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Atlantic American Reports Increased Operating Income

  • Operating income for the six month period ended June 30, 2014 increased to $1.4 million from $0.9 million for the comparable period of 2013
  • Life and health insurance premiums increased 3.7% in the comparable six month period
  • Property and casualty insurance premiums increased 28.0% in the comparable six month period
  • Book value per share at June 30, 2014 of $4.82 increased 7.8% from book value per share of $4.47 at December 31, 2013

ATLANTA, Aug. 11, 2014 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported increased operating income for the six month period ended June 30, 2014 over the prior year comparable period. Operating income for the six month period ended June 30, 2014 was $1.4 million as compared to $0.9 million for the six month period ended June 30, 2013. Operating income excludes realized investment gains which were $0.6 million for the six month period ended June 30, 2014 as compared to $6.1 million in the comparable period of 2013. Net income for the six month period ended June 30, 2014 was $1.7 million, or $0.07 per diluted share, as compared to net income of $6.9 million, or $0.30 per diluted share in the comparable period of 2013. Net income for the three month period ended June 30, 2014 was $0.9 million, or $0.04 per diluted share, as compared to net income of $6.0 million, or $0.26 per diluted share in the comparable period of 2013. Realized investment gains in the three month period ended June 30, 2014 were $0.5 million as compared to $5.5 million in the comparable period of 2013.

Total revenues for the six month period ended June 30, 2014 were $82.7 million, increasing 1.8% from the $81.3 million for the six month period ended June 30, 2013. Insurance premiums during the six month period ended June 30, 2014 increased 10.8% from the comparable 2013 period, but were offset by a decline in realized investment gains. For the three month period ended June 30, 2014, revenues were $41.6 million, decreasing 6.9% from the comparable 2013 period revenues of $44.6 million, also primarily from a reduction in realized investment gains. Insurance premiums during the three month period ended June 30, 2014 increased 5.7% from the comparable 2013 period. The increase in premiums during the three month and six month periods ended June 30, 2014 resulted primarily from increased commercial automobile premiums in the property and casualty segment.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer stated, "Our second quarter was in line with our expectations. We have continued making investments in the development of our worksite products and infrastructure. We recently hosted a conference with key worksite agents and received extremely positive feedback regarding our product offerings. Both our traditional life and health and property and casualty business continue to perform well and we remain energized with respect to our future opportunities."

Atlantic American 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 subsidiaries consist of American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance Company.

Note regarding Private Securities Litigation Reform Act: 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 detailed from time to time in statements and reports that Atlantic American Corporation files with the Securities and Exchange Commission.

Atlantic American Corporation
Financial Data
Three months ended
June 30,
Six months ended
June 30,
(Unaudited; In thousands, except per share data) 2014 2013 2014 2013
Insurance premiums
Life and health $25,531 $25,019 $50,923 $49,111
Property and casualty 12,925 11,354 25,951 20,281
Investment income 2,599 2,774 5,197 5,679
Realized investment gains, net 485 5,454 593 6,132
Other income 46 47 82 95
Total revenue 41,586 44,648 82,746 81,298
Insurance benefits and losses incurred
Life and health 17,489 17,942 34,220 35,982
Property and casualty 9,580 7,057 19,677 12,379
Commissions and underwriting expenses 10,074 10,402 19,981 19,685
Interest expense 434 438 863 1,015
Other expense 3,023 2,746 6,026 5,163
Total benefits and expenses 40,600 38,585 80,767 74,224
Income before income taxes 986 6,063 1,979 7,074
Income tax expense 109 103 282 192
Net income $877 $5,960 $1,697 $6,882
Basic earnings per common share $0.04 $0.27 $0.07 $0.31
Diluted earnings per common share $0.04 $0.26 $0.07 $0.30
Reconciliation of Net Income to non-GAAP measurement
Net income $877 $5,960 $1,697 $6,882
Income tax expense 109 103 282 192
Realized investment gains, net (485) (5,454) (593) (6,132)
Operating income $501 $609 $1,386 $942
Selected Balance Sheet Data June 30,
2014
December 31,
2013
Total cash and investments $268,888 $262,063
Insurance subsidiaries 241,212 228,605
Parent and other 27,676 33,458
Total assets 336,804 319,381
Insurance reserves and policyholder funds 171,797 162,373
Debt 41,238 41,238
Total shareholders' equity 106,637 100,927
Book value per common share 4.82 4.47
Statutory capital and surplus
Life and health 35,297 34,530
Property and casualty 39,270 39,092

CONTACT: For further information contact: John G. Sample, Jr. Senior Vice President and Chief Financial Officer Atlantic American Corporation 404-266-5501 Hilton H. Howell, Jr. Chairman, President & CEO Atlantic American Corporation 404-266-5505Source:Atlantic American Corporation