• A specialized Humana for senior health insurance.
• A niche Travelers for commercial transportation and specialty P&C insurance.

Atlantic American (AAME) primarily offers the following insurance products and services:

• Property and Casualty Insurance: Provides coverage for various risks including commercial auto, general liability, and property damage.
• Life Insurance: Offers financial protection to policyholders' beneficiaries upon the insured's death.
• Medicare Supplement Insurance: Covers medical costs not paid by Medicare Parts A and B, such as deductibles, copayments, and coinsurance.
• Fixed-Benefit Health Insurance: Provides specific, predetermined cash payments for certain health events or illnesses.

Atlantic American (symbol: AAME) primarily sells its specialty property and casualty insurance products to other companies.

Its Property & Casualty segment, which consistently generates the largest portion of its premium revenue, focuses on serving a broad and diverse base of small to medium-sized businesses across various industries. These customers typically acquire insurance through independent agencies.

Due to the highly fragmented nature of this customer base and the strategic focus on small to medium-sized enterprises, Atlantic American does not have any single major identifiable corporate customers that account for a significant portion of its revenue, nor does it typically count large public companies among its major clients. Therefore, specific customer company names cannot be listed.

• Munich Reinsurance America, Inc. (Parent: Munich Re Group, Symbol: MURGY)
• Swiss Re America Corporation (Parent: Swiss Re Ltd, Symbol: SSREY)
• Arch Reinsurance Company (Parent: Arch Capital Group Ltd., Symbol: ACGL)
• Everest Reinsurance Company (Parent: Everest Group, Ltd., Symbol: EG)
• Transatlantic Reinsurance Company (Parent: Berkshire Hathaway Inc., Symbol: BRK.B)

Hilton H. Howell, Jr. Chairman, President and CEO

Hilton H. Howell, Jr. serves as the Chairman, President, and Chief Executive Officer of Atlantic American Corporation, holding the President and CEO roles since May 1995 and the Chairman role since February 2009. He previously served as Executive Vice President of Atlantic American from October 1992 to May 1995. Mr. Howell also holds significant leadership positions at Gray Television (Gray Media, Inc.), where he has been the Chief Executive Officer since August 2008 and President since June 2013, having joined Gray Television in 1993. His career began in private law practice in Houston, Texas. He has also been a director for Atlantic American's subsidiaries, including American Southern Insurance Company, American Safety Insurance Company, and Bankers Fidelity Life Insurance Company. Additionally, Mr. Howell served as Executive Vice President of Delta Life Insurance Company and Delta Fire & Casualty Company, and as Vice President, Secretary, and Director of Bull Run Corporation. He was also a director at Meredith Corp and Triple Crown Media Inc. Mr. Howell holds a Bachelor's degree in history and a Juris Doctor (cum laude) from Baylor University, and a Master of Business Administration from the University of Texas at Austin.

J. Ross Franklin Vice President, Chief Financial Officer and Corporate Secretary

J. Ross Franklin is the Vice President, Chief Financial Officer, and Corporate Secretary of Atlantic American Corporation. He was appointed to this position in November 2017, after serving as Interim Chief Financial Officer since August 2017. Mr. Franklin possesses more than 18 years of experience in accounting and financial management. He has held various roles of increasing responsibility within Atlantic American and its subsidiaries since 2000, including serving as Vice President, Accounting, and Treasurer of Bankers Fidelity since 2009. He is a Certified Public Accountant and earned both his Master of Professional Accounting and Master in Business Administration degrees from Georgia State University.

John Dunbar Vice President and CIO

John Dunbar serves as the Vice President and Chief Information Officer at Atlantic American Corporation. He pursued his education at the J. Mack Robinson College of Business at Georgia State University from 1986 to 1988 and at the Florida State University College of Business from 1981 to 1984.

McClure King President Bankers Fidelity Life Insurance

McClure King is the President of Bankers Fidelity Life Insurance.

Scott G. Thompson President and CEO American Southern Insurance Company

Scott G. Thompson holds the position of President and CEO of American Southern Insurance Company, a subsidiary of Atlantic American Corporation. He also serves as a Director on the Board of Atlantic American Corporation.

The key risks to Atlantic American (AAME) are primarily concentrated within its financial reporting and insurance operations:

1. Material Weakness in Internal Control Over Financial Reporting: Atlantic American has identified a material weakness in its internal control over financial reporting. The company's ability to remediate this weakness is cited as a significant risk, which could affect the accuracy of financial statements and investor confidence.
2. Underwriting Performance and Claims Severity in Property and Casualty Operations: The company has experienced unfavorable loss experience in its property and casualty operations, particularly within the automobile liability line of business, due to an increase in the frequency and severity of claims. This directly impacts the profitability of its insurance segments.
3. Investment Portfolio Volatility: Fluctuations in realized and unrealized gains on equity securities have materially impacted Atlantic American's net income. As an insurance company, investment performance is a critical component of its financial results, making market volatility a notable risk.

