Atlantic American(AAME) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Highlights Atlantic American Corporation shifted from net losses in 2024 to net income in Q2 and H1 2025, driven by increased premium revenue and unrealized gains on equity securities Consolidated Financial Performance (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) (in millions) | $3.3 | ($0.7) | $4.1 | ($2.7) | | Diluted EPS (in dollars) | $0.15 | ($0.04) | $0.19 | ($0.14) | Operating Income Growth (in millions) | Period | Increase in Operating Income (in millions) | | :--- | :--- | | Three Months Ended June 30, 2025 | $2.7 | | Six Months Ended June 30, 2025 | $5.4 | - The increase in net income was primarily the result of increases in premium revenue, coupled with an increase in unrealized gains on equity securities[2] Management Commentary Management expressed satisfaction with strong earned premium growth across all segments, attributing success to new business and high retention, and anticipates sustained profitable growth - Both property & casualty and life & health segments delivered strong earned premium growth, supported by new business momentum and retention of existing contracts[4] - The company believes it is well-positioned to deliver sustained, profitable growth and drive long-term value creation for shareholders in the second half of the year[4] Business Segment Performance Both Life & Health and Property & Casualty segments contributed to growth, with operating income driven by specific lines and significant year-over-year premium increases - Operating income growth was primarily driven by the inland marine line of business in property and casualty, and the Medicare supplement and group accident and health lines in life and health operations[3] Net Insurance Premiums by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Life and health (in thousands) | $29,005 | $27,449 | $57,587 | $54,123 | | Property and casualty (in thousands) | $21,141 | $17,544 | $39,472 | $35,422 | | Total (in thousands) | $50,146 | $44,993 | $97,059 | $89,545 | Detailed Financial Statements This section presents unaudited financial data for Q2 and H1 2025, including consolidated statements of operations, selected balance sheet data, and non-GAAP operating income reconciliation Consolidated Statements of Operations Q2 2025 total revenue increased to $55.3 million, driven by higher net insurance premiums and unrealized gains on equity securities, resulting in $3.3 million net income Q2 2025 vs Q2 2024 Statement of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenue (in thousands) | $55,290 | $47,668 | | Total Benefits and Expenses (in thousands) | $51,074 | $48,517 | | Income (Loss) Before Income Taxes (in thousands) | $4,216 | ($849) | | Net Income (Loss) (in thousands) | $3,316 | ($684) | Selected Balance Sheet Data As of June 30, 2025, the company's financial position strengthened with total assets at $429.3 million and book value per common share improving to $4.94 Balance Sheet Highlights (in thousands, except per share data) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets (in thousands) | $429,339 | $393,428 | | Total Shareholders' Equity (in thousands) | $106,168 | $99,613 | | Book Value Per Common Share (in dollars) | $4.94 | $4.61 | Reconciliation of Non-GAAP Financial Measure Non-GAAP operating income, used to assess core performance, significantly improved in Q2 2025 to $1.6 million from a $1.1 million loss in Q2 2024 - Operating income (loss) is a non-GAAP measure defined as net income (loss) excluding income tax, realized investment gains/losses, and unrealized gains/losses on equity securities[5] Reconciliation to Non-GAAP Operating Income (Loss) (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) (in thousands) | $3,316 | ($684) | $4,118 | ($2,682) | | Non-GAAP Operating Income (Loss) (in thousands) | $1,591 | ($1,105) | $1,859 | ($3,497) | Important Disclosures This section provides crucial context, explaining the non-GAAP operating income measure and including a forward-looking statements disclaimer regarding potential risks and uncertainties - The company presents the non-GAAP measure of operating income (loss) to isolate 'core' operating results from items like taxes and investment gains/losses, which management believes are beyond its control or not part of primary operations[5] - The report contains forward-looking statements that are subject to risks and uncertainties, including macroeconomic conditions, regulatory changes, market disruption, cybersecurity matters, and other factors detailed in SEC filings[6]