EXHIBIT 99.1
ATLANTIC AMERICAN CORPORATION REPORTS SECOND QUARTER EARNINGS
ATLANTA, Georgia, August 11, 2004 - Atlantic American Corporation (Nasdaq- AAME) today announced net income of $1.1 million, or $0.04 per diluted share, for the second quarter ended June 30, 2004, compared to net income of $1.2 million, or $0.04 per diluted share, for the second quarter ended June 30, 2003. Realized gains included in 2004-second quarter income were $0.1 million compared to $1.3 million in the second quarter of 2003. For the six months ended June 30, 2004, net income was $2.6 million, or $0.09 per diluted share, compared to net income of $1.9 million, or $0.06 per diluted share, for the same period in 2003.
Total revenues for the second quarter of 2004 were $47.4 million, increasing 9% over 2003 second quarter revenues of $43.5 million. Insurance premiums during this quarter increased 13% but were offset by a decline in realized investment gains. For the six months ended June 30, 2004, revenues were $93.8 million, increasing 7% over the comparable 2003 revenues of $87.5 million. Substantially all revenue and premium growth during the second quarter and first six months of 2004 occurred in the Company’s property and casualty businesses.
Commenting on the quarter, Hilton H. Howell, Jr., president and chief executive officer, stated, “We are pleased with our results for the second quarter, even though challenges remain. Growth and diversification of risks within our property and casualty businesses have resulted in solid revenue increases. Our regional property and casualty companies continue to make progress with their operating performance; although opportunity remains for increased efficiencies. While our life and health lines continue to perform well, health care costs have begun to impact our overall claims costs and increased marketing initiatives have increased our expense ratios.”
Atlantic American is an insurance holding company involved through its subsidiary companies in specialty markets of the life, health, property and casualty insurance industries. Its principal subsidiaries include American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company, Georgia Casualty & Surety Company, Association Risk Management General Agency, Association Casualty Insurance Company and Self-Insurance Administrators, Inc.
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 has filed with the Securities and Exchange Commission.
For further information contact:
John G. Sample, Jr.
Senior Vice President and Chief Financial Officer
Atlantic American Corporation
(404) 266-5501
Atlantic American Corporation
Financial Data
| | | | | | | | |
| | Three months ended
June 30, | | Six months ended
June 30, |
| (Unaudited; In thousands, except per share data) | 2004
| 2003
| | 2004
| 2003
|
| Insurance premiums | $ 43,203 | | $ 38,069 | | $ 84,595 | | $ 77,755 |
| Investment income | 3,940 | | 3,931 | | 7,919 | | 7,870 |
| Realized investment gains, net | 111 | | 1,333 | | 818 | | 1,335 |
| Other income | 161
| | 131
| | 487
| | 522
|
| Total revenue | 47,415
| | 43,464
| | 93,819
| | 87,482
|
| Insurance benefits and losses incurred | 27,614 | | 26,197 | | 54,333 | | 55,315 |
| Commissions and underwriting expenses | 13,972 | | 11,474 | | 27,399 | | 21,893 |
| Interest expense | 819 | | 764 | | 1,633 | | 1,468 |
| Other | 3,602
| | 3,317
| | 6,865
| | 6,230
|
| Total benefits and expenses | 46,007
| | 41,752
| | 90,230
| | 84,906
|
| Income before income tax expense | 1,408 | | 1,712 | | 3,589 | | 2,576 |
| Income tax expense | 300
| | 501
| | 973
| | 669
|
| Net income | $ 1,108
| | $ 1,211
| | $ 2,616
| | $ 1,907
|
| Net income per common share: | |
| Basic | $ 0.04
| | $ 0.04
| | $ 0.09
| | $ 0.06
|
| Diluted | $ 0.04
| | $ 0.04
| | $ 0.09
| | $ 0.06
|
| | | | | |
Selected Balance Sheet Data | June 30,
2004
| December 31,
2003
| |
| Total investments | $ 280,156 | | $ 284,890 | |
| Total assets | 437,731 | | 443,552 | |
| Insurance reserves and policy funds | 265,974 | | 263,745 | |
| Debt | 56,238 | | 56,238 | |
| Total shareholders' equity | 83,200 | | 86,893 | |
| Book value per common share | 3.27 | | 3.44 | |
