• Property and casualty premiums increased 5.3% and 5.4%, respectively, during the three and nine month periods ended September 30, 2015 as compared to the comparable periods in 2014.
  • Loss ratios in both the life and health and property and casualty operations decreased in the three month period ended September 30, 2015 as compared to the comparable period in 2014.

ATLANTA, Nov. 06, 2015 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported net income of $0.2 million, or $0.01 per diluted share, for the three month period ended September 30, 2015, compared to net income of $1.5 million, or $0.06 per diluted share, for the three month period ended September 30, 2014. For the nine month period ended September 30, 2015, net income was $4.3 million, or $0.19 per diluted share, compared to net income of $3.1 million, or $0.13 per diluted share, for the comparable period in 2014. Realized investment gains for the three month and nine month periods ended September 30, 2015 were $7.0 thousand and $5.1 million, respectively, as compared to $0.8 million and $1.4 million in the comparable three and nine month periods of 2014. Also included in net income for the three month and nine month periods ended September 30, 2014 was $0.8 million in other income resulting from the open market purchase of Company debt at a discount. Operating income (income before income taxes and realized investment and other gains, net) for the three month period ended September 30, 2015 was $0.4 million, as compared to an operating loss of $11.0 thousand for the three month period ended September 30, 2014. For the nine month period ended September 30, 2015, operating income was $0.5 million as compared to the $1.4 million for the comparable nine month period of 2014.

Total revenues for the three month period ended September 30, 2015 were $40.4 million, decreasing 5.4% from $42.7 million for the three month period ended September 30, 2014. Insurance premiums during this three month period decreased $0.5 million from the comparable 2014 premiums. While life and health premiums decreased 4.7%; property and casualty premiums increased 5.3%. For the nine month period ended September 30, 2015, total revenues were $126.1 million, increasing slightly from the comparable 2014 period revenues of $125.4 million. Premiums earned from the Company's life and health operation decreased 5.2% for the nine month period ended September 30, 2015 while increasing 5.4% in the property and casualty operation during the comparable period.

Commenting, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, "We are pleased that the premium growth in our property and casualty operation has continued through the third quarter. And with a declining loss ratio in comparison with the prior year, our property and casualty operation continues to perform quite well. During this third quarter, we also have completed a number of strategic pricing adjustments for our Medicare supplement product and our submitted application counts during the initial month of the fourth quarter would indicate a promising return of future premium growth. While anticipating a good close to the current year, we feel well positioned for a very positive 2016."

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   Nine months ended
  September 30,   September 30,
(Unaudited; In thousands, except per share data)   2015       2014       2015       2014  
               
Insurance premiums              
Life and health $    23,971     $    25,146     $    72,100     $    76,069  
Property and casualty   13,888       13,191       41,249       39,142  
Investment income   2,456       2,678       7,547       7,875  
Realized investment gains, net   7       848       5,106       1,441  
Other income   37       793       78       875  
               
Total revenue   40,359       42,656       126,080       125,402  
               
Insurance benefits and losses incurred              
Life and health   16,311       17,564       50,055       51,784  
Property and casualty   8,326       9,530       26,206       29,207  
Commissions and underwriting expenses   11,816       10,238       33,024       30,219  
Interest expense   361       388       1,064       1,251  
Other   3,180       3,349       10,167       9,375  
               
Total benefits and expenses   39,994       41,069       120,516       121,836  
               
Income before income taxes   365       1,587       5,564       3,566  
               
Income tax expense   127       136       1,290       418  
               
Net income $    238     $   1,451     $   4,274     $   3,148  
               
Basic earnings per common share $    0.01     $   0.06     $   0.19     $   0.13  
Diluted earnings per common share $   0.01     $   0.06     $   0.19     $   0.13  
               
Reconciliation of net income to non-GAAP measurement              
               
Net income $  238     $  1.451     $   4,274     $   3,148  
Income tax expense   127       136       1,290       418  
Realized investment and other gains, net   (7 )     (1.598 )     (5,106 )     (2,191 )
               
Operating income (loss) $  358     $  (11 )   $    458     $    1,375  
               
               
  September 30, December 31,      
Selected Balance Sheet Data   2015       2014          
               
Total cash and investments $   252,264     $  256,660          
Insurance subsidiaries   228,261       235,537          
Parent and other   24,003       21,123          
Total assets   317,203       317,008          
Insurance reserves and policyholder funds   165,362       164,094          
Debt   33,738       33,738          
Total shareholders' equity   103,212       104,195          
Book value per common share   4.75       4.79          
Statutory capital and surplus              
Life and health   35,697       34,004          
Property and casualty   38,413       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