Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2016 and Declares 2017 Annual Dividend

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| Source: Atlantic American Corporation

ATLANTA, March 15, 2017 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported its results for the fourth quarter and year ended December 31, 2016.  For the fourth quarter ended December 31, 2016, the Company reported net income of $1.3 million, or $0.06 per diluted share, up from $0.1 million, or nil per diluted share, in the fourth quarter of 2015.  The increase was attributable to an increase in realized investment gains of $1.4 million.  Premiums for the fourth quarter of 2016 decreased 2.9% to $36.5 million compared to $37.5 million for the fourth quarter of 2015 as the Company entered into a reinsurance agreement to moderate statutory capital requirements related to premium growth in the Medicare Supplement line of business.

Net income for the year ended December 31, 2016 was $2.6 million, or $0.11 per diluted share, as compared to $4.4 million, or $0.19 per diluted share, for the year ended December 31, 2015.  Total premiums earned during 2016 increased 1.7% to $153.5 million from $150.9 million in 2015.  Premiums in the property and casualty operations decreased 1.4% in 2016 as compared to 2015; but were offset by a 3.4% premium increase in the life and health operations in the comparable years.  Benefits and losses increased 1.8% in 2016 as compared with 2015; while commissions and underwriting expenses increased 3.6% in the comparable period.  Realized investment gains were $2.6 million in 2016 as compared to $4.9 million in 2015.

Further, the Board of Directors at its recent meeting, declared the Company’s regular annual dividend of $0.02 per share, payable on or about April 24, 2017 to shareholders of record on April 14, 2017.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We have completed another successful year and many of our marketing initiatives, particularly in our life and health operations, have resulted in solid premium growth.  With such premium growth, managing statutory capital becomes very important, and accordingly we also entered into a reinsurance agreement during the 4th quarter.  Our property and casualty operations also turned in another very profitable year.  We believe that our Company is well postured for continued growth in 2017 and beyond and our Board of Directors has affirmed such belief with their declaration of our annual dividend.”

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 forward-looking statements:  This news release contains forward-looking statements subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements may relate to, among other things, our future strategies, or our expected operating or financial performance.  Forward looking statements are based on management’s assumptions regarding, among other things, general economic and industry-specific business conditions, as well as the execution of our business strategy.  Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks, including those detailed from time to time in statements and reports that Atlantic American Corporation files with the Securities and Exchange Commission.

Atlantic American Corporation
Selected Financial Data
 
  Three months ended Year ended
  December 31, December 31,
(Unaudited; In thousands, except per share data) 2016 2015 2016 2015
         
Insurance premiums        
Life and health $23,066  $24,284  $99,702  $96,384 
Property and casualty  13,387   13,259   53,763   54,508 
Investment income  2,361   2,538   9,884   10,085 
Realized investment gains (losses), net  1,184   (249)  2,595   4,857 
Other income  31   25   133   103 
         
Total revenue  40,029   39,857   166,077   165,937 
         
Insurance benefits and losses incurred        
Life and health  15,325   16,263   68,789   66,318 
Property and casualty  9,170   8,840   34,408   35,046 
Commissions and underwriting expenses  10,458   10,211   44,797   43,235 
Interest expense  408   365   1,562   1,429 
Other expense  3,194   4,034   12,997   14,201 
         
Total benefits and expenses  38,555   39,713   162,553   160,229 
         
Income before income taxes  1,474   144   3,524   5,708 
         
Income tax expense  126   30   888   1,320 
         
Net income  $  1,348  $  114  $  2,636  $  4,388 
         
Earnings per common share (basic and diluted) $  0.06  $   -  $   0.11  $   0.19 
         
Reconciliation of Non-GAAP Financial Measure        
         
Net income $1,348  $114  $2,636  $4,388 
Income tax expense  126   30   888   1,320 
Realized investment losses (gains), net  (1,184)  249   (2,595)  (4,857)
         
Operating income $   290  $   393  $  929  $  851 
         
  December 31, December 31,    
Selected Balance Sheet Data 2016 2015    
         
Total cash and investments $257,429  $254,007     
Insurance subsidiaries  235,499   229,092     
Parent and other  21,930   24,915     
Total assets  318,600   314,603     
Insurance reserves and policyholder funds  162,679   163,345     
Debt  33,738   33,738     
Total shareholders' equity  105,506   102,492     
Book value per common share  4.89   4.75     
Statutory capital and surplus        
Life and health  33,430   35,322     
Property and casualty  41,489   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