EX-99.1 2 brhc10037439_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

ATLANTIC AMERICAN CORPORATION REPORTS
FIRST QUARTER RESULTS FOR 2022


 •
Net income increased to $2.8 million for the three month period ended March 31, 2022

•
Operating income increased to $1.6 million for the three month period ended March 31, 2022

•
Insurance premiums increased 2.2% with increases in both the life and health and property and casualty operations

ATLANTA, Georgia, May 11, 2022 - Atlantic American Corporation (Nasdaq- AAME) today reported net income of $2.8 million, or $0.13 per common share, in the first quarter of 2022 compared to net loss of $0.4 million, or $0.03 per common share, in the first quarter of 2021.  Premium revenue for the three month period ended March 31, 2022 increased $1.0 million, or 2.2%, to $47.1 million from $46.1 million in the three month period ended March 31, 2021.

Operating income (as defined below) increased to $1.6 million in the three month period ended March 31, 2022 compared to operating loss of $1.4 million in the three month period ended March 31, 2021.  The increase in operating income was primarily due to more favorable loss experience in the Company’s life and health operations.

Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “Our first quarter is typically the most challenging and we are quite pleased with our bottom line results.  Both the property and casualty and life and health operations turned in respectable operating income numbers for the quarter.  Additionally, the momentum in our Company’s voluntary benefits division continues to build and we are beginning to see significant premium growth in the group lines of coverage.  We believe that with the continued efforts and focus of our people, we are well positioned for success in our future quarters.”

Atlantic American Corporation 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 non-GAAP financial measure: Atlantic American Corporation presents its consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP).  However, from time to time, the Company may present, in its public statements, press releases and filings with the Securities and Exchange Commission, non-GAAP financial measures such as operating income (loss). We define operating income (loss) as net income (loss) excluding: (i) income tax expense (benefit); (ii) realized investment (gains) losses, net; and (iii) unrealized (gains) losses on equity securities, net.  Management believes operating income (loss) is a useful metric for investors, potential investors, securities analysts and others because it isolates the “core” operating results of the Company before considering certain items that are either beyond the control of management (such as income tax expense, which is subject to timing, regulatory and rate changes depending on the timing of the associated revenues and expenses) or are not expected to regularly impact the Company’s operating results (such as any realized and unrealized investment gains (losses), which are not a part of the Company’s primary operations and are, to a limited extent, subject to discretion in terms of timing of realization).  The financial data attached includes a reconciliation of operating income (loss) to net income (loss), the most comparable GAAP financial measure.  The Company’s definition of operating income (loss) may differ from similarly titled financial measures used by others.  This non-GAAP financial measure should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.

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, including those detailed in statements and reports that Atlantic American Corporation files from time to time 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
March 31,
  
(Unaudited; In thousands, except per share data)
  
2022
    
2021
  
Insurance premiums
            
Life and health
  
$
29,738
    
$
29,475
  
Property and casualty
    
17,343
      
16,615
  
Insurance premiums, net
    
47,081
      
46,090
  
                 
Net investment income
    
2,340
      
2,113
  
Realized investment gains (losses), net
    
(10
)
    
121
  
Unrealized gains on equity securities, net
    
2,193
      
744
  
Other income
    
4
      
7
  
                 
Total revenue
    
51,608
      
49,075
  
                 
Insurance benefits and losses incurred
                
Life and health
    
20,691
      
21,523
  
Property and casualty
    
10,478
      
11,749
  
Commissions and underwriting expenses
    
12,836
      
12,564
  
Interest expense
    
354
      
346
  
Other expense
    
3,453
      
3,440
  
                 
Total benefits and expenses
    
47,812
      
49,622
  
                 
Income (loss) before income taxes
    
3,796
      
(547
)
Income tax expense (benefit)
    
954
      
(116
)
                 
Net income (loss)
  
$
2,842
    
$
(431
)
                 
Earnings (loss) per common share (basic & diluted)
  
$
0.13
    
$
(0.03
)
                 
Reconciliation of Non-GAAP Financial Measure
                
                 
Net income (loss)
  
$
2,842
    
$
(431
)
Income tax expense (benefit)
    
954
      
(116
)
Realized investment (gains) losses, net
    
10
      
(121
)
Unrealized gains on equity securities, net
    
(2,193
)
    
(744
)
                 
Non-GAAP operating income (loss)
  
$
1,613
    
$
(1,412
)

 
Selected Balance Sheet Data
   
March 31,
2022
      
December 31,
2021
   
             
Total cash and investments
  
$
280,476
    
$
308,195
  
Insurance subsidiaries
    
275,528
      
302,302
  
Parent and other
    
4,948
      
5,893
  
Total assets
    
375,031
      
402,286
  
Insurance reserves and policyholder funds
    
191,571
      
201,797
  
Debt
    
33,738
      
33,738
  
Total shareholders' equity
    
126,423
      
141,286
  
Book value per common share
    
5.93
      
6.66
  
Statutory capital and surplus
                
Life and health
    
38,513
      
38,625
  
Property and casualty
    
53,378
      
52,724