Financial Performance - Total revenue for the three months ended September 30, 2022, was $46,343, a decrease of 3.9% compared to $49,290 for the same period in 2021[7] - Net income applicable to common shareholders for the nine months ended September 30, 2022, was $180, compared to $1,317 for the same period in 2021, reflecting a significant decline[7] - Net income for the three months ended September 30, 2022, was a loss of $684 million, compared to a loss of $915 million for the same period in 2021, representing a 25.2% improvement[8] - For the nine months ended September 30, 2022, net income was $479 million, down 70.5% from $1,616 million in the same period of 2021[9] - Total comprehensive loss for the three months ended September 30, 2022, was $11,024 million, compared to a loss of $2,203 million in the same period of 2021[8] - The company reported a net loss applicable to common shareholders of $784 for the three months ended September 30, 2022, compared to a net loss of $1,015 for the same period in 2021, reflecting an improvement of approximately 22.8%[34] Assets and Liabilities - Total assets as of September 30, 2022, were $360,349, down from $402,286 as of December 31, 2021, indicating a decrease of approximately 10.4%[5] - Total liabilities as of September 30, 2022, were $262,438, slightly up from $261,000 as of December 31, 2021[5] - The company’s cash and cash equivalents were $21,876 as of September 30, 2022, down from $24,753 as of December 31, 2021, indicating a decrease of 11.4%[5] - The balance of retained earnings at the end of the period was $51,036 million, an increase from $48,699 million at the end of September 2021[9] - Total shareholders' equity at the end of the period was $97,911 million, down from $139,995 million a year earlier[9] Investment Income - The company reported a net investment income of $2,641 for the three months ended September 30, 2022, an increase of 23.5% from $2,137 in the same period of 2021[7] - The company reported realized investment gains of $101 million for the three months ended September 30, 2022, compared to $349 million for the same period in 2021[20] - For the nine months ended September 30, 2022, the company reported net realized investment gains of $29 million, compared to $520 million for the same period in 2021, reflecting a decrease of approximately 94.4%[21] Insurance Operations - Insurance benefits and losses incurred for the three months ended September 30, 2022, were $30,630, down from $35,045 in the same period of 2021, representing a reduction of 12.3%[7] - Total incurred losses for the nine months ended September 30, 2022, were $93,353, compared to $99,650 for the same period in 2021, representing a decrease of approximately 3.3%[28] - The net insurance reserves for losses and claims as of September 30, 2022, were $69,158, an increase from $68,645 in 2021, indicating a growth of about 0.7%[28] - The total insurance benefits and losses incurred for the nine months ended September 30, 2022, were $94,552, down from $100,020 in 2021, a decrease of about 5.5%[28] Equity Securities - The company reported unrealized losses on equity securities of $(2,783) for the three months ended September 30, 2022, compared to unrealized gains of $711 in the same period of 2021[7] - The company recorded a net realized loss of $5,456 million on equity securities for the nine months ended September 30, 2022, compared to net realized gains of $5,458 million for the same period in 2021, indicating a significant turnaround[22] - The Company reported net unrealized losses on equity securities of $5.5 million for the nine months ended September 30, 2022, compared to unrealized gains of $5.5 million in the same period in 2021[56] Operational Changes - The company formed a new life and health insurance entity, Atlantic Capital Life Assurance Company, which is expected to commence operations in 2023[44] - The company is preparing for the discontinuation of LIBOR by updating operational processes and evaluating legacy contracts for necessary changes[29] Cash Flow and Commitments - The company’s cash used in operating activities for the nine months ended September 30, 2022, was $2,246 million, compared to $9,554 million in the same period of 2021[10] - The company had outstanding commitments totaling $5,872 million as of September 30, 2022, compared to $1,997 million as of December 31, 2021, indicating an increase of approximately 194.5%[21] - The Company expects to meet its liquidity requirements through existing cash balances, dividends, fees, tax-sharing payments, and potential borrowings[25]
Atlantic American(AAME) - 2022 Q3 - Quarterly Report