EXHIBIT 99.1
ATLANTIC AMERICAN CORPORATION REPORTS THIRD QUARTER RESULTS
ATLANTA, Georgia, November 12, 2009 - Atlantic American Corporation (Nasdaq-AAME) today reported a net loss of $2.1 million, or $0.10 per diluted share, for the three month period ended September 30, 2009, compared to a net loss of $0.2 million, or $0.03 per diluted share, for the three month period ended September 30, 2008. For the nine month period ended September 30, 2009, the net loss was $1.8 million, or $0.10 per diluted share, compared to a net loss of $1.1 million, or $0.11 per diluted share, for the comparable period in 2008. Results for the three month and nine month periods ended September 30, 2009 were impacted by an increase in the Company’s deferred tax asset valuation allowance of approximately $1.8 million; whereas the results for the nine month period ended September 30, 2008 included a loss from discontinued operations of approximately $2.2 million.
Total revenues for the three month period ended September 30, 2009, were $25.5 million, decreasing slightly from $25.6 million for the three month period ended September 30, 2008. Insurance premiums during this quarter decreased less than $0.1 million from the comparable 2008 premiums. For the nine month period ended September 30, 2009, revenues were $76.9 million, decreasing less than 1% from the comparable 2008 period revenues of $77.1 million. Insurance premiums during the nine month period ended September 30, 2009 increased 0.4% from the comparable period in 2008. Nominal revenue and premium changes during both the three month and nine month periods ended September 30, 2009 continue to reflect stabilized business levels.
Commenting on the quarter, Hilton H. Howell, Jr., president and chief executive officer, stated, “While our core operations remain solidly profitable, the non-cash accounting adjustments to our tax provision resulted in a loss for the three month and nine month periods ended September 30, 2009. Premiums in our life and health operation are now increasing across the board, but this increase is being somewhat offset by premium decreases in our property and casualty operations.”
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
September 30, | | Nine months ended
September 30, |
| (Unaudited; In thousands, except per share data) | 2009
| 2008
| | 2009
| 2008
|
| Insurance premiums | $ 22,774 | | $ 22,831 | | $ 68,512 | | $ 68,230 |
| Investment income | 2,699 | | 3,111 | | 8,142 | | 8,779 |
| Realized investment gains (losses), net | 14 | | (367) | | 1 | | (341) |
| Other income | 51
| | 41
| | 202
| | 420
|
| Total revenue | 25,538
| | 25,616
| | 76,857
| | 77,088
|
| Insurance benefits and losses incurred | 15,840 | | 15,067 | | 45,753 | | 42,662 |
| Commissions and underwriting expenses | 6,804 | | 7,192 | | 21,734 | | 22,915 |
| Interest expense | 679 | | 795 | | 2,094 | | 2,517 |
| Other | 2,044
| | 2,626
| | 6,848
| | 7,267
|
| Total benefits and expenses | 25,367
| | 25,680
| | 76,429
| | 75,361
|
Income (loss) from continuing operations before
income taxes |
171 | |
(64) | |
428 | |
1,727 |
| Income tax expense | 2,279
| | 102
| | 2,268
| | 684
|
| Income (loss) from continuing operations | (2,108) | | (166) | | (1,840) | | 1,043 |
| Loss from discontinued operations, net of tax | -
| | -
| | -
| | (2,166)
|
| Net loss | $ (2,108)
| | $ (166)
| | $ (1,840)
| | $ (1,123)
|
| Net loss per common share: | |
| |
| Basic loss per common share: |
| Loss from continuing operations | $ (0.10) | | $ (0.03) | | $ (0.10) | | $ (0.01) |
| Loss from discontinued operations | -
| | -
| | -
| | (0.10)
|
| Net loss applicable to common shareholders | $ (0.10)
| | $ (0.03)
| | $ (0.10)
| | $ (0.11)
|
| Diluted loss per common share: | |
| Loss from continuing operations | $ (0.10) | | $ (0.03) | | $ (0.10) | | $ (0.01) |
| Loss from discontinued operations | -
| | -
| | -
| | (0.10)
|
| Net loss applicable to common shareholders | $ (0.10)
| | $ (0.03)
| | $ (0.10)
| | $ (0.11)
|
| | | | | |
Selected Balance Sheet Data | September 30,
2009
| December 31,
2008
| |
| Total investments | $ 188,349 | | $ 173,116 | |
| Total assets | 263,167 | | 266,609 | |
| Insurance reserves and policy funds | 128,695 | | 130,774 | |
| Debt | 41,238 | | 41,238 | |
| Total shareholders' equity | 79,793 | | 75,414 | |
| Book value per common share | 3.26 | | 3.06 | |
