Atlantic American Reports Third Quarter Earnings

Imprimer
| Source : Atlantic American Corporation
  • 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
404-266-5580 404-266-5505


Atlantic American Corporation
Financial Data

 Three months ended Nine months ended
 September 30, September 30,
(Unaudited; In thousands, except per share data) 2017   2016  2017   2016 
        
Insurance premiums       
  Life and health$  28,048   $  26,548   $  82,728   $  76,636  
  Property and casualty 14,046   12,884   40,268   40,376 
Investment income 2,136   2,453   6,380   7,523 
Realized investment gains, net 539   527   2,818   1,411 
Other income 29   35   95   102 
        
  Total revenue 44,798   42,447   132,289   126,048 
        
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 
Interest expense 440   396   1,273   1,154 
Other expense 3,134   3,221   9,301   9,803 
        
  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 
        
Net income $  747   $  149   $  1,986   $  1,288  
        
Earnings per common share (basic and diluted)$  0.03   $  -    $  0.08   $  0.05  
        
Reconciliation of Non-GAAP Financial Measure       
        
Net income$  747   $  149   $  1,986   $  1,288  
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     
  Insurance subsidiaries 238,120   235,499    
  Parent and other 23,490   21,930    
Total assets 334,305   318,600    
Insurance reserves and policyholder funds 175,192   162,679    
Debt 33,738   33,738    
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