Revenue growth accelerated to 20.8% in 2025Q3, though underwriting profitability remains inconsistent with combined ratios fluctuating between 92.4% and 106.6% over the last ten quarters.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 | Dec'95 |
|---|
| Revenue | 208.22M | 188.23M | 186.79M | 187.85M | 199.55M | 195.35M | 198.18M | 185.55M | 181.11M | 166.08M | 165.94M | 166.32M | 165.37M | 139.83M | 118.33M | 106.89M | 102.71M | 99.73M | 122.97M | 125.36M | 121.98M | 125.78M | 111.3M | 170.25M | 163.31M | 152.26M | 124.32M | 106.07M | 101.22M | 99.07M | 51.67M |
| Revenue Growth % | 11.99% | 0.77% | -0.56% | -5.86% | 2.15% | -1.43% | 6.8% | 2.45% | 9.05% | 0.08% | -0.23% | 0.58% | 18.27% | 18.17% | 10.71% | 4.07% | 2.99% | -18.9% | -1.9% | 2.77% | -3.02% | 13.01% | -34.62% | 4.25% | 7.26% | 22.47% | 17.21% | 4.79% | 2.16% | 91.74% | -69.1% |
| Medical Costs & Claims | 168.86M | 173.86M | 168.62M | 170.17M | 179.19M | 166.69M | 184.7M | 171.69M | 160.96M | 147.99M | 144.6M | 147.12M | 140.93M | 154.77M | 132.69M | 94.95M | 89.16M | 87.65M | 91.36M | 101.86M | 109.42M | 126.71M | 111.65M | 152.87M | 144.21M | 134.31M | 107.88M | 88M | 84.02M | 81.24M | 39.94M |
| Medical Cost Ratio % | 81.1% | 92.37% | 90.27% | 90.59% | 89.8% | 85.33% | 93.2% | 92.53% | 88.87% | 89.11% | 87.14% | 88.45% | 85.22% | 110.69% | 112.13% | 88.83% | 86.81% | 87.88% | 74.3% | 81.26% | 89.7% | 100.74% | 100.31% | 89.79% | 88.31% | 88.21% | 86.77% | 82.97% | 83.01% | 82% | 77.29% |
| Gross Profit | 39.36M | 14.37M | 18.17M | 17.68M | 20.36M | 28.66M | 13.48M | 13.86M | 20.15M | 18.08M | 21.34M | 19.2M | 24.44M | -14.94M | -14.35M | 11.94M | 13.55M | 12.09M | 31.61M | 23.49M | 12.56M | -933K | -345K | 17.38M | 19.09M | 17.95M | 16.45M | 18.06M | 17.2M | 17.83M | 11.73M |
| Gross Margin % | 18.9% | 7.63% | 9.73% | 9.41% | 10.2% | 14.67% | 6.8% | 7.47% | 11.13% | 10.89% | 12.86% | 11.55% | 14.78% | -10.69% | -12.13% | 11.17% | 13.19% | 12.12% | 25.7% | 18.74% | 10.3% | -0.74% | -0.31% | 10.21% | 11.69% | 11.79% | 13.23% | 17.03% | 16.99% | 18% | 22.71% |
| Gross Profit Growth % | - | -20.93% | 2.75% | -13.17% | -28.95% | 112.67% | -2.77% | -31.22% | 11.45% | -15.25% | 11.12% | -21.43% | 263.56% | -4.1% | -220.26% | -11.89% | 12.1% | -61.77% | 34.54% | 87.07% | 1446.09% | -170.43% | -101.99% | -8.99% | 6.36% | 9.16% | -8.94% | 5.02% | -3.56% | 51.99% | -92.98% |
| Operating Expenses | 32.79M | 19.63M | 18.73M | 15.59M | 15.06M | 13.16M | 13.88M | 14.83M | 14.8M | 14.56M | 15.63M | 14.3M | 13.23M | -20.02M | -17.67M | 11.31M | 12.2M | 13.08M | 12.51M | 13.87M | 13.17M | -8.62M | -6.37M | 14.28M | 14.84M | 13.2M | 12.52M | 9.36M | -58.12M | 10.02M | 8.65M |
| OpEx / Revenue % | 15.75% | 10.43% | 10.03% | 8.3% | 7.55% | 6.74% | 7.01% | 7.99% | 8.17% | 8.77% | 9.42% | 8.6% | 8% | -14.32% | -14.93% | 10.59% | 11.88% | 13.11% | 10.17% | 11.06% | 10.8% | -6.86% | -5.72% | 8.39% | 9.09% | 8.67% | 10.07% | 8.82% | -57.42% | 10.11% | 16.74% |
