Atlantic American Corporation (Nasdaq-AAME) today reported net income of $76 thousand, or nil per diluted share, for the three month period ended June 30, 2010, compared to net income of $12 thousand, or a loss of $0.01 per diluted share, for the three month period ended June 30, 2009. For the six month period ended June 30, 2010, net income was $493 thousand, or $0.01 per diluted share, compared to net income of $268 thousand, or nil per diluted share, for the comparable period in 2009. Book value increased to $3.45 per share at June 30, 2010 from $3.16 per share at the end of last year.

Total revenues for the three month period ended June 30, 2010 were $27.1 million, increasing 5.4% from the $25.7 million for the three month period ended June 30, 2009. Insurance premiums during this quarter increased 6.3% from the comparable 2009 premiums. For the six month period ended June 30, 2010, revenues were $53.1 million, increasing 3.4% from the comparable 2009 revenues of $51.3 million. The increase in premiums during the three month and six month periods ended June 30, 2010 resulted from increased sales of both the traditional life and medicare supplement products in the life and health segment. Declining investment income in both the three and six month periods ended June 30, 2010 reflected the low current interest rate environment and partially offset the increase in total revenues.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, "We are extremely pleased with our top line growth. The marketing initiatives and investments which we have been making to grow our life and health business are now evident in our results. Our property and casualty operations continue to be challenged with the extremely soft market; however in the three month period ended June 30, 2010, we experienced a moderate increase in quarter on quarter earned premium which we hope is a precursor to the future. Even with this top line growth in our insurance operations, we remain focused on growth and profitability. Our benefits and losses were higher in the second quarter than we would have expected; however, we believe that those will return to more normal levels in future quarters, resulting in increased profitability as we continue to grow. With our high level of liquidity at the parent company, we are continuing our stock buy back program as appropriate.”

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 subsidiaries consist of 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
Consolidated Financial Data
 
 
Three months ended Six months ended
June 30, June 30,
(Unaudited; In thousands, except per share data)   2010     2009     2010   2009  
 
Insurance premiums $ 24,387 $ 22,941 $ 47,745 $ 45,738
Investment income 2,576 2,708 5,133 5,443
Realized investment gains (losses), net 13 (26 ) 13 (13 )
Other income   111     84     159   151  
 
Total revenue   27,087     25,707     53,050   51,319  
 
Insurance benefits and losses incurred 17,425 15,033 32,815 29,913
Commissions and underwriting expenses 6,827 7,412 13,967 14,930
Interest expense 653 694 1,295 1,415
Other   2,119     2,618     4,336   4,804  
 
Total benefits and expenses   27,024     25,757     52,413   51,062  
 
Income (loss) before income taxes 63 (50 ) 637 257
 
Income tax expense (benefit)   (13 )   (62 )   144   (11 )
 
Net income $ 76   $ 12   $ 493 $ 268  
 
 
 
Net income (loss) per common share (basic and diluted): $ -   $ (0.01 ) $ 0.01 $ -  
 
 
June 30, December 31,
Selected Balance Sheet Data   2010       2009  
 
Total investments $ 177,487 $ 195,410
Total assets 268,559 262,086
Insurance reserves and policy funds 132,252 129,213
Debt 41,238 41,238
Total shareholders' equity 83,938 77,470
Book value per common share 3.45 3.16

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX