ATLANTA, Aug. 14, 2017 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported net income of $1.5 million, or $0.07 per diluted share, for the three month period ended June 30, 2017, compared to net income of $0.2 million, or $0.01 per diluted share, for the three month period ended June 30, 2016. For the six month period ended June 30, 2017, net income was $1.2 million, or $0.05 per diluted share, compared to net income of $1.1 million, or $0.05 per diluted share, for the comparable period in 2016. Realized investment gains for the three month and six month periods ended June 30, 2017 were $1.4 million and $2.3 million, respectively, as compared to $0.1 million and $0.9 million in the comparable three month and six month periods of 2016. Operating income (income before income taxes and realized investment gains, net) for the three month period ended June 30, 2017 was $0.8 million, as compared to $0.2 million for the three month period ended June 30, 2016. For the six month period ended June 30, 2017, the Company had an operating loss of $0.4 million as compared to operating income of $0.8 million for the comparable six month period of 2016. The operating loss was 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 June 30, 2017 were $43.6 million, increasing 4.2% from $41.9 million for the three month period ended June 30, 2016. While life and health premiums increased 6.4%, property and casualty premiums decreased 4.6%. For the six month period ended June 30, 2017, total revenues were $87.5 million, increasing 4.7% from the comparable 2016 period. Premiums earned from the Company’s life and health operation increased 9.2% for the six month period ended June 30, 2017 while decreasing 4.6% in the property and casualty operation during the comparable period.
Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, noted, “We are pleased that the level of Medicare supplement benefit expenses and life insurance claims returned to historical levels in the second quarter. Our distribution network for the life and health operation continues to perform exceptionally well and we expect another record year in premium growth. In addition, the Worksite division has enjoyed a steady pace of sales activity and we believe they are well positioned going into the second half of the year when open enrollment kicks into high gear. Although premiums in the property and casualty operations were down slightly, they continue to produce strong profits.”
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 | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(Unaudited; In thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Insurance premiums | |||||||||||||||
Life and health | $26,989 | $25,355 | $54,680 | $50,088 | |||||||||||
Property and casualty | 13,131 | 13,767 | 26,222 | 27,492 | |||||||||||
Investment income | 2,085 | 2,563 | 4,244 | 5,070 | |||||||||||
Realized investment gains, net | 1,396 | 132 | 2,279 | 884 | |||||||||||
Other income | 31 | 37 | 66 | 67 | |||||||||||
Total revenue | 43,632 | 41,854 | 87,491 | 83,601 | |||||||||||
Insurance benefits and losses incurred | |||||||||||||||
Life and health | 19,100 | 18,105 | 40,813 | 35,016 | |||||||||||
Property and casualty | 7,932 | 8,817 | 16,216 | 16,731 | |||||||||||
Commissions and underwriting expenses | 11,010 | 10,954 | 21,624 | 22,781 | |||||||||||
Interest expense | 424 | 385 | 833 | 758 | |||||||||||
Other expense | 2,981 | 3,236 | 6,167 | 6,582 | |||||||||||
Total benefits and expenses | 41,447 | 41,497 | 85,653 | 81,868 | |||||||||||
Income before income taxes | 2,185 | 357 | 1,838 | 1,733 | |||||||||||
Income tax expense | 725 | 116 | 599 | 594 | |||||||||||
Net income | $1,460 | $241 | $1,239 | $1,139 | |||||||||||
Earnings per common share (basic and diluted) | $0.07 | $0.01 | $0.05 | $0.05 | |||||||||||
Reconciliation of Non-GAAP Financial Measure | |||||||||||||||
Net income | $1,460 | $241 | $1,239 | $1,139 | |||||||||||
Income tax expense | 725 | 116 | 599 | 594 | |||||||||||
Realized investment gains, net | (1,396 | ) | (132 | ) | (2,279 | ) | (884 | ) | |||||||
Operating income (loss) | $789 | $225 | ($441 | ) | $849 | ||||||||||
June 30, | December 31, | ||||||||||||||
Selected Balance Sheet Data | 2017 | 2016 | |||||||||||||
Total cash and investments | $253,308 | $257,429 | |||||||||||||
Insurance subsidiaries | 233,416 | 235,499 | |||||||||||||
Parent and other | 19,892 | 21,930 | |||||||||||||
Total assets | 332,741 | 318,600 | |||||||||||||
Insurance reserves and policyholder funds | 176,780 | 162,679 | |||||||||||||
Debt | 33,738 | 33,738 | |||||||||||||
Total shareholders' equity | 107,536 | 105,506 | |||||||||||||
Book value per common share | 5.00 | 4.89 | |||||||||||||
Statutory capital and surplus | |||||||||||||||
Life and health | 30,137 | 33,430 | |||||||||||||
Property and casualty | 42,482 | 41,489 |