Atlantic American Corporation Reports Third Quarter Results for 2022
November 08, 2022 at 07:38 pm
Share
ATLANTA, Nov. 08, 2022 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net loss for the three month period ended September 30, 2022 of $0.7 million, or $0.04 per diluted share, as compared to net loss of $0.9 million, or $0.05 per diluted share, for the comparable period in 2021. For the nine month period ended September 30, 2022, the Company reported net income of $0.5 million, or $0.01 per diluted share, as compared to net income of $1.6 million, or $0.06 per diluted share, for the comparable period in 2021. The decrease in net loss for the three month period ended September 30, 2022 was primarily attributable to more favorable loss experience in the life and health operations, partially offset by a decrease in unrealized gains of $3.5 million, from the comparable period in 2021. The decrease in net income for the nine month period ended September 30, 2022 was primarily attributable to the decrease in unrealized gains of $10.9 million from the comparable period in 2021, partially offset by more favorable loss experience in the life and health operations.
Operating income (as defined below) increased $4.1 million in the three month period ended September 30, 2022 from the three month period ended September 30, 2021. For the nine month period ended September 30, 2022, operating income increased $10.2 million from the comparable period in 2021. The increase in operating income was primarily due to favorable loss experience in the life and health operations, resulting from an increase in earned premium within the group lines of business coupled with a decrease in the number of claims incurred in the Medicare supplement line of business.
Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are quite pleased to report an over $10 million improvement in operating income for the first nine months of 2022 as compared to 2021. The life and health operations have done a phenomenal job in diversifying the business through its competitive group products, as well as carefully managing the Medicare supplement line back to profitability. Additionally, our property and casualty operations continue to perform exceptionally well, maintaining profitability coupled with top line growth. Finally, it is with great enthusiasm that we announce our newly formed subsidiary, Atlantic Capital Life Assurance Company, which recently obtained its certificate of authority in our state of domicile.”
Atlantic American Corporation is an insurance holding company involved through its subsidiary companies in specialty markets of the life, health, and property and casualty insurance industries. Its principal insurance subsidiaries are American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance Company.
Note regarding non-GAAP financial measure: Atlantic American Corporation presents its consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP). However, from time to time, the Company may present, in its public statements, press releases and filings with the Securities and Exchange Commission, non-GAAP financial measures such as operating income (loss). We define operating income (loss) as net income (loss) excluding: (i) income tax expense (benefit); (ii) realized investment gains, net; and (iii) unrealized (gains) losses on equity securities, net. Management believes operating income (loss) is a useful metric for investors, potential investors, securities analysts and others because it isolates the “core” operating results of the Company before considering certain items that are either beyond the control of management (such as income tax expense (benefit), which is subject to timing, regulatory and rate changes depending on the timing of the associated revenues and expenses) or are not expected to regularly impact the Company’s operating results (such as any realized and unrealized investment gains (losses), which are not a part of the Company’s primary operations and are, to a limited extent, subject to discretion in terms of timing of realization). The financial data attached includes a reconciliation of operating income (loss) to net income (loss), the most comparable GAAP financial measure. The Company’s definition of operating income (loss) may differ from similarly titled financial measures used by others. This non-GAAP financial measure should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.
Note regarding Private Securities Litigation Reform Act: Except for historical information contained herein, this press release contains forward-looking statements that involve a number of risks and uncertainties. Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks, including those detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent statements and reports that Atlantic American Corporation files from time to time with the Securities and Exchange Commission.
For further information contact:
J. Ross Franklin
Hilton H. Howell, Jr.
Chief Financial Officer
Chairman, President & CEO
Atlantic American Corporation
Atlantic American Corporation
404-266-5580
404-266-5505
Atlantic American Corporation Financial Data
Three Months Ended
Nine Months Ended
September 30,
September 30,
(Unaudited; In thousands, except per share data)
2022
2021
2022
2021
Insurance premiums
Life and health
$
28,739
$
28,772
$
86,773
$
87,018
Property and casualty
17,641
17,320
53,753
50,297
Insurance premiums, net
46,380
46,092
140,526
137,315
Net investment income
2,641
2,137
7,510
6,516
Realized investment gains, net
101
349
29
520
Unrealized gains (losses) on equity securities, net
(2,783
)
711
(5,456
)
5,458
Other income
4
1
11
13
Total revenue
46,343
49,290
142,620
149,822
Insurance benefits and losses incurred
Life and health
18,599
23,394
58,003
66,463
Property and casualty
12,031
11,651
36,549
33,557
Commissions and underwriting expenses
12,843
11,927
35,894
36,670
Interest expense
523
347
1,291
1,040
Other expense
3,296
3,264
10,151
10,178
Total benefits and expenses
47,292
50,583
141,888
147,908
Income (loss) before income taxes
(949
)
(1,293
)
732
1,914
Income tax expense (benefit)
(265
)
(378
)
253
298
Net income (loss)
$
(684
)
$
(915
)
$
479
$
1,616
Earnings (loss) per common share (basic and diluted)
$
(0.04
)
$
(0.05
)
$
0.01
$
0.06
Reconciliation of Non-GAAP Financial Measure
Net income (loss)
$
(684
)
$
(915
)
$
479
$
1,616
Income tax expense (benefit)
(265
)
(378
)
253
298
Realized investment gains, net
(101
)
(349
)
(29
)
(520
)
Unrealized (gains) losses on equity securities, net
Atlantic American Corporation is an insurance holding company, which operates in specialty markets within the life and health and property and casualty insurance industries. The Company conducts its operations primarily through its insurance subsidiaries: American Southern Insurance Company and American Safety Insurance Company (collectively American Southern); and Bankers Fidelity Life Insurance Company, Bankers Fidelity Assurance Company, and Atlantic Capital Life Assurance Company (collectively Bankers Fidelity). American Southern operates in the property and casualty insurance market. Bankers Fidelity operates in the life and health insurance markets. American Southern's product lines include commercial automobile insurance policies, general liability insurance policies, and surety bonds. Products offered by Bankers Fidelity include life insurance, Medicare supplements, and other accident and health insurance products.