Atlantic American Corporation (Nasdaq-AAME) today reported increased second quarter and six month results. Net income for the three month period ended June 30, 2011 was $192 thousand, or nil per diluted share, more than doubling the net income of $76 thousand, or nil per diluted share, for the three month period ended June 30, 2010. Net income for the six month period ended June 30, 2011 increased 34% to $661 thousand, or $0.02 per diluted share from net income of $493 thousand, or $0.01 per diluted share in the comparable period of 2010. Book value increased to $3.47 per share at June 30, 2011 from $3.40 per share at the end of last year.
Total revenues for the three month period ended June 30, 2011 were $29.1 million, increasing 7.3% from the $27.1 million for the three month period ended June 30, 2010. Insurance premiums during this quarter increased 7.4% from the comparable 2010 premiums. For the six month period ended June 30, 2011, revenues were $57.1 million, increasing 7.7% from the comparable 2010 revenues of $53.1 million. The increase in premiums during the three month and six month periods ended June 30, 2011 resulted primarily from increased sales of the Medicare supplement product in the life and health segment and increased commercial automobile premiums in the property and casualty segment. Investment income in both the three and six month periods ended June 30, 2011 increased in comparison with the comparable periods of 2010 and resulted primarily from increased average balances of higher yielding invested assets.
“The first half of 2011 has been very successful,” said Hilton H. Howell, Jr., chairman, president and chief executive officer. “Our insurance premiums are continuing to increase on a quarter to quarter basis in both our life and health and property and casualty operations. Our investment portfolio is fully invested and well diversified and has resulted in increases in investment income on a quarter to quarter basis. While expenses such as losses, commissions and underwriting have increased, consistent with premium levels, general and administrative expenses are being closely managed. We are continuing with our stock buyback program even as total cash and investments held by our parent company increased to $26.5 million at June 30, 2011. During the second quarter this year we also paid a 2 cent per share dividend on the Company’s common stock and completed most of the due diligence related to the block of Medicare supplement business which we are acquiring from American Community Mutual Insurance Company.”