EX-99.1 2 ex99_1.htm EXHIBIT 99.1
ATLANTIC AMERICAN CORPORATION REPORTS
FOURTH QUARTER AND YEAR END RESULTS FOR 2017
AND DECLARES 2018 ANNUAL DIVIDEND

ATLANTA, Georgia, March 26, 2018 - 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