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Atlantic American Reports Increased Revenues in First Quarter



Atlantic American Reports Increased Revenues in First Quarter

  o Insurance premiums increase 7.6% in 1^st quarter 2013 compared to 1^st
    quarter 2012
  o Life and health insurance premiums increase 15.4% in 1^st quarter 2013
    compared to 1^st quarter 2012
  o Book value per share closes March 31, 2013 at $4.59 per common share
  o Aggregate statutory capital and surplus increase 2.5% from December 31,
    2012

ATLANTA, May 13, 2013 (GLOBE NEWSWIRE) -- Atlantic American Corporation
(Nasdaq:AAME) today reported first quarter 2013 results, which included a 7.6%
increase in insurance premiums for the quarter ended March 31, 2013 up to
$33.0 million as compared to $30.7 million in the first quarter of 2012. Total
revenues were up 6.1% in the comparable periods. Net income declined to $0.9
million or $0.04 per common share in the first quarter of 2013 in comparison
to $1.7 million or $0.07 per common share in the first quarter of 2012.
Operating income for the first quarter of 2013 was $0.3 million as compared to
$0.8 million for the first quarter of 2012. Increased losses primarily in the
life and health business resulted in the decline in both net income and
operating income.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and
chief executive officer, stated, "While pleased with our continued production
and revenue growth, our results were negatively impacted due to the usual
"Part B deductible" utilization in our Medicare supplement product that occurs
in the first half of each year. I expect that the majority of this utilization
fell in this quarter's results. I am particularly pleased that, effective May
1, 2013, American Southern bound a large account with approximately $14
million in annual premium. I expect this account to add meaningfully to our
results during the balance of the year."

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 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
                                                     March 31,
(Unaudited; In thousands, except per share data)     2013      2012
Insurance premiums                                              
Life and health                                      $24,092   $20,869
Property and casualty                                8,927     9,812
Investment income                                    2,905     2,883
Realized investment gains, net                       678       958
Other income                                         48        29
                                                                
Total revenue                                        36,650    34,551
                                                                
Insurance benefits and losses incurred                          
Life and health                                      18,040    14,653
Property and casualty                                5,322     8,019
Commissions and underwriting expenses                9,283     7,033
Interest expense                                     577       657
Other                                                2,417     2,469
                                                                
Total benefits and expenses                          35,639    32,831
                                                                
Income before income taxes                           1,011     1,720
Income tax expense                                   89        63
                                                                
Net income                                           $922      $1,657
                                                                
Earnings per common share (basic and diluted)        $0.04     $0.07
                                                                
Reconciliation of Net Income to non-GAAP measurement            
                                                                
Net income                                           $922      $1,657
Income tax expense                                   89        63
Realized investment gains, net                       (678)     (958)
                                                                
Operating income                                     $333      $762
                                                                
                                                                
                                                     March 31, December 31,
Selected Balance Sheet Data                          2013      2012
                                                                
Total cash and investments                           $260,317  $265,843
Insurance subsidiaries                               231,017   236,934
Parent and other                                     29,300    28,909
Total assets                                         313,548   320,177
Insurance reserves and policyholder funds            150,975   154,558
Debt                                                 41,238    41,238
Total shareholders' equity                           104,027   105,736
Book value per common share                          4.59      4.65
Statutory capital and surplus                                   
Life and health                                      34,249    33,059
Property and casualty                                37,494    36,947

CONTACT: For further information 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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