Financial Performance - Atlantic American Corporation reported a net loss of $0.7 million, or $(0.04) per diluted share, for Q2 2024, compared to a net income of $1.7 million, or $0.08 per diluted share, in Q2 2023[1]. - Operating income decreased by $2.8 million in Q2 2024 compared to Q2 2023, and by $5.7 million for the six-month period ended June 30, 2024[2]. - Total revenue for Q2 2024 was $47.7 million, down from $49.2 million in Q2 2023[6]. - Non-GAAP operating loss for Q2 2024 was $(1.1) million, compared to an operating income of $1.7 million in Q2 2023[6]. Insurance Premiums and Claims - Insurance premiums for life and health decreased to $27.4 million in Q2 2024 from $28.2 million in Q2 2023, while property and casualty premiums decreased to $17.5 million from $17.9 million[6]. - Insurance benefits and losses incurred for life and health increased to $17.6 million in Q2 2024 from $15.8 million in Q2 2023[6]. - The company experienced unfavorable loss experience in both life and health operations and property and casualty operations due to increased claims[2]. Assets and Book Value - The total assets of Atlantic American Corporation increased to $386.0 million as of June 30, 2024, compared to $381.3 million at the end of 2023[6]. - Book value per common share decreased to $4.67 as of June 30, 2024, from $4.99 at the end of 2023[6]. Future Outlook - The company is optimistic about future performance due to strategic investments in technology and recent product launches[3].

Core Viewpoint - Atlantic American Corporation reported a net loss of $0.7 million for Q2 2024, a significant decline from a net income of $1.7 million in Q2 2023, primarily due to unfavorable loss experiences in life, health, and property and casualty operations [1][2]. Financial Performance - For the three-month period ended June 30, 2024, operating income decreased by $2.8 million compared to the same period in 2023, and for the six-month period, it decreased by $5.7 million [2]. - The total revenue for Q2 2024 was $49.188 million, compared to $47.668 million in Q2 2023, indicating a slight increase [7]. - Insurance premiums for life and health decreased from $27.449 million in Q2 2023 to $28.180 million in Q2 2024, while property and casualty premiums increased from $17.544 million to $17.880 million [7]. Loss Experience - The increase in net loss was attributed to unfavorable loss experiences in life and health operations, particularly in group life and Medicare supplement lines, as well as in property and casualty operations due to increased claims in automobile liability [2][3]. - Insurance benefits and losses incurred for life and health were $15.817 million in Q2 2024, down from $17.579 million in Q2 2023, while property and casualty losses decreased from $14.228 million to $13.548 million [7]. Strategic Outlook - The company remains optimistic about future performance, citing strategic investments in technology and talent, as well as recent product launches in key states, which are expected to enhance sales during the upcoming annual enrollment period [3]. - The property and casualty division has shown resilience in a softening market, consistently writing profitable business [3]. Balance Sheet Highlights - As of June 30, 2024, total cash and investments amounted to $256.525 million, a decrease from $265.368 million at the end of 2023 [8]. - Total assets increased to $386.007 million from $381.265 million, while total shareholders' equity decreased from $107.275 million to $100.672 million [8].

