• Insurance premiums increased 2.7% and 2.8% for the three month and six month periods ended June 30, 2016, respectively, as compared to the comparable periods of 2015
  • Net income for the three month and six month periods ended June 30, 2016 was $0.2 million and $1.1 million, respectively, as compared to $3.3 million and $4.0 million, respectively, for the comparable periods of 2015
  • Operating income increased for both the three month and six month periods ended June 30, 2016 to $0.2 million and $0.8 million, respectively, as compared to $41 thousand and $0.1 million, respectively, for the comparable periods of 2015

ATLANTA, Aug. 11, 2016 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported net income for the six month period ended June 30, 2016 of $1.1 million, or $0.05 per diluted share, as compared to $4.0 million, or $0.18 per diluted share, for the comparable period of 2015.  Net realized investment gains for the six month period ended June 30, 2016 were $0.9 million as compared to $5.1 million in the comparable period of 2015.  Net income for the three month period ended June 30, 2016 was $0.2 million, or $0.01 per diluted share, as compared to net income of $3.3 million, or $0.15 per diluted share, in the comparable period of 2015.  Net realized investment gains in the three month period ended June 30, 2016 were $0.1 million as compared to $4.1 million in the comparable period of 2015.

Total revenues for the six month period ended June 30, 2016 were $83.6 million as compared to $85.7 million for the six month period ended June 30, 2015.  A lower level of net realized investment gains was the single largest contributor to the decline in revenues.  Insurance premiums during the six month period ended June 30, 2016 increased 2.8% from the comparable 2015 period and was primarily the result of increased Medicare supplement policies in the Company's life and health operation.  For the three month period ended June 30, 2016, revenues were $41.9 million, decreasing 6.5% from the comparable 2015 period revenues of $44.8 million, also primarily from a decrease in net realized investment gains.  Insurance premiums during the three month period ended June 30, 2016 of $39.1 million increased 2.7% from the comparable 2015 period amount of $38.1 million.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer stated, "We are extremely pleased with the new premium growth in our life and health operation.  Given that the second quarter is typically not a heavy Medicare supplement enrollment period, the growth in that line of business is a testament to the investment that we have been making in our product and distribution network. We are continuing to refine and improve on our worksite products and distribution as well and believe that when the majority of the enrollment periods begin in the second half of 2016, we will be well positioned for growth in those products as well.  Even as we continue to make targeted investments in our life and health operation, our property and casualty operation had an outstanding quarter with both a lower level of losses and expenses.  The balance of the year is one which we look forward to with much promise in continuing to grow our 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, 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)   2016       2015       2016       2015  
               
Insurance premiums              
Life and health $ 25,355     $ 24,006     $ 50,088     $ 48,129  
Property and casualty   13,767       14,098       27,492       27,361  
Investment income   2,563       2,494       5,070       5,091  
Realized investment gains, net   132       4,148       884       5,099  
Other income   37       26       67       41  
               
Total revenue   41,854       44,772       83,601       85,721  
               
Insurance benefits and losses incurred              
Life and health   18,105       16,991       35,016       33,744  
Property and casualty   8,817       9,392       16,731       17,880  
Commissions and underwriting expenses   10,954       10,487       22,781       21,208  
Interest expense   385       354       758       703  
Other expense   3,236       3,359       6,582       6,987  
               
Total benefits and expenses   41,497       40,583       81,868       80,522  
               
Income before income taxes   357       4,189       1,733       5,199  
               
Income tax expense   116       844       594       1,163  
               
Net income $  241     $  3,345     $   1,139     $   4,036  
               
Basic earnings per common share  $   0.01     $   0.16     $   0.05     $   0.19  
Diluted earnings per common share  $   0.01     $   0.15     $   0.05     $   0.18  
               
Reconciliation of Non-GAAP Financial Measure              
               
Net income $ 241     $ 3,345     $ 1,139     $ 4,036  
Income tax expense   116       844       594       1,163  
Realized investment gains, net   (132 )     (4,148 )     (884 )     (5,099 )
               
Operating income $   225     $   41     $  849     $  100  
               
  June 30,   December 31,        
Selected Balance Sheet Data   2016       2015          
               
Total cash and investments $ 252,461     $ 254,007          
Insurance subsidiaries   230,815       229,092          
Parent and other   21,646       24,915          
Total assets   320,265       314,603          
Insurance reserves and policyholder funds   163,345       163,345          
Debt   33,738       33,738          
Total shareholders' equity   108,049       102,492          
Book value per common share   5.01       4.75          
Statutory capital and surplus              
Life and health   34,247       35,322          
Property and casualty   39,916       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