Atlantic American Corporation (AAME): history, ownership, mission, how it works & makes money

A Brief History of Atlantic American Corporation (AAME)

Formation and Early Years

Atlantic American Corporation was incorporated in 1980 in the state of Georgia. Initially, it focused on the insurance sector, specifically specializing in property and casualty insurance.

Acquisitions and Growth

In 1996, Atlantic American Corporation made a significant acquisition by purchasing the Southern Guaranty Insurance Company, which helped expand its market footprint. This acquisition allowed them to increase their product offerings and bolster financial stability.

Financial Performance

By the end of 2022, Atlantic American Corporation reported total assets of $309 million and total equity of $46 million. The company's revenue for 2022 reached $88 million.

Stock Market Presence

Atlantic American Corporation is traded on the NASDAQ under the ticker symbol AAME. As of October 2023, the company's stock price was approximately $1.81, with a market capitalization of about $24.1 million.

Product Offerings

The company provides various insurance products, including:

• Commercial insurance
• Personal insurance
• Automobile insurance
• Workers' compensation insurance

Recent Developments

In 2023, Atlantic American Corporation announced a strategic plan to enhance its digital capabilities, aiming to improve customer service and operational efficiency. The organization allocated approximately $2 million towards technology upgrades and digital marketing efforts.

Industry Challenges

As an insurer, Atlantic American Corporation faces challenges posed by economic fluctuations, regulatory changes, and increased competition in the insurance market. In 2022, the insurance sector experienced a combined ratio of approximately 95% , indicating a tightening margin for profitability.

Future Outlook

Analysts predict that Atlantic American Corporation will continue to focus on expanding its insurance portfolio and enhancing customer engagement through technology. The projected revenue growth for the next three years is approximately 5% annually.

Conclusion

Atlantic American Corporation has established itself as a significant player in the insurance market through strategic acquisitions and a focus on product diversification. Moving forward, the company aims to leverage technology and address industry challenges to position itself for sustained growth.

A Who Owns Atlantic American Corporation (AAME)

Ownership Structure

As of the latest financial reports, Atlantic American Corporation (AAME) has a diverse ownership structure that includes institutional investors, individual stakeholders, and corporate entities. The following table summarizes the key ownership percentages as of the fourth quarter of 2023.

Major Institutional Shareholders

The following list outlines the major institutional shareholders of Atlantic American Corporation, which holds significant stakes in the company:

• BlackRock, Inc. - 8%
• The Vanguard Group, Inc. - 7%
• State Street Corporation - 5%
• Wellington Management Company, LLP - 4%
• Dimensional Fund Advisors LP - 3%

Insider Ownership

Insider ownership plays an important role in the corporate governance of AAME. Below is a breakdown of insider ownership as of 2023:

Recent Stock Performance

In 2023, the stock performance of Atlantic American Corporation has shown fluctuations influenced by market conditions. The following statistics reflect its recent financial metrics:

Shareholder Voting Power

Atlantic American Corporation's shareholder voting power is distributed based on ownership share percentage, which grants significant influence to the major stakeholders. The following points reflect the voting power distribution:

• Institutional Investors hold significant sway due to their collective 35% ownership.
• Insider Ownership contributes to strategic decisions with a total of 10% voting rights.
• Retail Investors, while the largest group at 55%, typically hold less influence on governance issues.

Recent Changes in Ownership

Over the past year, Atlantic American Corporation has experienced some notable changes in ownership:

• BlackRock increased its stake by 2% in Q3 2023.
• Vanguard reduced its stake by 1% in Q2 2023.
• Insider transactions indicated acquisitions by management, showcasing confidence in the company's future.

Conclusion on Ownership Dynamics

The ownership dynamics of Atlantic American Corporation illustrate a mixture of institutional and retail investors, with key individuals holding significant stakes. This blend of ownership is crucial for the governance and strategic direction of the company.

Atlantic American Corporation (AAME) Mission Statement

Mission Statement Overview

Atlantic American Corporation's mission is to deliver exceptional insurance solutions through innovation and customer-centric approaches. This mission aims to enhance the financial security of its customers and stakeholders.