Financial Performance - For the three-month period ended March 31, 2024, net loss was $1.998 million, or $(0.10) per diluted share, compared to a net loss of $1.446 million, or $(0.08) per diluted share, for the same period in 2023[95]. - Total revenue for the three-month period ended March 31, 2024, was $46.997 million, an increase of 1.6% from $46.269 million in the same period of 2023[93]. - Operating income decreased by $2.9 million for the three-month period ended March 31, 2024, primarily due to unfavorable loss experience in life and health operations[96]. - The Parent's insurance subsidiaries reported a statutory net loss of $1.6 million for the three months ended March 31, 2024, compared to a net income of $1.1 million in the same period in 2023[117]. Insurance Premiums - Insurance premiums, net, decreased by $1.548 million, or 3.4%, to $44.552 million for the three-month period ended March 31, 2024, from $46.100 million in the same period of 2023[96]. - American Southern's gross written premiums decreased by $1.0 million, or 10.2%, to $8.470 million for the three-month period ended March 31, 2024, compared to $9.430 million in the same period of 2023[98]. - Bankers Fidelity's net earned premiums decreased to $26.674 million for the three-month period ended March 31, 2024, from $28.889 million in the same period of 2023[106]. - Net earned premium revenue decreased by $2.2 million, or 7.7%, to $26.4 million for the three months ended March 31, 2024, compared to the same period in 2023[109]. Loss Ratios and Expenses - The loss ratio for American Southern improved to 71.7% for the three-month period ended March 31, 2024, compared to 73.6% in the same period of 2023[103]. - Insurance benefits and losses incurred increased by $1.3 million, or 7.4%, resulting in a loss ratio of 71.7% for the three months ended March 31, 2024, compared to 61.6% in the same period in 2023[110]. - Commissions and underwriting expenses for American Southern increased by $0.3 million, or 8.3%, during the three-month period ended March 31, 2024[104]. - Commissions and underwriting expenses decreased by $0.4 million, or 3.5%, but the expense ratio increased to 38.8% from 37.1% year-over-year[111]. - The combined ratio for American Southern was 97.1% for the three-month period ended March 31, 2024, compared to 97.9% in the same period of 2023[98]. - Bankers Fidelity's combined ratio was 110.5% for the three-month period ended March 31, 2024, compared to 98.7% in the same period of 2023[107]. Cash and Investments - At March 31, 2024, the Parent had approximately $5.9 million of unrestricted cash and investments[116]. - Cash and cash equivalents decreased from $28.3 million at December 31, 2023, to $21.2 million at March 31, 2024, primarily due to net cash used in operating activities of $5.3 million[128]. - The Company had outstanding borrowings of $4.0 million under the Revolving Credit Agreement as of March 31, 2024, an increase from $3.0 million at December 31, 2023[127]. Investment Income - Investment income increased slightly due to higher returns from fixed maturities and equity securities, despite a $0.1 million decrease in earnings from limited partnerships[112]. - The Company recognized net unrealized losses on equity securities of $0.1 million for the three months ended March 31, 2024, compared to $2.4 million in the same period in 2023[113]. - Interest expense increased by $0.1 million, or 14.0%, primarily due to changes in the Secured Overnight Financing Rate (SOFR)[114].

Financial Performance - Atlantic American Corporation reported a net loss of $2.0 million, or ($0.10) per common share, in Q1 2024, compared to a net loss of $1.4 million, or ($0.08) per common share, in Q1 2023[1] - The company experienced an operating loss of $2.4 million in Q1 2024, compared to operating income of $0.6 million in Q1 2023[2] - Total revenue for Q1 2024 was $47.0 million, up from $46.3 million in Q1 2023[6] - Total benefits and expenses increased to $49.5 million in Q1 2024 from $48.1 million in Q1 2023[6] Premium Revenue - Premium revenue for Q1 2024 decreased by $1.5 million, or 3.4%, to $44.6 million from $46.1 million in Q1 2023[1] - Life and health insurance premiums decreased from $28.9 million in Q1 2023 to $26.7 million in Q1 2024[6] - Property and casualty insurance premiums increased from $17.2 million in Q1 2023 to $17.9 million in Q1 2024[6] Asset Management - Total assets decreased to $365.8 million as of March 31, 2024, from $381.3 million as of December 31, 2023[6] - The company reported unrealized losses on equity securities of $114,000 in Q1 2024, compared to $2.4 million in Q1 2023[6] Business Initiatives - The company is optimistic about new business initiatives and has launched sales activities in additional markets within its Atlantic Capital Life Assurance Company[2]

Core Viewpoint - Atlantic American Corporation reported a net loss of $2.0 million in Q1 2024, an increase from a net loss of $1.4 million in Q1 2023, primarily due to decreased premium revenue and unfavorable loss experience in life and health operations [1][2]. Financial Performance - The company experienced a decrease in premium revenue of $1.5 million, or 3.4%, from $46.1 million in Q1 2023 to $44.6 million in Q1 2024 [1][5]. - Operating loss for Q1 2024 was $2.4 million, compared to an operating income of $0.6 million in Q1 2023, attributed to the same factors affecting premium revenue [2][5]. - Total revenue for Q1 2024 was $46.997 million, slightly up from $46.269 million in Q1 2023 [5]. Segment Performance - Life and health insurance premiums decreased from $28.889 million in Q1 2023 to $26.674 million in Q1 2024 [5]. - Property and casualty insurance premiums increased from $17.211 million in Q1 2023 to $17.878 million in Q1 2024 [5]. - Insurance benefits and losses incurred in life and health increased from $17.800 million in Q1 2023 to $19.112 million in Q1 2024 [5]. Management Commentary - The CEO expressed optimism regarding new business initiatives and recent market expansions despite the decline in life and health premiums [2]. Balance Sheet Highlights - Total assets decreased from $381.265 million at the end of 2023 to $365.751 million at the end of Q1 2024 [6]. - Total shareholders' equity decreased from $107.275 million to $102.803 million during the same period [6]. - Book value per common share decreased from $4.99 to $4.77 [6].

Premiums and Revenue - American Southern's net earned premiums for 2023 totaled $68,443,000, a decrease of 2% from $70,276,000 in 2022[14] - Bankers Fidelity's total net earned premiums for 2023 were $110,382,000, down from $115,164,000 in 2022, representing a decrease of approximately 4%[18] - Health insurance products accounted for 83% of Bankers Fidelity's net earned premiums in 2023, with life insurance making up the remaining 17%[17] - Bankers Fidelity's Medicare supplement insurance premiums decreased from $86,970,000 in 2022 to $77,425,000 in 2023, a decline of approximately 11%[18] - Total revenue for 2023 was $186.793 million, a slight decrease of 0.6% from $187.851 million in 2022[161] - Insurance premiums, net for 2023 were $178.825 million, down from $185.440 million in 2022, indicating a decrease of approximately 3.3%[161] Claims and Reserves - At December 31, 2023, approximately 73% of the losses and claims reserves were related to property and casualty operations, while 27% were related to life and health operations[31] - Claim reserves were reported at $87.5 million as of December 31, 2023, reflecting the company's focus on property casualty lines and Medicare supplement business[151] - Policy reserves for future policy benefits amounted to $92.5 million as of December 31, 2023, highlighting the company's commitments in life and health insurance[153] - The net balance for unpaid loss and claim reserves at December 31, 2023, was $72,800 million, compared to $69,837 million at the beginning of the year[247] - The total outstanding liabilities before 2014, net of reinsurance, amount to $14,352 million, while liabilities for losses, claims, and loss adjustment expenses, net of reinsurance, are reported at $2,853 million[257] - The total gross liability for unpaid losses, claims, and loss adjustment expenses reached $87,478 million[264] Investments and Financial Performance - Total investments increased to $237,067 thousand in 2023, up from $228,712 thousand in 2022, representing a growth of 1.6%[60] - Net investment income for 2023 was $10,058 thousand, compared to $9,932 thousand in 2022, reflecting an increase of 1.3%[62] - Average yield on investments decreased slightly to 3.6% in 2023 from 3.7% in 2022[62] - The company's fixed maturities totaled $218,219 thousand in 2023, up from $208,729 thousand in 2022, indicating a growth of 4.3%[60] - The company reported unrealized losses on equity securities of $2.177 million in 2023, an improvement from losses of $7.562 million in 2022[161] - The company’s total shareholders' equity increased to $107.275 million in 2023, up from $102.193 million in 2022, showing a growth of about 5%[158] Operational Highlights - The company had approximately 4,639 licensed agents contracted as of December 31, 2023, with 454 agents actively writing policies during the year[20] - The company employed 155 people as of December 31, 2023, with 154 being full-time employees, emphasizing its focus on human capital management[65] - The company emphasizes client retention through seasonal campaigns and innovative product offerings to meet policyholder needs[23] - American Southern actively pursues business from governmental entities, which is often priced through competitive bidding[19] Regulatory Compliance and Accounting - As of December 31, 2023, the Company was in compliance with state requirements, with securities valued at an amortized cost of $14.6 million on deposit[54] - The Company's insurance subsidiaries' risk-based capital levels exceeded the required regulatory levels as of December 31, 2023[58] - The Company adopted ASU 2016-13 on January 1, 2023, recognizing credit losses in earnings for securities in an unrealized loss position[181] - The cumulative effect adjustment for the adoption of updated accounting guidance for credit losses resulted in a decrease in retained earnings of $0.1 million as of January 1, 2023[196] Reinsurance and Risk Management - The maximum retention by Bankers Fidelity on any one individual life insurance policyholder is $200,000[44] - During 2023, the liability of the reinsurer for new Medicare Supplement business was 50% of all new business issued, with $0.8 million of the Company's $1.5 million new annualized premium