SOURCE: Atlantic American Corporation

November 09, 2011 09:03 ET

Atlantic American Corporation Reports Improved Third Quarter Results

ATLANTA, GA--(Marketwire - Nov 9, 2011) - Atlantic American Corporation (NASDAQ: AAME) today reported net income of $1.7 million, or $0.07 per diluted share, for the three month period ended September 30, 2011, compared to net income of $525,000, or $0.02 per diluted share, for the three month period ended September 30, 2010. For the nine month period ended September 30, 2011, net income was $2.4 million, or $0.09 per diluted share, compared to net income of $1.0 million, or $0.03 per diluted share, for the comparable period in 2010. Realized investment gains for the three month and nine month periods ended September 30, 2011 were $903,000 and $974,000, respectively, compared to $211,000 and $224,000, respectively, for the comparable periods in 2010.

Total revenues for the three month period ended September 30, 2011 were $30.8 million, increasing 13.5% from $27.1 million for the three month period ended September 30, 2010. Insurance premiums during this quarter increased $2.6 million, or 10.7%, from the comparable 2010 premiums. For the nine month period ended September 30, 2011, total revenues were $87.9 million, increasing 9.6% from the comparable 2010 period revenues of $80.2 million. Insurance premiums during the nine month period ended September 30, 2011 increased $6.5 million, or 9.0%, from the comparable period in 2010. Total revenue increases during both the three month and nine month periods ended September 30, 2011 were the result of increased investment income from higher average invested balances, increased realized investment gains and premium increases primarily from the Company's life and health operation.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, "Our third quarter confirms that our initiatives are yielding positive results. Continued emphasis on expanding our life and health field force with quality agents, selling products which are responsive to our customer's needs, is evidenced in the increasing premium revenue. Our efforts to maximize our invested cash balances in high quality investments during this prolonged period of historically low interest rates is now being reflected in increasing investment income. And while we do not actively trade our investment portfolio, we currently now have significant unrealized investment gains which we expect will permit us the flexibility to reposition certain holdings, usually at a gain, as we deem necessary. We continue to be optimistic as we proceed through the fourth quarter of 2011."

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, and Bankers Fidelity Life Insurance 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
Consolidated Financial Data
Three months ended Nine months ended
September 30, September 30,
(Unaudited; In thousands, except per share data) 2011 2010 2011 2010
Insurance premiums
Life and health $ 18,188 $ 15,802 $ 50,643 $ 46,701
Property and casualty 9,023 8,775 28,187 25,621
Investment income 2,652 2,302 7,912 7,435
Realized investment gains, net 903 211 974 224
Other income 34 56 212 215
Total revenue 30,800 27,146 87,928 80,196
Insurance benefits and losses incurred
Life and health 12,736 11,483 36,490 34,231
Property and casualty 6,565 4,968 17,663 15,035
Commissions and underwriting expenses 6,746 7,409 22,192 21,376
Interest expense 653 660 1,940 1,955
Other 2,332 2,045 6,915 6,381
Total benefits and expenses 29,032 26,565 85,200 78,978
Income before income taxes 1,768 581 2,728 1,218
Income tax expense 64 56 363 200
Net income $ 1,704 $ 525 $ 2,365 $ 1,018
Net income per common share (basic and diluted) $ 0.07 $ 0.02 $ 0.09 $ 0.03
September 30, December 31,
Selected Balance Sheet Data 2011 2010
Total cash and investments $ 241,149 $ 212,953
Insurance subsidiaries 212,610 186,652
Parent and other 28,539 26,301
Total assets 292,861 277,566
Insurance reserves and policy funds 141,192 137,902
Debt 41,238 41,238
Total shareholders' equity 95,126 82,693
Book value per common share 3.97 3.40
Statutory capital and surplus
Life and health 32,177 31,874
Property and casualty 38,192 38,717

Contact Information

  • 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