Atlantic American Reports Increased Third Quarter and Year to Date Net Income

Atlantic American Reports Increased Third Quarter and Year to Date Net Income

  *Year to date net income increases 171% as compared with the comparable
    period in 2012.
  *Insurance premiums earned for the third quarter increased 18.5% while
    increasing 13.9% year to date as compared with comparable periods in 2012.
  *Realized investment gains were $2.3 million and $8.4 million in the 2013
    third quarter and year to date periods.

ATLANTA, Nov. 12, 2013 (GLOBE NEWSWIRE) -- Atlantic American Corporation
(Nasdaq:AAME) today reported net income of $2.7 million, or $0.12 per diluted
share, for the three month period ended September 30, 2013, compared to net
income of $1.1 million, or $0.04 per diluted share, for the three month period
ended September 30, 2012. For the nine month period ended September 30, 2013,
net income was $9.6 million, or $0.42 per diluted share, compared to net
income of $3.5 million, or $0.15 per diluted share, for the comparable period
in 2012. Realized investment gains for the three month and nine month periods
ended September 30, 2013 were $2.3 million and $8.4 million, respectively,
compared to nil and $1.4 million, respectively, for the comparable periods in
2012. Operating income (income before income taxes and realized investment
gains, net) for the three month period ended September 30, 2013 was $406,000,
a decrease from $956,000 of operating income for the three month period ended
September 30, 2012. For the nine month period ended September 30, 2013,
operating income was $1.3 million, or 36.0% less than the $2.1 million of
operating income for the comparable nine month period of 2012.

Total revenues for the three month period ended September 30, 2013 were $43.2
million, increasing 22.5% from $35.3 million for the three month period ended
September 30, 2012. Insurance premiums during this quarter increased $6.0
million, or 18.5%, from the comparable 2012 premiums. For the nine month
period ended September 30, 2013, total revenues were $124.5 million,
increasing 18.8% from the comparable 2012 period revenues of $104.8
million.Insurance premiums during the nine month period ended September 30,
2013 increased $13.1 million, or 13.9%, from the comparable period in
2012.Premiums earned from the Company's life and health and property and
casualty operations were up 9.7% and 40.3%, respectively, for the three month
period ended September 30, 2013 and 13.0% and 15.9%, respectively for the nine
month period ended September 30, 2013.

Commenting, Hilton H. Howell, Jr., chairman, president and chief executive
officer, stated, "We are extremely pleased with our top line growth.The
increased premium level in both of our operating companies reflects not only
the acceptance of our products in their respective markets but the successful
efforts of our agents in placing those products.During the year we have been
making substantial investment in not only our online distribution channel(s)
but in other marketing initiatives with television, social media and the
worldwide web.Initiatives and investment to broaden our product offering,
particularly to the work place market has been significant, and while progress
has been a bit slower than we would have hoped, our future opportunities are
promising.Recently, A.M. Best reaffirmed the A-ratings of our operating
companies.This quarter and year have included significant realized investment
gains as we have attempted to capture some of the gain on our longer-term bond
investments while at the same time shorten the average maturity of our overall
portfolio."

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,      2013          2012          2013      2012
except per share data)
                                                                 
Insurance premiums                                                
Life and health                $25,248     $23,019     $74,359 $65,814
Property and casualty          13,137        9,362         33,418    28,840
Investment income              2,534         2,880         8,213     8,618
Realized investment gains, net 2,283         --            8,415     1,428
Other income                   45            41            140       106
                                                                 
Total revenue                  43,247        35,302        124,545   104,806
                                                                 
Insurance benefits and losses                                     
incurred
Life and health                17,632        15,818        53,614    46,828
Property and casualty          9,154         6,471         21,533    21,228
Commissions and underwriting   10,396        8,962         30,081    23,965
expenses
Interest expense               442           662           1,457     1,977
Other                          2,934         2,433         8,097     7,278
                                                                 
Total benefits and expenses   40,558        34,346        114,782   101,276
                                                                 
Income before income taxes     2,689         956           9,763     3,530
                                                                 
Income tax expense (benefit)   9             (128)         201       8
                                                                 
Net income                     $2,680       $1,084       $9,562   $3,522
                                                                 
Basic earnings per common      $0.12        $0.05        $0.43    $0.15
share
Diluted earnings per common    $0.12        $0.04        $0.42    $0.15
share
                                                                 
Reconciliation of net income                                      
to non-GAAP measurement
                                                                 
Net income                     $ 2,680     $1,084     $9,562  $ 3,522
Income tax expense (benefit)   9             (128)         201       8
Realized investment gains, net (2,283)       --            (8,415)   (1,428)
                                                                 
Operating income               $ 406       $956       $1,348 $2,102
                                                                 
                                                                 
                              September 30, December 31,           
Selected Balance Sheet Data    2013          2012                   
                                                                 
Total cash and investments     $251,478     $265,843             
Insurance subsidiaries         221,182       236,934                
Parent and other               30,296        28,909                 
Total assets                   317,695       320,177                
Insurance reserves and         167,204       154,558                
policyholder funds
Debt                           41,238        41,238                 
Total shareholders' equity     97,030        105,736                
Book value per common share    4.26          4.65                   
Statutory capital and surplus                                     
Life and health                34,673        33,059                 
Property and casualty          39,026        36,947                 

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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