• 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