we expect will lead to improved top line results and profitability of our business. While we have experienced some inflationary pressures in our Property and Casualty segment, their disciplined underwriting approach delivered another profitable year. In recognition of our enthusiasm for 2024, the Board of Directors recently approved the Company’s annual dividend of $0.02 per share, which is payable on April 26, 2024 to shareholders of record on April 12, 2024.”

    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, 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 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 Twelve Months Ended
     December 31, December 31,
    (Unaudited; In thousands, except per share data) 2023   2022   2023   2022 
    Insurance premiums       
        Life and health$26,138  $28,391  $110,382  $115,164 
        Property and casualty 16,781   16,523   68,443   70,276 
            Insurance premiums, net 42,919   44,914   178,825   185,440 
            
    Net investment income 2,633   2,422   10,058   9,932 
    Realized investment gains, net -   1   70   30 
    Unrealized gains (losses) on equity securities, net 1,190   (2,106)  (2,177)  (7,562)
    Other income 3   -   17   11 
            
    Total revenue 46,745   45,231   186,793   187,851 
            
    Insurance benefits and losses incurred       
        Life and health 22,931   18,278   71,485   76,281 
        Property and casualty 12,926   10,626   51,015   47,175 
    Commissions and underwriting expenses 9,294   10,819   46,124   46,713 
    Interest expense 862   661   3,269   1,952 
    Other expense 3,834   3,483   15,465   13,634 
            
      Total benefits and expenses 49,847   43,867   187,358   185,755 
            
    Income (loss) before income taxes (3,102)  1,364   (565)  2,096 
    Income tax expense (benefit) (874)  318   (394)  571 
            
    Net income (loss)$ (2,228) $ 1,046  $ (171) $ 1,525 
            
    Earnings (loss) per common share (basic and diluted)$ (0.11) $ 0.05  $ (0.03) $ 0.06 
            
    Reconciliation of non-GAAP financial measure       
            
    Net income (loss)$(2,228) $1,046  $(171) $1,525 
    Income tax expense (expense) (874)  318   (394)  571 
    Realized investment gains, net -   (1)  (70)  (30)
    Unrealized (gains) losses on equity securities, net (1,190)  2,106   2,177   7,562 
            
    Non-GAAP operating income (loss)$ (4,292) $ 3,469  $ 1,542  $ 9,628 
            
        
     December 31, December 31,    
    Selected balance sheet data 2023   2022     
            
    Total cash and investments$265,368  $257,575     
        Insurance subsidiaries 259,253   251,378     
        Parent and other 6,115   6,197     
    Total assets 381,265   367,064     
    Insurance reserves and policyholder funds 212,422   202,651     
    Debt 36,757   35,747     
    Total shareholders' equity 107,275   102,193     
    Book value per common share 4.99   4.74     
    Statutory capital and surplus       
        Life and health 38,299   36,672     
        Property and casualty 51,774   53,023     
            


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