Atlantic American Corporation (Nasdaq-AAME) today reported net income of $525,000, or $0.02 per diluted share, for the three month period ended September 30, 2010, compared to a net loss of $2.1 million, or $0.10 per diluted share, for the three month period ended September 30, 2009. For the nine month period ended September 30, 2010, net income was $1.0 million, or $0.03 per diluted share, compared to a net loss of $1.8 million, or $0.10 per diluted share, for the comparable period in 2009. Results for the three month and nine month periods ended September 30, 2009 were primarily the result of an increase in the Company’s deferred tax asset valuation allowance of approximately $1.8 million.

Total revenues for the three month period ended September 30, 2010, were $27.1 million, increasing 6.3% from $25.5 million for the three month period ended September 30, 2009. Insurance premiums during this quarter increased $1.8 million, or 7.9%, from the comparable 2009 premiums. For the nine month period ended September 30, 2010, revenues were $80.2 million, increasing 4.3% from the comparable 2009 period revenues of $76.9 million. Insurance premiums during the nine month period ended September 30, 2010 increased $3.8 million, or 5.6%, from the comparable period in 2009. Revenue and premium increases during both the three month and nine month periods ended September 30, 2010 occurred primarily in the Company’s life and health operation.

Commenting on the quarter, Hilton H. Howell, Jr., president and chief executive officer, stated, “With our increasing premium levels, our core insurance operations remain solidly profitable. We continue to make investments in new products and increase our field force for greater penetration and broader distribution. While pleased with this most recent quarter, we are focused on building our business. Even though the soft property and casualty markets continue to challenge our property and casualty business, we are optimistic that our life and health business will continue with the steady growth exhibited in recent quarters.”

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 Nine months ended
September 30, September 30,
(Unaudited; In thousands, except per share data)   2010     2009     2010     2009  
 
Insurance premiums $ 24,577 $ 22,774 $ 72,322 $ 68,512
Investment income 2,302 2,699 7,435 8,142
Realized investment gains, net 211 14 224 1
Other income   56   51     215   202  
 
Total revenue   27,146   25,538     80,196   76,857  
 
Insurance benefits and losses incurred 16,451 15,840 49,266 45,753
Commissions and underwriting expenses 7,409 6,804 21,376 21,734
Interest expense 660 679 1,955 2,094
Other   2,045   2,044     6,381   6,848  
 
Total benefits and expenses   26,565   25,367     78,978   76,429  
 
Income before income taxes 581 171 1,218 428
 
Income tax expense   56   2,279     200   2,268  
 
Net income (loss) $ 525 $ (2,108 ) $ 1,018 $ (1,840 )
 
 
 
 
Net income (loss) per common share (basic and diluted) $ 0.02 $ (0.10 ) $ 0.03 $ (0.10 )
 
 
 
 
September 30, December 31,
Selected Balance Sheet Data   2010     2009  
 
Total cash and investments $ 228,498 $ 215,539
Total assets 273,563 262,086
Insurance reserves and policy funds 133,113 129,213
Debt 41,238 41,238
Total shareholders' equity 86,939 77,470
Book value per common share 3.59 3.16

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