Atlantic American Corporation Reports Net Income of $802,000 in Q1 2025

Atlantic American Corporation reported a net income of $802,000, or $0.03 per diluted share, for the first quarter of 2025, a significant turnaround from a net loss of $1.998 million, or $(0.10) per diluted share, in the same period of 2024. The company’s total revenue increased to $50.125 million, up from $46.997 million year-over-year, driven primarily by a 5.3% rise in insurance premiums, which reached $46.913 million compared to $44.552 million in the prior year. The increase in premium revenue was largely attributed to growth in the group accident and health, other individual health, and Medicare supplement lines of business.

In terms of expenses, total benefits and expenses decreased slightly to $49.090 million from $49.503 million in the previous year. Notably, insurance benefits and losses incurred remained relatively stable at $31.913 million, compared to $31.925 million in the prior year. The company also reported a decrease in commissions and underwriting expenses, which fell to $11.680 million from $12.666 million. This resulted in an income before income taxes of $1.035 million, a notable improvement from a loss of $2.506 million in the first quarter of 2024.

Operationally, Atlantic American's subsidiaries, American Southern and Bankers Fidelity, showed varied performance. American Southern's gross written premiums increased by 10.2% to $9.336 million, while Bankers Fidelity's gross earned premiums rose by 7.1% to $42.644 million. The loss ratio for American Southern increased to 79.6%, reflecting higher claims in the automobile physical damage and other lines of business. Conversely, Bankers Fidelity reported a decrease in its loss ratio to 60.6%, attributed to lower utilization in the Medicare supplement line.

The company’s total assets decreased to $388.436 million as of March 31, 2025, down from $393.428 million at the end of 2024. This decline was primarily due to a reduction in insurance reserves and policyholder funds, which fell to $220.520 million from $225.106 million. The company’s cash and cash equivalents increased slightly to $35.903 million, compared to $35.570 million at the end of the previous year. Looking ahead, Atlantic American remains focused on enhancing its operational efficiency and capitalizing on growth opportunities within its insurance segments, while also addressing the identified material weakness in internal control over financial reporting.