| Depreciation & Amortization | 346K | 366K | 652K | 890K | 1M | 980K | 996K | 987K | 1.44M | 1.21M | 1.12M | 932K | 600K | 469K | 388K | 10.15M | 323K | 10.23M | 11.23M | 871K | 949K | 1.36M | 1.14M | 17.61M | 1.68M | 1.74M | 1.44M | 1.37M | 10.8M | 1.1M | 547K |
| Combined Ratio % | 96.85% | 102.8% | 100.3% | 98.88% | 97.34% | 92.06% | 100.21% | 100.52% | 97.04% | 97.88% | 96.56% | 97.05% | 93.22% | 96.37% | 97.2% | 99.42% | 98.69% | 100.99% | 84.47% | 92.32% | 100.5% | 93.89% | 94.59% | 98.18% | 97.4% | 96.88% | 96.85% | 91.79% | 25.59% | 92.11% | 94.03% |
| Operating Income | 6.57M | -5.26M | -565K | 2.1M | 5.3M | 15.5M | -407K | -971K | 5.36M | 3.52M | 5.71M | 4.9M | 11.21M | 5.08M | 3.31M | 621K | 1.35M | -992K | 19.1M | 9.62M | -614K | 7.69M | 6.02M | 3.1M | 4.25M | 4.76M | 3.92M | 8.7M | 75.31M | 7.82M | 3.08M |
| Operating Margin % | 3.15% | -2.8% | -0.3% | 1.12% | 2.66% | 7.94% | -0.21% | -0.52% | 2.96% | 2.12% | 3.44% | 2.95% | 6.78% | 3.63% | 2.8% | 0.58% | 1.31% | -0.99% | 15.53% | 7.68% | -0.5% | 6.11% | 5.41% | 1.82% | 2.6% | 3.12% | 3.15% | 8.21% | 74.41% | 7.89% | 5.97% |
| Operating Income Growth % | - | -831.68% | -126.96% | -60.47% | -65.8% | 3909.09% | 58.08% | -118.13% | 51.99% | -38.26% | 16.39% | -56.24% | 120.5% | 53.3% | 433.82% | -54% | 236.09% | -105.19% | 98.44% | 1667.43% | -107.98% | 27.7% | 94.07% | -27.04% | -10.58% | 21.26% | -54.94% | -88.44% | 863.72% | 153.4% | -96.79% |
| EBITDA | 6.91M | -4.9M | 87K | 2.99M | 6.3M | 16.48M | 589K | 16K | 6.79M | 4.73M | 6.83M | 5.84M | 11.81M | 5.55M | 3.7M | 10.78M | 1.67M | 9.24M | 30.32M | 10.49M | 335K | 9.05M | 7.16M | 20.71M | 5.93M | 6.5M | 5.36M | 10.07M | 86.11M | 8.92M | 3.63M |
| EBITDA Margin % | 3.32% | -2.6% | 0.05% | 1.59% | 3.16% | 8.44% | 0.3% | 0.01% | 3.75% | 2.85% | 4.11% | 3.51% | 7.14% | 3.97% | 3.13% | 10.08% | 1.63% | 9.26% | 24.66% | 8.37% | 0.27% | 7.2% | 6.43% | 12.17% | 3.63% | 4.27% | 4.31% | 9.5% | 85.08% | 9% | 7.03% |
| Interest Expense | 3.15M | 3.42M | 3.27M | 1.95M | 1.39M | 1.61M | 2.13M | 2.04M | 1.72M | 1.56M | 1.43M | 1.61M | 1.9M | 2.63M | 2.6M | 2.61M | 2.76M | 3.3M | 4.16M | 4.61M | 3.61M | 3.07M | 3.12M | 2.56M | 3.23M | 4.41M | 2.82M | 2.15M | 2.9M | 3.29M | 2.46M |
| Non-Operating Income | -3.15M | -3.42M | -3.27M | -1.95M | -1.39M | -1.61M | -2.13M | -2.04M | -1.72M | -1.56M | -1.43M | -1.61M | -1.9M | -2.63M | -2.6M | -2.61M | -2.76M | -3.3M | -4.16M | -4.61M | -3.61M | 298K | -3.62M | -2.56M | -3.23M | -4.41M | -2.82M | -2.15M | 72.42M | -3.29M | -2.46M |
| Pretax Income | 6.57M | -5.26M | -565K | 2.1M | 5.3M | 15.5M | -407K | -971K | 5.36M | 3.52M | 5.71M | 4.9M | 11.21M | 5.08M | 3.31M | 621K | 1.35M | -992K | 19.1M | 9.62M | -614K | 7.69M | 6.02M | 3.1M | 4.25M | 4.76M | 3.92M | 8.7M | 8.1M | 7.82M | 3.08M |
| Pretax Margin % | 3.15% | -2.8% | -0.3% | 1.12% | 2.66% | 7.94% | -0.21% | -0.52% | 2.96% | 2.12% | 3.44% | 2.95% | 6.78% | 3.63% | 2.8% | 0.58% | 1.31% | -0.99% | 15.53% | 7.68% | -0.5% | 6.11% | 5.41% | 1.82% | 2.6% | 3.12% | 3.15% | 8.21% | 8% | 7.89% | 5.97% |
