Atlantic American ratings placed under review amid delayed financial filings

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Atlantic American ratings under review

Highlights

AM Best places under review with negative implications the A- Financial Strength Rating and related ICRs for several Atlantic American subsidiaries following filing delays.
Atlantic American fails to file its 2025 Form 10-K and Q1 2026 Form 10-Q, prompting Nasdaq non-compliance notices on April 21, 2026, and May 22, 2026.
Truist Bank extends financial reporting deadlines to July 31, 2026, but management cannot provide preliminary 2025 or Q1 2026 statements, raising transparency concerns.

Ratings review follows filing delays and Nasdaq notices

As reported by AM Best, the ratings agency places under review with negative implications the Financial Strength Rating of A- and the Long-Term Issuer Credit Ratings of "a-" for American Southern Insurance Company and its wholly owned, 100% reinsured subsidiary, American Safety Insurance Company. It also places under review with negative implications the same ratings for Bankers Fidelity Life Insurance Company and its wholly owned, 100% reinsured subsidiaries, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company, while the parent Atlantic American Corporation’s Long-Term ICR of "bbb-" is also placed under review with negative implications.

The action follows Atlantic American’s announcements on April 1, 2026, and May 18, 2026, that it is unable to file its annual report on Form 10-K for the period ending Dec. 31, 2025, and its Form 10-Q for the quarter ending March 31, 2026. Nasdaq then issues notices on April 21, 2026, and May 22, 2026, citing the company’s non-compliance with listing rule 5250(c)(1), which requires listed companies to file periodic financial reports with the Securities and Exchange Commission on time.

Credit agreement extension and transparency concerns

Atlantic American reports on June 2, 2026, that it enters into a second amendment to its revolving credit agreement with Truist Bank. The amendment extends the deadline for delivering audited consolidated financial statements for year-end 2025, interim consolidated statements for the quarter ending March 31, 2026, and related compliance certificates to no later than July 31, 2026.

AM Best says it requested preliminary financial statements for year-end 2025 and for the quarter ending March 31, 2026, but management is unable to provide them for either period. The agency says the lack of disclosure significantly limits visibility into Atlantic American’s current financial position, and it plans to reevaluate the negative review status once the company regains Nasdaq compliance and after reviewing its year-end 2025 Form 10-K and first-quarter 2026 Form 10-Q filings.

Our earlier report on AM Best’s rating affirmation for Convex Group’s core insurance and reinsurance subsidiaries noted that the agency kept the A (Excellent) Financial Strength Ratings with stable outlooks as the group expanded its international underwriting platform. We highlighted AM Best’s emphasis on Convex’s very strong balance sheet strength, strongest-level risk-adjusted capitalization under BCAR, solid liquidity, and financial flexibility, including a planned USD 600 million subordinated debt issuance expected to lift leverage but keep it below 10%.

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