EXHIBIT 99.1
ATLANTIC AMERICAN CORPORATION REPORTS SECOND QUARTER EARNINGS
ATLANTA, Georgia, August 14, 2008 - Atlantic American Corporation (Nasdaq-AAME) today reported net income of $0.8 million, or $0.02 per diluted share, for the three month period ended June 30, 2008, compared to net income of $0.4 million, or nil per diluted share, for the three month period ended June 30, 2007. For the six month period ended June 30, 2008, the net loss was $1.0 million, or $0.08 per diluted share, compared to net income of $1.3 million, or $0.02 per diluted share, for the comparable period in 2007. Results for the six month period ended June 30, 2008 included a loss from discontinued operations of approximately $2.2 million as compared to income of $0.3 million from discontinued operations for the six month period ended June 30, 2007. Discontinued operations are composed of the Company’s regional property and casualty companies which were disposed of on March 31, 2008.
Total revenues for the three month period ended June 30, 2008, were $25.6 million, decreasing 8% from the $27.8 million for the three month period ended June 30, 2007. Insurance premiums during this quarter decreased 9% from the comparable 2007 premiums. For the six month period ended June 30, 2008, revenues were $51.5 million, decreasing 8% from the comparable 2007 revenues of $56.0 million. Revenue and premium declines during both the three month and six month periods ended June 30, 2008 occurred in each of the Company’s segments and were primarily attributable to continued intense pricing and product competition.
Commenting on the quarter, Hilton H. Howell, Jr., president and chief executive officer, stated, “Even though our markets continue to be soft, we are pleased with the progress we have made since disposing of the regional property and casualty operations. While we continue to be challenged on a top line basis in both the life and health and property and casualty lines of business, we believe that recent efforts to better focus our initiatives will yield top line, profitable growth in future periods.”
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 include American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life 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 files 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
Consolidated Financial Data
| | | | | | | | |
| | Three months ended
June 30, | | Six months ended
June 30, |
| (Unaudited; In thousands, except per share data) | 2008
| 2007
| | 2008
| 2007
|
| Insurance premiums | $ 22,367 | | $ 24,673 | | $ 45,399 | | $ 49,761 |
| Investment income | 2,978 | | 2,964 | | 5,668 | | 5,860 |
| Realized investment gains (losses), net | 2 | | - | | 26 | | (3) |
| Other income | 222
| | 116
| | 379
| | 422
|
| Total revenue | 25,569
| | 27,753
| | 51,472
| | 56,040
|
| Insurance benefits and losses incurred | 13,677 | | 15,782 | | 27,595 | | 31,175 |
| Commissions and underwriting expenses | 7,414 | | 7,808 | | 15,723 | | 16,549 |
| Interest expense | 795 | | 1,036 | | 1,722 | | 2,066 |
| Other | 2,613
| | 1,823
| | 4,641
| | 4,055
|
| Total benefits and expenses | 24,499
| | 26,449
| | 49,681
| | 53,845
|
| Income from continuing operations before income taxes | 1,070 | | 1,304 | | 1,791 | | 2,195 |
| Income tax expense | 285
| | 685
| | 582
| | 1,160
|
| Income from continuing operations | 785 | | 619 | | 1,209 | | 1,035 |
| (Loss) income from discontinued operations, net of tax | -
| | (185)
| | (2,166)
| | 250
|
| Net income (loss) | $ 785
| | $ 434
| | $ (957)
| | $ 1,285
|
| Net income (loss) per common share: | |
| Basic income (loss) per common share: |
| Income from continuing operations | $ 0.02 | | $ 0.01 | | $ 0.02 | | $ 0.01 |
| (Loss) income from discontinued operations | -
| | (0.01)
| | (0.10)
| | 0.01
|
| Net income (loss) applicable to common shareholders | $ 0.02
| | $ -
| | $ (0.08)
| | $ 0.02
|
| Diluted income (loss) per common share: |
| Income from continuing operations | $ 0.02 | | $ 0.01 | | $ 0.02 | | $ 0.01 |
| (Loss) income from discontinued operations | -
| | (0.01)
| | (0.10)
| | 0.01
|
| Net income (loss) applicable to common shareholders | $ 0.02
| | $ -
| | $ (0.08)
| | $ 0.02
|
| | | | | |
Selected Balance Sheet Data | June 30,
2008
| December 31,
2007
| |
| Total investments | $ 180,001 | | $ 178,059 | |
| Total assets | 281,088 | | 458,254 | |
| Insurance reserves and policy funds | 128,333 | | 128,078 | |
| Debt | 41,238 | | 53,988 | |
| Total shareholders' equity | 80,919 | | 87,794 | |
| Book value per common share | 2.76 | | 3.09 | |
