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Source: Atlantic American Corporation

Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2017 and Declares 2018 Annual Dividend

ATLANTA, March 26, 2018 (GLOBE NEWSWIRE) -- 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 Data2017 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