Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2012

Atlantic American Corporation Reports Fourth Quarter and Year End Results for
2012

  oFull year operating earnings up 10.9% from $3.3 million in 2011 to $3.6
    million in 2012
  oNet income up 34.8% from $3.3 million in 2011 to $4.4 million in 2012
  oFull year diluted earnings per share up 50% from $0.12 in 2011 to $0.18 in
    2012
  oBook value per share up 10.7% from $4.20 at December 31, 2011 to $4.65 at
    December 31, 2012
  oFull year life and health premium revenue up 27.6% from $70.0 million in
    2011 to $89.3 million in 2012

ATLANTA, March 26, 2013 (GLOBE NEWSWIRE) -- Atlantic American Corporation
(Nasdaq:AAME) today reported its results for the fourth quarter and year ended
December 31, 2012. For the fourth quarter ended December 31, 2012, the Company
reported net income of $0.9 million, or $0.04 per diluted share, consistent
with that of the fourth quarter of 2011.Operating income (income before
income taxes and realized investment gains/losses) was $1.5 million for the
quarter ended December 31, 2012; likewise consistent with the fourth quarter
of 2011.Premiums for the fourth quarter of 2012 increased 12.0% to $32.1
million compared to $28.6 million for the fourth quarter of 2011, as premiums
in the life and health operations increased by $4.1 million, or 21.5%.

Atlantic American reported net income for the year ended December 31, 2012 of
$4.4 million, or $0.18 per diluted share, as compared to net income of $3.3
million, or $0.12 per diluted share, for the year ended December 31,
2011.Operating income increased 10.9% to $3.6 million for the year ended
December 31, 2012 as compared to $3.3 million for the year ended December 31,
2011. Total premiums during 2012 increased 17.9% to $126.7 million from 2011
premiums of $107.5 million, as premiums in the life and health operations
increased 27.6%, or $19.3 million, in 2012 as compared to 2011, while premiums
in the property and casualty operations decreased nominally in that same
period.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and
chief executive officer, stated, "The recently completed 2012 year was an
outstanding year for Atlantic American.Our premium growth, particularly in
our life and health operations, was unprecedented.We completed our first year
of targeted television advertising and we remain actively committed to
expanding our other social media initiatives.Our A.M. Best rating for Bankers
Fidelity, our life and health company, was raised to an A-.And the focused
efforts of our agents and employees resulted in solid increases not only in
our operating results but in our bottom line net income.Reflecting our
confidence in not only the current operations but also the future, we
completed the year by declaring and paying a special dividend of $0.05 per
share in addition to our regular annual $0.02 per share dividend.We continue
to be excited by the future prospects for Atlantic American."

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 insurance subsidiaries are
American Southern Insurance Company, American Safety Insurance Company and
Bankers Fidelity Life Insurance Company.

Note regarding forward-looking statements:This news release contains
forward-looking statements subject to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995.These forward-looking
statements may relate to, among other things, our future strategies, operating
or financial performance.Forward looking statements are based on management's
assumptions regarding, among other things, general economic and
industry-specific business conditions, as well as the execution of our
business strategy.Actual results could differ materially from those indicated
by such forward-looking statements due to a number of factors and risks,
including those 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        Year ended
                                December 31,              December 31,
(Unaudited; In thousands, except 2012         2011         2012      2011
per share data)
                                                                 
Insurance premiums                                                
Life and health                  $ 23,458   $19,314    $ 89,272 $ 69,957
Property and casualty            8,631        9,327        37,471    37,514
Investment income                2,886        2,675        11,504    10,587
Realized investment gains        6            (947)        1,434     27
(losses), net
Other income                     41           35           147       247
                                                                 
Total revenue                    35,022       30,404       139,828   118,332
                                                                 
Insurance benefits and losses                                     
incurred
Life and health                  15,652       12,914       62,480    49,404
Property and casualty            6,109        6,547        27,337    24,210
Commissions and underwriting     8,512        7,344        32,477    29,536
expenses
Interest expense                 655          659          2,632     2,599
Other                            2,542        2,353        9,820     9,268
                                                                 
Total benefits and expenses     33,470       29,817       134,746   115,017
                                                                 
Income before income taxes       1,552        587          5,082     3,315
                                                                 
Income tax expense (benefit)     638          (338)        646       25
                                                                 
Net income                       $914        $925        $4,436   $3,290
                                                                 
Basic earnings per common share  $ 0.04       $0.04       $0.19    $0.13
                                                                 
Diluted earnings per common      $0.04       $0.04       $0.18   $0.12
share
                                                                 
Reconciliation of Net Income to                                   
non-GAAP Measurement
                                                                 
Net income                       $914        $925        $4,436   $3,290
Income tax expense (benefit)     638          (338)        646       25
Realized investment (gains)      (6)          947          (1,434)   (27)
losses, net
                                                                 
Operating income                 $1,546      $1,534      $3,648   $3,288
                                                                 
                                December 31, December 31,          
Selected Balance Sheet Data      2012         2011                  
                                                                 
Total cash and investments       $265,843    $ 251,070            
Insurance subsidiaries           236,934      222,925               
Parent and other                 28,909       28,145                
Total assets                     320,177      302,125               
Insurance reserves and           154,558      147,194               
policyholder funds
Debt                             41,238       41,238                
Total shareholders' equity       105,736      96,277                
Book value per common share      4.65         4.20                  
Statutory capital and surplus                                     
Life and health                  33,059       32,087                
Property and casualty            36,947       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