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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.