ceded[45] - Total reinsurance recoverable on unpaid losses was $14,678 million as of December 31, 2023[264] - Approximately 99.7% of the company's reinsurance recoverables were due from a single reinsurer as of December 31, 2023[265] Claims Handling and Adjustments - The total incurred losses for 2023 were $114,664 million, a decrease from $121,526 million in 2022, reflecting a reduction of approximately 5.5%[249] - The total incurred insurance benefits and losses for 2023 were $122,500 million, slightly lower than $123,456 million in 2022[249] - The allocated loss adjustment expenses for 2023 are $5,397 million, indicating a significant increase in claims handling costs[254] - The adjustment expenses for 2023 are $3,093 million, highlighting the costs associated with claims adjustments and settlements[253]

Financial Performance - Atlantic American Corporation reported a net loss of $2.2 million, or ($0.11) per diluted share, for Q4 2023, compared to a net income of $1.0 million, or $0.05 per diluted share, in Q4 2022[1]. - For the full year 2023, the company reported a net loss of $0.2 million, or ($0.03) per diluted share, down from a net income of $1.5 million, or $0.06 per diluted share, in 2022[1]. - Operating loss for Q4 2023 was $4.3 million, a decrease from an operating income of $3.5 million in Q4 2022; for the full year, operating income fell to $1.5 million from $9.6 million[2]. Revenue and Premiums - Total revenue for Q4 2023 was $46.7 million, compared to $45.2 million in Q4 2022; for the full year, total revenue was $186.8 million, down from $187.9 million[6]. - Insurance premiums for Life and Health segment decreased to $26.1 million in Q4 2023 from $28.4 million in Q4 2022, and for the full year, it decreased to $110.4 million from $115.2 million[6]. - Property and Casualty insurance premiums increased slightly to $16.8 million in Q4 2023 from $16.5 million in Q4 2022, but decreased for the full year to $68.4 million from $70.3 million[6]. Insurance Benefits and Losses - Insurance benefits and losses incurred for Life and Health segment increased to $22.9 million in Q4 2023 from $18.3 million in Q4 2022, and for the full year, it decreased to $71.5 million from $76.3 million[6]. Dividends and Shareholder Information - The company declared an annual dividend of $0.02 per share, payable on April 26, 2024, to shareholders of record on April 12, 2024[3]. Investments and Future Focus - Total cash and investments increased to $265.4 million as of December 31, 2023, compared to $257.6 million at the end of 2022[6]. - The company is focusing on investments in human talent and information technology to improve profitability in its Life and Health segment[3].

Core Viewpoint - AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) for American Southern Insurance Company and its subsidiary, as well as the FSR of A- (Excellent) for Bankers Fidelity Life Insurance Company, indicating strong financial health and stability across these companies [1][5]. Group 1: American Southern Group - The ratings reflect American Southern Group's very strong balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management (ERM) [2]. - The group's balance sheet strength is supported by the strongest level of risk-adjusted capitalization, with an adjusted debt-to-capital ratio of 22.9% as of September 30, 2023, and sufficient financial flexibility [3]. - Operating profitability has been historically positive, driven by underwriting income and net investment income, although underwriting results declined in the first nine months of 2023 due to increased claims in auto liability and general liability lines [4]. Group 2: Bankers Fidelity Life Insurance Group (BFLIG) - BFLIG's ratings reflect very strong balance sheet strength, marginal operating performance, neutral business profile, and appropriate ERM [5]. - The organization maintains the strongest level of risk-adjusted capitalization for its insurance and investment risks, supported by capital contributions from its parent company [6]. - Operating performance has fluctuated, particularly in the Medicare supplement segment, but has trended favorably since 2022 due to corrective measures such as rate increases and diversification into lower-risk products [6].

