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Atlantic American Reports Increased Revenues In First Quarter

  • Insurance premiums increase 7.6% in 1 st quarter 2013 compared to 1 st quarter 2012
  • Life and health insurance premiums increase 15.4% in 1 st quarter 2013 compared to 1 st quarter 2012
  • Book value per share closes March 31, 2013 at $4.59 per common share
  • Aggregate statutory capital and surplus increase 2.5% from December 31, 2012

ATLANTA, May 13, 2013 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported first quarter 2013 results, which included a 7.6% increase in insurance premiums for the quarter ended March 31, 2013 up to $33.0 million as compared to $30.7 million in the first quarter of 2012. Total revenues were up 6.1% in the comparable periods. Net income declined to $0.9 million or $0.04 per common share in the first quarter of 2013 in comparison to $1.7 million or $0.07 per common share in the first quarter of 2012. Operating income for the first quarter of 2013 was $0.3 million as compared to $0.8 million for the first quarter of 2012. Increased losses primarily in the life and health business resulted in the decline in both net income and operating income.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, "While pleased with our continued production and revenue growth, our results were negatively impacted due to the usual "Part B deductible" utilization in our Medicare supplement product that occurs in the first half of each year. I expect that the majority of this utilization fell in this quarter's results. I am particularly pleased that, effective May 1, 2013, American Southern bound a large account with approximately $14 million in annual premium. I expect this account to add meaningfully to our results during the balance of the year."

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.

Atlantic American Corporation
Financial Data
     
  Three Months Ended
  March 31,
(Unaudited; In thousands, except per share data) 2013 2012
Insurance premiums    
Life and health $24,092 $20,869
Property and casualty 8,927 9,812
Investment income 2,905 2,883
Realized investment gains, net 678 958
Other income 48 29
     
Total revenue 36,650 34,551
     
Insurance benefits and losses incurred    
Life and health 18,040 14,653
Property and casualty 5,322 8,019
Commissions and underwriting expenses 9,283 7,033
Interest expense 577 657
Other 2,417 2,469
     
Total benefits and expenses 35,639 32,831
     
Income before income taxes 1,011 1,720
Income tax expense 89 63
     
Net income  $922 $1,657
     
Earnings per common share (basic and diluted) $0.04 $0.07
     
Reconciliation of Net Income to non-GAAP measurement    
     
Net income $922 $1,657
Income tax expense 89 63
Realized investment gains, net (678) (958)
     
Operating income $333 $762
     
     
  March 31, December 31,
Selected Balance Sheet Data 2013 2012
     
Total cash and investments $260,317 $265,843
Insurance subsidiaries 231,017 236,934
Parent and other 29,300 28,909
Total assets 313,548 320,177
Insurance reserves and policyholder funds 150,975 154,558
Debt 41,238 41,238
Total shareholders' equity 104,027 105,736
Book value per common share 4.59 4.65
Statutory capital and surplus    
Life and health 34,249 33,059
Property and casualty 37,494 36,947
CONTACT: For further information contact:
         John G. Sample, Jr.
         Senior Vice President and Chief Financial Officer
         Atlantic American Corporation
         404-266-5501
         
         Hilton H. Howell, Jr.
         Chairman, President & CEO
         Atlantic American Corporation
         404-266-5505

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