Atlantic American Reports Second Quarter Earnings

  • Insurance premiums increased 2.7% and 2.8% for the three month and six month periods ended June 30, 2016, respectively, as compared to the comparable periods of 2015
  • Net income for the three month and six month periods ended June 30, 2016 was $0.2 million and $1.1 million, respectively, as compared to $3.3 million and $4.0 million, respectively, for the comparable periods of 2015
  • Operating income increased for both the three month and six month periods ended June 30, 2016 to $0.2 million and $0.8 million, respectively, as compared to $41 thousand and $0.1 million, respectively, for the comparable periods of 2015

ATLANTA, Aug. 11, 2016 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported net income for the six month period ended June 30, 2016 of $1.1 million, or $0.05 per diluted share, as compared to $4.0 million, or $0.18 per diluted share, for the comparable period of 2015. Net realized investment gains for the six month period ended June 30, 2016 were $0.9 million as compared to $5.1 million in the comparable period of 2015. Net income for the three month period ended June 30, 2016 was $0.2 million, or $0.01 per diluted share, as compared to net income of $3.3 million, or $0.15 per diluted share, in the comparable period of 2015. Net realized investment gains in the three month period ended June 30, 2016 were $0.1 million as compared to $4.1 million in the comparable period of 2015.

Total revenues for the six month period ended June 30, 2016 were $83.6 million as compared to $85.7 million for the six month period ended June 30, 2015. A lower level of net realized investment gains was the single largest contributor to the decline in revenues. Insurance premiums during the six month period ended June 30, 2016 increased 2.8% from the comparable 2015 period and was primarily the result of increased Medicare supplement policies in the Company’s life and health operation. For the three month period ended June 30, 2016, revenues were $41.9 million, decreasing 6.5% from the comparable 2015 period revenues of $44.8 million, also primarily from a decrease in net realized investment gains. Insurance premiums during the three month period ended June 30, 2016 of $39.1 million increased 2.7% from the comparable 2015 period amount of $38.1 million.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer stated, “We are extremely pleased with the new premium growth in our life and health operation. Given that the second quarter is typically not a heavy Medicare supplement enrollment period, the growth in that line of business is a testament to the investment that we have been making in our product and distribution network. We are continuing to refine and improve on our worksite products and distribution as well and believe that when the majority of the enrollment periods begin in the second half of 2016, we will be well positioned for growth in those products as well. Even as we continue to make targeted investments in our life and health operation, our property and casualty operation had an outstanding quarter with both a lower level of losses and expenses. The balance of the year is one which we look forward to with much promise in continuing to grow our Company.”

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) 2016 2015 2016 2015
Insurance premiums
Life and health$25,355 $24,006 $50,088 $48,129
Property and casualty 13,767 14,098 27,492 27,361
Investment income 2,563 2,494 5,070 5,091
Realized investment gains, net 132 4,148 884 5,099
Other income 37 26 67 41
Total revenue 41,854 44,772 83,601 85,721
Insurance benefits and losses incurred
Life and health 18,105 16,991 35,016 33,744
Property and casualty 8,817 9,392 16,731 17,880
Commissions and underwriting expenses 10,954 10,487 22,781 21,208
Interest expense 385 354 758 703
Other expense 3,236 3,359 6,582 6,987
Total benefits and expenses 41,497 40,583 81,868 80,522
Income before income taxes 357 4,189 1,733 5,199
Income tax expense 116 844 594 1,163
Net income $ 241 $ 3,345 $ 1,139 $ 4,036
Basic earnings per common share $ 0.01 $ 0.16 $ 0.05 $ 0.19
Diluted earnings per common share $ 0.01 $ 0.15 $ 0.05 $ 0.18
Reconciliation of Non-GAAP Financial Measure
Net income$241 $3,345 $1,139 $4,036
Income tax expense 116 844 594 1,163
Realized investment gains, net (132) (4,148) (884) (5,099)
Operating income$ 225 $ 41 $ 849 $ 100
June 30, December 31,
Selected Balance Sheet Data 2016 2015
Total cash and investments$252,461 $254,007
Insurance subsidiaries 230,815 229,092
Parent and other 21,646 24,915
Total assets 320,265 314,603
Insurance reserves and policyholder funds 163,345 163,345
Debt 33,738 33,738
Total shareholders' equity 108,049 102,492
Book value per common share 5.01 4.75
Statutory capital and surplus
Life and health 34,247 35,322
Property and casualty 39,916 38,308


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