EXHIBIT 99.1
ATLANTIC AMERICAN CORPORATION REPORTS SECOND QUARTER RESULTS
ATLANTA, Georgia, August 13, 2009 - Atlantic American Corporation (Nasdaq-AAME) today reported net income of $12 thousand, or a loss of $0.01 per diluted share, for the three month period ended June 30, 2009, compared to net income of $0.8 million, or $0.02 per diluted share, for the three month period ended June 30, 2008. For the six month period ended June 30, 2009, net income was $0.3 million, or nil per diluted share, compared to a net loss of $1.0 million, or $0.08 per diluted share, for the comparable period in 2008. Results for the six month period ended June 30, 2008 included a loss from discontinued operations of approximately $2.2 million, or $0.10 per diluted share. Discontinued operations were 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, 2009 were $25.7 million, increasing 0.5% from the $25.6 million for the three month period ended June 30, 2008. Insurance premiums during this quarter increased 2.6% from the comparable 2008 premiums. For the six month period ended June 30, 2009, revenues were $51.3 million, decreasing 0.3% from the comparable 2008 revenues of $51.5 million. Premiums increased during both the three month and six month periods ended June 30, 2009 resulting from increased marketing investments and occurred primarily in the life and health segment. Declining investment income in both the three and six month periods ended June 30, 2009 reflected the low current interest rate environment and moderated the change in total revenues.
Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We have significantly increased our marketing initiatives, particularly in our life and health segment. We are actively and successfully recruiting new and productive agents in various parts of the country. Further, we believe that changes occurring in the Medicare Advantage market create additional opportunity for continued top line growth. Our property and casualty operations were challenged with higher than normal losses this quarter and we currently believe that to be more of an aberration than an evolving trend. While the economy in general remains challenging, we are committed to making the investments necessary to profitably grow our premiums and related revenues.”
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) | 2009
| 2008
| | 2009
| 2008
|
| Insurance premiums | $ 22,941 | | $ 22,367 | | $ 45,738 | | $ 45,399 |
| Investment income | 2,708 | | 2,978 | | 5,443 | | 5,668 |
| Realized investment gains (losses), net | (26) | | 2 | | (13) | | 26 |
| Other income | 84
| | 222
| | 151
| | 379
|
| Total revenue | 25,707
| | 25,569
| | 51,319
| | 51,472
|
| Insurance benefits and losses incurred | 15,033 | | 13,677 | | 29,913 | | 27,595 |
| Commissions and underwriting expenses | 7,412 | | 7,414 | | 14,930 | | 15,723 |
| Interest expense | 694 | | 795 | | 1,415 | | 1,722 |
| Other | 2,618
| | 2,613
| | 4,804
| | 4,641
|
| Total benefits and expenses | 25,757
| | 24,499
| | 51,062
| | 49,681
|
Income (loss) from continuing operations before
income taxes | (50) | | 1,070 | | 257 | | 1,791 |
| Income tax expense (benefit) | (62)
| | 285
| | (11)
| | 582
|
| Income from continuing operations | 12 | | 785 | | 268 | | 1,209 |
| Loss from discontinued operations, net of tax | -
| | -
| | -
| | (2,166)
|
| Net income (loss) | $ 12
| | $ 785
| | $ 268
| | $ (957)
|
| Net income (loss) per common share: | |
| |
| Basic income (loss) per common share: |
| Income (loss) from continuing operations | $ (0.01) | | $ 0.02 | | $ - | | $ 0.02 |
| Loss from discontinued operations | -
| | -
| | -
| | (0.10)
|
| Net income (loss) applicable to common shareholders | $ (0.01)
| | $ 0.02
| | $ -
| | $ (0.08)
|
| Diluted income (loss) per common share: | |
| Income (loss) from continuing operations | $ (0.01) | | $ 0.02 | | $ - | | $ 0.02 |
| Loss from discontinued operations | -
| | -
| | -
| | (0.10)
|
| Net income (loss) applicable to common shareholders | $ (0.01)
| | $ 0.02
| | $ -
| | $ (0.08)
|
| | | | | |
Selected Balance Sheet Data | June 30,
2009
| December 31,
2008
| |
| Total investments | $ 179,419 | | $ 173,116 | |
| Total assets | 258,867 | | 266,609 | |
| Insurance reserves and policy funds | 127,307 | | 130,774 | |
| Debt | 41,238 | | 41,238 | |
| Total shareholders' equity | 77,463 | | 75,414 | |
| Book value per common share | 3.16 | | 3.06 | |
