Atlantic American Reports First Quarter Results

Atlantic American Reports First Quarter Results

  oInsurance premiums increase 16.4% in 1^st quarter 2014 compared to 1^st
    quarter 2013
  oLife and health and property and casualty insurance premiums increase 5.4%
    and 45.9%, respectively, in 1^st quarter 2014 compared to 1^st quarter
    2013
  o1^st quarter 2014 operating income of $0.9 million more than double 1^st
    quarter 2013 operating income of $0.3 million

ATLANTA, May 12, 2014 (GLOBE NEWSWIRE) -- Atlantic American Corporation
(Nasdaq:AAME) today reported first quarter 2014 results, which included a
16.4% increase in insurance premiums for the quarter ended March 31, 2014 to
$38.4 million as compared to $33.0 million in the first quarter of 2013.Total
revenues were up 12.3% in the comparable period.Net income declined slightly
to $0.8 million or $0.03 per common share in the first quarter of 2014 as
compared to $0.9 million or $0.04 per common share in the first quarter of
2013; however, operating income for the first quarter of 2014 was $0.9 million
as compared to $0.3 million for the first quarter of 2013.Realized investment
gains during the first quarter of 2014 were $0.1 million as compared to $0.7
million in the first quarter of 2013.

Additionally, the Company announced that the Board of Directors has terminated
the Company's existing stock repurchase plan and approved a new 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 on the quarter, Hilton H. Howell, Jr., Chairman, president and
chief executive officer, stated, "Our solid premium growth has continued into
2014; although, with the award of a significant new state contract in 2013,
the most significant increases in our earned premiums are now in our property
and casualty operations.The combination of premium increases with reduced
losses, as a percentage of the related premiums, in our life and health
operations resulted in the substantial increase in our operating income in the
first quarter of 2014 as compared with the same period in 2013.Further, we
are pleased that the board has determined to provide the Company with a new
share repurchase authorization.We believe this reflects our financial
strength and evidences our continued commitment to our shareholders."

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 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)      2014      2013
Insurance premiums                                             
Life and health                                       $25,392   $24,092
Property and casualty                                 13,026    8,927
Investment income                                     2,598     2,905
Realized investment gains, net                        108       678
Other income                                          36        48
                                                              
Total revenue                                         41,160    36,650
                                                              
Insurance benefits and losses incurred                         
Life and health                                       16,731    18,040
Property and casualty                                 10,097    5,322
Commissions and underwriting expenses                 9,907     9,283
Interest expense                                      429       577
Other expense                                         3,003     2,417
                                                              
Total benefits and expenses                           40,167    35,639
                                                              
Income before income taxes                            993       1,011
Income tax expense                                    173       89
                                                              
Net income                                           $820      $922
                                                              
Earnings per common share (basic and diluted)         $0.03     $0.04
                                                              
Reconciliation of Net Income to non-GAAP measurements          
                                                              
Net income                                            $820      $922
Income tax expense                                    173       89
Realized investment gains, net                        (108)     (678)
                                                              
Operating income                                      $885      $333
                                                              
                                                              
                                                     March 31, December 31,
Selected Balance Sheet Data                           2014      2013
                                                              
Total cash and investments                            $257,110  $262,063
Insurance subsidiaries                                229,533   228,605
Parent and other                                      27,577    33,458
Total assets                                          311,942   319,381
Insurance reserves and policyholder funds             157,783   162,373
Debt                                                  41,238    41,238
Total shareholders' equity                            101,860   100,927
Book value per common share                           4.52      4.47
Statutory capital and surplus                                  
Life and health                                       34,927    34,530
Property and casualty                                 39,088    39,092

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.