0001140361-18-036313.txt : 20180814 0001140361-18-036313.hdr.sgml : 20180814 20180814123401 ACCESSION NUMBER: 0001140361-18-036313 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180814 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180814 DATE AS OF CHANGE: 20180814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATLANTIC AMERICAN CORP CENTRAL INDEX KEY: 0000008177 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 581027114 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-03722 FILM NUMBER: 181015733 BUSINESS ADDRESS: STREET 1: 4370 PEACHTREE RD NE CITY: ATLANTA STATE: GA ZIP: 30319 BUSINESS PHONE: 4042665500 MAIL ADDRESS: STREET 1: 4370 PEACHTREE ROAD CITY: ATLANTA STATE: GA ZIP: 30319 8-K 1 form8k.htm 8-K
 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported)
August 14, 2018

ATLANTIC AMERICAN CORPORATION
(Exact name of registrant as specified in its charter)

Georgia
0-3722
58-1027114
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

4370 Peachtree Road, N.E., Atlanta, Georgia
  
30319
(Address of principal executive offices)
  
(Zip Code)

Registrant’s telephone number, including area code
(404) 266-5500

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Item 2.02.
Results of Operations and Financial Condition

On August 14, 2018, Atlantic American Corporation (the “Registrant”) reported its results of operations for its second quarter ended June 30, 2018. A copy of the press release issued by the Registrant concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01.
Financial Statements and Exhibits

(d)
Exhibits

Press release dated August 14, 2018

The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934,  or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933.
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
 
 
ATLANTIC AMERICAN CORPORATION
     
 
By:
/s/ J. Ross Franklin
   
J. Ross Franklin
   
Vice President, Chief Financial Officer and Secretary
     
Date:  August 14, 2018
    
 
 
 EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1
 
ATLANTIC AMERICAN REPORTS SECOND QUARTER RESULTS

·
Net income for the three month period ended June 30, 2018 increased to $3.2 million as compared to $1.5 million in the comparable period in 2017
·
Insurance premiums increased to $42.8 million, or 6.8%, compared to $40.1 million for the three month periods ended June 30, 2018 and 2017, respectively

ATLANTA, Georgia, August 14, 2018 - Atlantic American Corporation (Nasdaq- AAME) today reported net income for the three month period ended June 30, 2018 of $3.2 million, or $0.15 per share, as compared to $1.5 million, or $0.07 per share, for the comparable period of 2017.  For the six month period ended June 30, 2018 the company reported a net loss of $1.8 million, or $0.10 per share, compared to net income of $1.2 million, or $0.05 per share, in the comparable period of 2017.  The increase in net income during the second quarter of 2018 was primarily due to the impact of an accounting standard adopted January 1, 2018.  This accounting standard requires changes in the fair value of investments in equity securities to be reported in net income on the statement of operations, which resulted in a $4.1 million impact in the 2018 period.  Under previous accounting guidelines, and as reported for the 2017 periods, such changes were recognized in other comprehensive income on the balance sheet.  The net loss for the six month period ended June 30, 2018 was primarily a result of operating losses in the life and health operation.

Total revenues for the three month period ended June 30, 2018 were $49.4 million as compared to $43.6 million for the three month period ended June 30, 2017.  Unrealized gains on equity securities and an increase in insurance premiums were the most significant contributors to the increase in total revenues.  Insurance premiums during the three month period ended June 30, 2018 increased $2.7 million, or 6.8%, from the comparable 2017 period, primarily the result of an increase in Medicare supplement premium in the Company’s life and health operation.  For the six month period ended June 30, 2018, revenues were $90.0 million, increasing 2.8% from the comparable 2017 period revenues of $87.5 million, also primarily as a result of an increase in Medicare supplement premium revenues.  Insurance premiums during the six month period ended June 30, 2018 of $85.0 million increased 5.1% from the comparable 2017 period amount of $80.9 million.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “Bankers Fidelity’s continued growth not only demonstrates elevated sales activity but serves as testament to the vital relationships and brand loyalty we have cultivated with our insurance producers.  While we continue to enjoy net premium growth in the life and health operation our focus remains on judicious management of the quality of our business, further diversifying our product portfolio and improving operating results.  The property and casualty operation continues to perform exceptionally well and we are pleased to report American Southern ended the first six months of 2018 with an increase in premium income over the comparable period of 2017.”

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
June 30,
    
Six Months Ended
June 30,
  
(Unaudited; In thousands, except per share data)
  
2018
    
2017
    
2018
    
2017
  
Insurance premiums
                        
Life and health
  
$
29,303
    
$
26,989
    
$
58,798
    
$
54,680
  
Property and casualty
    
13,542
      
13,131
      
26,249
      
26,222
  
Investment income
    
2,537
      
2,085
      
4,896
      
4,244
  
Realized investment gains (losses), net
    
(57
)
    
1,396
      
313
      
2,279
  
Unrealized gains (losses) on equity securities, net
    
4,089
      
-
      
(330
)
    
-
  
Other income
    
29
      
31
      
57
      
66
  
                                 
Total revenue
    
49,443
      
43,632
      
89,983
      
87,491
  
                                 
Insurance benefits and losses incurred
                                
Life and health
    
23,524
      
19,100
      
47,519
      
40,813
  
Property and casualty
    
8,695
      
7,932
      
17,872
      
16,216
  
Commissions and underwriting expenses
    
9,715
      
11,010
      
19,734
      
21,624
  
Interest expense
    
506
      
424
      
968
      
833
  
Other expense
    
2,970
      
2,981
      
6,208
      
6,167
  
                                 
Total benefits and expenses
    
45,410
      
41,447
      
92,301
      
85,653
  
                                 
Income (loss) before income taxes
    
4,033
      
2,185
      
(2,318
)
    
1,838
  
Income tax expense (benefit)
    
848
      
725
      
(479
)
    
599
  
                                 
Net income (loss)
  
$
3,185
    
$
1,460
    
$
(1,839
)
  
$
1,239
  
                                 
Earnings (loss) per common share (basic and diluted)
  
$
0.15
    
$
0.07
    
$
(0.10
)
  
$
0.05
  
                                 
Reconciliation of Non-GAAP Financial Measure
                                
                                 
Net income (loss)
  
$
3,185
    
$
1,460
    
$
(1,839
)
  
$
1,239
  
Income tax expense (benefit)
    
848
      
725
      
(479
)
    
599
  
Realized investment gains (losses), net
    
57
      
(1,396
)
    
(313
)
    
(2,279
)
Unrealized gains (losses) on equity securities, net
    
(4,089
)
    
-
      
330
      
-
  
                                 
Operating income (loss)
  
$
1
    
$
789
    
$
(2,301
)
  
$
(441
)
 
Selected Balance Sheet Data
  
June 30,
2018
    
December 31,
2017
  
             
Total cash and investments
  
$
254,201
    
$
272,058
  
Insurance subsidiaries
    
235,055
      
244,754
  
Parent and other
    
19,146
      
27,304
  
Total assets
    
341,655
      
343,239
  
Insurance reserves and policyholder funds
    
191,420
      
173,583
  
Debt
    
33,738
      
33,738
  
Total shareholders' equity
    
101,667
      
112,983
  
Book value per common share
    
4.75
      
5.26
  
Statutory capital and surplus
                
Life and health
    
31,688
      
34,135
  
Property and casualty
    
43,878
      
43,348