EX-99.1 2 brhc10040613_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

ATLANTIC AMERICAN CORPORATION REPORTS
SECOND QUARTER RESULTS FOR 2022
•
Net income of $1.2 million for the six month period ended June 30, 2022

•
Operating income of $4.4 million for the six month period ended June 30, 2022

•
Insurance premiums increased $3.1 million, or 9.5%, within the property and casualty operations for the six month period ended June 30, 2022

ATLANTA, Georgia, August 12, 2022 - Atlantic American Corporation (Nasdaq- AAME) today reported net loss for the three month period ended June 30, 2022 of $1.7 million, or $0.09 per diluted share, as compared to net income of $3.0 million, or $0.14 per diluted share, for the comparable period in 2021.  For the six month period ended June 30, 2022, the Company reported net income of $1.2 million, or $0.05 per diluted share, as compared to net income of $2.5 million, or $0.11 per diluted share, for the comparable period in 2021.  The decrease in net income for the three month and six month periods ended June 30, 2022 was primarily attributable to fluctuations in market values of equity securities, resulting in a decrease in unrealized gains of $8.9 million and $7.4 million, respectively, over the comparable periods in 2021.

Operating income (as defined below) increased $3.1 million in the three month period ended June 30, 2022 from the three month period ended June 30, 2021.  For the six month period ended June 30, 2022, operating income increased $6.1 million from the comparable period in 2021.  The increase in operating income was primarily due to favorable loss experience in the life and health operations, resulting from an improvement in rate adequacy in the Medicare supplement line of business coupled with an increase in earned premium within the group lines of business.

Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are delighted to report the marked improvement in operating income for both the quarter and year to date.  Following a number of strategic rate adjustments within our Medicare supplement business, we are beginning to see meaningful improvements in the profitability of that line.  Our voluntary benefits division continues to gain ground in the marketplace and we’ve reached a new record in insurance premiums within our property and casualty operations.”

Atlantic American Corporation 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 non-GAAP financial measure: Atlantic American Corporation presents its consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP).  However, from time to time, the Company may present, in its public statements, press releases and filings with the Securities and Exchange Commission, non-GAAP financial measures such as operating income (loss). We define operating income (loss) as net income (loss) excluding: (i) income tax expense (benefit); (ii) realized investment (gains) losses, net; and (iii) unrealized (gains) losses on equity securities, net.  Management believes operating income (loss) is a useful metric for investors, potential investors, securities analysts and others because it isolates the “core” operating results of the Company before considering certain items that are either beyond the control of management (such as income tax expense (benefit), which is subject to timing, regulatory and rate changes depending on the timing of the associated revenues and expenses) or are not expected to regularly impact the Company’s operating results (such as any realized and unrealized investment gains (losses), which are not a part of the Company’s primary operations and are, to a limited extent, subject to discretion in terms of timing of realization).  The financial data attached includes a reconciliation of operating income (loss) to net income (loss), the most comparable GAAP financial measure.  The Company’s definition of operating income (loss) may differ from similarly titled financial measures used by others.  This non-GAAP financial measure should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.

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, including those detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent statements and reports that Atlantic American Corporation files from time to time 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
    
Six Months Ended
  
   
June 30,
    
June 30,
  
(Unaudited; In thousands, except per share data)
  
2022
    
2021
    
2022
    
2021
  
Insurance premiums
                        
Life and health
  
$
28,296
    
$
28,771
    
$
58,034
    
$
58,246
  
Property and casualty
    
18,769
      
16,362
      
36,112
      
32,977
  
Insurance premiums, net
    
47,065
      
45,133
      
94,146
      
91,223
  
                                 
Net investment income
    
2,529
      
2,266
      
4,869
      
4,379
  
Realized investment gains (losses), net
    
(62
)
    
50
      
(72
)
    
171
  
Unrealized gains (losses) on equity securities, net
    
(4,866
)
    
4,003
      
(2,673
)
    
4,747
  
Other income
    
3
      
5
      
7
      
12
  
                                 
Total revenue
    
44,669
      
51,457
      
96,277
      
100,532
  
                                 
Insurance benefits and losses incurred
                                
Life and health
    
18,713
      
21,546
      
39,404
      
43,069
  
Property and casualty
    
14,040
      
10,157
      
24,518
      
21,906
  
Commissions and underwriting expenses
    
10,215
      
12,179
      
23,051
      
24,743
  
Interest expense
    
414
      
347
      
768
      
693
  
Other expense
    
3,402
      
3,474
      
6,855
      
6,914
  
                                 
Total benefits and expenses
    
46,784
      
47,703
      
94,596
      
97,325
  
                                 
Income (loss) before income taxes
    
(2,115
)
    
3,754
      
1,681
      
3,207
  
Income tax expense (benefit)
    
(436
)
    
792
      
518
      
676
  
                                 
Net income (loss)
  
$
(1,679
)
  
$
2,962
    
$
1,163
    
$
2,531
  
                                 
Earnings (loss) per common share (basic)
  
$
(0.09
)
  
$
0.14
    
$
0.05
    
$
0.11
  
Earnings (loss) per common share (diluted)
  
$
(0.09
)
  
$
0.14
    
$
0.05
    
$
0.11
  
                                 
Reconciliation of Non-GAAP Financial Measure
                                
                                 
Net income (loss)
  
$
(1,679
)
  
$
2,962
    
$
1,163
    
$
2,531
  
Income tax expense (benefit)
    
(436
)
    
792
      
518
      
676
  
Realized investment (gains) losses, net
    
62
      
(50
)
    
72
      
(171
)
Unrealized (gains) losses on equity securities, net
    
4,866
      
(4,003
)
    
2,673
      
(4,747
)
                                 
Non-GAAP Operating income (loss)
  
$
2,813
    
$
(299
)
  
$
4,426
    
$
(1,711
)

Selected Balance Sheet Data
   
June 30,
2022
      
December 31,
2021
   
             
Total cash and investments
  
$
259,845
    
$
308,195
  
Insurance subsidiaries
    
254,032
      
302,302
  
Parent and other
    
5,813
      
5,893
  
Total assets
    
379,274
      
402,286
  
Insurance reserves and policyholder funds
    
211,874
      
201,797
  
Debt
    
34,738
      
33,738
  
Total shareholders' equity
    
109,101
      
141,286
  
Book value per common share
    
5.08
      
6.66
  
Statutory capital and surplus
                
Life and health
    
35,946
      
38,625
  
Property and casualty
    
52,534
      
52,724