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Insurance premiums increase 16.4% in 1 st quarter 2014 compared to 1 st quarter 2013
Life and health and property and casualty insurance premiums increase 5.4% and 45.9%, respectively, in 1 st quarter 2014 compared to 1 st quarter 2013
1 st quarter 2014 operating income of $0.9 million more than double 1 st quarter 2013 operating income of $0.3 million
ATLANTA, May 12, 2014 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported first quarter 2014 results, which included a 16.4% increase in insurance premiums for the quarter ended March 31, 2014 to $38.4 million as compared to $33.0 million in the first quarter of 2013. Total revenues were up 12.3% in the comparable period. Net income declined slightly to $0.8 million or $0.03 per common share in the first quarter of 2014 as compared to $0.9 million or $0.04 per common share in the first quarter of 2013; however, operating income for the first quarter of 2014 was $0.9 million as compared to $0.3 million for the first quarter of 2013. Realized investment gains during the first quarter of 2014 were $0.1 million as compared to $0.7 million in the first quarter of 2013.
Additionally, the Company announced that the Board of Directors has terminated the Company's existing stock repurchase plan and approved a new repurchase plan that allows for the repurchase of up to 750,000 shares of the Company's common stock from time to time in accordance with applicable securities laws and other requirements.
Commenting on the quarter, Hilton H. Howell, Jr., Chairman, president and chief executive officer, stated, "Our solid premium growth has continued into 2014; although, with the award of a significant new state contract in 2013, the most significant increases in our earned premiums are now in our property and casualty operations. The combination of premium increases with reduced losses, as a percentage of the related premiums, in our life and health operations resulted in the substantial increase in our operating income in the first quarter of 2014 as compared with the same period in 2013. Further, we are pleased that the board has determined to provide the Company with a new share repurchase authorization. We believe this reflects our financial strength and evidences our continued commitment to our shareholders."