Thu, May 15, 6:13 PM (34 days ago)
**US Alliance Corporation (USAC) - Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total income decreased by 8% to $5.18 million in Q1 2025, driven by investment losses. - **Profit Margins:** Net loss of $1.37 million in Q1 2025, compared to a net income of $13,957 in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $2.25 million, while cash used in financing activities was $3.69 million. - **Earnings Changes:** Decrease in net income attributed to investment losses and increased policyholder benefits. **Key Metrics:** - **Premium Income:** Increased by 20% to $4.42 million, driven by direct single and recurring premiums. - **Investment Income:** Increased by 3% to $1.72 million, due to improved yields. - **Net Investment Gains/Losses:** Recorded a loss of $1.05 million, primarily due to unrealized losses on equity securities. **Quarterly Performance Discussion:** - **Investments:** Decrease in fixed maturity securities and mortgage loans, with an increase in limited partnership interests. - **Liabilities:** Decrease in policy liabilities due to surrenders of deposit-type contracts. - **Shareholders' Equity:** Decreased by 7% due to the net loss in Q1 2025. **Trends and Uncertainties:** - **Market Risks:** Exposure to interest rate risk, credit risk, and equity risk. - **Liquidity:** Adequate cash and cash equivalents to fund operating expenses and capital expenditures. - **Future Operations:** Uncertain growth of USALSC may require additional capital. **Impact on Future Operations:** - **Investment Strategy:** Emphasis on investment-grade debt securities with smaller holdings in equity securities, mortgages, and other investments. - **Risk Management:** Regular review and approval of investment policies and guidelines by senior management and the Board of Directors. **Ticker:** USAC **Note:** Amounts are in thousands ($000s).