- Property and casualty premiums increased 5.3% and 5.4%, respectively, during the three and nine month periods ended September 30, 2015 as compared to the comparable periods in 2014.
- Loss ratios in both the life and health and property and casualty operations decreased in the three month period ended September 30, 2015 as compared to the comparable period in 2014.
ATLANTA, Nov. 06, 2015 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported net income of $0.2 million, or $0.01 per diluted share, for the three month period ended September 30, 2015, compared to net income of $1.5 million, or $0.06 per diluted share, for the three month period ended September 30, 2014. For the nine month period ended September 30, 2015, net income was $4.3 million, or $0.19 per diluted share, compared to net income of $3.1 million, or $0.13 per diluted share, for the comparable period in 2014. Realized investment gains for the three month and nine month periods ended September 30, 2015 were $7.0 thousand and $5.1 million, respectively, as compared to $0.8 million and $1.4 million in the comparable three and nine month periods of 2014. Also included in net income for the three month and nine month periods ended September 30, 2014 was $0.8 million in other income resulting from the open market purchase of Company debt at a discount. Operating income (income before income taxes and realized investment and other gains, net) for the three month period ended September 30, 2015 was $0.4 million, as compared to an operating loss of $11.0 thousand for the three month period ended September 30, 2014. For the nine month period ended September 30, 2015, operating income was $0.5 million as compared to the $1.4 million for the comparable nine month period of 2014.
Total revenues for the three month period ended September 30, 2015 were $40.4 million, decreasing 5.4% from $42.7 million for the three month period ended September 30, 2014. Insurance premiums during this three month period decreased $0.5 million from the comparable 2014 premiums. While life and health premiums decreased 4.7%; property and casualty premiums increased 5.3%. For the nine month period ended September 30, 2015, total revenues were $126.1 million, increasing slightly from the comparable 2014 period revenues of $125.4 million. Premiums earned from the Company’s life and health operation decreased 5.2% for the nine month period ended September 30, 2015 while increasing 5.4% in the property and casualty operation during the comparable period.
Commenting, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We are pleased that the premium growth in our property and casualty operation has continued through the third quarter. And with a declining loss ratio in comparison with the prior year, our property and casualty operation continues to perform quite well. During this third quarter, we also have completed a number of strategic pricing adjustments for our Medicare supplement product and our submitted application counts during the initial month of the fourth quarter would indicate a promising return of future premium growth. While anticipating a good close to the current year, we feel well positioned for a very positive 2016.”
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||Nine months ended|
|September 30,||September 30,|
|(Unaudited; In thousands, except per share data)||2015||2014||2015||2014|
|Life and health||$||23,971||$||25,146||$||72,100||$||76,069|
|Property and casualty||13,888||13,191||41,249||39,142|
|Realized investment gains, net||7||848||5,106||1,441|
|Insurance benefits and losses incurred|
|Life and health||16,311||17,564||50,055||51,784|
|Property and casualty||8,326||9,530||26,206||29,207|
|Commissions and underwriting expenses||11,816||10,238||33,024||30,219|
|Total benefits and expenses||39,994||41,069||120,516||121,836|
|Income before income taxes||365||1,587||5,564||3,566|
|Income tax expense||127||136||1,290||418|
|Basic earnings per common share||$||0.01||$||0.06||$||0.19||$||0.13|
|Diluted earnings per common share||$||0.01||$||0.06||$||0.19||$||0.13|
|Reconciliation of net income to non-GAAP measurement|
|Income tax expense||127||136||1,290||418|
|Realized investment and other gains, net||(7||)||(1.598||)||(5,106||)||(2,191||)|
|Operating income (loss)||$||358||$||(11||)||$||458||$||1,375|
|September 30,||December 31,|
|Selected Balance Sheet Data||2015||2014|
|Total cash and investments||$||252,264||$||256,660|
|Parent and other||24,003||21,123|
|Insurance reserves and policyholder funds||165,362||164,094|
|Total shareholders' equity||103,212||104,195|
|Book value per common share||4.75||4.79|
|Statutory capital and surplus|
|Life and health||35,697||34,004|
|Property and casualty||38,413||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