Atlantic American Corporation (Nasdaq-AAME) today reported increased second quarter and six month results. Net income for the three month period ended June 30, 2011 was $192 thousand, or nil per diluted share, more than doubling the net income of $76 thousand, or nil per diluted share, for the three month period ended June 30, 2010. Net income for the six month period ended June 30, 2011 increased 34% to $661 thousand, or $0.02 per diluted share from net income of $493 thousand, or $0.01 per diluted share in the comparable period of 2010. Book value increased to $3.47 per share at June 30, 2011 from $3.40 per share at the end of last year.

Total revenues for the three month period ended June 30, 2011 were $29.1 million, increasing 7.3% from the $27.1 million for the three month period ended June 30, 2010. Insurance premiums during this quarter increased 7.4% from the comparable 2010 premiums. For the six month period ended June 30, 2011, revenues were $57.1 million, increasing 7.7% from the comparable 2010 revenues of $53.1 million. The increase in premiums during the three month and six month periods ended June 30, 2011 resulted primarily from increased sales of the Medicare supplement product in the life and health segment and increased commercial automobile premiums in the property and casualty segment. Investment income in both the three and six month periods ended June 30, 2011 increased in comparison with the comparable periods of 2010 and resulted primarily from increased average balances of higher yielding invested assets.

“The first half of 2011 has been very successful,” said Hilton H. Howell, Jr., chairman, president and chief executive officer. “Our insurance premiums are continuing to increase on a quarter to quarter basis in both our life and health and property and casualty operations. Our investment portfolio is fully invested and well diversified and has resulted in increases in investment income on a quarter to quarter basis. While expenses such as losses, commissions and underwriting have increased, consistent with premium levels, general and administrative expenses are being closely managed. We are continuing with our stock buyback program even as total cash and investments held by our parent company increased to $26.5 million at June 30, 2011. During the second quarter this year we also paid a 2 cent per share dividend on the Company’s common stock and completed most of the due diligence related to the block of Medicare supplement business which we are acquiring from American Community Mutual Insurance Company.”

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
Financial Data

(Unaudited; Dollars in thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
  2011     2010     2011     2010
Insurance premiums
Life and health $ 16,466 $ 15,598 $ 32,455 $ 30,899
Property and casualty 9,731 8,789 19,164 16,846
Investment income 2,691 2,576 5,260 5,133
Realized investment gains, net 70 13 71 13
Other income   115   111     178   159
Total revenue   29,073   27,087     57,128   53,050
Insurance benefits and losses incurred
Life and health 12,418 11,791 23,754 22,748
Property and casualty 5,803 5,634 11,098 10,067
Commissions and underwriting expenses 7,545 6,827 15,446 13,967
Interest expense 647 653 1,287 1,295
Other   2,328   2,119     4,583   4,336
Total benefits and expenses   28,741   27,024     56,168   52,413
Income before income taxes 332 63 960 637
Income tax expense (benefit)   140   (13 )   299   144
Net income $ 192 $ 76   $ 661 $ 493
Net income per common share
(basic and diluted) $ - $ -   $ 0.02 $ 0.01
June 30, December 31,
Selected Balance Sheet Data   2011     2010  
Total cash and investments $ 225,768 $ 212,953
Insurance subsidiaries 199,293 186,652
Parent and other 26,475 26,301
Total assets 274,886 277,566
Insurance reserves and policyholder funds 137,403 137,902
Debt 41,238 41,238
Total shareholders' equity 84,188 82,693
Book value per common share 3.47 3.40
Statutory capital and surplus
Life and health 32,297 31,874
Property and casualty 39,033 38,717

Copyright Business Wire 2010

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