EX-99.1 2 pressrelease_11122013.htm PRESS RELEASE DATED 11/12/2013 pressrelease_11122013.htm

ATLANTIC AMERICAN REPORTS INCREASED THIRD QUARTER AND YEAR TO DATE NET INCOME
 
    ●  Year to date net income increases 171% as compared with the comparable period in 2012.
    ●  Insurance premiums earned for the third quarter increased 18.5% while increasing 13.9% year to date as compared with comparable periods in 2012.
    ●  Realized investment gains were $2.3 million and $8.4 million in the 2013 third quarter and year to date periods.
 
ATLANTA, Georgia, November 12, 2013 - Atlantic American Corporation (Nasdaq-AAME) today reported net income of $2.7 million, or $0.12 per diluted share, for the three month period ended September 30, 2013, compared to net income of $1.1 million, or $0.04 per diluted share, for the three month period ended September 30, 2012.  For the nine month period ended September 30, 2013, net income was $9.6 million, or $0.42 per diluted share, compared to net income of $3.5 million, or $0.15 per diluted share, for the comparable period in 2012.  Realized investment gains for the three month and nine month periods ended September 30, 2013 were $2.3 million and $8.4 million, respectively, compared to nil and $1.4 million, respectively, for the comparable periods in 2012.  Operating income (income before income taxes and realized investment gains, net) for the three month period ended September 30, 2013 was $406,000, a decrease from $956,000 of operating income for the three month period ended September 30, 2012.  For the nine month period ended September 30, 2013, operating income was $1.3 million, or 36.0% less than the $2.1 million of operating income for the comparable nine month period of 2012.

Total revenues for the three month period ended September 30, 2013 were $43.2 million, increasing 22.5% from $35.3 million for the three month period ended September 30, 2012.  Insurance premiums during this quarter increased $6.0 million, or 18.5%, from the comparable 2012 premiums.  For the nine month period ended September 30, 2013, total revenues were $124.5 million, increasing 18.8% from the comparable 2012 period revenues of $104.8 million.  Insurance premiums during the nine month period ended September 30, 2013 increased $13.1 million, or 13.9%, from the comparable period in 2012.  Premiums earned from the Company’s life and health and property and casualty operations were up 9.7% and 40.3%, respectively, for the three month period ended September 30, 2013 and 13.0% and 15.9%, respectively for the nine month period ended September 30, 2013.

Commenting, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We are extremely pleased with our top line growth.  The increased premium level in both of our operating companies reflects not only the acceptance of our products in their respective markets but the successful efforts of our agents in placing those products.  During the year we have been making substantial investment in not only our online distribution channel(s) but in other marketing initiatives with television, social media and the worldwide web.  Initiatives and investment to broaden our product offering, particularly to the work place market has been significant, and while progress has been a bit slower than we would have hoped, our future opportunities are promising.  Recently, A.M. Best reaffirmed the A-ratings of our operating companies.  This quarter and year have included significant realized investment gains as we have attempted to capture some of the gain on our longer-term bond investments while at the same time shorten the average maturity of our overall portfolio.”

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.

For further information contact:
    
John G. Sample, Jr.
  
Hilton H. Howell, Jr.
Senior Vice President and Chief Financial Officer
  
Chairman, President & CEO
Atlantic American Corporation
  
Atlantic American Corporation
404-266-5501
  
404-266-5505
 
 
 
 
 
 
 
 
Atlantic American Corporation
Financial Data

 
Three months ended
  
Nine months ended
 
September 30,
  
September 30,
(Unaudited; In thousands, except per share data)
2013
  
2012
  
2013
  
2012
               
Insurance premiums
              
Life and health
$        25,248
  
$      23,019
  
$      74,359
  
$      65,814
Property and casualty
13,137
  
9,362
  
33,418
  
28,840
Investment income
2,534
  
2,880
  
8,213
  
8,618
Realized investment gains, net
2,283
  
-
  
8,415
  
1,428
Other income
45
  
41
  
140
  
106
               
Total revenue
43,247
  
35,302
  
124,545
  
104,806
               
Insurance benefits and losses incurred
              
Life and health
17,632
  
15,818
  
53,614
  
46,828
Property and casualty
9,154
  
6,471
  
21,533
  
21,228
Commissions and underwriting expenses
10,396
  
8,962
  
30,081
  
23,965
Interest expense
442
  
662
  
1,457
  
1,977
Other
2,934
  
2,433
  
8,097
  
7,278
               
  Total benefits and expenses
40,558
  
34,346
  
114,782
  
101,276
               
Income before income taxes
2,689
  
956
  
9,763
  
3,530
               
Income tax expense (benefit)
9
  
(128)
  
201
  
8
               
Net income
$          2,680
  
$         1,084
  
$        9,562
  
$        3,522
               
Basic earnings per common share
$            0.12
  
$           0.05
  
$          0.43
  
$          0.15
Diluted earnings per common share
$            0.12
  
$           0.04
  
$          0.42
  
$          0.15
               
Reconciliation of net income to non-GAAP measurement
              
               
Net income
$          2,680
  
$        1,084
  
$        9,562
  
$       3,522
Income tax expense (benefit)
9
  
(128)
  
201
  
8
Realized investment gains, net
(2,283)
  
-
  
(8,415)
  
(1,428)
               
Operating income
$             406
  
$           956
  
$        1,348
  
$       2,102
               
               
 
   September 30,
   December 31,
      
Selected Balance Sheet Data
2013
  
2012
        
               
Total cash and investments
$      251,478
  
$   265,843
        
    Insurance subsidiaries
221,182
  
236,934
        
    Parent and other
30,296
  
28,909
        
Total assets
317,695
  
320,177
        
Insurance reserves and policyholder funds
167,204
  
154,558
        
Debt
41,238
  
41,238
        
Total shareholders' equity
97,030
  
105,736
        
Book value per common share
4.26
  
4.65
        
Statutory capital and surplus
              
    Life and health
34,673
  
33,059
        
    Property and casualty
39,026
  
36,947