Revenue and Income - For the three months ended March 31, 2025, total revenue increased to $50.1 million, up 4.8% from $47.0 million in the same period of 2024[79]. - Net income for the first quarter of 2025 was $0.8 million, or $0.03 per diluted share, compared to a net loss of $2.0 million, or $(0.10) per diluted share, in the first quarter of 2024[80]. - Premium revenue increased by $2.4 million, or 5.3%, to $46.9 million in Q1 2025, driven by growth in group accident and health, individual health, and Medicare supplement lines[81]. - Operating income rose by $2.7 million in Q1 2025, primarily due to increased premium revenue and favorable loss experience in life and health operations[82]. Premiums and Underwriting - American Southern's gross written premiums increased by $0.9 million, or 10.2%, to $9.3 million in Q1 2025, attributed to new programs in inland marine and automobile physical damage lines[84]. - Bankers Fidelity's gross earned premiums rose by $2.8 million, or 7.1%, to $42.6 million in Q1 2025, mainly from the Medicare supplement line due to new business writings[93]. - The loss ratio for Bankers Fidelity improved to 60.6% in Q1 2025, down from 71.7% in Q1 2024, reflecting lower utilization in the Medicare supplement line[96]. - American Southern's combined ratio was 102.2% in Q1 2025, indicating an underwriting loss, compared to 97.1% in Q1 2024[84]. - Commissions and underwriting expenses at American Southern decreased by $0.4 million, or 8.8%, to $4.1 million in Q1 2025, with an expense ratio of 22.6%[89]. - Net earned premium revenue at Bankers Fidelity increased by $1.9 million, or 7.2%, to $28.6 million in Q1 2025, driven by growth in group accident and health and Medicare supplement lines[95]. - Commissions and underwriting expenses increased by $0.4 million, or 3.9%, for the three-month period ended March 31, 2025, compared to the same period in 2024, with underwriting expenses as a percentage of earned premiums decreasing to 37.6% from 38.8%[97]. Investment and Financial Position - Net investment income decreased by $0.1 million, or 4.5%, during the three-month period ended March 31, 2025, primarily due to a decrease in equity earnings from limited partnerships[98]. - The Company recognized net unrealized gains on equity securities of $0.8 million for the three-month period ended March 31, 2025, compared to unrealized losses of $0.1 million for the same period in 2024[100]. - Interest expense decreased by $0.1 million, or 9.5%, for the three-month period ended March 31, 2025, due to changes in the Secured Overnight Financing Rate (SOFR)[101]. - The Parent's insurance subsidiaries reported statutory net income of $4.3 million for the three-month period ended March 31, 2025, compared to $1.6 million for the same period in 2024[105]. - At March 31, 2025, the Parent had approximately $3.5 million of unrestricted cash and investments[104]. - The Company had outstanding borrowings of $4.0 million under the Revolving Credit Agreement as of March 31, 2025[113]. - Cash and cash equivalents increased from $35.6 million at December 31, 2024, to $35.9 million at March 31, 2025, primarily due to net cash provided by investing activities of $1.1 million[114]. - The Company had $47.6 million of statutory capital and surplus at American Southern and $33.5 million at Bankers Fidelity as of March 31, 2025[106]. - The Company intends to pay obligations under Junior Subordinated Debentures using existing cash balances and potential future financing arrangements[109].
Atlantic American(AAME) - 2025 Q1 - Quarterly Report