ATLANTIC AMERICAN CORPORATION REPORTS

FOURTH QUARTER AND YEAR END RESULTS FOR 2024;

DECLARES ANNUAL DIVIDEND

ATLANTA, Georgia, March 25, 2025 - Atlantic American Corporation (Nasdaq- AAME) today reported net income of $0.4 million, or $0.02 per diluted share, for the three month period ended December 31, 2024, compared to net loss of $2.2 million, or $(0.11) per diluted share, for the three month period ended December 31, 2023. The Company had net loss of $4.3 million, or $(0.23) per diluted share, for the year ended December 31, 2024, compared to net loss of $0.2 million, or $(0.03) per diluted share, for the year ended December 31, 2023. The increase in net income for the three month period ended December 31, 2024 was primarily the result of favorable loss experience in the Company’s life and health operations due to a decrease in incurred losses, predominantly in the group life and Medicare supplement lines of business. The increase in net loss for the year ended December 31, 2024 was primarily due to unfavorable loss experience in the Company’s property and casualty operations due to the frequency and severity of claims in the automobile liability line of business, compared to the prior year.

Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are thrilled to report exceptional new sales in our Medicare supplement business during the fourth quarter annual enrollment period, with strong momentum carrying into the new year. Although rising costs in the commercial automobile market have affected profitability, we are taking steps to improve rates for that line of business. Additionally, in alignment with our continued commitment to enhancing shareholder value, the Board of Directors has approved the Company’s annual dividend of $0.02 per share. This dividend will be payable on April 23, 2025, to shareholders of record as of April 9, 2025."

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) losses, 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 forward-looking statements: 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, among others: the effects of macroeconomic conditions and general economic uncertainty; unexpected developments in the health care or insurance industries affecting providers or individuals, including the cost or availability of services, or the tax consequences related thereto; disruption to the financial markets; unanticipated increases in the rate, number and amounts of claims outstanding; our ability to remediate the identified material weakness in our internal control over financial reporting; the level of performance of reinsurance companies under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect the Company against losses; changes in the stock markets, interest rates or other financial markets, including the potential effect on the Company’s statutory capital levels; the uncertain effect on the Company of regulatory and market-driven changes in practices relating to the payment of incentive compensation to brokers, agents and other producers; the potential impact of public health emergencies; the incidence and severity of catastrophes, both natural and man-made; the possible occurrence of terrorist attacks; stronger than anticipated competitive activity; unfavorable judicial or legislative developments; the potential effect of regulatory developments, including those which could increase the Company’s business costs and required capital levels; the Company’s ability to distribute its products through distribution channels, both current and future; the uncertain effect of emerging claim and coverage issues; the effect of assessments and other surcharges for guaranty funds and other mandatory pooling arrangements; information technology system failures or network disruptions; risks related to cybersecurity matters, such as breaches of our computer network or those of other parties or the loss of or unauthorized access to the data we maintain; and those other risks and uncertainties detailed in statements and reports that the Company files from time to time with the Securities and Exchange Commission. As a result, undue reliance should not be placed upon forward-looking statements, which speak only as of the date they are made.  The Company undertakes no obligation to publicly update any forward-looking statements as a result of subsequent developments, changes in underlying assumptions or facts or otherwise, except as may be required by law.

Atlantic American Corporation

Financial Data

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
(Unaudited; In thousands, except per share data)		2024				2023				2024				2023
Insurance premiums
Life and health		$	29,351			$	26,138			$	111,042			$	110,382
Property and casualty			16,053				16,781				67,689				68,443
Insurance premiums, net			45,404				42,919				178,731				178,825
Net investment income			2,342				2,633				9,791				10,058
Realized investment gains, net			1,193				-				1,210				70
Unrealized gains (losses) on equity securities, net			101				1,190				(1,516	)			(2,177	)
Other income			3				3				11				17
Total revenue			49,043				46,745				188,227				186,793
Insurance benefits and losses incurred
Life and health			16,597				22,931				70,064				71,485
Property and casualty			14,742				12,926				55,767				51,015
Commissions and underwriting expenses			12,290				9,294				48,030				46,124
Interest expense			828				862				3,419				3,269
Other expense			4,041				3,834				16,211				15,465
Total benefits and expenses			48,498				49,847				193,491				187,358
Income (loss) before income taxes			545				(3,102	)			(5,264	)			(565	)
Income tax expense (benefit)			133				(874	)			(996	)			(394	)
Net income (loss)		$	412			$	(2,228	)		$	(4,268	)		$	(171	)
Earnings (loss) per common share (basic & diluted)		$	0.02			$	(0.11	)		$	(0.23	)		$	(0.03	)
Reconciliation of non-GAAP financial measure
Net income (loss)		$	412			$	(2,228	)		$	(4,268	)		$	(171	)
Income tax expense (benefit)			133				(874	)			(996	)			(394	)
Realized investment gains, net			(1,193	)			-				(1,210	)			(70	)
Unrealized (gains) losses on equity securities, net			(101	)			(1,190	)			1,516				2,177
Non-GAAP operating income (loss)		$	(749	)		$	(4,292	)		$	(4,958	)		$	1,542

		December 31,				December 31,
Selected balance sheet data		2024				2023
Total cash and investments		$	265,696			$	265,368
Insurance subsidiaries			258,675				259,253
Parent and other			7,021				6,115
Total assets			393,428				381,265
Insurance reserves and policyholder funds			225,106				212,422
Debt			37,761				36,757
Total shareholders' equity			99,613				107,275
Book value per common share			4.61				4.99
Statutory capital and surplus
Life and health			32,443				38,299
Property and casualty			47,670				51,774

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