- Insurance premiums increased 6.8% and 5.1% for the three month and nine month periods ended September 30, 2017, respectively, as compared to the comparable periods of 2016.
- Net income for the three month and nine month periods ended September 30, 2017 was $0.7 million and $2.0 million, respectively, as compared to $0.1 million and $1.3 million, respectively, for the comparable periods of 2016.
ATLANTA, Nov. 14, 2017 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported net income of $0.7 million, or $0.03 per diluted share, for the three month period ended September 30, 2017, compared to net income of $0.1 million, or nil per diluted share, for the three month period ended September 30, 2016. For the nine month period ended September 30, 2017, net income was $2.0 million, or $0.08 per diluted share, compared to net income of $1.3 million, or $0.05 per diluted share, for the comparable period in 2016. Realized investment gains for the three month and nine month periods ended September 30, 2017 were $0.5 million and $2.8 million, respectively, as compared to $0.5 million and $1.4 million in the comparable three month and nine month periods of 2016. Operating income (income before income taxes and realized investment gains, net) for the three month period ended September 30, 2017 was $0.1 million, as compared to an operating loss of $0.2 million for the three month period ended September 30, 2016. For the nine month period ended September 30, 2017, the Company had an operating loss of $0.3 million as compared to operating income of $0.6 million for the comparable nine month period of 2016. The operating loss was primarily 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 September 30, 2017 were $44.8 million, increasing 5.5% from $42.4 million for the three month period ended September 30, 2016. Life and health premiums increased 5.7% and property and casualty premiums increased 9.0%. For the nine month period ended September 30, 2017, total revenues were $132.3 million, increasing 5.0% from the comparable 2016 period. Premiums earned from the Company’s life and health operation increased 7.9% for the nine month period ended September 30, 2017 while decreasing slightly in the property and casualty operation during the comparable period.
Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “Our property and casualty operation continues to perform exceptionally well returning consistent profits to the bottom line. In addition, we have completed a number of process improvements and refinements within our life and health operation in advance of the Medicare supplement annual enrollment season. Our Worksite division has exceeded its prior year production with a significant number of enrollments currently underway. We anticipate a good close to the current year and believe the Company to be well positioned for a very positive 2018.”
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.
|For further information contact:|
|J. Ross Franklin||Hilton H. Howell, Jr.|
|Interim Chief Financial Officer||Chairman, President & CEO|
|Atlantic American Corporation||Atlantic American Corporation|
|Atlantic American Corporation|
|Three months ended||Nine months ended|
|September 30,||September 30,|
|(Unaudited; In thousands, except per share data)||2017||2016||2017||2016|
|Life and health||$||28,048||$||26,548||$||82,728||$||76,636|
|Property and casualty||14,046||12,884||40,268||40,376|
|Realized investment gains, net||539||527||2,818||1,411|
|Insurance benefits and losses incurred|
|Life and health||20,754||18,448||61,567||53,464|
|Property and casualty||9,663||8,507||25,879||25,238|
|Commissions and underwriting expenses||10,176||11,558||31,800||34,339|
|Total benefits and expenses||44,167||42,130||129,820||123,998|
|Income before income taxes||631||317||2,469||2,050|
|Income tax expense (benefit)||(116||)||168||483||762|
|Earnings per common share (basic and diluted)||$||0.03||$||-||$||0.08||$||0.05|
|Reconciliation of Non-GAAP Financial Measure|
|Income tax expense (benefit)||(116||)||168||483||762|
|Realized investment gains, net||(539||)||(527||)||(2,818||)||(1,411||)|
|Operating income (loss)||$||92||$||(210||)||$||(349||)||$||639|
|September 30,||December 31,|
|Selected Balance Sheet Data||2017||2016|
|Total cash and investments||$||261,610||$||257,429|
|Parent and other||23,490||21,930|
|Insurance reserves and policyholder funds||175,192||162,679|
|Total shareholders' equity||109,520||105,506|
|Book value per common share||5.09||4.89|
|Statutory capital and surplus|
|Life and health||29,672||33,430|
|Property and casualty||42,984||41,489|
Source:Atlantic American Corporation