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  
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