EXHIBIT 99.3






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


ATLANTA,  January 9, 1996 --  Atlantic  American  Corporation  (NASDAQ-NNM:AAME)
today announced that it had entered into a merger agreement pursuant to which it
will  acquire  all of the  remaining  publicly-held  shares  of its  subsidiary,
Bankers Fidelity Life Insurance Company. Atlantic American currently owns 93% of
the outstanding  stock of Bankers  Fidelity.  The transaction  will be completed
through  the  merger  of a newly  formed  wholly-owned  subsidiary  of  Atlantic
American  into Bankers  Fidelity,  with  Bankers  Fidelity  being the  surviving
corporation in the merger. As a result of the merger, the public shareholders of
Bankers  Fidelity will receive $6.25 in cash for each share of common stock, for
an aggregate of approximately $1,264,000.

Commenting on the announcement, Hilton Howell, Atlantic American's President and
CEO,  said:  "We   appreciate  the   participation   and  loyalty  of  the  many
long-standing  shareholders of Bankers Fidelity and believe that the transaction
will permit  those  shareholders  to maximize the value of their  investment  in
Bankers Fidelity."

Atlantic  American  expects to  complete  the  transaction  by the end of March,
following  approval  at a  shareholders  meeting  and  receipt of any  necessary
regulatory approvals.

Bankers  Fidelity  offers  Medicare  supplement  and other  accident  and health
insurance,  as well as life insurance,  through a network of approximately 1,300
independent agents in 22 states.

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, Inc.