Atlantic American Reports Results for the Period Ended June 30, 2015, Including Increased Net Income

  • Net income for the six month period ended June 30, 2015 increased to $4.0 million from $1.7 million for the comparable period of 2014
  • Property and casualty insurance premiums increased 5.4% in the comparable six month period
  • Net realized investment gains were $5.1 million for the six month period ended June 30, 2015 as compared to $0.6 million for the comparable period of 2014

ATLANTA, Aug. 12, 2015 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported financial results for the period ended June 30, 2015, including increased net income for the six month period ended June 30, 2015 over the prior year comparable period. Net income for the six month period ended June 30, 2015 was $4.0 million, or $0.18 per diluted share, compared to $1.7 million, or $0.07 per diluted share, for the six month period ended June 30, 2014. Net income includes net realized investment gains which were $5.1 million for the six month period ended June 30, 2015 compared to $0.6 million in the comparable period of 2014. Net income for the three month period ended June 30, 2015 was $3.3 million, or $0.15 per diluted share, compared to net income of $0.9 million, or $0.04 per diluted share, in the comparable period of 2014. Realized investment gains in the three month period ended June 30, 2015 were $4.1 million compared to $0.5 million in the comparable period of 2014.

Total revenues for the six month period ended June 30, 2015 were $85.7 million, increasing 3.6% from $82.7 million for the six month period ended June 30, 2014. Insurance premiums during the six month period ended June 30, 2015 declined 1.8% from the comparable 2014 period, but were offset by an increase in net realized investment gains. For the three month period ended June 30, 2015, revenues were $44.8 million, increasing 7.7% from comparable 2014 period revenues of $41.6 million, also due to an increase in realized investment gains. Insurance premiums during the three month period ended June 30, 2015 decreased 0.9% from the comparable 2014 period. The decrease in premiums during the three month and six month periods ended June 30, 2015 resulted primarily from a decline in the Company’s Medicare supplement business in the life and health operations.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer stated, “In the second quarter, our property and casualty operations performed quite well. During the three month period ended June 30, 2015, our property and casualty premiums increased 9.1% while our loss ratio declined. During the same period our life and health operation posted a 6% decline in premiums with a higher loss ratio. However, by retooling our efforts in our Senior division, we are beginning to see sales trends moving upward. Our Worksite group sales are also doing well as we look forward to the upcoming open enrollment season. Based on this positive movement, we expect the loss trends will soon reverse, and we are seeing our new sales momentum accelerate accordingly.

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 Six months ended
June 30, June 30,
(Unaudited; In thousands, except per share data) 2015 2014 2015 2014
Insurance premiums
Life and health$ 24,006 $ 25,531 $ 48,129 $ 50,923
Property and casualty 14,098 12,925 27,361 25,951
Investment income 2,494 2,599 5,091 5,197
Realized investment gains, net 4,148 485 5,099 593
Other income 26 46 41 82
Total revenue 44,772 41,586 85,721 82,746
Insurance benefits and losses incurred
Life and health 16,991 17,489 33,744 34,220
Property and casualty 9,392 9,580 17,880 19,677
Commissions and underwriting expenses 10,487 10,074 21,208 19,981
Interest expense 354 434 703 863
Other expense 3,359 3,023 6,987 6,026
Total benefits and expenses 40,583 40,600 80,522 80,767
Income before income taxes 4,189 986 5,199 1,979
Income tax expense 844 109 1,163 282
Net income $ 3,345 $ 877 $ 4,036 $ 1,697
Basic earnings per common share $ 0.16 $ 0.04 $ 0.19 $ 0.07
Diluted earnings per common share $ 0.15 $ 0.04 $ 0.18 $ 0.07
Reconciliation of Net Income to non-GAAP Measurement
Net income$ 3,345 $ 877 $ 4,036 $ 1,697
Income tax expense 844 109 1,163 282
Realized investment gains, net (4,148) (485) (5,099) (593)
Operating income$ 41 $ 501 $ 100 $ 1,386
June 30, December 31,
Selected Balance Sheet Data 2015 2014
Total cash and investments$ 259,679 $ 256,660
Insurance subsidiaries 237,118 235,537
Parent and other 22,561 21,123
Total assets 327,225 317,008
Insurance reserves and policyholder funds 169,575 164,094
Debt 33,738 33,738
Total shareholders' equity 105,542 104,195
Book value per common share 4.85 4.79
Statutory capital and surplus
Life and health 37,052 34,004
Property and casualty 39,324 39,012


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 404-266-5505

Source:Atlantic American Corporation