Financial Performance - For the three-month period ended September 30, 2023, net income was $1.8 million, or $0.08 per diluted share, compared to a net loss of $0.7 million, or $(0.04) per diluted share, for the same period in 2022[104]. - Total revenue for the three-month period ended September 30, 2023, was $44.6 million, down from $46.3 million in the same period in 2022[101]. - Operating income increased by $1.9 million for the three-month period ended September 30, 2023, while it decreased by $0.3 million for the nine-month period compared to the same periods in 2022[106]. - The Parent's insurance subsidiaries reported statutory net income of $8.9 million for the nine-month period ended September 30, 2023, compared to $5.7 million for the same period in 2022[130]. Revenue and Premiums - Premium revenue decreased by $2.6 million, or 5.7%, to $43.7 million for the three-month period ended September 30, 2023, and decreased by $4.6 million, or 3.3%, to $135.9 million for the nine-month period[105]. - Net earned premiums decreased by $1.1 million, or 6.1%, during the three-month period ended September 30, 2023, and by $2.1 million, or 3.9%, during the nine-month period compared to the same periods in 2022[113]. - Gross written premiums at American Southern decreased by $1.5 million, or 12.4%, for the three-month period and by $5.2 million, or 8.2%, for the nine-month period ended September 30, 2023[109]. - Net earned premium revenue at Bankers Fidelity decreased by $1.6 million, or 5.4%, for the three-month period and by $2.5 million, or 2.9%, for the nine-month period ended September 30, 2023[119]. - Gross earned premiums from the Medicare supplement line decreased by $3.8 million, or 10.4%, for the three-month period and by $11.2 million, or 10.0%, for the nine-month period ended September 30, 2023[119]. Loss Ratios and Expenses - The loss ratio for American Southern was 71.7% for the three-month period ended September 30, 2023, compared to 68.2% for the same period in 2022[109]. - The loss ratio increased to 71.7% for the three-month period ended September 30, 2023, compared to 68.2% for the same period in 2022, and to 73.7% for the nine-month period from 68.0%[115]. - Insurance benefits and losses incurred were $26.8 million for the three-month period ended September 30, 2023, compared to $30.6 million for the same period in 2022[101]. - Insurance benefits and losses incurred at American Southern decreased by $0.2 million, or 1.2%, for the three-month period ended September 30, 2023, and increased by $1.5 million, or 4.2%, for the nine-month period[115]. - Commissions and underwriting expenses decreased by $0.3 million, or 6.1%, for the three-month period and by $2.4 million, or 15.8%, for the nine-month period ended September 30, 2023[116]. Ratios and Profitability - The combined ratio for American Southern was 97.9% for the three-month period ended September 30, 2023, indicating an underwriting profit[114]. - The combined ratio improved to 87.4% for the three-month period ended September 30, 2023, compared to 99.1% for the same period in 2022, and to 93.7% from 96.8% for the nine-month period[119]. Interest and Investment Income - Interest expense increased to $850,000 for the three-month period ended September 30, 2023, compared to $523,000 for the same period in 2022[101]. - Interest expense increased by $0.3 million, or 62.5%, for the three-month period and by $1.1 million, or 86.4%, for the nine-month period ended September 30, 2023[127]. - Investment income decreased by $0.3 million, or 12.0%, for the three-month period and by $0.1 million, or 1.1%, for the nine-month period ended September 30, 2023[122]. Cash and Debt Management - The Company reported a decrease in cash and cash equivalents from $28.9 million at December 31, 2022, to $23.9 million at September 30, 2023, primarily due to net cash used in operating activities of $3.5 million[139]. - The Company had outstanding borrowings of $3.0 million under a Revolving Credit Agreement as of September 30, 2023, with a total credit facility of $10.0 million[138]. - The Company has accrued but unpaid dividends on Series D Preferred Stock totaling $0.3 million as of September 30, 2023[135]. - The Company has access to approximately $8.0 million in credit availability from the Federal Home Loan Bank of Atlanta as of September 30, 2023[136]. - The Company has a debt to capital ratio covenant that restricts consolidated indebtedness to not exceed 35% of consolidated capitalization[138]. Internal Controls and Compliance - The Company successfully completed testing to conclude that a previously identified material weakness in internal control over financial reporting has been remediated[144]. - The Company intends to meet its obligations under the Junior Subordinated Debentures using existing cash balances and potential future financing arrangements[134]. - As of September 30, 2023, the Company had outstanding Junior Subordinated Debentures totaling $33.7 million, with an effective interest rate of 9.70%[133]. - The Company has pledged bonds with an amortized cost of $6.9 million to the Federal Home Loan Bank as of September 30, 2023[136]. - The Company has not made any purchases of common stock during the three-month period ended September 30, 2023, under its Repurchase Plan, which allows for the repurchase of up to 750,000 shares[148].

