Tue, May 13, 6:09 PM (36 days ago)
**Atlantic American Corporation (AAME)** reported its financial health for the quarter ended March 31, 2025, showing a positive turnaround compared to the same period in 2024. Here are the key points: **Financial Performance:** - **Revenue:** Total revenue increased by 6.7% to $50.1 million, driven by a 5.3% increase in insurance premiums and gains in equity securities. - **Profit Margins:** The company reported a net income of $0.8 million, a significant improvement from a net loss of $2.0 million in the previous year. Operating income increased by $2.7 million. - **Earnings Per Share (EPS):** EPS was $0.03, compared to a loss of $0.10 in 2024. - **Cash Flow:** Net cash used in operating activities was $0.7 million, an improvement from $5.3 million in the previous year. Cash provided by investing activities was $1.1 million. **Segment Performance:** - **American Southern:** Gross written premiums increased by 10.2%, but the combined ratio worsened to 102.2% due to higher losses in the automobile physical damage and other lines of business. - **Bankers Fidelity:** Gross earned premiums increased by 7.1%, with a favorable loss ratio of 60.6%, leading to a combined ratio of 98.2%. **Trends and Uncertainties:** - The company continues to face uncertainties related to macroeconomic conditions, regulatory changes, and competitive pressures. - Management is focused on remediating a material weakness in internal control over financial reporting, which has been ongoing since the first quarter of 2024. **Future Operations:** - The company plans to continue its remediation efforts and expects to complete the implementation of a new system to verify actuarial values by September 30, 2025. - Atlantic American intends to meet its liquidity requirements through existing cash balances, dividends from subsidiaries, and potential borrowings under its credit facilities. **Impact:** - The positive financial performance and ongoing remediation efforts are expected to strengthen the company's financial position and operational efficiency. - The company's focus on well-defined market niches and strategic investments is likely to drive future growth and profitability.