UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported)
November 13, 2023

ATLANTIC AMERICAN CORPORATION
(Exact name of registrant as specified in its charter)

Georgia
0-3722
58-1027114
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

4370 Peachtree Road, N.E., Atlanta, Georgia
 
30319
(Address of principal executive offices)
 
(Zip Code)

Registrant’s telephone number, including area code
(404) 266-5500

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange on which registered
Common Stock, par value $1.00 per share
 
AAME
 
The Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.
Results of Operations and Financial Condition

On November 13, 2023, Atlantic American Corporation (the “Registrant”) reported its results of operations for its third quarter ended September 30, 2023. A copy of the press release issued by the Registrant concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01.
Financial Statements and Exhibits

(d) Exhibits

Exhibit
Number
 
Description of Exhibit
 
Press release dated November 13, 2023.
104
 
Cover Page Interactive Data File (embedded within the Inline XBRL document).

The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing. The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.


ATLANTIC AMERICAN CORPORATION




By:
/s/ J. Ross Franklin


J. Ross Franklin


Vice President, Chief Financial Officer and Secretary



Date:  November 13, 2023






Exhibit 99.1

ATLANTIC AMERICAN CORPORATION REPORTS
THIRD QUARTER RESULTS FOR 2023

ATLANTA, Georgia, November 13, 2023 - Atlantic American Corporation (Nasdaq- AAME) today reported net income of $1.8 million, or $0.08 per diluted share, for the three month period ended September 30, 2023, compared to net loss of $0.7 million, or $(0.04) per diluted share, for the three month period ended September 30, 2022.  The Company had net income of $2.1 million, or $0.09 per diluted share, for the nine month period ended September 30, 2023, compared to net income of $0.5 million, or $0.01 per diluted share, for the nine month period ended September 30, 2022.  The increase in net income for the three and nine month periods ended September 30, 2023 was primarily the result of a more favorable loss experience in the life and health operations, from the comparable periods in 2022, coupled with a decrease in unrealized losses on equity securities.  Partially offsetting this increase in net income for the nine month period ended September 30, 2023 was an increase in ancillary costs related to the implementation of the new actuarial valuation system, coupled with an increase in administrative costs related to the growth in the group and individual lines of business within the life and health operations.

Operating income (as defined below) increased $1.9 million in the three month period ended September 30, 2023 from the three month period ended September 30, 2022.  For the nine month period ended September 30, 2023, operating income decreased $0.3 million from the comparable period in 2022.  The increase in operating income for the three month period ended September 30, 2023 was primarily the result of a more favorable loss experience in the life and health operations, from the comparable period in 2022. The decrease in operating income for the nine month period ended September 30, 2023 was primarily attributable to ancillary costs related to the implementation of the new actuarial valuation system, coupled with an increase in administrative costs related to the growth in the group and individual lines of business within the life and health operations, as mentioned above.

Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are delighted with the improvements in net income for each of the quarter and year-to-date period.  Although our revenue numbers are off slightly compared to prior year, operating income remains quite strong for 2023.  Our newest legal entity, Atlantic Capital Life Assurance Company, recently launched product in a select number of states and we expect additional states to be released over the remainder of the year.”

Atlantic American Corporation is an insurance holding company involved through its subsidiary companies in specialty markets of the life, health, and property and casualty insurance industries.  Its principal insurance subsidiaries are American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company.

Note regarding non-GAAP financial measure: Atlantic American Corporation presents its consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP).  However, from time to time, the Company may present, in its public statements, press releases and filings with the Securities and Exchange Commission, non-GAAP financial measures such as operating income (loss). We define operating income (loss) as net income (loss) excluding: (i) income tax expense (benefit); (ii) realized investment gains, net; and (iii) unrealized (gains) losses on equity securities, net.  Management believes operating income (loss) is a useful metric for investors, potential investors, securities analysts and others because it isolates the “core” operating results of the Company before considering certain items that are either beyond the control of management (such as income tax expense (benefit), which is subject to timing, regulatory and rate changes depending on the timing of the associated revenues and expenses) or are not expected to regularly impact the Company’s operating results (such as any realized and unrealized investment gains (losses), which are not a part of the Company’s primary operations and are, to a limited extent, subject to discretion in terms of timing of realization).  The financial data attached includes a reconciliation of operating income (loss) to net income (loss), the most comparable GAAP financial measure.  The Company’s definition of operating income (loss) may differ from similarly titled financial measures used by others.  This non-GAAP financial measure should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.

