EXHIBIT 99.2








NEWS RELEASE                   For further information contact:
For Immediate Release               John W. Hancock
                               Senior Vice President and Treasurer
                               Atlantic American Corporation
                               (404) 266-5500

                  ATLANTIC AMERICAN CLOSES ON ACQUISITION OF
                       AMERICAN SOUTHERN INSURANCE COMPANY

ATLANTA,  January 2, 1996 -- Atlantic American  Corporation  (NASDAQ-AAME) today
announced  as of December  31, 1995,  it closed on the  acquisition  of American
Southern Insurance Company from Fuqua Enterprises, Inc.

Hilton Howell, Atlantic American's President and CEO, said: "We are very pleased
to have closed the acquisition of American Southern Insurance Company. It is one
of the most successful  property and casualty insurance companies in the country
and will add  significantly  to the financial  strength and  flexibility  of our
insurance operations."

On a pro forma basis compared with year-end 1994, this acquisition will increase
Atlantic  American's  consolidated  assets from $205.0 million to  approximately
$300.0 million,  will double the insurance  division's net premiums written from
$42.8 million to approximately  $86.0 million,  and will increase the division's
statutory capital and surplus from $29.5 million to approximately $63.5 million.

Atlantic American is a diversified holding company involved in the life, health,
property  and  casualty   insurance  and  retail   furniture   industries.   Its
subsidiaries include Atlantic American Life Insurance Company,  Bankers Fidelity
Life Insurance  Company,  Georgia Casualty & Surety Company,  American  Southern
Insurance  Company,  American Safety Insurance Company,  Leath Furniture,  Inc.,
Modernage Furniture, Inc. and Jefferson Home Furniture Company.