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Atlantic American Reports Second Quarter Earnings

  • Insurance premiums increased 2.6% and 4.3% for the three month and six month periods ended June 30, 2017, respectively, as compared to the comparable periods of 2016
  • Net income for the three month and six month periods ended June 30, 2017 was $1.5 million and $1.2 million, respectively, as compared to $0.2 million and $1.1 million, respectively, for the comparable periods of 2016

ATLANTA, Aug. 14, 2017 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported net income of $1.5 million, or $0.07 per diluted share, for the three month period ended June 30, 2017, compared to net income of $0.2 million, or $0.01 per diluted share, for the three month period ended June 30, 2016. For the six month period ended June 30, 2017, net income was $1.2 million, or $0.05 per diluted share, compared to net income of $1.1 million, or $0.05 per diluted share, for the comparable period in 2016. Realized investment gains for the three month and six month periods ended June 30, 2017 were $1.4 million and $2.3 million, respectively, as compared to $0.1 million and $0.9 million in the comparable three month and six month periods of 2016. Operating income (income before income taxes and realized investment gains, net) for the three month period ended June 30, 2017 was $0.8 million, as compared to $0.2 million for the three month period ended June 30, 2016. For the six month period ended June 30, 2017, the Company had an operating loss of $0.4 million as compared to operating income of $0.8 million for the comparable six month period of 2016. The operating loss was attributable to higher than expected levels of claims in both life and health lines of business during the first quarter of 2017.

Total revenues for the three month period ended June 30, 2017 were $43.6 million, increasing 4.2% from $41.9 million for the three month period ended June 30, 2016. While life and health premiums increased 6.4%, property and casualty premiums decreased 4.6%. For the six month period ended June 30, 2017, total revenues were $87.5 million, increasing 4.7% from the comparable 2016 period. Premiums earned from the Company’s life and health operation increased 9.2% for the six month period ended June 30, 2017 while decreasing 4.6% in the property and casualty operation during the comparable period.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, noted, “We are pleased that the level of Medicare supplement benefit expenses and life insurance claims returned to historical levels in the second quarter. Our distribution network for the life and health operation continues to perform exceptionally well and we expect another record year in premium growth. In addition, the Worksite division has enjoyed a steady pace of sales activity and we believe they are well positioned going into the second half of the year when open enrollment kicks into high gear. Although premiums in the property and casualty operations were down slightly, they continue to produce strong profits.”

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 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)2017 2016 2017 2016
Insurance premiums
Life and health$26,989 $25,355 $54,680 $50,088
Property and casualty 13,131 13,767 26,222 27,492
Investment income 2,085 2,563 4,244 5,070
Realized investment gains, net 1,396 132 2,279 884
Other income 31 37 66 67
Total revenue 43,632 41,854 87,491 83,601
Insurance benefits and losses incurred
Life and health 19,100 18,105 40,813 35,016
Property and casualty 7,932 8,817 16,216 16,731
Commissions and underwriting expenses 11,010 10,954 21,624 22,781
Interest expense 424 385 833 758
Other expense 2,981 3,236 6,167 6,582
Total benefits and expenses 41,447 41,497 85,653 81,868
Income before income taxes 2,185 357 1,838 1,733
Income tax expense 725 116 599 594
Net income $1,460 $241 $1,239 $1,139
Earnings per common share (basic and diluted) $0.07 $0.01 $0.05 $0.05
Reconciliation of Non-GAAP Financial
Measure
Net income$1,460 $241 $1,239 $1,139
Income tax expense 725 116 599 594
Realized investment gains, net (1,396) (132) (2,279) (884)
Operating income (loss) $789 $225 ($441) $849
June 30, December 31,
Selected Balance Sheet Data2017 2016
Total cash and investments$253,308 $257,429
Insurance subsidiaries 233,416 235,499
Parent and other 19,892 21,930
Total assets 332,741 318,600
Insurance reserves and policyholder funds 176,780 162,679
Debt 33,738 33,738
Total shareholders' equity 107,536 105,506
Book value per common share 5.00 4.89
Statutory capital and surplus
Life and health 30,137 33,430
Property and casualty 42,482 41,489


For further information contact: J. Ross Franklin Interim Chief Financial Officer Atlantic American Corporation 404-266-5580 Hilton H. Howell, Jr. Chairman, President & CEO Atlantic American Corporation 404-266-5505

Source:Atlantic American Corporation