| Income Tax | 1.46M | -996K | -394K | 571K | 1.02M | 3.33M | -21K | -267K | 828K | 888K | 1.32M | 474K | 184K | 646K | 25K | -369K | 2.56M | -526K | 7.51M | 2.46M | -1.75M | -149K | -454K | -498K | 656K | 1.12M | -6.99M | 145K | 100K | 204K | -34K |
| Effective Tax Rate % | 22.21% | 18.92% | 69.73% | 27.24% | 19.26% | 21.51% | 5.16% | 27.5% | 15.46% | 25.2% | 23.13% | 9.67% | 1.64% | 12.71% | 0.75% | -59.42% | 189.41% | 53.02% | 39.34% | 25.54% | 284.36% | -1.94% | -7.54% | -16.05% | 15.42% | 23.63% | -178.17% | 1.67% | 1.23% | 2.61% | -1.1% |
| Net Income | 5.11M | -4.27M | -171K | 1.52M | 4.28M | 12.17M | -386K | -704K | 4.53M | 2.64M | 4.39M | 4.43M | 11.02M | 4.44M | 3.29M | 990K | -1.21M | -3.88M | 7.25M | 8.94M | -3.17M | 5.02M | 6.84M | -12.21M | 3.6M | 3.63M | 10.91M | 8.56M | 8M | 3.16M | -6.98M |
| Net Margin % | 2.45% | -2.27% | -0.09% | 0.81% | 2.15% | 6.23% | -0.19% | -0.38% | 2.5% | 1.59% | 2.64% | 2.66% | 6.67% | 3.17% | 2.78% | 0.93% | -1.18% | -3.89% | 5.9% | 7.13% | -2.6% | 3.99% | 6.15% | -7.17% | 2.2% | 2.39% | 8.78% | 8.07% | 7.9% | 3.19% | -13.5% |
| Net Income Growth % | 173.93% | -2395.91% | -111.21% | -64.38% | -64.82% | 3252.59% | 45.17% | -115.55% | 71.78% | -39.93% | -0.95% | -59.81% | 148.47% | 34.83% | 232.32% | 182.02% | 68.92% | -153.54% | -18.85% | 381.45% | -163.28% | -26.69% | 156.03% | -439.59% | -0.96% | -66.71% | 27.48% | 6.98% | 152.84% | 145.36% | -174.21% |
| EPS (Diluted) | 0.23 | -0.23 | -0.03 | 0.06 | 0.19 | 0.56 | -0.02 | -0.03 | 0.20 | 0.11 | 0.19 | 0.19 | 0.48 | 0.18 | 0.12 | 0.02 | -0.05 | -0.18 | 0.25 | 0.33 | -0.15 | 0.18 | 0.25 | -0.56 | 0.10 | 0.12 | 0.46 | 0.37 | 0.35 | 0.09 | -0.37 |
| EPS Growth % | 165.35% | -724.37% | -150.54% | -70.95% | -66.07% | 3031.94% | 44.96% | -117.35% | 81.82% | -42.11% | 0% | -60.42% | 166.67% | 50% | 500% | 136.97% | 69.94% | -172% | -24.24% | 320% | -183.33% | -28% | 144.64% | -660% | -16.67% | -73.91% | 24.32% | 5.71% | 288.89% | 124.32% | -175.51% |
| EPS (Basic) | - | -0.23 | -0.03 | 0.06 | 0.19 | 0.58 | -0.02 | -0.03 | 0.20 | 0.11 | 0.19 | 0.19 | 0.50 | 0.19 | 0.13 | 0.02 | -0.05 | -0.18 | 0.26 | 0.36 | -0.15 | 0.18 | 0.26 | -0.57 | 0.10 | 0.12 | 0.48 | 0.37 | 0.35 | 0.09 | -0.37 |
| Diluted Shares Outstanding | 21.77M | 20.4M | 20.4M | 20.39M | 20.4M | 21.82M | 20.26M | 20.28M | 22.64M | 23.96M | 23.09M | 23.32M | 22.96M | 21.29M | 22.27M | 22.34M | 22.31M | 21.87M | 21.95M | 23.04M | 20.86M | 22.11M | 27.38M | 21.66M | 21.66M | 20.22M | 21.1M | 19.02M | 18.57M | 18.86M | 18.67M |
Underwriting volatility in P&C
According to the most recent quarterly data, AAME achieved a 20.8% year-over-year revenue growth in 2025Q3, marking a significant departure from the stagnant or negative growth trends observed throughout 2024, which suggests a potential successful re-pricing strategy or expansion within their specialized municipal fleet insurance segments.
