- 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|
|Three months ended||Six months ended|
|June 30,||June 30,|
|(Unaudited; In thousands, except per share data)||2015||2014||2015||2014|
|Life and health||$||24,006||$||25,531||$||48,129||$||50,923|
|Property and casualty||14,098||12,925||27,361||25,951|
|Realized investment gains, net||4,148||485||5,099||593|
|Insurance benefits and losses incurred|
|Life and health||16,991||17,489||33,744||34,220|
|Property and casualty||9,392||9,580||17,880||19,677|
|Commissions and underwriting expenses||10,487||10,074||21,208||19,981|
|Total benefits and expenses||40,583||40,600||80,522||80,767|
|Income before income taxes||4,189||986||5,199||1,979|
|Income tax expense||844||109||1,163||282|
|Basic earnings per common share||$||0.16||$||0.04||$||0.19||$||0.07|
|Diluted earnings per common share||$||0.15||$||0.04||$||0.18||$||0.07|
|Reconciliation of Net Income to non-GAAP Measurement|
|Income tax expense||844||109||1,163||282|
|Realized investment gains, net||(4,148||)||(485||)||(5,099||)||(593||)|
|June 30,||December 31,|
|Selected Balance Sheet Data||2015||2014|
|Total cash and investments||$||259,679||$||256,660|
|Parent and other||22,561||21,123|
|Insurance reserves and policyholder funds||169,575||164,094|
|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