Financial Performance - For the three months ended June 30, 2023, net income was $1.7 million, or $0.08 per diluted share, compared to a net loss of $1.7 million, or $0.09 per diluted share, for the same period in 2022[52]. - Total revenue for the three months ended June 30, 2023, was $49.2 million, an increase from $44.7 million in the comparable period in 2022[51]. - Operating income decreased by $1.2 million for the three months ended June 30, 2023, primarily due to ancillary costs related to a new actuarial valuation system[52]. - The Parent's insurance subsidiaries reported statutory net income of $4.1 million for the six months ended June 30, 2023, compared to $2.2 million for the same period in 2022[59]. Revenue and Premiums - Premium revenue decreased by $1.0 million, or 2.1%, to $46.1 million for the three months ended June 30, 2023, compared to $47.1 million in the same period in 2022[52]. - Net earned premiums decreased by $0.9 million, or 4.7%, during the three months ended June 30, 2023, primarily due to a decrease in the automobile physical damage line of business[54]. - Gross earned premiums from the Medicare supplement line decreased by $3.7 million, or 9.8%, for the three months ended June 30, 2023, and by $7.4 million, or 9.8%, for the six months ended June 30, 2023[56]. - Net earned premium revenue decreased by $0.1 million, or 0.4%, for the three months ended June 30, 2023, and by $1.0 million, or 1.7%, for the six months ended June 30, 2023, compared to the same periods in 2022[56]. Insurance Benefits and Losses - Insurance benefits and losses incurred decreased by $3.4 million, or 10.4%, to $29.4 million for the three months ended June 30, 2023, compared to $32.8 million in the same period in 2022[51]. - Insurance benefits and losses incurred decreased by $2.9 million, or 15.5%, for the three months ended June 30, 2023, and by $5.8 million, or 14.7%, for the six months ended June 30, 2023[56]. - The loss ratio improved to 56.1% for the three months ended June 30, 2023, down from 66.1% in the same period in 2022, and to 58.9% for the six months ended June 30, 2023, down from 67.9%[57]. Expenses - Commissions and underwriting expenses decreased by $0.4 million, or 8.2%, during the three months ended June 30, 2023, compared to the same period in 2022[54]. - Commissions and underwriting expenses increased by $3.5 million, or 47.1%, for the three months ended June 30, 2023, and by $5.4 million, or 33.8%, for the six months ended June 30, 2023[56]. - Interest expense increased by $0.4 million, or 94.9%, for the three months ended June 30, 2023, and by $0.8 million, or 102.7%, for the six months ended June 30, 2023, due to changes in LIBOR[58]. Cash and Liquidity - As of June 30, 2023, the Company had cash and cash equivalents of $24.2 million, down from $28.9 million at December 31, 2022, primarily due to net cash used in operating activities of $4.9 million[61]. - The Company believes existing cash balances and expected dividends will meet liquidity requirements for the foreseeable future[61]. - The Company has credit availability of approximately $7.8 million from the Federal Home Loan Bank of Atlanta as of June 30, 2023[61]. - The Company had outstanding borrowings of $3.0 million under a $10.0 million revolving credit facility as of June 30, 2023[61]. Internal Controls and Compliance - The Company identified a material weakness in internal control over financial reporting related to actuarial models, but no material misstatements were identified in financial statements[64]. - The Company has implemented enhanced controls over actuarial models and hired additional actuarial staff to improve financial reporting processes[65]. - The Credit Agreement requires compliance with a debt to capital ratio that restricts consolidated indebtedness to no more than 35% of consolidated capitalization[61]. Share Repurchase and Regulatory Matters - The Company did not repurchase any shares of common stock during the three-month period ended June 30, 2023, leaving 325,129 shares available for repurchase under its plan[68]. - The Company is not aware of any current regulatory recommendations that would materially affect its liquidity or operations[61].