Atlantic American Corporation (Nasdaq- AAME) announced today that it had entered into a definitive agreement to purchase a block of Medicare supplement business from American Community Mutual Insurance Company (American Community) through Atlantic American’s subsidiary, Bankers Fidelity Life Insurance Company. American Community is currently in rehabilitation.
The acquisition, effective July 1, 2011, is estimated to result in additional annualized premium for Bankers Fidelity approximating $2.2 million and will be accomplished through an assumption reinsurance agreement. The policyholders are located primarily in the states of Michigan, Indiana, and Ohio.
“We expect the acquisition to be immediately accretive to Bankers Fidelity’s earnings and we believe our Company can administer the business with only minimal additional cost to our existing operations,” said Hilton Howell, Chairman, President, and CEO of Atlantic American. “We will provide a solid home for the policyholders of American Community.”
Gene Choate, President of Bankers Fidelity, added: “We are pleased to welcome the American Community policyholders to the Bankers Fidelity family. The acquisition increases our premium in additional states and adds new agents to our field force. We look forward to working with everyone involved as we complete the transition.”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, 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 files with the Securities and Exchange Commission.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV