Tue, May 14, 4:00 PM (73 days ago)
For the quarter ending March 31, 2024, Atlantic American Corporation reported a net loss of $2.0 million, or $(0.10) per share, compared to a net loss of $1.4 million, or $(0.08) per share, for the same period in 2023. The increase in net loss was primarily driven by a decline in premium revenue and unfavorable loss experience in the life and health operations. Revenue decreased slightly to $47.0 million, down from $46.3 million in the previous year, with net insurance premiums falling by 3.4% to $44.6 million. The company's insurance benefits and losses incurred rose by 4.8% to $31.9 million, driven by higher incurred losses in the group life and Medicare supplement lines. Commissions and underwriting expenses remained relatively stable, decreasing slightly by 2.0% to $12.7 million. Cash and cash equivalents decreased from $28.3 million at December 31, 2023, to $21.2 million at March 31, 2024, primarily due to operating cash outflows of $5.3 million and investment purchases exceeding sales. The company’s revolving credit facility was extended to March 22, 2027, with a new interest rate structure based on the Adjusted Term SOFR rate plus 2.00%. Overall, the financial results reflect challenges in maintaining premium revenue and managing loss ratios, particularly in the life and health insurance segments.