ATLANTA, March 26, 2018 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported its results for the fourth quarter and year ended December 31, 2017. For the fourth quarter ended December 31, 2017, the Company reported net income of $2.5 million, or $0.12 per diluted share, up from $1.3 million, or $0.06 per diluted share, in the fourth quarter of 2016. The increase was attributable to an increase in realized investment gains of $5.2 million during the fourth quarter of 2017. Premiums for the fourth quarter of 2017 increased 10.6% to $40.3 million compared to $36.5 million for the fourth quarter of 2016, primarily as a result of premium growth in the Medicare supplement line of business in the life and health operation.

Net income for the year ended December 31, 2017 was $4.5 million, or $0.20 per diluted share, as compared to $2.6 million, or $0.11 per diluted share, for the year ended December 31, 2016. Total premiums earned during 2017 increased 6.4% to $163.3 million from $153.5 million in 2016. Premiums in the property and casualty operation decreased slightly in 2017 as compared to 2016; but were offset by a 10.0% premium increase in the life and health operations in the comparable years. Benefits and losses increased 13.9% in 2017 as compared with 2016; while commissions and underwriting expenses decreased 3.0% over the comparable prior year period. Realized investment gains were $9.2 million in 2017 as compared to $2.6 million in 2016.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, "We are delighted to close out another profitable year and are enthusiastic about our prospects for 2018. In the fourth quarter of 2017, the Company reported a significant realized gain due to the conclusion of one of the Company's real estate partnerships. While the life and health operation experienced some growing pains over the last year, we have completed a number of strategic pricing adjustments for our Medicare supplement product and expect loss experience trends to normalize. Our property and casualty operation continues to perform exceedingly well and reported an improvement in net income over the prior year. In recognition of our enthusiasm for 2018, our Board of Directors recently approved our 7th consecutive annual dividend of $0.02 per share to shareholders of record on April 13, 2018, payable on or about April 23, 2018."

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.
     
For further information contact:    
J. Ross Franklin   Hilton H. Howell, Jr.
Chief Financial Officer   Chairman, President & CEO
Atlantic American Corporation   Atlantic American Corporation
404-266-5580   404-266-5505
     

 
Atlantic American Corporation
Financial Data
                               
  Three months ended   Year ended
  December 31,   December 31,
(Unaudited; In thousands, except per share data) 2017   2016   2017   2016
               
Insurance premiums              
Life and health $ 26,938     $ 23,066     $ 109,666     $ 99,702  
Property and casualty   13,393       13,387       53,661       53,763  
Investment income   2,116       2,361       8,496       9,884  
Realized investment gains, net   6,350       1,184       9,168       2,595  
Other income   28       31       123       133  
               
Total revenue   48,825       40,029       181,114       166,077  
               
Insurance benefits and losses incurred              
Life and health   21,462       15,325       83,029       68,789  
Property and casualty   8,607       9,170       34,486       34,408  
Commissions and underwriting expenses   11,646       10,458       43,446       44,797  
Interest expense   450       408       1,723       1,562  
Other expense   3,773       3,194       13,074       12,997  
               
Total benefits and expenses   45,938       38,555       175,758       162,553  
               
Income before income taxes   2,887       1,474       5,356       3,524  
               
Income tax expense   345       126       828       888  
               
Net income $ 2,542     $ 1,348     $ 4,528     $ 2,636  
               
Earnings per common share (basic and diluted) $ 0.12     $ 0.06     $ 0.20     $ 0.11  
               
Reconciliation of Non-GAAP Financial Measure              
               
Net income $ 2,542     $ 1,348     $ 4,528     $ 2,636  
Income tax expense   345       126       828       888  
Realized investment gains, net   (6,350 )     (1,184 )     (9,168 )     (2,595 )
               
Operating income (loss) $ (3,463 )   $ 290     $ (3,812 )   $ 929  
 
 
  December 31,   December 31,                
Selected Balance Sheet Data 2017   2016                
                               
Total cash and investments $ 272,058     $ 257,429                  
Insurance subsidiaries   244,754       235,499                  
Parent and other   27,304       21,930                  
Total assets   343,239       318,600                  
Insurance reserves and policyholder funds   173,583       162,679                  
Debt   33,738       33,738                  
Total shareholders' equity   112,983       105,506                  
Book value per common share   5.26       4.89                  
Statutory capital and surplus                              
Life and health   34,135       33,430                  
Property and casualty   43,348       41,489                  
                               

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