NEWS RELEASE
For Immediate Release


   ATLANTIC     AMERICAN  CORPORATION   COMPLETES   ACQUISITION  OF  ASSOCIATION
                CASUALTY  INSURANCE  COMPANY  AND  ASSOCIATION  RISK  MANAGEMENT
                GENERAL AGENCY, INC.

Expands Operations Into Texas, New Mexico And Arizona/Adds Depth To Management
Team
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ATLANTA,  Georgia,  July 6, 1999--Atlantic  American  Corporation  (NASDAQ:AAME)
today announced that, effective July 1, it has completed its acquisition of 100%
of the outstanding stock of Association  Casualty Insurance Company (Association
Casualty) and its affiliate  Association  Risk Management  General Agency,  Inc.
(ARMGA),  both of Austin, Texas. The total consideration for the transaction was
$32.5  million  with $8.5  million  paid in the form of common stock of Atlantic
American Corporation, and the remaining $24.0 million paid in cash obtained from
borrowings  under credit  facilities  and other  available  funds.  Of the total
consideration,  $21.1 million will be paid to acquire  Association  Casualty and
$11.4 million will be paid to acquire ARMGA.

Association Casualty specializes in underwriting workers' compensation insurance
in the State of Texas, and is rated A- ("Excellent") by A.M. Best Company. ARMGA
operates as a general agency providing  workers'  compensation  coverage through
independent  agents,  insuring a broad range of business  interests,  as well as
placing  all other  property  and  casualty  lines of  coverage  for Propane Gas
Dealers of Texas.  By  leveraging  the  experience  and  expertise  of  Atlantic
American's subsidiary, Georgia Casualty & Surety Company, Atlantic American will
aid in Association  Casualty's  expansion into  underwriting  other property and
casualty lines of business.

"This acquisition expands Atlantic American's coverage outside the Southeast and
builds on our  concept  of  developing  a  portfolio  of  specialized,  regional
insurance  companies,"  stated  Hilton  H.  Howell,  Jr.,  president  and  chief
executive officer of Atlantic American.  "Not only will this transaction provide
us with a number of  cross-marketing  opportunities,  it adds years of  industry
knowledge and expertise to our management team."

Harold Fischer,  founder and president of both  Association  Casualty and ARMGA,
will  continue  with the companies he founded and will also be joining the board
of directors of Atlantic American  Corporation.  Atlantic American plans to work
with the existing management team to develop cross marketing  opportunities with
Atlantic American's other insurance operations.


Atlantic  American is an insurance holding company involved in specialty markets
of the life, health,  property and casualty insurance industries.  Its principal
subsidiaries  include  American  Southern  Insurance  Company,  American  Safety
Insurance Company,  Bankers Fidelity Life Insurance Company,  Georgia Casualty &
Surety 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 has filed with the Securities and
Exchange Commission.

For further information contact:

      Hilton H. Howell, President and
      Chief Executive Officer                   Janice Kuntz
      Atlantic American Corporation             Fleishman-Hillard
      (404) 266-5500                            (404) 659-4446