Atlantic American Corporation Reports Second Quarter Results
Atlantic American Corporation (Nasdaq-AAME) today reported net income of $76 thousand, or nil per diluted share, for the three month period ended June 30, 2010, compared to net income of $12 thousand, or a loss of $0.01 per diluted share, for the three month period ended June 30, 2009. For the six month period ended June 30, 2010, net income was $493 thousand, or $0.01 per diluted share, compared to net income of $268 thousand, or nil per diluted share, for the comparable period in 2009. Book value increased to $3.45 per share at June 30, 2010 from $3.16 per share at the end of last year.
Total revenues for the three month period ended June 30, 2010 were $27.1 million, increasing 5.4% from the $25.7 million for the three month period ended June 30, 2009. Insurance premiums during this quarter increased 6.3% from the comparable 2009 premiums. For the six month period ended June 30, 2010, revenues were $53.1 million, increasing 3.4% from the comparable 2009 revenues of $51.3 million. The increase in premiums during the three month and six month periods ended June 30, 2010 resulted from increased sales of both the traditional life and medicare supplement products in the life and health segment. Declining investment income in both the three and six month periods ended June 30, 2010 reflected the low current interest rate environment and partially offset the increase in total revenues.
Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, "We are extremely pleased with our top line growth. The marketing initiatives and investments which we have been making to grow our life and health business are now evident in our results. Our property and casualty operations continue to be challenged with the extremely soft market; however in the three month period ended June 30, 2010, we experienced a moderate increase in quarter on quarter earned premium which we hope is a precursor to the future. Even with this top line growth in our insurance operations, we remain focused on growth and profitability. Our benefits and losses were higher in the second quarter than we would have expected; however, we believe that those will return to more normal levels in future quarters, resulting in increased profitability as we continue to grow. With our high level of liquidity at the parent company, we are continuing our stock buy back program as appropriate.”
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