EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1
 
ATLANTIC AMERICAN REPORTS THIRD QUARTER EARNINGS

·
Insurance premiums increased 6.8% and 5.1% for the three month and nine month periods ended September 30, 2017, respectively, as compared to the comparable periods of 2016.
·
Net income for the three month and nine month periods ended September 30, 2017 was $0.7 million and $2.0 million, respectively, as compared to $0.1 million and $1.3 million, respectively, for the comparable periods of 2016.

ATLANTA, Georgia, November 14, 2017 - Atlantic American Corporation (Nasdaq-AAME) today reported net income of $0.7 million, or $0.03 per diluted share, for the three month period ended September 30, 2017, compared to net income of $0.1 million, or nil per diluted share, for the three month period ended September 30, 2016.  For the nine month period ended September 30, 2017, net income was $2.0 million, or $0.08 per diluted share, compared to net income of $1.3 million, or $0.05 per diluted share, for the comparable period in 2016.  Realized investment gains for the three month and nine month periods ended September 30, 2017 were $0.5 million and $2.8 million, respectively, as compared to $0.5 million and $1.4 million in the comparable three month and nine month periods of 2016.  Operating income (income before income taxes and realized investment gains, net) for the three month period ended September 30, 2017 was $0.1 million, as compared to an operating loss of $0.2 million for the three month period ended September 30, 2016.  For the nine month period ended September 30, 2017, the Company had an operating loss of $0.3 million as compared to operating income of $0.6 million for the comparable nine month period of 2016.  The operating loss was primarily attributable to higher than expected levels of claims in both life and health lines of business during the first quarter of 2017.

Total revenues for the three month period ended September 30, 2017 were $44.8 million, increasing 5.5% from $42.4 million for the three month period ended September 30, 2016.  Life and health premiums increased 5.7% and property and casualty premiums increased 9.0%.  For the nine month period ended September 30, 2017, total revenues were $132.3 million, increasing 5.0% from the comparable 2016 period.  Premiums earned from the Company’s life and health operation increased 7.9% for the nine month period ended September 30, 2017 while decreasing slightly in the property and casualty operation during the comparable period.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “Our property and casualty operation continues to perform exceptionally well returning consistent profits to the bottom line.  In addition, we have completed a number of process improvements and refinements within our life and health operation in advance of the Medicare supplement annual enrollment season.  Our Worksite division has exceeded its prior year production with a significant number of enrollments currently underway.  We anticipate a good close to the current year and believe the Company to be well positioned for a very positive 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.
Interim 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
September 30,
    
Nine months ended
September 30,
  
(Unaudited; In thousands, except per share data)
  
2017
    
2016
    
2017
    
2016
  
                         
Insurance premiums
                        
Life and health
  
$
28,048
    
$
26,548
    
$
82,728
    
$
76,636
  
Property and casualty
    
14,046
      
12,884
      
40,268
      
40,376
  
Investment income
    
2,136
      
2,453
      
6,380
      
7,523
  
Realized investment gains, net
    
539
      
527
      
2,818
      
1,411
  
Other income
    
29
      
35
      
95
      
102
  
                                 
Total revenue
    
44,798
      
42,447
      
132,289
      
126,048
  
                                 
Insurance benefits and losses incurred
                                
Life and health
    
20,754
      
18,448
      
61,567
      
53,464
  
Property and casualty
    
9,663
      
8,507
      
25,879
      
25,238
  
Commissions and underwriting expenses
    
10,176
      
11,558
      
31,800
      
34,339
  
Interest expense
    
440
      
396
      
1,273
      
1,154
  
Other expense
    
3,134
      
3,221
      
9,301
      
9,803
  
                                 
Total benefits and expenses
    
44,167
      
42,130
      
129,820
      
123,998
  
                                 
Income before income taxes
    
631
      
317
      
2,469
      
2,050
  
                                 
Income tax expense (benefit)
    
(116
)
    
168
      
483
      
762
  
                                 
Net income
  
$
747
    
$
149
    
$
1,986
    
$
1,288
  
                                 
Earnings per common share (basic and diluted)
  
$
0.03
    
$
-
    
$
0.08
    
$
0.05
  
                                 
Reconciliation of Non-GAAP Financial Measure
                                
                                 
Net income
  
$
747
    
$
149
    
$
1,986
    
$
1,288
  
Income tax expense (benefit)
    
(116
)
    
168
      
483
      
762
  
Realized investment gains, net
    
(539
)
    
(527
)
    
(2,818
)
    
(1,411
)
                                 
Operating income (loss)
  
$
92
    
$
(210
)
  
$
(349
)
  
$
639
  
 
Selected Balance Sheet Data
  
September 30,
2017
    
December 31,
2016
  
             
Total cash and investments
  
$
261,610
    
$
257,429
  
Insurance subsidiaries
    
238,120
      
235,499
  
Parent and other
    
23,490
      
21,930
  
Total assets
    
334,305
      
318,600
  
Insurance reserves and policyholder funds
    
175,192
      
162,679
  
Debt
    
33,738
      
33,738
  
Total shareholders' equity
    
109,520
      
105,506
  
Book value per common share
    
5.09
      
4.89
  
Statutory capital and surplus
                
Life and health
    
29,672
      
33,430
  
Property and casualty
    
42,984
      
41,489