• Atlantic American Corporation Reports Third Quarter Results for 2023

    Источник: Nasdaq GlobeNewswire / 13 ноя 2023 16:24:50   America/Chicago

    ATLANTA, Nov. 13, 2023 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income of $1.8 million, or $0.08 per diluted share, for the three month period ended September 30, 2023, compared to net loss of $0.7 million, or $(0.04) per diluted share, for the three month period ended September 30, 2022. The Company had net income of $2.1 million, or $0.09 per diluted share, for the nine month period ended September 30, 2023, compared to net income of $0.5 million, or $0.01 per diluted share, for the nine month period ended September 30, 2022. The increase in net income for the three and nine month periods ended September 30, 2023 was primarily the result of a more favorable loss experience in the life and health operations, from the comparable periods in 2022, coupled with a decrease in unrealized losses on equity securities. Partially offsetting this increase in net income for the nine month period ended September 30, 2023 was an increase in ancillary costs related to the implementation of the new actuarial valuation system, coupled with an increase in administrative costs related to the growth in the group and individual lines of business within the life and health operations.

    Operating income (as defined below) increased $1.9 million in the three month period ended September 30, 2023 from the three month period ended September 30, 2022. For the nine month period ended September 30, 2023, operating income decreased $0.3 million from the comparable period in 2022. The increase in operating income for the three month period ended September 30, 2023 was primarily the result of a more favorable loss experience in the life and health operations, from the comparable period in 2022. The decrease in operating income for the nine month period ended September 30, 2023 was primarily attributable to ancillary costs related to the implementation of the new actuarial valuation system, coupled with an increase in administrative costs related to the growth in the group and individual lines of business within the life and health operations, as mentioned above.
       
    Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are delighted with the improvements in net income for each of the quarter and year-to-date period. Although our revenue numbers are off slightly compared to prior year, operating income remains quite strong for 2023. Our newest legal entity, Atlantic Capital Life Assurance Company, recently launched product in a select number of states and we expect additional states to be released over the remainder of the year.”

    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 Private Securities Litigation Reform Act: 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 those risks and uncertainties detailed in statements and reports that Atlantic American Corporation 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) 2023   2022   2023   2022 
    Insurance premiums       
        Life and health$27,175  $28,739  $84,244  $86,773 
        Property and casualty 16,571   17,641   51,662   53,753 
            Insurance premiums, net 43,746   46,380   135,906   140,526 
            
    Net investment income 2,325   2,641   7,425   7,510 
    Realized investment gains, net -   101   70   29 
    Unrealized losses on equity securities, net (1,486)  (2,783)  (3,367)  (5,456)
    Other income 6   4   14   11 
            
    Total revenue 44,591   46,343   140,048   142,620 
            
    Insurance benefits and losses incurred       
        Life and health 14,937   18,599   48,554   58,003 
        Property and casualty 11,881   12,031   38,089   36,549 
    Commissions and underwriting expenses 11,064   12,843   36,830   35,894 
    Interest expense 850   523   2,407   1,291 
    Other expense 3,721   3,296   11,631   10,151 
            
      Total benefits and expenses 42,453   47,292   137,511   141,888 
            
    Income (loss) before income taxes 2,138   (949)  2,537   732 
    Income tax expense (benefit) 379   (265)  480   253 
            
    Net income (loss)$ 1,759  $ (684) $ 2,057  $ 479 
            
    Earnings (loss) per common share (basic and diluted)$ 0.08  $ (0.04) $ 0.09  $ 0.01 
            
    Reconciliation of Non-GAAP Financial Measure       
            
    Net income (loss)$1,759  $(684) $2,057  $479 
    Income tax expense (benefit) 379   (265)  480   253 
    Realized investment gains, net -   (101)  (70)  (29)
    Unrealized losses on equity securities, net 1,486   2,783   3,367   5,456 
            
    Non-GAAP operating income$ 3,624  $ 1,733  $ 5,834  $ 6,159 
            
        
     September 30,December 31,    
    Selected Balance Sheet Data 2023   2022     
            
    Total cash and investments$244,709  $257,575     
        Insurance subsidiaries 238,497   251,378     
        Parent and other 6,212   6,197     
    Total assets 361,620   367,064     
    Insurance reserves and policyholder funds 201,988   202,651     
    Debt 36,757   35,747     
    Total shareholders' equity 98,746   102,193     
    Book value per common share 4.57   4.74     
    Statutory capital and surplus       
        Life and health 37,392   36,672     
        Property and casualty 53,360   53,023     
            


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