Core Values

• Integrity: Commitment to ethical behavior and transparency.
• Innovation: Emphasizing continuous improvement and creative solutions.
• Customer Focus: Prioritizing the needs and satisfaction of clients.
• Excellence: Striving for the highest standards in products and services.
• Collaboration: Promoting teamwork and partnerships for success.

Strategic Objectives

The strategic objectives of Atlantic American Corporation include:

• Enhancing operational efficiency.
• Expanding market share in the insurance sector.
• Diversifying product offerings to meet evolving customer needs.
• Improving customer experience through advanced technology.
• Maximizing shareholder value through sustainable profit growth.

Financial Performance

As of the latest financial reporting in 2023, Atlantic American Corporation reported the following key financial metrics:

Market Position

Atlantic American Corporation operates primarily in the specialty insurance market, with significant presence in the following areas:

• Life Insurance
• Health Insurance
• Property and Casualty Insurance

Commitment to Stakeholders

Atlantic American Corporation's mission emphasizes a strong commitment to its stakeholders, which include:

• Customers: Providing reliable insurance products.
• Employees: Fostering a positive workplace culture.
• Shareholders: Delivering consistent financial returns.
• Community: Engaging in philanthropic efforts.

Future Goals

Looking ahead, Atlantic American Corporation aims to achieve the following goals:

• Increase digital transformation initiatives by 25% by 2025.
• Expand geographic footprint with a target of 10 new states by 2024.
• Launch 3 new innovative insurance products annually.
• Enhance customer retention rates to over 90% by 2025.

Conclusion on Mission Sustainability

Atlantic American Corporation's mission statement reflects its ambition towards sustainable growth, leveraging industry trends and responding to customer demands effectively.

How Atlantic American Corporation (AAME) Works

Business Overview

Atlantic American Corporation (AAME) operates primarily in the insurance sector, focusing on niche insurance markets. The company is involved in both property and casualty insurance and life insurance segments.

Financial Performance

As of the end of 2022, Atlantic American Corporation reported total revenues of approximately $83.5 million. The company’s net income for the same year was about $2.7 million, indicating a modest profit margin.

Insurance Operations

Atlantic American Corporation offers a diverse range of insurance products. The two main segments are:

• Property and Casualty Insurance
• Life Insurance

Market Position

The company operates in a competitive landscape, managing to carve out specific niches. In 2022, the company maintained a market share of approximately 1.2% within its primary sectors.

Investment Strategy

Atlantic American Corporation invests its assets primarily in fixed-income securities and a small portion in equities. As of December 2022, the asset allocation was as follows:

Regulatory Environment

The company is subject to regulations from various insurance departments across the United States. Compliance is crucial for operational licensing and maintaining financial solvency.

Recent Developments

In 2023, Atlantic American Corporation announced plans to enter new markets, projecting potential revenue growth of 15% over the next three years.

Conclusion about Future Prospects

With a strategic focus on niche markets and disciplined underwriting practices, Atlantic American Corporation aims to enhance its profitability and shareholder value over the coming years.

How Atlantic American Corporation (AAME) Makes Money

Overview of Revenue Streams

Atlantic American Corporation primarily generates revenue through two main segments: insurance operations and investment income.

Insurance Operations

The company’s insurance operations include both property and casualty insurance as well as life insurance. In 2022, total premiums earned by Atlantic American Corporation amounted to approximately $153.4 million.

The breakdown of insurance premium revenues is as follows:

Claims and Underwriting

The underwriting process is critical to profitability in the insurance sector. In 2022, Atlantic American reported an underwriting loss of $6.4 million. The combined ratio, a key indicator of underwriting profitability, stood at 104.2%.

Investment Income

Atlantic American’s investment income plays a significant role in overall profitability. For the fiscal year 2022, net investment income reached approximately $6.5 million. The company’s investment portfolio primarily consists of:

• Bonds
• Equities
• Real estate investments

Cost Structure

The operating expenses for Atlantic American Corporation are divided into various categories including:

Financial Performance Metrics

Key financial metrics as of the end of 2022 include:

Future Outlook and Strategy

Atlantic American Corporation is focused on expanding its product offerings and entering new markets to enhance revenue streams. The company has allocated $3 million for technological advancements in underwriting and claims processing in 2023.