Atlantic American Corporation reported a challenging third quarter and year-to-date performance for 2024, as reflected in its recent 10-Q filing. For the three months ended September 30, 2024, the company recorded total revenue of $44.5 million, a slight decrease from $44.6 million in the same period of 2023. Year-to-date revenue also fell to $139.2 million from $140.0 million. Insurance premiums, net for Q3 2024, were $43.8 million, marginally up from $43.7 million in Q3 2023, but year-to-date premiums decreased by 1.9% to $133.3 million.

The company's total benefits and expenses surged to $47.0 million in Q3 2024, compared to $42.5 million in Q3 2023, leading to a loss before income taxes of $(2.5) million, a stark contrast to the income of $2.1 million reported in the prior year. This trend continued year-to-date, with a loss before income taxes of $(5.8) million compared to a profit of $2.5 million in 2023. Consequently, net income for Q3 2024 was $(2.0) million, down from a profit of $1.8 million in Q3 2023, and year-to-date net income fell to $(4.7) million from $2.1 million.

The company's financial position showed total assets increasing to $387.0 million as of September 30, 2024, from $381.3 million at the end of 2023. However, total liabilities also rose to $281.2 million from $274.0 million, resulting in a decrease in total shareholders' equity to $105.8 million from $107.3 million. Retained earnings also declined to $45.5 million from $50.9 million.

In terms of strategic developments, Atlantic American's subsidiary, American Southern, experienced a significant drop in gross written premiums, down 21.4% to $8.5 million in Q3 2024. The loss ratio for American Southern increased to 86.2% from 71.7% in the previous year, indicating rising claims relative to premiums earned. Conversely, Bankers Fidelity reported a slight decrease in revenue but maintained a positive income before taxes.

The company’s cash and cash equivalents decreased to $23.0 million from $28.3 million, primarily due to net cash used in operating activities of $4.8 million. The company also reported an increase in outstanding borrowings under its Revolving Credit Agreement, rising to $4.0 million from $3.0 million at the end of 2023. Overall, Atlantic American faces ongoing challenges in profitability and revenue generation amid rising expenses and claims.