Atlantic American Reports Third Quarter Earnings Nasdaq:AAME

(MENAFNEditorial)

• Insurance premiums increased 6.8% and 5.1% for the three month and nine month periods ended September 30, 2017, respectively, as compared to the comparable periods of 2016.
• Net income for the three month and nine month periods ended September 30, 2017 was $0.7 million and $2.0 million, respectively, as compared to $0.1 million and $1.3 million, respectively, for the comparable periods of 2016.

ATLANTA, Nov. 14, 2017 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:) today reported net income of $0.7 million, or $0.03 per diluted share, for the three month period ended September 30, 2017, compared to net income of $0.1 million, or nil per diluted share, for the three month period ended September 30, 2016. For the nine month period ended September 30, 2017, net income was $2.0 million, or $0.08 per diluted share, compared to net income of $1.3 million, or $0.05 per diluted share, for the comparable period in 2016. Realized investment gains for the three month and nine month periods ended September 30, 2017 were $0.5 million and $2.8 million, respectively, as compared to $0.5 million and $1.4 million in the comparable three month and nine month periods of 2016. Operating income (income before income taxes and realized investment gains, net) for the three month period ended September 30, 2017 was $0.1 million, as compared to an operating loss of $0.2 million for the three month period ended September 30, 2016. For the nine month period ended September 30, 2017, the Company had an operating loss of $0.3 million as compared to operating income of $0.6 million for the comparable nine month period of 2016. The operating loss was primarily attributable to higher than expected levels of claims in both life and health lines of business during the first quarter of 2017.

Total revenues for the three month period ended September 30, 2017 were $44.8 million, increasing 5.5% from $42.4 million for the three month period ended September 30, 2016. Life and health premiums increased 5.7% and property and casualty premiums increased 9.0%. For the nine month period ended September 30, 2017, total revenues were $132.3 million, increasing 5.0% from the comparable 2016 period. Premiums earned from the Company's life and health operation increased 7.9% for the nine month period ended September 30, 2017 while decreasing slightly in the property and casualty operation during the comparable period.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, 'Our property and casualty operation continues to perform exceptionally well returning consistent profits to the bottom line. In addition, we have completed a number of process improvements and refinements within our life and health operation in advance of the Medicare supplement annual enrollment season. Our Worksite division has exceeded its prior year production with a significant number of enrollments currently underway. We anticipate a good close to the current year and believe the Company to be well positioned for a very positive 2018.'

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.

For further information contact: J. Ross Franklin Hilton H. Howell, Jr. Interim Chief Financial Officer Chairman, President & CEO Atlantic American Corporation Atlantic American Corporation 404-266-5580 404-266-5505

Atlantic American Corporation
Financial Data

Three months ended Nine months ended September 30, September 30, (Unaudited; In thousands, except per share data) 2017 2016 2017 2016 Insurance premiums Life and health $ 28,048 $ 26,548 $ 82,728 $ 76,636 Property and casualty 14,046 12,884 40,268 40,376 Investment income 2,136 2,453 6,380 7,523 Realized investment gains, net 539 527 2,818 1,411 Other income 29 35 95 102 Total revenue 44,798 42,447 132,289 126,048 Insurance benefits and losses incurred Life and health 20,754 18,448 61,567 53,464 Property and casualty 9,663 8,507 25,879 25,238 Commissions and underwriting expenses 10,176 11,558 31,800 34,339 Interest expense 440 396 1,273 1,154 Other expense 3,134 3,221 9,301 9,803 Total benefits and expenses 44,167 42,130 129,820 123,998 Income before income taxes 631 317 2,469 2,050 Income tax expense (benefit) (116 ) 168 483 762 Net income $ 747 $ 149 $ 1,986 $ 1,288 Earnings per common share (basic and diluted) $ 0.03 $ - $ 0.08 $ 0.05 Reconciliation of Non-GAAP Financial Measure Net income $ 747 $ 149 $ 1,986 $ 1,288 Income tax expense (benefit) (116 ) 168 483 762 Realized investment gains, net (539 ) (527 ) (2,818 ) (1,411 ) Operating income (loss) $ 92 $ (210 ) $ (349 ) $ 639 September 30,
December 31,
Selected Balance Sheet Data 2017 2016
Total cash and investments $ 261,610 $ 257,429 Insurance subsidiaries 238,120 235,499 Parent and other 23,490 21,930 Total assets 334,305 318,600 Insurance reserves and policyholder funds 175,192 162,679 Debt 33,738 33,738 Total shareholders' equity 109,520 105,506 Book value per common share 5.09 4.89 Statutory capital and surplus Life and health 29,672 33,430 Property and casualty 42,984 41,489

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