Atlantic American Corporation Reports 11.8% Revenue Growth and Net Income Turnaround for Fiscal Year 2025

Atlantic American Corporation reported a significant improvement in its financial performance for the fiscal year ended December 31, 2025, with total revenue reaching $210.4 million, an increase of 11.8% from $188.1 million in 2024. The company's net income was $6.0 million, or $0.28 per diluted share, compared to a net loss of $1.4 million, or $(0.09) per diluted share, in the previous year. This turnaround was primarily driven by increased net earned premiums in both its property and casualty operations and life and health segments, reflecting strategic pricing adjustments and growth in sales.

The property and casualty segment, represented by American Southern Insurance Company, saw net earned premiums rise to $84.5 million in 2025, up 24.8% from $67.7 million in 2024. This growth was largely attributed to a rate increase in the automobile liability line and increased writings in inland marine and automobile physical damage lines. Conversely, Bankers Fidelity, the life and health segment, reported net earned premiums of $111.6 million, a slight increase from $110.9 million in 2024, driven by new sales in the Medicare Supplement line, which accounted for 84% of its total premiums.

The company faced challenges during the year, including the adoption of the new Long-Duration Targeted Improvements (LDTI) accounting standards, which required significant adjustments to its financial reporting. As a result, certain amounts from the previous fiscal year were restated to align with the new accounting framework. Additionally, management identified material weaknesses in internal controls over financial reporting, particularly concerning premium receivables and the implementation of LDTI, prompting ongoing remediation efforts.

Operationally, Atlantic American Corporation employed 166 individuals as of December 31, 2025, with a focus on enhancing its workforce's capabilities to support growth and compliance with regulatory standards. The company also continued to expand its geographic footprint and product offerings, aiming to capture a larger market share in its specialty insurance segments. Looking ahead, the company expressed optimism about its ability to regain compliance with Nasdaq listing requirements and improve its operational efficiencies, despite the challenges posed by market conditions and regulatory changes.

In summary, Atlantic American Corporation's financial results for 2025 reflect a strong recovery from the previous year, driven by strategic pricing and growth initiatives across its insurance segments. The company is actively addressing internal control weaknesses and adapting to new accounting standards while positioning itself for future growth and compliance.