ATLANTIC AMERICAN CORPORATION REPORTS

THIRD QUARTER RESULTS FOR 2025

ATLANTA, Georgia, November 14, 2025 - Atlantic American Corporation (Nasdaq- AAME) today reported net income of $0.6 million, or $0.02 per diluted share, for the three month period ended September 30, 2025, compared to net loss of ($2.0) million, or ($0.10) per diluted share, for the three month period ended September 30, 2024. The Company had net income of $4.7 million, or $0.22 per diluted share, for the nine month period ended September 30, 2025, compared to net loss of ($4.7) million, or ($0.24) per diluted share, for the nine month period ended September 30, 2024. The increase in net income for the three month and nine month periods ended September 30, 2025 was primarily the result of increases in premium revenue within the automobile liability, inland marine and automobile physical damage lines of business in the property and casualty operations, as well as increases in the Medicare supplement and group accident and health lines of business within the life and health operations. Also contributing to the increase in net income was an increase in unrealized gains on equity securities during the three month and nine month periods ended September 30, 2025.

Operating income increased $2.3 million in the three month period ended September 30, 2025 from the three month period ended September 30, 2024. For the nine month period ended September 30, 2025, operating income increased $7.7 million from the comparable period in 2024. The increase in operating income for the three month and nine month periods ended September 30, 2025 was primarily the result of increases in premium revenue in the automobile liability, inland marine and automobile physical damage lines of business within the property and casualty operations, as well as increases in the Medicare supplement and group accident and health lines of business within the life and health operations, as previously mentioned.

Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are 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. Premium revenue grew nearly 12% year-to-date, driven by robust momentum across both property & casualty and life & health segments, supported by new business and solid retention. Operating income also rose sharply, underscoring the strength of our diversified portfolio and disciplined execution. With these results, we believe we are well-positioned to sustain profitable growth and create long-term value for our shareholders.”

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; 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.

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						Nine Months Ended
	September 30,						September 30,
(Unaudited; In thousands, except per share data)	2025			2024			2025			2024
Insurance premiums
Life and health	$	29,472		$	27,568		$	87,059		$	81,691
Property and casualty		22,500			16,214			61,972			51,636
Insurance premiums, net		51,972			43,782			149,031			133,327
					-
Net investment income		2,633			2,477			7,591			7,449
Realized investment gains, net		2			4			18			17
Unrealized gains (losses) on equity securities, net		(848	)		(1,746	)		2,528			(1,617	)
Other income		1			2			7			8
					-
Total revenue		53,760			44,519			159,175			139,184
					-
Insurance benefits and losses incurred					-
Life and health		17,509			16,776			52,459			53,467
Property and casualty		17,962			13,984			48,572			41,025
Insurance benefits and losses incurred, net		35,471			30,760			101,031			94,492
					-
Commissions and underwriting expenses		12,955			11,490			37,505			35,740
Interest expense		779			869			2,326			2,591
Other expense		3,786			3,854			12,293			12,170
					-
Total benefits and expenses		52,991			46,973			153,155			144,993
					-
Income (loss) before income taxes		769			(2,454	)		6,020			(5,809	)
Income tax expense (benefit)		192			(456	)		1,325			(1,129	)
					-
Net income (loss)	$	577		$	(1,998	)	$	4,695		$	(4,680	)

Earnings (loss) per common share (basic)	$	0.02		$	(0.10	)	$	0.22		$	(0.24	)
Earnings (loss) per common share (diluted)	$	0.02		$	(0.10	)	$	0.22		$	(0.24	)

Reconciliation of non-GAAP financial measure

Net income (loss)	$	577		$	(1,998	)	$	4,695		$	(4,680	)
Income tax expense (benefit)		192			(456	)		1,325			(1,129	)
Realized investment gains, net		(2	)		(4	)		(18	)		(17	)
Unrealized (gains) losses on equity securities, net		848			1,746			(2,528	)		1,617

Non-GAAP operating income (loss)	$	1,615		$	(712	)	$	3,474		$	(4,209	)

	September 30,			December 31,
Selected balance sheet data	2025			2024

Total cash and investments	$	289,514		$	265,696
Insurance subsidiaries		283,380			258,675
Parent and other		6,134			7,021
Total assets		430,855			393,428
Insurance reserves and policyholder funds		249,578			225,106
Debt		37,759			37,761
Total shareholders' equity		109,488			99,613
Book value per common share		5.10			4.61
Statutory capital and surplus
Life and health		34,552			32,443
Property and casualty		48,161			47,670