• Pre-tax income for the 1st quarter of 2016 increases 36.2% from the 1st quarter of 2015.
  • Insurance premiums increase 2.9% with increases in both the life and health and property and casualty operations. 

ATLANTA, May 12, 2016 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported first quarter 2016 net income of $0.9 million or $0.04 per common share as compared to $0.7 million or $0.03 per common share in the first quarter of 2015.  Pre-tax income was up 36.2% as compared to the 2015 first quarter; however, a higher effective tax rate in the first quarter of 2016 resulted in a 30% increase in net income.  Insurance premiums for the quarter ended March 31, 2016 increased to $38.5 million as compared to $37.4 million in the first quarter of 2015 and total revenues were $41.7 million and $40.9 million for the same corresponding periods, respectively.  Realized investment gains during the first quarter of 2016 were $0.8 million as compared to $1.0 million in the first quarter of 2015.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “The year is off to a great start and we couldn’t be more pleased.  Our property and casualty operations continue to post increasing profits and have recently been successful in renewing several large accounts.  Our life and health operations have spent the past year on product development, distribution and pricing refinement and the increase in our first quarter premium revenues confirms that our actions are paying off.  We believe that our first quarter is a good indicator for the balance of the year.”

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.

Atlantic American Corporation
Financial Data
 Three Months Ended
 March 31,
(Unaudited; In thousands, except per share data) 2016   2015 
Insurance premiums   
Life and health$ 24,733  $ 24,123 
Property and casualty 13,725   13,263 
Investment income 2,507   2,597 
Realized investment gains, net 752   951 
Other income 30   15 
  Total revenue 41,747   40,949 
Insurance benefits and losses incurred   
Life and health 16,911   16,753 
Property and casualty 7,914   8,488 
Commissions and underwriting expenses 11,827   10,721 
Interest expense 373   349 
Other expense 3,346   3,628 
  Total benefits and expenses 40,371   39,939 
Income before income taxes 1,376   1,010 
Income tax expense 478   319 
Net income $  898  $  691 
Earnings per common share (basic and diluted)$  0.04  $  0.03 
Reconciliation of Net Income to non-GAAP measurement     
Net income$  898  $  691 
Income tax expense 478   319 
Realized investment gains, net (752)  (951)
Operating income$  624    $  59   
 March 31, December 31,
Selected Balance Sheet Data 2016   2015 
Total cash and investments$  246,811  $  254,007 
Insurance subsidiaries 225,089   229,092 
Parent and other 21,722   24,915 
Total assets 300,133   314,603 
Insurance reserves and policyholder funds 149,138   163,345 
Debt 33,738   33,738 
Total shareholders' equity 103,824   102,492 
Book value per common share 4.82   4.75 
Statutory capital and surplus   
Life and health 35,290   35,322 
Property and casualty 38,144   38,308 


For further information contact:
John G. Sample, Jr.
Senior Vice President and Chief Financial Officer
Atlantic American Corporation

Hilton H. Howell, Jr.
Chairman, President & CEO
Atlantic American Corporation