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Atlantic American Reports Results for the Period Ended June 30, 2015, Including Increased Net Income

20:00 EDT 11 Aug 2015 | Globe Newswire

  • 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 Officer
Atlantic American Corporation
404-266-5501

Hilton H. Howell, Jr.
Chairman, President & CEO
Atlantic American Corporation
404-266-5505
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