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1. Company Snapshot

1.a. Company Description

Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States.The company operates through American Southern and Bankers Fidelity segments.It offers property and casualty insurance products, including business automobile insurance coverage for state governments, local municipalities, and other motor pools and fleets; and inland marine and general liability insurance products.


The company also provides surety bond coverage for subdivision construction, school bus contracts, as well as performance and payment bonds.In addition, the company provides individual and group whole life insurance, as well as medicare supplement insurance products; and other accident and health insurance coverages, include various individual and group policies for the payment of standard benefits for the treatment of diagnosed cancer and other critical illnesses, as well as various other policies, such as short-term nursing facility care, accident expense, hospital indemnity, and disability coverages.It markets its products through independent agents and brokers.


The company was founded in 1937 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on AAME

Atlantic American Corporation's recent performance was marred by a net loss of $4.3 million, or $(0.23) per diluted share, for the year ended December 31, 2024, primarily due to unfavorable loss experience in the property and casualty operations. The frequency and severity of claims in the automobile liability line of business contributed to this decline. Conversely, the company reported a net income of $0.4 million, or $0.02 per diluted share, for the three-month period ended December 31, 2024, driven by favorable loss experience in the life and health operations.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Atlantic American Corporation Reports Third Quarter Results for 2025

Nov -14

Source: globenewswire.com

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Atlantic American Corporation Reports Second Quarter Results for 2025

Aug -12

Source: globenewswire.com

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Atlantic American Corporation Reports First Quarter Results for 2025

May -13

Source: globenewswire.com

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Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2024; Declares Annual Dividend

Mar -25

Source: globenewswire.com

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Atlantic American Corporation Reports Third Quarter Results for 2024

Nov -12

Source: globenewswire.com

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Atlantic American Corporation Reports Second Quarter Results for 2024

Aug -14

Source: globenewswire.com

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Atlantic American Corporation Reports First Quarter Results for 2024

May -14

Source: globenewswire.com

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Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2023; Declares Annual Dividend

Apr -01

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.39%)

6. Segments

Bankers Fidelity

Expected Growth: 4.5%

Growing demand for life insurance and annuity products, increasing awareness of retirement planning, and expansion of distribution channels drive growth for Bankers Fidelity. Additionally, Atlantic American Corporation's strong financial position and diversified product offerings support the subsidiary's growth prospects.

American Southern

Expected Growth: 4.5%

The American Southern whole life insurance policy is expected to grow driven by increasing demand for guaranteed death benefits and cash value components. The policy's flexibility and guaranteed returns will attract customers seeking long-term financial security, contributing to a forecasted CAGR of 4.5%.

Adjustments & Eliminations

Expected Growth: 4.5%

The Adjustments & Eliminations segment of Atlantic American Corporation is expected to grow steadily, driven by increasing demand for accurate financial reporting and compliance with accounting standards. The elimination of intercompany transactions and adjustment for minority interests will continue to be essential for the company's financial transparency and investor confidence.

Corporate & Other

Expected Growth: 2.5%

The Corporate & Other segment's growth is driven by increasing operational efficiencies, cost savings initiatives, and strategic investments in digital transformation, enabling Atlantic American Corporation to optimize its unallocated costs and non-operating items.

7. Detailed Products

American Freedom Insurance

A range of insurance products including life insurance, accident insurance, and supplemental health insurance

Delta Dental Insurance

Dental insurance plans for individuals, families, and groups

Bankers Fidelity Insurance

Life insurance, annuities, and supplemental health insurance products

Self-Insured Plans

Customizable self-insured plans for employers and groups

Third-Party Administration

Administrative services for self-insured plans and insurance companies

8. Atlantic American Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Atlantic American Corporation is moderate, as there are some alternatives available in the market, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Atlantic American Corporation is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Atlantic American Corporation is moderate, as the company relies on a few key suppliers, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants for Atlantic American Corporation is high, as the industry has low barriers to entry and there are many potential competitors.

Intensity Of Rivalry

The intensity of rivalry for Atlantic American Corporation is high, as the industry is highly competitive and there are many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.07%
Debt Cost 6.08%
Equity Weight 73.93%
Equity Cost 6.08%
WACC 6.08%
Leverage 35.26%

11. Quality Control: Atlantic American Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
IF Bancorp

A-Score: 5.4/10

Value: 4.1

Growth: 2.3

Quality: 4.7

Yield: 4.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Atlantic American

A-Score: 5.1/10

Value: 7.7

Growth: 3.7

Quality: 5.2

Yield: 2.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Security National Financial

A-Score: 4.9/10

Value: 8.6

Growth: 5.0

Quality: 6.5

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
B Riley Financial

A-Score: 4.8/10

Value: 8.2

Growth: 4.1

Quality: 4.9

Yield: 5.0

Momentum: 6.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Citizens

A-Score: 3.9/10

Value: 4.0

Growth: 4.1

Quality: 5.9

Yield: 0.0

Momentum: 6.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Vericity

A-Score: 3.6/10

Value: 6.7

Growth: 4.2

Quality: 4.8

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.55$

Current Price

2.55$

Potential

-0.00%

Expected Cash-Flows