Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2015

ATLANTA, March 29, 2016 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported its results for the fourth quarter and year ended December 31, 2015. For the fourth quarter ended December 31, 2015, the Company reported net income of $0.1 million, or nil per diluted share, down from $1.3 million, or $0.06 per diluted share, in the fourth quarter of 2014. The decrease was attributable to a decline in realized investment gains of $0.4 million and an increase in operating expenses. Premiums for the fourth quarter of 2015 decreased 1.9% to $37.5 million compared to $38.3 million for the fourth quarter of 2014, as premiums in both of the Company’s operating segments decreased slightly.

Net income for both the years ended December 31, 2015 and 2014 was $4.4 million, or $0.19 per diluted share. Total premiums earned during 2015 decreased 1.7% to $150.9 million from $153.5 million in 2014. Premiums in the property and casualty operations increased 3.5% in 2015 as compared to 2014; but were offset by a 4.4% premium decrease from the life and health operations in the comparable years. Benefits and losses declined 4.5% in 2015 as compared with 2014; however, were offset by higher commissions and expenses. Realized investment gains were $4.9 million in 2015 as compared to $1.6 million in 2014; although 2014 also included a $0.8 million gain from the purchase of Company’s debt which did not recur in 2015.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We have completed a successful year of retooling our life and health operations. Not only have we successfully re-priced a great deal of our Medicare supplement business to make our product more competitive in key markets, but we have broadened our distribution channels and territories. Our fourth quarter production statistics would indicate that 2016 should be off to an excellent start. And of course our property and casualty operation continues to perform consistently well. In recognition of our enthusiasm for 2016, our Board of Directors recently approved our 5th annual dividend of $0.02 per share to be paid on April 22, 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 insurance subsidiaries are American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance Company.

Note regarding forward-looking statements: This news release contains forward-looking statements subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among other things, our future strategies, operating or financial performance. Forward looking statements are based on management’s assumptions regarding, among other things, general economic and industry-specific business conditions, as well as the execution of our business strategy. Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks, including those detailed from time to time in statements and reports that Atlantic American Corporation files with the Securities and Exchange Commission.

Atlantic American Corporation
Selected Financial Data
Three months ended Year ended
December 31, December 31,
(Unaudited; In thousands, except per share data) 2015 2014 2015 2014
Insurance premiums
Life and health$24,284 $24,765 $96,384 $100,834
Property and casualty 13,259 13,512 54,508 52,654
Investment income 2,538 2,492 10,085 10,367
Realized investment gains (losses), net (249) 130 4,857 1,571
Other income 25 20 103 895
Total revenue 39,857 40,919 165,937 166,321
Insurance benefits and losses incurred
Life and health 16,263 16,232 66,318 68,016
Property and casualty 8,840 8,972 35,046 38,179
Commissions and underwriting expenses 10,211 10,704 43,235 40,923
Interest expense 365 356 1,429 1,607
Other expense 4,034 3,317 14,201 12,692
Total benefits and expenses 39,713 39,581 160,229 161,417
Income before income taxes 144 1,338 5,708 4,904
Income tax expense 30 56 1,320 474
Net income $114 $1,282 $4,388 $4,430
Basic earnings per common share$0.00 $0.06 $0.19 $0.19
Diluted earnings per common share$0.00 $0.06 $0.19 $0.19
Reconciliation of Net Income to non-GAAP Measurement
Net income$114 $1,282 $4,388 $4,430
Income tax expense 30 56 1,320 474
Realized investment and other losses (gains), net 249 (130) (4,857) (2,321)
Operating income$393 $1,208 $851 $2,583
December 31, December 31,
Selected Balance Sheet Data 2015 2014
Total cash and investments$254,007 $256,660
Insurance subsidiaries 229,092 235,537
Parent and other 24,915 21,123
Total assets 314,603 317,008
Insurance reserves and policyholder funds 163,345 164,094
Debt 33,738 33,738
Total shareholders' equity 102,492 104,195
Book value per common share 4.75 4.79
Statutory capital and surplus
Life and health 35,322 34,004
Property and casualty 38,308 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