Atlantic American Corporation (Nasdaq- AAME) today reported net income for the first quarter ended March 31, 2010 of $417,000, or $.01 per diluted share, compared to $256,000, or $.01 per diluted share, in the first quarter of 2009. Total revenue for the first quarter of 2010 increased to $26.0 million, an increase of 1.4% from 2009 first quarter revenue of $25.6 million. Premiums for the first quarter of 2010 increased 2.5% to $23.4 million from $22.8 million for the comparable quarter in 2009. The increase in premiums for the 2010 quarter was due to the solid growth in the life and health business, partially offset by the continued softness in the property & casualty business.
Commenting on the quarter, Hilton H. Howell, Jr., Chairman, president and chief executive officer, stated “The 2010 first quarter results make us optimistic for the balance of the year. Earned premiums in our life and health business during the first quarter of 2010 were approximately $15.3 million, which was an 11% increase over the earned premiums in the first quarter of 2009 and a 3% increase over the earned premiums in the fourth quarter of 2009. Further, the losses incurred in the life and health business were proportionately lower in the first quarter of 2010 than in the first quarter of the prior two years. While the earned premium in our property & casualty business was approximately $8.1 million during the first quarter of 2010, a level that is consistent with the fourth quarter of 2009, new business opportunities are being considered, and the prospects for growth seem positive.”
Atlantic American is an insurance holding company involved through its subsidiary companies in specialty markets of the life, health, and property and casualty insurance industries. Its principal insurance subsidiaries include American Southern Insurance Company, American Safety Insurance Company, and Bankers Fidelity Life Insurance Company.
Note regarding Private Securities Litigation Reform Act: Except for historical information contained herein, this press release contains forward-looking statements that involve a number of risks and uncertainties. Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks detailed from time to time in statements and reports that Atlantic American Corporation has filed with the Securities and Exchange Commission.
|Atlantic American Corporation|
|As of March 31, 2010|
|(Unaudited; Dollars in thousands, except per share data)|
|Three Months Ended|
|Realized investment gains, net||-||13|
|Insurance benefits and losses incurred||15,390||14,880|
|Commissions and underwriting expenses||7,140||7,518|
|Total benefits and expenses||25,389||25,305|
|Income before income taxes||574||307|
|Income tax expense||157||51|
|Net income per common share (basic and diluted):||$||0.01||$||0.01|
|March 31,||December 31,|
|Selected Balance Sheet Data||2010||2009|
|Insurance reserves and policy funds||127,995||129,213|
|Total shareholders' equity||80,670||77,470|
|Book value per common share||3.31||3.16|