Note regarding Private Securities Litigation Reform Act: Except for historical information contained herein, this press release contains forward-looking statements that involve a number of risks and uncertainties.  Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks, including those risks and uncertainties detailed in statements and reports that Atlantic American Corporation files from time to time with the Securities and Exchange Commission.

For further information contact:
   
J. Ross Franklin
 
Hilton H. Howell, Jr.
Chief Financial Officer
 
Chairman, President & CEO
Atlantic American Corporation
 
Atlantic American Corporation
404-266-5580
 
404-266-5505


Atlantic American Corporation
Financial Data


  
Three Months Ended
September 30,
     
Nine Months Ended
September 30,
  
(Unaudited; In thousands, except per share data)
 
2023
   
2022
   
2023
   
2022
 
Insurance premiums
                       
Life and health
 
$
27,175
   
$
28,739
   
$
84,244
   
$
86,773
 
Property and casualty
   
16,571
     
17,641
     
51,662
     
53,753
 
Insurance premiums, net
   
43,746
     
46,380
     
135,906
     
140,526
 
                                 
Net investment income
   
2,325
     
2,641
     
7,425
     
7,510
 
Realized investment gains, net
   
-
     
101
     
70
     
29
 
Unrealized losses on equity securities, net
   
(1,486
)
   
(2,783
)
   
(3,367
)
   
(5,456
)
Other income
   
6
     
4
     
14
     
11
 
                                 
Total revenue
   
44,591
     
46,343
     
140,048
     
142,620
 
                                 
Insurance benefits and losses incurred
                               
Life and health
   
14,937
     
18,599
     
48,554
     
58,003
 
Property and casualty
   
11,881
     
12,031
     
38,089
     
36,549
 
Commissions and underwriting expenses
   
11,064
     
12,843
     
36,830
     
35,894
 
Interest expense
   
850
     
523
     
2,407
     
1,291
 
Other expense
   
3,721
     
3,296
     
11,631
     
10,151
 
                                 
Total benefits and expenses
   
42,453
     
47,292
     
137,511
     
141,888
 
                                 
Income (loss) before income taxes
   
2,138
     
(949
)
   
2,537
     
732
 
Income tax expense (benefit)
   
379
     
(265
)
   
480
     
253
 
                                 
Net income (loss)
 
$
1,759
   
$
(684
)
 
$
2,057
   
$
479
 
                                 
Earnings (loss) per common share (basic and diluted)
 
$
0.08
   
$
(0.04
)
 
$
0.09
   
$
0.01
 
                                 
Reconciliation of Non-GAAP Financial Measure
                               
                                 
Net income (loss)
 
$
1,759
   
$
(684
)
 
$
2,057
   
$
479
 
Income tax expense (benefit)
   
379
     
(265
)
   
480
     
253
 
Realized investment gains, net
   
-
     
(101
)
   
(70
)
   
(29
)
Unrealized losses on equity securities, net
   
1,486
     
2,783
     
3,367
     
5,456
 
                                 
Non-GAAP operating income
 
$
3,624
   
$
1,733
   
$
5,834
   
$
6,159
 

 
Selected Balance Sheet Data
  
September 30,
2023
     
December 31,
2022
  
             
Total cash and investments
 
$
244,709
   
$
257,575
 
Insurance subsidiaries
   
238,497
     
251,378
 
Parent and other
   
6,212
     
6,197
 
Total assets
   
361,620
     
367,064
 
Insurance reserves and policyholder funds
   
201,988
     
202,651
 
Debt
   
36,757
     
35,747
 
Total shareholders' equity
   
98,746
     
102,193
 
Book value per common share
   
4.57
     
4.74
 
Statutory capital and surplus
               
Life and health
   
37,392
     
36,672
 
Property and casualty
   
53,360
     
53,023
 



v3.23.3
Document and Entity Information
Nov. 13, 2023
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Nov. 13, 2023
Entity File Number 0-3722
Entity Registrant Name ATLANTIC AMERICAN CORPORATION
Entity Central Index Key 0000008177
Entity Incorporation, State or Country Code GA
Entity Tax Identification Number 58-1027114
Entity Address, Address Line One 4370 Peachtree Road
Entity Address, Address Line Two N.E.
Entity Address, City or Town Atlanta
Entity Address, State or Province GA
Entity Address, Postal Zip Code 30319
City Area Code 404
Local Phone Number 266-5500
Title of 12(b) Security Common Stock, par value $1.00 per share
Trading Symbol AAME
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false

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