Record Premium Growth, Solid Bottom Line Growth and Stock Repurchase Plan Reported by Atlantic American

Record Premium Growth, Solid Bottom Line Growth and Stock Repurchase Plan
Reported by Atlantic American

ATLANTA, Nov. 8, 2012 (GLOBE NEWSWIRE) -- Atlantic American Corporation
(Nasdaq:AAME) today reported net income of $1.1 million, or $0.04 per diluted
share, for the three month period ended September 30, 2012, compared to net
income of $1.7 million, or $0.07 per diluted share, for the three month period
ended September 30, 2011. For the nine month period ended September 30, 2012,
net income was $3.5 million, or $0.15 per diluted share, compared to net
income of $2.4 million, or $0.09 per diluted share, for the comparable period
in 2011. Realized investment gains for the three month and nine month periods
ended September 30, 2012 were nil and $1.4 million, respectively, compared to
$903,000 and $974,000, respectively, for the comparable periods in 2011.
Operating income (income before income taxes and realized investment gains,
net) for the three month period ended September 30, 2012 was $956,000, a 10.5%
increase over the $865,000 of operating income for the three month period
ended September 30, 2011. For the nine month period ended September 30, 2012,
operating income was $2.1 million, or 19.8% greater than the $1.8 million of
operating income for the comparable nine month period of 2011.

Total revenues for the three month period ended September 30, 2012 were $35.3
million, increasing 14.6% from $30.8 million for the three month period ended
September 30, 2011. Insurance premiums during this quarter increased $5.2
million, or 19.0%, from the comparable 2011 premiums. For the nine month
period ended September 30, 2012, total revenues were $104.8 million,
increasing 19.2% from the comparable 2011 period revenues of $87.9 million.
Insurance premiums during the nine month period ended September 30, 2012
increased $15.8 million, or 20.1%, from the comparable period in 2011. Total
revenue increases during both the three month and nine month periods ended
September 30, 2012 were primarily the result of increased premiums earned from
the Company's life and health operations.

Separately, the Company also announced that the Board of Directors has
terminated the prior stock repurchase plan and approved a separate replacement
repurchase plan that allows for the repurchase of up to 750,000 shares of the
Company's common stock from time to time in accordance with applicable
securities laws and other requirements.

Commenting, Hilton H. Howell, Jr., chairman, president and chief executive
officer, stated, "Bankers Fidelity, our life and health company, continues to
perform very well. With first year collected premiums up 94.5% on a
comparative basis for the nine month period ended September 30, 2012 versus
2011 and quarter over quarter top line growth for the past two years, the
company is positioned to continue growing for the foreseeable future. As its
top line growth has continued, so has its contribution to our earnings.This
success is evidenced by the fact that less than one month ago, the AM Best
rating for Bankers Fidelity was raised from B++ to A-, an accomplishment which
is a recognition of all the hard work of our agents and employees.With that
ratings increase, all of our insurance subsidiaries now have "A" ratings, a
status we haven't enjoyed in many years and one which makes us much more
competitive in our marketplace.Our property and casualty operations continue
to explore new opportunities in this particularly tight market and we are
optimistic for their future as well.Our Company's prospects for the fourth
quarter of 2012 and into the future appear quite promising.We are also
pleased that our Board has approved our replacement stock repurchase
plan.Combined with our recent annual dividend, this further evidences our
commitment to increasing shareholder value."

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 consist of
American Southern Insurance Company, American Safety Insurance Company, and
Bankers Fidelity Life Insurance Company.

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.


Atlantic American Corporation
Financial Data
                                                                  
                                 Three months ended         Nine months ended
                                 September 30,              September 30,
(Unaudited; In thousands, except  2012          2011         2012     2011
per share data)
                                                                  
Insurance premiums                                                 
Life and health                   $23,019      $ 18,188     $65,814 $50,643
Property and casualty             9,362         9,023        28,840   28,187
Investment income                 2,880         2,652        8,618    7,912
Realized investment gains, net    --            903          1,428    974
Other income                      41            34           106      212
                                                                  
Total revenue                     35,302        30,800       104,806  87,928
                                                                  
Insurance benefits and losses                                      
incurred
Life and health                   15,818        12,736       46,828   36,490
Property and casualty             6,471         6,565        21,228   17,663
Commissions and underwriting      8,962         6,746        23,965   22,192
expenses
Interest expense                  662           653          1,977    1,940
Other                             2,433         2,332        7,278    6,915
                                                                  
Total benefits and expenses       34,346        29,032       101,276  85,200
                                                                  
Income before income taxes        956           1,768        3,530    2,728
                                                                  
Income tax (benefit) expense      (128)         64           8        363
                                                                  
Net income                        $1,084       $ 1,704      $3,522  $2,365
                                                                  
Basic earnings per common share   $0.05        $0.07       $0.15  $0.09
Diluted earnings per common share $0.04        $0.07       $0.15   $0.09
                                                                  
Reconciliation of net income to                                    
non-GAAP measurement
                                                                  
Net income                        $1,084       $1,704      $3,522  $2,365
Income tax (benefit) expense      (128)         64           8        363
Realized investment gains, net    --            (903)        (1,428)  (974)
                                                                  
Operating income                  $956         $865        $2,102  $1,754
                                                                  
                                 September 30, December 31,         
Selected Balance Sheet Data       2012          2011                 
                                                                  
Total cash and investments        $265,048     $251,070            
Insurance subsidiaries            235,139       222,925              
Parent and other                  29,909        28,145               
Total assets                      319,454       302,125              
Insurance reserves and            151,705       147,194              
policyholder funds
Debt                              41,238        41,238               
Total shareholders' equity        106,436       96,277               
Book value per common share       4.71          4.20                 
Statutory capital and surplus                                      
Life and health                   34,529        32,087               
Property and casualty             37,114        37,988               

CONTACT: John G. Sample, Jr.
         Senior Vice President and Chief Financial Officer
         Atlantic American Corporation
         404-266-5501
        
         Hilton H. Howell, Jr.
         Chairman, President & CEO
         Atlantic American Corporation
         404-266-5505
 
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