The sharp uptick in top-line performance warrants investigation into whether this is driven by sustainable rate increases or a temporary surge in policy acquisition. Investors should monitor if this growth trajectory can be maintained without further compromising the loss ratio, which has historically shown sensitivity to competitive pricing pressures.
As reported in financial statements, the combined ratio fluctuated significantly from a peak of 106.6% in 2023Q4 to a more favorable 92.4% in 2025Q2, indicating that the company's core underwriting profitability remains highly sensitive to claim severity and the underlying mix of P&C and life products.
The volatility in the combined ratio suggests that AAME struggles to maintain consistent underwriting margins, often dipping into technical losses that necessitate reliance on investment income. The recent improvement in 2025 suggests a potential stabilization, yet the historical tendency for the ratio to breach the 100% threshold implies that underwriting discipline remains a primary concern for long-term margin expansion.
Based on the provided quarterly figures, the loss ratio volatility—ranging from 65.3% to 96.6% over the last ten quarters—suggests that prior-year reserve development may be significantly impacting current earnings, potentially masking the true underlying performance of the Bankers Fidelity and American Southern underwriting segments.
The wide swings in loss ratios indicate that the company may be experiencing unpredictable claim development, particularly in long-tail liability lines. Analysts should scrutinize whether recent earnings improvements are driven by genuine underwriting efficiency or the release of reserves that were previously set aside for higher-than-expected claim costs.
Data from the last ten quarters indicates that AAME has frequently operated with a combined ratio exceeding 100%, which, as noted in industry filings, implies that the company is fundamentally dependent on investment income to offset core underwriting losses during periods of elevated claim activity.
The persistent inability to consistently generate underwriting profit suggests that the company's niche focus may not provide sufficient scale to absorb administrative and acquisition costs. Investors should remain cautious, as the reliance on investment returns to achieve net profitability leaves the bottom line vulnerable to broader market fluctuations and interest rate cycles.
Quick answers to the most common questions about buying AAME stock.
For fiscal year 2024, Atlantic American Corporation (AAME) reported total revenue of $188.2M. This represents a 264.3% increase compared to $51.7M in 1995.
Atlantic American Corporation (AAME) reported a net loss of $4.3M for the fiscal year ending 2024.
Atlantic American Corporation (AAME) reported an operating income of $-5.3M, resulting in an operating profit margin of -2.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Atlantic American Corporation (AAME) generated $14.4M in gross profit for the year, representing a gross profit margin of 7.6%. This demonstrates the company's core pricing power and production efficiency.