Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2013

Atlantic American Corporation Reports Fourth Quarter and Year End Results for
2013

  oNet income of $11.0 million in 2013 up from $4.4 million in 2012
  oRealized investment gains, net of $8.7 million in 2013 up from $1.4
    million in 2012
  oDiluted earnings per share of $0.48 per share in 2013 up from $0.18 per
    share in 2012
  oEarned premiums up 14.9% in 2013 as compared to 2012

ATLANTA, March 24, 2014 (GLOBE NEWSWIRE) -- Atlantic American Corporation
(Nasdaq:AAME) today reported its results for the fourth quarter and year ended
December 31, 2013. For the fourth quarter ended December 31, 2013, the Company
reported net income of $1.5 million, or $0.06 per diluted share up from $0.9
million, or $0.04 per diluted share in the fourth quarter of
2012.Significantly all of the increase was attributable to realized
investment gains.Premiums for the fourth quarter of 2013 increased 18.0% to
$37.9 million compared to $32.1 million for the fourth quarter of 2012, as
premiums in the property and casualty operations increased by $3.8 million, or
44.1%.

Atlantic American reported net income for the year ended December 31, 2013 of
$11.0 million, or $0.48 per diluted share, as compared to net income of $4.4
million, or $0.18 per diluted share, for the year ended December 31, 2012.
Total premiums during 2013 increased 14.9% to $145.6 million from 2012
premiums of $126.7 million, as premiums in the life and health and property
and casualty operations increased 11.8% and 22.4%, respectively, in 2013 as
compared to 2012.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and
chief executive officer, stated, "We have completed another successful year
for our Company with net income of $11.0 million.We experienced significant
premium growth during 2013 in both our life and health operations as well as
our property and casualty operations which permitted us to continue making
investments in not only our worksite product line and our internet and social
media initiatives, but also complete an acquisition which should expedite our
ability to introduce new products.In addition, a significant portion of our
net income was from realized investment gains, as we have been successful in
repositioning our investment portfolio to significantly shorten the average
maturity.While such action immediately impacts our investment income returns,
it better postures us for that future time when interest rates do begin to
rise. We continue to be optimistic for the future and again this February,
our Board of Directors approved our 3^rd annual dividend of $0.02 per share to
shareholders of record on March 27, 2014."

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,
Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance
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
Selected Financial Data
                                                                   
                                    Three months ended        Year ended
                                    December 31,              December 31,
(Unaudited; In thousands, except per 2013         2012         2013    2012
share data)
                                                                   
Insurance premiums                                                  
Life and health                      $25,420      $23,458      $99,779 $89,272
Property and casualty                12,433       8,631        45,851  37,471
Investment income                    2,596        2,886        10,809  11,504
Realized investment gains, net       326          6            8,741   1,434
Other income                         49           41           189     147
                                                                   
Total revenue                        40,824       35,022       165,369 139,828
                                                                   
Insurance benefits and losses                                       
incurred
Life and health                      16,561       15,652       70,175  62,480
Property and casualty                8,664        6,109        30,197  27,337
Commissions and underwriting         10,475       8,512        40,556  32,477
expenses
Interest expense                     441          655          1,898   2,632
Other                                3,240        2,542        11,337  9,820
                                                                   
Total benefits and expenses          39,381       33,470       154,163 134,746
                                                                   
Income before income taxes           1,443        1,552        11,206  5,082
                                                                   
Income tax expense (benefit)         (17)         638          184     646
                                                                   
Net income                          $1,460       $914         $11,022 $4,436
                                                                   
Basic earnings per common share      $0.06        $0.04        $0.50   $0.19
                                                                   
Diluted earnings per common share    $0.06        $0.04        $0.48   $0.18
                                                                   
Reconciliation of Net Income to                              
non-GAAP Measurement
                                                                   
Net income                           $1,460       $914         $11,022 $4,436
Income tax expense (benefit)         (17)         638          184     646
Realized investment gains, net       (326)        (6)          (8,741) (1,434)
                                                                   
Operating income                     $1,117       $1,546       $2,465  $3,648
                                                                   
                                    December 31, December 31,        
Selected Balance Sheet Data          2013         2012                
                                                                   
Total cash and investments           $262,063     $265,843            
Insurance subsidiaries               228,605      236,934             
Parent and other                     33,458       28,909              
Total assets                         319,381      320,177             
Insurance reserves and policyholder  162,373      154,558             
funds
Debt                                 41,238       41,238              
Total shareholders' equity           100,927      105,736             
Book value per common share          4.47         4.65                
Statutory capital and surplus                                       
Life and health                      34,530       33,059              
Property and casualty                39,092       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
 
Press spacebar to pause and continue. Press esc to stop.