• Operating income of $2.6 million in 2014 up from $2.5 million in 2013
  • Earned premiums up 5.4% in 2014 as compared to 2013
  • Declares annual $0.02 per share dividend payable on April 24, 2015

ATLANTA, March 27, 2015 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported its results for the fourth quarter and year ended December 31, 2014. For the fourth quarter ended December 31, 2014, the Company reported net income of $1.3 million, or $0.06 per diluted share, down from $1.5 million, or $0.06 per diluted share, in the fourth quarter of 2013. The decrease was attributable to a decline in realized investment gains of $0.2 million. Premiums for the fourth quarter of 2014 increased 1.1% to $38.3 million compared to $37.9 million for the fourth quarter of 2013, as premiums in the property and casualty operations increased by $1.1 million, or 8.7%.

Net income for the year ended December 31, 2014 was $4.4 million, or $0.19 per diluted share, as compared to net income of $11.0 million, or $0.48 per diluted share, for the year ended December 31, 2013. The decrease was primarily attributable to the decline in realized investment gains of $7.2 million. Total premiums during 2014 increased 5.4% to $153.5 million from $145.6 million in 2013, as premiums in the property and casualty and life and health operations increased 14.8% and 1.1%, respectively, in 2014 as compared to 2013.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, "We have completed another successful year while continuing to invest in various initiatives. With respect to our core life and health operations, we have integrated the acquisition which we completed last year and now have Bankers Fidelity Assurance Company's products being sold in several states. Our worksite products are now also approved in a number of states and our marketing initiatives are in full swing. And our property and casualty operation had a fine year after winning a significant state contract last year. In recognition of the continuing success, our Board of Directors recently approved our 4th annual dividend of $0.02 per share to shareholders of record on April 13, 2015 and payable on April 24, 2015."

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, Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance Company.

Note regarding forward-looking statements: This news release contains forward-looking statements subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among other things, our future strategies, operating or financial performance. Forward looking statements are based on management's assumptions regarding, among other things, general economic and industry-specific business conditions, as well as the execution of our business strategy. Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks, including those detailed from time to time in statements and reports that Atlantic American Corporation files with the Securities and Exchange Commission.
       
Atlantic American Corporation      
Selected Financial Data      
       
  Three months ended   Year ended
  December 31,   December 31,
(Unaudited; In thousands, except per share data) 2014   2013   2014   2013
               
Insurance premiums              
Life and health $ 24,765   $ 25,420   $ 100,834   $ 99,779
Property and casualty 13,512   12,433   52,654   45,851
Investment income 2,492   2,596   10,367   10,809
Realized investment gains, net 130   326   1,571   8,741
Other income 20   49   895   189
               
Total revenue 40,919   40,824   166,321   165,369
               
Insurance benefits and losses incurred              
Life and health 16,232   16,561   68,016   70,175
Property and casualty 8,972   8,664   38,179   30,197
Commissions and underwriting expenses 10,704   10,475   40,923   40,556
Interest expense 356   441   1,607   1,898
Other expense 3,317   3,240   12,692   11,337
               
 Total benefits and expenses 39,581   39,381   161,417   154,163
               
Income before income taxes 1,338   1,443   4,904   11,206
               
Income tax expense (benefit) 56   (17)   474   184
               
Net income $   1,282   $   1,460   $   4,430   $ 11,022
               
Basic earnings per common share $ 0.06   $ 0.06   $ 0.19   $ 0.50
               
Diluted earnings per common share $  0.06   $  0.06   $  0.19   $  0.48
               
Reconciliation of Net Income to non-GAAP Measurement              
               
Net income $ 1,282   $ 1,460   $   4,430   $ 11,022
Income tax expense (benefit) 56   (17)   474   184
Realized investment and other gains, net (130)   (326)   (2,321)   (8,741)
               
Operating income $ 1,208   $ 1,117   $ 2,583   $ 2,465
               
  December 31,   December 31,        
Selected Balance Sheet Data 2014   2013        
               
Total cash and investments $ 256,660   $ 262,063        
Insurance subsidiaries 235,537   228,605        
Parent and other 21,123   33,458        
Total assets 317,008   319,381        
Insurance reserves and policyholder funds 164,094   162,373        
Debt 33,738   41,238        
Total shareholders' equity 104,195   100,927        
Book value per common share 4.79   4.47        
Statutory capital and surplus              
Life and health 34,004   34,530        
Property and casualty 39,012   39,092        
CONTACT: John G. Sample, Jr.         Senior Vice President and Chief Financial Officer         Atlantic American Corporation         404-266-5501                  Hilton H. Howell, Jr.         Chairman, President & CEO         Atlantic American Corporation         404-266-5505