Atlantic American Corporation Reports Fourth Quarter And Year End Results For 2010

Atlantic American Corporation (Nasdaq: AAME) today reported its results for the fourth quarter and year ended December 31, 2010. For the fourth quarter ended December 31, 2010, the Company reported net income of $1.5 million, or $0.06 per diluted share, compared to net income of $0.6 million, or $0.02 per diluted share, during the same period in 2009. Realized investment gains for the quarter ended December 31, 2010 were $1.3 million as compared to $0.3 million for the quarter ended December 31, 2009. Income from operations before realized investment gains and income taxes was $368,000 for the quarter ended December 31, 2010 and $650,000 for the quarter ended December 31, 2009. Premiums for the fourth quarter of 2010 increased 10.2% to $25.3 million compared to $23.0 million for the fourth quarter of 2009; as premiums in the life and health operations increased by $1.1 million and premiums in the property and casualty operations increased by $1.2 million on a comparative basis.

Atlantic American reported net income for the year ended December 31, 2010 of $2.5 million, or $0.09 per diluted share, as compared to a net loss of $1.2 million, or $0.08 per diluted share, for the year ended December 31, 2009. The 2009 net loss was directly attributable to an increase in the Company’s deferred tax asset valuation allowance of approximately $2.0 million primarily related to the disposition of certain investments. Income from operations before realized investment gains and income taxes increased 26.5% and was $1.4 million for the year ended December 31, 2010 as compared to $1.1 million for the year ended December 31, 2009. Total premiums during 2010 increased 6.7% to $97.6 million from 2009 premiums of $91.5 million; and premiums in the life and health operations increased 9.6% or $5.5 million in 2010 as compared to 2009, while premiums in the property and casualty operations increased nominally by $0.6 million in that period.

Commenting on the results, Hilton H. Howell, Jr., president and chief executive officer, stated, “We are pleased with our 2010 results. From the top line premium revenue growth of 6.7% to the 26.5% increase in our income from operations before realized investment gains and income taxes, our Company continues to prosper during these challenging and competitive times. Such results would not be achievable or sustainable without the dedicated efforts of our staff combined with the unwavering commitment of our agents. In light of these positive results, we are pleased to be paying a two cent per share dividend to all shareholders of record on March 31, 2011. We are optimistic that the momentum exhibited in 2010 is simply the beginning and that the future will continue on the same path.”

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 Year ended
Dec. 31, Dec. 31,
(Unaudited; In thousands, except per share data) 2010       2009 2010       2009
 
Insurance premiums $ 25,291 $ 22,950 $ 97,613 $ 91,462
Investment income 2,302 2,546 9,737 10,688
Realized investment gains, net 1,347 272 1,571 273
Other income   65   85   280   287  
 
Total revenue   29,005   25,853   109,201   102,710  
 
Insurance benefits and losses incurred 17,588 15,031 66,854 60,784
Commissions and underwriting expenses 6,723 6,645 28,099 28,379
Interest expense 657 662 2,612 2,756
Other   2,322   2,593   8,703   9,441  
 
Total benefits and expenses   27,290   24,931   106,268   101,360  
 
Income before income taxes 1,715 922 2,933 1,350
 
Income tax expense   240   289   440   2,557  
 
Net income (loss) $ 1,475 $ 633 $ 2,493 $ (1,207 )
 
Basic earnings (loss) per common share $ 0.06 $ 0.02 $ 0.09 $ (0.08 )
 
Diluted earnings (loss) per common share $ 0.06 $ 0.02 $ 0.09 $ (0.08 )
 
 
 
 
December 31, December 31,
Selected Balance Sheet Data 2010       2009
 
Total investments $ 184,628 $ 195,410
Total assets 277,566 262,086
Insurance reserves and policyholder funds 137,902 129,213
Debt 41,238 41,238
Total shareholders' equity 82,693 77,470
Book value per common share 3.40 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