Clear Emerging Threats for Atlantic American (AAME)

1. Disruptive Insurtech Competitors:

   AAME faces a clear emerging threat from numerous well-funded insurtech startups. These companies are leveraging advanced technologies such as artificial intelligence (AI), big data analytics, and digital-first platforms to offer insurance products across property & casualty, life, and health segments. They often provide simplified application processes, faster underwriting, and direct-to-consumer or small-to-medium enterprise (SME) distribution models, effectively bypassing traditional agent networks and legacy systems. This allows them to potentially offer more competitive pricing and a superior customer experience, directly threatening AAME's market share and profitability, particularly in its commercial lines and individual life/health segments.

2. Rapid Adoption of Telematics and Usage-Based Insurance (UBI) in Commercial Auto:

   For AAME's American Southern Insurance Company, which has a significant presence in commercial auto insurance, the accelerated adoption of telematics and usage-based insurance (UBI) programs presents a distinct emerging threat. Competitors are increasingly integrating telematics devices and data analytics to assess driving behavior in real-time, allowing them to price policies more accurately and offer incentives for safer driving. If AAME is slower to integrate these advanced technologies into its commercial auto offerings, it risks losing market share to competitors who can provide more competitive rates to desirable (low-risk) customers and offer better risk management tools to their commercial fleet clients.

Atlantic American Corporation (AAME) operates in the U.S. insurance market through its subsidiaries, focusing on life, health, and property and casualty insurance segments. The addressable markets for their main products and services in the U.S. are sized as follows:

• Life Insurance Market (U.S.): The U.S. life insurance market was estimated at approximately $1.93 trillion in 2024 and is projected to reach around $4.74 trillion by 2034, demonstrating a compound annual growth rate (CAGR) of 9.40% from 2025 to 2034. Another report indicates that the U.S. life insurance market generated a revenue of $504.37 billion in 2020 and is expected to reach $848.14 billion by 2027, with a CAGR of 7.7% from 2021 to 2027. The total U.S. life insurance new annualized premium increased by 8% in the first quarter of 2025.
• Accident and Health Insurance Market (U.S.): The personal accident and health insurance market in the U.S. was valued at $1.48 billion in 2024 and is projected to grow to $2.75 billion by 2035, at a CAGR of 5.80% from 2025 to 2035. The broader U.S. accident and health (A&H) insurance market has shown consistent growth, with expansion rates exceeding 8% in each of the three years prior to 2024, slowing to 8.8% in 2023 from over 10% in 2022. The life/annuity insurance sector, which includes accident and health insurance, had net premiums written totaling $822.6 billion in the U.S. in 2024.
• Property and Casualty (P&C) Insurance Market (U.S.): The U.S. property and casualty insurance market was valued at $1.10 trillion in 2025 and is projected to reach $1.33 trillion by 2030, with a CAGR of 3.96%. Another estimate places the U.S. property and casualty insurance market size at approximately $890 billion in 2024, with a projection to reach around $2.02 trillion by 2034, growing at a CAGR of 8.54% from 2025 to 2034. The market size for property, casualty, and direct insurance in the U.S. was $1.0 trillion in 2024. Net premiums written for the P&C sector in the U.S. totaled $932.5 billion in 2024.

Atlantic American Corporation (AAME) is expected to drive future revenue growth over the next 2-3 years through several key areas within its insurance operations.

The anticipated drivers include:

1. Growth in Life and Health Premium Revenue: Atlantic American anticipates continued growth in premium revenue, particularly within its life and health operations. This segment has shown significant contributions to overall revenue, with Bankers Fidelity's net earned premiums rising, notably from Medicare supplement, group accident and health, and other individual health lines due to new sales.
2. Expansion in Property & Casualty Inland Marine Line: The property and casualty segment, specifically the inland marine line, has been highlighted as a growth driver for American Southern. Continued focus and potential expansion in this area are expected to contribute to future revenue.
3. Increased New Sales in Specialized Health Products: New sales in products like Medicare supplement and group accident and health are identified as key to supporting future premium revenue growth in the life and health operations.
4. Overall Premium Revenue Growth Across Segments: The company's performance in Q2 2025 was driven by increased premium revenue across both property & casualty and life & health segments, indicating a broad-based approach to growing its core insurance offerings. This trend is expected to continue.

Share Repurchases

• Atlantic American's Board of Directors approved a new stock repurchase plan in April 2025, authorizing the repurchase of up to 750,000 shares of the Company's common stock. This plan replaced a prior stock repurchase authorization.
• The 6-Month Share Buyback Ratio for Atlantic American was 0.01% as of March 2025, indicating minimal repurchases within that six-month period.

Share Issuance

• As of February 29, 2024, Atlantic American Corporation had 20,402,288 shares of common stock outstanding.
• The common shares outstanding for the fiscal year ending December 31, 2024, were 20.40 million.
• Atlantic American currently has 20,397,228 shares outstanding.

Capital Expenditures

• Atlantic American Corporation's Capital Expenditures (CapEx) as a percentage of revenue (CAGR 1YRS) increased by 203.26% in the latest trailing twelve months.
• Over the past five years, the average CapEx % CAGR 1YRS for Atlantic American was 97.21%.
• The principal cash needs of the parent company include the acquisition of capital assets.