• Pre-tax income for the 1 st quarter of 2016 increases 36.2% from the 1 st quarter of 2015.
  • Insurance premiums increase 2.9% with increases in both the life and health and property and casualty operations. 

ATLANTA, May 12, 2016 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported first quarter 2016 net income of $0.9 million or $0.04 per common share as compared to $0.7 million or $0.03 per common share in the first quarter of 2015.  Pre-tax income was up 36.2% as compared to the 2015 first quarter; however, a higher effective tax rate in the first quarter of 2016 resulted in a 30% increase in net income.  Insurance premiums for the quarter ended March 31, 2016 increased to $38.5 million as compared to $37.4 million in the first quarter of 2015 and total revenues were $41.7 million and $40.9 million for the same corresponding periods, respectively.  Realized investment gains during the first quarter of 2016 were $0.8 million as compared to $1.0 million in the first quarter of 2015.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, "The year is off to a great start and we couldn't be more pleased.  Our property and casualty operations continue to post increasing profits and have recently been successful in renewing several large accounts.  Our life and health operations have spent the past year on product development, distribution and pricing refinement and the increase in our first quarter premium revenues confirms that our actions are paying off.  We believe that our first quarter is a good indicator for the balance of the year."

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 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
  March 31,
(Unaudited; In thousands, except per share data)   2016       2015  
Insurance premiums      
Life and health $  24,733     $  24,123  
Property and casualty   13,725       13,263  
Investment income   2,507       2,597  
Realized investment gains, net   752       951  
Other income   30       15  
       
  Total revenue   41,747       40,949  
       
Insurance benefits and losses incurred      
Life and health   16,911       16,753  
Property and casualty   7,914       8,488  
Commissions and underwriting expenses   11,827       10,721  
Interest expense   373       349  
Other expense   3,346       3,628  
       
  Total benefits and expenses   40,371       39,939  
       
Income before income taxes   1,376       1,010  
Income tax expense   478       319  
       
Net income $  898     $  691  
       
Earnings per common share (basic and diluted) $   0.04     $   0.03  
       
Reconciliation of Net Income to non-GAAP measurement        
       
Net income $   898     $   691  
Income tax expense   478       319  
Realized investment gains, net   (752 )     (951 )
       
Operating income $   624      $   59   
       
       
       
  March 31,   December 31,
Selected Balance Sheet Data   2016       2015  
       
Total cash and investments $   246,811     $   254,007  
Insurance subsidiaries   225,089       229,092  
Parent and other   21,722       24,915  
Total assets   300,133       314,603  
Insurance reserves and policyholder funds   149,138       163,345  
Debt   33,738       33,738  
Total shareholders' equity   103,824       102,492  
Book value per common share   4.82       4.75  
Statutory capital and surplus      
Life and health   35,290       35,322  
Property and casualty   38,144       38,308  
               

 
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