Atlantic American Corporation reported a net income of $0.6 million, or $0.02 per diluted share, for the quarter ended September 30 2025, a turnaround from a $2.0 million loss, or $‑0.10 per diluted share, in the same period a year earlier. The company’s nine‑month results to September 30 also reversed a loss, posting $4.7 million in net income, or $0.22 per diluted share, versus a $4.7 million loss, or $‑0.24 per diluted share, in the prior year.
Revenue grew 12% year‑over‑year to $44.5 million in Q3 2025, driven by strong performance in both the property‑and‑casualty and life‑and‑health segments. Operating income increased by $2.3 million in the quarter and by $7.7 million for the nine‑month period, reflecting a shift from a $0.7 million operating loss in Q3 2024 to a $2.3 million operating profit in Q3 2025. The property‑and‑casualty arm posted a combined ratio of 97.9% in Q3 2025, compared with 109.8% in Q3 2024, while the life‑and‑health unit achieved a 96.1% ratio versus 103.1% a year earlier.
The turnaround was driven by improved loss experience and higher premium revenue in key lines such as automobile liability, inland marine, Medicare supplement, and group accident and health. Premium growth in these lines offset the elevated losses that had plagued the company in 2024, and the company’s dual‑segment strategy and operational modernization initiatives helped convert higher premiums into profitability. Unrealized gains on equity securities also contributed to the net income, but the core underwriting performance was the primary engine of the earnings rebound.
Chairman, President and CEO Hilton H. Howell said the company was “excited to share that Atlantic American delivered strong year‑to‑date results, with net income of $4.7 million through the first nine months of 2025, a significant turnaround from prior year results.” He added that premium revenue grew nearly 12% year‑to‑date, driven by robust momentum across both segments, and that operating income rose sharply, underscoring the strength of the diversified portfolio and disciplined execution. The comments highlight management’s confidence that the company’s strategy is delivering sustainable profitability.
The balance sheet remains solid, with total assets of $430.9 million, cash and investments of $289.5 million, and shareholders’ equity of $109.5 million, giving a book value per share of $5.10. Headwinds include elevated losses in some property‑and‑casualty lines and broader industry risks such as claims volatility and regulatory changes. Tailwinds are the continued premium growth, improved loss experience, and the unrealized gains on investments. Atlantic American did not provide new financial guidance for the next quarter, but the results suggest the company is positioned to sustain profitability and pursue growth in its specialty insurance markets.
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