• Net income for the three month period ended September 30, 2018 increased to $0.9 million as compared to $0.7 million for the comparable period of 2017
  • Life and health insurance premiums increased to $29.5 million, or 5.2%, as compared to $28.0 million for the three month periods ended September 30, 2018 and 2017, respectively

ATLANTA, Nov. 13, 2018 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income for the three month period ended September 30, 2018 of $0.9 million, or $0.04 per share, as compared to $0.7 million, or $0.03 per share, for the comparable period of 2017.  For the nine month period ended September 30, 2018, the company reported a net loss of $0.9 million, or $0.06 per share, as compared to net income of $2.0 million, or $0.08 per share, for the comparable period of 2017.  The increase in net income during the third quarter of 2018 was primarily due to $1.1 million of net unrealized gains in equity securities during the third quarter of 2018 compared to nil for the third quarter of 2017.  The net loss for the nine month period ended September 30, 2018 was primarily due to an increase in operating losses as a result of higher levels of morbidity experienced in the Medicare supplement line of business during the first half of 2018.

Total revenues for the three month period ended September 30, 2018 were $46.4 million as compared to $44.8 million for the three month period ended September 30, 2017.  The above mentioned unrealized gains in 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 September 30, 2018 increased $0.5 million or 1.1% from the comparable 2017 period and was primarily the result of an increase in Medicare supplement premiums in the Company’s life and health operations somewhat offset by a decrease in property and casualty premiums.  For the nine month period ended September 30, 2018, revenues were $136.4 million, increasing 3.1% from the comparable 2017 period revenues of $132.3 million, primarily as a result of an increase in Medicare supplement premium revenues.  Insurance premiums during the nine month period ended September 30, 2018 of $127.6 million increased 3.7% from the comparable 2017 period amount of $123.0 million.

Commenting on the third quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “Our senior leadership team at Bankers Fidelity continues to drive efforts focused on improving profitability, enhancing the product portfolio, and delivering superior customer service to our policyholders and agents.  Although the year to date Medicare supplement results did not meet expectations, we are encouraged by the continued growth in the life and health operation and are confident strategic rate adjustments implemented throughout the year will result in improved margins.  Even though our property and casualty premiums declined slightly, American Southern continues to deliver profitable operating results through prudent underwriting of their programs.  While anticipating a good close to the current year, we feel well positioned for a successful 2019.”

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 Nine Months Ended
 September 30, September 30,
(Unaudited; In thousands, except per share data)2018 2017 2018 2017
Insurance premiums       
Life and health       
Gross earned premiums$45,568  $36,671  $133,158  $102,502 
Ceded premiums (16,061)  (8,623)  (44,853)  (19,774)
Net earned premiums 29,507   28,048   88,305   82,728 
Property and casualty               
Gross earned premiums 14,288   15,284   42,968   43,860 
Ceded premiums (1,238)  (1,238)  (3,669)  (3,592)
Net earned premiums 13,050   14,046   39,299   40,268 
                
Net investment income 2,215   2,136   7,111   6,380 
Realized investment gains, net 484   539   797   2,818 
Unrealized gains on equity securities, net 1,083   -   753   - 
Other income 31   29   88   95 
                
Total revenue   46,370      44,798      136,353      132,289  
                
Insurance benefits and losses incurred               
Life and health 22,415   20,754   69,934   61,567 
Property and casualty 10,672   9,663   28,544   25,879 
Commissions and underwriting expenses 8,722   10,176   28,456   31,800 
Interest expense 529   440   1,497   1,273 
Other expense 2,960   3,134   9,168   9,301 
                
Total benefits and expenses 45,298   44,167   137,599   129,820 
                
Income (loss) before income taxes 1,072   631   (1,246)  2,469 
Income tax expense (benefit) 138   (116)  (341)  483 
                
Net income (loss)$   934   $   747   $   (905) $   1,986  
                
Earnings (loss) per common share (basic and diluted)$   0.04   $   0.03   $   (0.06) $   0.08  
                
Reconciliation of Non-GAAP Financial Measure               
                
Net income (loss)$934  $747  $(905) $1,986 
Income tax expense (benefit) 138   (116)  (341)  483 
Realized investment gains, net (484)  (539)  (797)  (2,818)
Unrealized gains on equity securities, net (1,083)  -   (753)  - 
                
Operating gain (loss)$   (495) $   92   $   (2,796) $   (349)
         
        
 September 30, December 31, 
Selected Balance Sheet Data 2018   2017  
     
Total cash and investments$255,058  $272,058  
Insurance subsidiaries 234,696   244,754  
Parent and other 20,362   27,304  
Total assets 339,549   343,239  
Insurance reserves and policyholder funds 187,813   173,583  
Debt 33,738   33,738  
Total shareholders' equity 102,118   112,983  
Book value per common share 4.78   5.26  
Statutory capital and surplus        
Life and health 30,845   34,135  
Property and casualty 43,922   43,348