• Net income for the six month period ended June 30, 2015 increased to $4.0 million from $1.7 million for the comparable period of 2014
  • Property and casualty insurance premiums increased 5.4% in the comparable six month period
  • Net realized investment gains were $5.1 million for the six month period ended June 30, 2015 as compared to $0.6 million for the comparable period of 2014

ATLANTA, Aug. 12, 2015 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported financial results for the period ended June 30, 2015, including increased net income for the six month period ended June 30, 2015 over the prior year comparable period.  Net income for the six month period ended June 30, 2015 was $4.0 million, or $0.18 per diluted share, compared to $1.7 million, or $0.07 per diluted share, for the six month period ended June 30, 2014.  Net income includes net realized investment gains which were $5.1 million for the six month period ended June 30, 2015 compared to $0.6 million in the comparable period of 2014.  Net income for the three month period ended June 30, 2015 was $3.3 million, or $0.15 per diluted share, compared to net income of $0.9 million, or $0.04 per diluted share, in the comparable period of 2014.  Realized investment gains in the three month period ended June 30, 2015 were $4.1 million compared to $0.5 million in the comparable period of 2014.

Total revenues for the six month period ended June 30, 2015 were $85.7 million, increasing 3.6% from $82.7 million for the six month period ended June 30, 2014.  Insurance premiums during the six month period ended June 30, 2015 declined 1.8% from the comparable 2014 period, but were offset by an increase in net realized investment gains.  For the three month period ended June 30, 2015, revenues were $44.8 million, increasing 7.7% from comparable 2014 period revenues of $41.6 million, also due to an increase in realized investment gains.  Insurance premiums during the three month period ended June 30, 2015 decreased 0.9% from the comparable 2014 period.  The decrease in premiums during the three month and six month periods ended June 30, 2015 resulted primarily from a decline in the Company's Medicare supplement business in the life and health operations. 

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer stated, "In the second quarter, our property and casualty operations performed quite well.  During the three month period ended June 30, 2015, our property and casualty premiums increased 9.1% while our loss ratio declined.  During the same period our life and health operation posted a 6% decline in premiums with a higher loss ratio.  However, by retooling our efforts in our Senior division, we are beginning to see sales trends moving upward.  Our Worksite group sales are also doing well as we look forward to the upcoming open enrollment season.  Based on this positive movement, we expect the loss trends will soon reverse, and we are seeing our new sales momentum accelerate accordingly.  

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, Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance 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   Six months ended
  June 30,   June 30,
(Unaudited; In thousands, except per share data)   2015       2014       2015       2014  
               
Insurance premiums              
Life and health $  24,006     $  25,531     $   48,129     $   50,923  
Property and casualty   14,098       12,925       27,361       25,951  
Investment income   2,494       2,599       5,091       5,197  
Realized investment gains, net   4,148       485       5,099       593  
Other income   26       46       41       82  
               
Total revenue   44,772       41,586       85,721       82,746  
               
Insurance benefits and losses incurred              
Life and health   16,991       17,489       33,744       34,220  
Property and casualty   9,392       9,580       17,880       19,677  
Commissions and underwriting expenses   10,487       10,074       21,208       19,981  
Interest expense   354       434       703       863  
Other expense   3,359       3,023       6,987       6,026  
               
Total benefits and expenses   40,583       40,600       80,522       80,767  
               
Income before income taxes   4,189       986       5,199       1,979  
               
Income tax expense   844       109       1,163       282  
               
Net income $  3,345     $  877     $   4,036     $   1,697  
               
Basic earnings per common share  $   0.16     $   0.04     $   0.19     $   0.07  
                               
Diluted earnings per common share  $   0.15     $   0.04     $   0.18     $   0.07  
               
Reconciliation of Net Income to non-GAAP Measurement              
               
Net income $   3,345     $    877     $   4,036     $   1,697  
Income tax expense   844       109       1,163       282  
Realized investment gains, net   (4,148 )     (485 )     (5,099 )     (593 )
               
Operating income $   41     $   501     $  100     $  1,386  
               
  June 30,   December 31,        
Selected Balance Sheet Data   2015       2014          
               
Total cash and investments $   259,679     $  256,660          
Insurance subsidiaries   237,118       235,537          
Parent and other   22,561       21,123          
Total assets   327,225       317,008          
Insurance reserves and policyholder funds   169,575       164,094          
Debt   33,738       33,738          
Total shareholders' equity   105,542       104,195          
Book value per common share   4.85       4.79          
Statutory capital and surplus              
Life and health   37,052       34,004          
Property and casualty   39,324       39,012          

For further information contact:John G. Sample, Jr.Senior Vice President and Chief Financial OfficerAtlantic American Corporation404-266-5501Hilton H. Howell, Jr.Chairman, President & CEOAtlantic American Corporation404-266-5505