• Net income for the three month period ended June 30, 2018 increased to $3.2 million as compared to $1.5 million in the comparable period in 2017
  • Insurance premiums increased to $42.8 million, or 6.8%, compared to $40.1 million for the three month periods ended June 30, 2018 and 2017, respectively

ATLANTA, Aug. 14, 2018 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income for the three month period ended June 30, 2018 of $3.2 million, or $0.15 per share, as compared to $1.5 million, or $0.07 per share, for the comparable period of 2017.  For the six month period ended June 30, 2018 the company reported a net loss of $1.8 million, or $0.10 per share, compared to net income of $1.2 million, or $0.05 per share, in the comparable period of 2017.  The increase in net income during the second quarter of 2018 was primarily due to the impact of an accounting standard adopted January 1, 2018.  This accounting standard requires changes in the fair value of investments in equity securities to be reported in net income on the statement of operations, which resulted in a $4.1 million impact in the 2018 period.  Under previous accounting guidelines, and as reported for the 2017 periods, such changes were recognized in other comprehensive income on the balance sheet.  The net loss for the six month period ended June 30, 2018 was primarily a result of operating losses in the life and health operation.

Total revenues for the three month period ended June 30, 2018 were $49.4 million as compared to $43.6 million for the three month period ended June 30, 2017.  Unrealized gains on equity securities and an increase in insurance premiums were the most significant contributors to the increase in total revenues.  Insurance premiums during the three month period ended June 30, 2018 increased $2.7 million, or 6.8%, from the comparable 2017 period, primarily the result of an increase in Medicare supplement premium in the Company’s life and health operation.  For the six month period ended June 30, 2018, revenues were $90.0 million, increasing 2.8% from the comparable 2017 period revenues of $87.5 million, also primarily as a result of an increase in Medicare supplement premium revenues.  Insurance premiums during the six month period ended June 30, 2018 of $85.0 million increased 5.1% from the comparable 2017 period amount of $80.9 million.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “Bankers Fidelity’s continued growth not only demonstrates elevated sales activity but serves as testament to the vital relationships and brand loyalty we have cultivated with our insurance producers.  While we continue to enjoy net premium growth in the life and health operation our focus remains on judicious management of the quality of our business, further diversifying our product portfolio and improving operating results.  The property and casualty operation continues to perform exceptionally well and we are pleased to report American Southern ended the first six months of 2018 with an increase in premium income over the comparable period of 2017.”

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.
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 Six Months Ended
 June 30, June 30,
(Unaudited; In thousands, except per share data)2018
 2017
 2018
 2017
Insurance premiums       
Life and health$29,303  $26,989  $58,798  $54,680 
Property and casualty 13,542   13,131   26,249   26,222 
Investment income 2,537   2,085   4,896   4,244 
Realized investment gains (losses), net (57)  1,396   313   2,279 
Unrealized gains (losses) on equity securities, net 4,089   -   (330)  - 
Other income 29   31   57   66 
        
Total revenue   49,443      43,632      89,983      87,491  
        
Insurance benefits and losses incurred       
Life and health 23,524   19,100   47,519   40,813 
Property and casualty 8,695   7,932   17,872   16,216 
Commissions and underwriting expenses 9,715   11,010   19,734   21,624 
Interest expense 506   424   968   833 
Other expense 2,970   2,981   6,208   6,167 
        
Total benefits and expenses 45,410   41,447   92,301   85,653 
        
Income (loss) before income taxes 4,033   2,185   (2,318)  1,838 
Income tax expense (benefit) 848   725   (479)  599 
        
Net income (loss)$   3,185   $   1,460   $   (1,839) $   1,239  
        
Earnings (loss) per common share (basic and diluted)$   0.15   $   0.07   $   (0.10) $   0.05  
        
Reconciliation of Non-GAAP Financial Measure       
        
Net income (loss)$3,185  $1,460  $(1,839) $1,239 
Income tax expense (benefit) 848   725   (479)  599 
Realized investment gains (losses), net 57   (1,396)  (313)  (2,279)
Unrealized gains (losses) on equity securities, net (4,089)  -   330   - 
        
Operating income (loss)$   1   $   789   $   (2,301) $   (441)
     
 
 June 30, December 31, 
Selected Balance Sheet Data2018
 2017
 
     
Total cash and investments$254,201  $272,058  
Insurance subsidiaries 235,055   244,754  
Parent and other 19,146   27,304  
Total assets 341,655   343,239  
Insurance reserves and policyholder funds 191,420   173,583  
Debt 33,738   33,738  
Total shareholders' equity 101,667   112,983  
Book value per common share 4.75   5.26  
Statutory capital and surplus    
Life and health 31,688   34,135  
Property and casualty 43,878   43,348