Atlantic American reports Q1 net income of $0.8mln, up from Q1 2024 net loss.

• Atlantic American Corporation reports Q1 2025 net income of $0.8 million, $0.03 per share. • Q1 2025 premium revenue increases $2.4 million, or 5.3%, to $46.9 million. • Operating income of $0.3 million, compared to an operating loss of ($2.4) million in Q1 2024.

Atlantic American Corporation (AAME), an insurance holding company, reported its first quarter 2025 results, showcasing a significant turnaround from the previous year. The company reported net income of $0.8 million, or $0.03 per diluted share, compared to a net loss of $2.0 million in the same period last year [1].

The primary driver of this improvement was a 5.3% increase in premium revenue, which rose to $46.9 million from $44.6 million in Q1 2024. This growth was primarily attributed to strong performance in the company's life and health operations [1].

Operating income, as defined by the company, also showed a notable improvement. The company reported operating income of $0.3 million in Q1 2025, reversing a $2.4 million loss from the previous year. This improvement was driven by the increase in premium revenue and favorable loss experience in the life and health segments [1].

Chairman, President, and CEO Hilton H. Howell, Jr., expressed optimism about the company's performance and future prospects. He stated, "We are pleased to report strong quarterly results, highlighted by improved profitability and solid growth in insurance premiums. New business momentum within our life and health segments remains robust, reinforcing our confidence in the Company’s long-term growth trajectory. While our property and casualty operations faced elevated losses this quarter, we expect recent rate adjustments to begin positively impacting results in the coming periods. Looking ahead, we see significant opportunities and remain confident in our outlook for the remainder of 2025" [1].

The company's book value per share improved to $4.80 from $4.61, with total shareholders' equity reaching $102.4 million. This reflects the company's ability to generate positive cash flows and maintain a strong balance sheet [2].

Despite the strong performance in Q1 2025, the company faces challenges in its property and casualty operations. Elevated losses in this segment may impact future results, but management expects recent rate adjustments to mitigate these effects [1].

In summary, Atlantic American Corporation's Q1 2025 results demonstrate a significant turnaround, driven by robust premium revenue growth and favorable loss experience in life and health operations. The company's financial performance is a positive indicator of its long-term growth potential.

References:
[1] https://www.morningstar.com/news/globe-newswire/9450589/atlantic-american-corporation-reports-first-quarter-results-for-2025
[2] https://www.stocktitan.net/news/AAME/atlantic-american-corporation-reports-first-quarter-results-for-3nzks3ksffy5.html