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Atlantic American Reports Third Quarter and Year to Date Net Income and Announces a New Share Repurchase Authorization

  • Life and health premiums increased 10.8% and 6.3%, respectively, during the three month and nine month periods ended September 30, 2016 as compared to the comparable periods in 2015.
  • Loss ratio in the property and casualty operation decreased in the nine month period ended September 30, 2016 as compared to the comparable period in 2015.

ATLANTA, Nov. 14, 2016 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported net income of $0.1 million, or nil per diluted share, for the three month period ended September 30, 2016, compared to net income of $0.2 million, or $0.01 per diluted share, for the three month period ended September 30, 2015. For the nine month period ended September 30, 2016, net income was $1.3 million, or $0.05 per diluted share, compared to net income of $4.3 million, or $0.19 per diluted share, for the comparable period in 2015. Realized investment gains for the three month and nine month periods ended September 30, 2016 were $0.5 million and $1.4 million, respectively, as compared to $7,000 and $5.1 million in the comparable three month and nine month periods of 2015. Operating income (income before income taxes and realized investment gains, net) for the three month period ended September 30, 2016 was a loss of $0.2 million, as compared to income of $0.4 million for the three month period ended September 30, 2015. For the nine month period ended September 30, 2016, operating income was $0.6 million as compared to the $0.5 million for the comparable nine month period of 2015.

Total revenues for the three month period ended September 30, 2016 were $42.4 million, increasing 5.2% from $40.4 million for the three month period ended September 30, 2015. Insurance premiums during this three month period increased $1.6 million from the comparable 2015 premiums. While life and health premiums increased 10.8%; property and casualty premiums decreased 7.2%. For the nine month period ended September 30, 2016, total revenues were $126.0 million, consistent with the comparable 2015 period. Premiums earned from the Company’s life and health operation increased 6.3% for the nine month period ended September 30, 2016 while decreasing 2.1% in the property and casualty operation during the comparable period.

Additionally, the Company announced that the Board of Directors has terminated the Company’s existing stock repurchase plan and approved a new repurchase plan that allows for the repurchase of up to 750,000 shares of the Company’s common stock from time to time in accordance with applicable securities laws and other requirements.

Commenting, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “Throughout the year we have been making significant investments in our life and health product line and distribution network. It is now obvious that such investments are being realized in our increasing premium volumes. With life and health premiums up over 10% in the third quarter of 2016, we are poised to continue on our growth trajectory. And even though our property and casualty premiums declined slightly, the selective underwriting, which is the hallmark of American Southern, continued to produce strong profits in that operation.”

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 Nine months ended
September 30, September 30,
(Unaudited; In thousands, except per share data) 2016 2015 2016 2015
Insurance premiums
Life and health $26,548 $23,971 $76,636 $72,100
Property and casualty 12,884 13,888 40,376 41,249
Investment income 2,453 2,456 7,523 7,547
Realized investment gains, net 527 7 1,411 5,106
Other income 35 37 102 78
Total revenue 42,447 40,359 126,048 126,080
Insurance benefits and losses incurred
Life and health 18,448 16,311 53,464 50,055
Property and casualty 8,507 8,326 25,238 26,206
Commissions and underwriting expenses 11,558 11,816 34,339 33,024
Interest expense 396 361 1,154 1,064
Other expense 3,221 3,180 9,803 10,167
Total benefits and expenses 42,130 39,994 123,998 120,516
Income before income taxes 317 365 2,050 5,564
Income tax expense 168 127 762 1,290
Net income $ 149 $ 238 $ 1,288 $ 4,274
Earnings per common share (basic and diluted) $ - $ 0.01 $ 0.05 $ 0.19
Reconciliation of Non-GAAP Financial Measure
Net income $149 $238 $1,288 $4,274
Income tax expense 168 127 762 1,290
Realized investment gains, net (527) (7) (1,411) (5,106)
Operating income (loss) $ (210) $ 358 $ 639 $ 458
September 30, December 31,
Selected Balance Sheet Data 2016 2015
Total cash and investments $260,815 $254,007
Insurance subsidiaries 238,518 229,092
Parent and other 22,297 24,915
Total assets 321,503 314,603
Insurance reserves and policyholder funds 161,600 163,345
Debt 33,738 33,738
Total shareholders' equity 108,951 102,492
Book value per common share 5.06 4.75
Statutory capital and surplus
Life and health 32,959 35,322
Property and casualty 40,920 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