Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2015

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ATLANTA, March 29, 2016 (GLOBE NEWSWIRE) — Atlantic American Corporation (Nasdaq:AAME) today reported its results for the fourth quarter and year ended December 31, 2015.  For the fourth quarter ended December 31, 2015, the Company reported net income of $0.1 million, or nil per diluted share, down from $1.3 million, or $0.06 per diluted share, in the fourth quarter of 2014.  The decrease was attributable to a decline in realized investment gains of $0.4 million and an increase in operating expenses.  Premiums for the fourth quarter of 2015 decreased 1.9% to $37.5 million compared to $38.3 million for the fourth quarter of 2014, as premiums in both of the Company’s operating segments decreased slightly.

Net income for both the years ended December 31, 2015 and 2014 was $4.4 million, or $0.19 per diluted share.  Total premiums earned during 2015 decreased 1.7% to $150.9 million from $153.5 million in 2014. Premiums in the property and casualty operations increased 3.5% in 2015 as compared to 2014; but were offset by a 4.4% premium decrease from the life and health operations in the comparable years.  Benefits and losses declined 4.5% in 2015 as compared with 2014; however, were offset by higher commissions and expenses.  Realized investment gains were $4.9 million in 2015 as compared to $1.6 million in 2014; although 2014 also included a $0.8 million gain from the purchase of Company’s debt which did not recur in 2015.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We have completed a successful year of retooling our life and health operations.  Not only have we successfully re-priced a great deal of our Medicare supplement business to make our product more competitive in key markets, but we have broadened our distribution channels and territories.  Our fourth quarter production statistics would indicate that 2016 should be off to an excellent start.  And of course our property and casualty operation continues to perform consistently well.  In recognition of our enthusiasm for 2016, our Board of Directors recently approved our 5th annual dividend of $0.02 per share to be paid on April 22, 2016.”

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 forward-looking statements:  This news release contains forward-looking statements subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements may relate to, among other things, our future strategies, operating or financial performance.  Forward looking statements are based on management’s assumptions regarding, among other things, general economic and industry-specific business conditions, as well as the execution of our business strategy.  Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks, including those detailed from time to time in statements and reports that Atlantic American Corporation files with the Securities and Exchange Commission.

 
Atlantic American Corporation
Selected Financial Data
 
  Three months ended   Year ended
  December 31,   December 31,
(Unaudited; In thousands, except per share data)   2015       2014       2015       2014  
               
Insurance premiums              
Life and health $ 24,284     $ 24,765     $ 96,384     $ 100,834  
Property and casualty   13,259       13,512       54,508       52,654  
Investment income   2,538       2,492       10,085       10,367  
Realized investment gains (losses), net   (249 )     130       4,857       1,571  
Other income   25       20       103       895  
               
Total revenue   39,857       40,919       165,937       166,321  
               
Insurance benefits and losses incurred              
Life and health   16,263       16,232       66,318       68,016  
Property and casualty   8,840       8,972       35,046       38,179  
Commissions and underwriting expenses   10,211       10,704       43,235       40,923  
Interest expense   365       356       1,429       1,607  
Other expense   4,034       3,317       14,201       12,692  
               
  Total benefits and expenses   39,713       39,581       160,229       161,417  
               
Income before income taxes   144       1,338       5,708       4,904  
               
Income tax expense   30       56       1,320       474  
               
Net income $ 114     $ 1,282     $ 4,388     $ 4,430  
               
Basic earnings per common share $ 0.00     $ 0.06     $ 0.19     $ 0.19  
               
Diluted earnings per common share $ 0.00     $ 0.06     $ 0.19     $ 0.19  
               
Reconciliation of Net Income to non-GAAP Measurement              
               
Net income $ 114     $ 1,282     $ 4,388     $ 4,430  
Income tax expense   30       56       1,320       474  
Realized investment and other losses (gains), net   249       (130 )     (4,857 )     (2,321 )
               
Operating income $ 393     $ 1,208     $ 851     $ 2,583  
               
  December 31,   December 31,        
Selected Balance Sheet Data   2015       2014          
               
Total cash and investments $ 254,007     $ 256,660          
Insurance subsidiaries   229,092       235,537          
Parent and other   24,915       21,123          
Total assets   314,603       317,008          
Insurance reserves and policyholder funds   163,345       164,094          
Debt   33,738       33,738          
Total shareholders’ equity   102,492       104,195          
Book value per common share   4.75       4.79          
Statutory capital and surplus              
Life and health   35,322       34,004          
Property and casualty   38,308       39,012          

For further information contact:John G. Sample, Jr.Senior Vice President and Chief Financial OfficerAtlantic American Corporation404-266-5501Hilton H. Howell, Jr.Chairman, President & CEOAtlantic American Corporation404-266-5505

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