Atlantic American Corporation Reports $4.3 Million Net Loss for Fiscal Year 2024

Atlantic American Corporation reported a net loss of $4.3 million for the fiscal year ending December 31, 2024, compared to a net loss of $0.2 million in 2023. The company's total revenue increased slightly to $188.2 million from $186.8 million in the previous year, driven primarily by a rise in earned premiums in the life and health segment. However, the property and casualty segment experienced a decline in net earned premiums, primarily due to decreased demand in the automobile physical damage line of business. The overall operating loss for the year was $5.0 million, a significant drop from the operating income of $1.5 million reported in 2023.

In terms of operational performance, American Southern Insurance Company, the property and casualty arm, saw its net earned premiums decrease to $67.7 million from $68.4 million in 2023. This decline was attributed to a reduction in premiums from the automobile physical damage line, which was impacted by a downturn in the trucking industry. Conversely, Bankers Fidelity, the life and health segment, reported a slight increase in net earned premiums to $111.0 million, up from $110.4 million in the prior year, largely due to new sales in group accident and health and group life insurance products.

The company also noted a strategic focus on enhancing its product offerings and expanding its market presence. Bankers Fidelity introduced new products, including a hospital indemnity plan and a short-term care product, which contributed to the growth in its health insurance lines. As of December 31, 2024, Bankers Fidelity had approximately 6,243 licensed agents, with 1,429 actively writing policies, indicating a stable distribution network. The company continues to emphasize customer service and agent support as key differentiators in a competitive market.

Despite the challenges faced in 2024, Atlantic American Corporation remains optimistic about its future. The company is actively working to address identified weaknesses in its internal controls over financial reporting, particularly in the areas of insurance reserves and deferred acquisition costs. Management has implemented a systematic review process to enhance the accuracy of its financial reporting. Looking ahead, the company anticipates that improvements in operational efficiency and product offerings will position it for better performance in the coming years, although it acknowledges the ongoing risks associated with market conditions and claims costs.