OREANDA-NEWS. August 12, 2016. Atlantic American Corporation (Nasdaq:AAME) today reported net income for the six month period ended June 30, 2016 of \\$1.1 million, or \\$0.05 per diluted share, as compared to \\$4.0 million, or \\$0.18 per diluted share, for the comparable period of 2015.  Net realized investment gains for the six month period ended June 30, 2016 were \\$0.9 million as compared to \\$5.1 million in the comparable period of 2015.  Net income for the three month period ended June 30, 2016 was \\$0.2 million, or \\$0.01 per diluted share, as compared to net income of \\$3.3 million, or \\$0.15 per diluted share, in the comparable period of 2015.  Net realized investment gains in the three month period ended June 30, 2016 were \\$0.1 million as compared to \\$4.1 million in the comparable period of 2015.

Total revenues for the six month period ended June 30, 2016 were \\$83.6 million as compared to \\$85.7 million for the six month period ended June 30, 2015.  A lower level of net realized investment gains was the single largest contributor to the decline in revenues.  Insurance premiums during the six month period ended June 30, 2016 increased 2.8% from the comparable 2015 period and was primarily the result of increased Medicare supplement policies in the Company’s life and health operation.  For the three month period ended June 30, 2016, revenues were \\$41.9 million, decreasing 6.5% from the comparable 2015 period revenues of \\$44.8 million, also primarily from a decrease in net realized investment gains.  Insurance premiums during the three month period ended June 30, 2016 of \\$39.1 million increased 2.7% from the comparable 2015 period amount of \\$38.1 million.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer stated, “We are extremely pleased with the new premium growth in our life and health operation.  Given that the second quarter is typically not a heavy Medicare supplement enrollment period, the growth in that line of business is a testament to the investment that we have been making in our product and distribution network. We are continuing to refine and improve on our worksite products and distribution as well and believe that when the majority of the enrollment periods begin in the second half of 2016, we will be well positioned for growth in those products as well.  Even as we continue to make targeted investments in our life and health operation, our property and casualty operation had an outstanding quarter with both a lower level of losses and expenses.  The balance of the year is one which we look forward to with much promise in continuing to grow our Company.”

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, 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 Six months ended
 June 30, June 30,
(Unaudited; In thousands, except per share data) 2016   2015   2016   2015 
        
Insurance premiums       
Life and health\\$25,355  \\$24,006  \\$50,088  \\$48,129 
Property and casualty 13,767   14,098   27,492   27,361 
Investment income 2,563   2,494   5,070   5,091 
Realized investment gains, net 132   4,148   884   5,099 
Other income 37   26   67   41 
        
Total revenue 41,854   44,772   83,601   85,721 
        
Insurance benefits and losses incurred       
Life and health 18,105   16,991   35,016   33,744 
Property and casualty 8,817   9,392   16,731   17,880 
Commissions and underwriting expenses 10,954   10,487   22,781   21,208 
Interest expense 385   354   758   703 
Other expense 3,236   3,359   6,582   6,987 
        
Total benefits and expenses 41,497   40,583   81,868   80,522 
        
Income before income taxes 357   4,189   1,733   5,199 
        
Income tax expense 116   844   594   1,163 
        
Net income \\$  241  \\$  3,345  \\$  1,139  \\$  4,036 
        
Basic earnings per common share  \\$  0.01  \\$  0.16  \\$  0.05  \\$  0.19 
Diluted earnings per common share  \\$  0.01  \\$  0.15  \\$  0.05  \\$  0.18 
        
Reconciliation of Non-GAAP Financial Measure       
        
Net income\\$241  \\$3,345  \\$1,139  \\$4,036 
Income tax expense 116   844   594   1,163 
Realized investment gains, net (132)  (4,148)  (884)  (5,099)
        
Operating income\\$  225  \\$  41  \\$  849  \\$  100 
        
 June 30, December 31,    
Selected Balance Sheet Data 2016   2015     
        
Total cash and investments\\$252,461  \\$254,007     
Insurance subsidiaries 230,815   229,092     
Parent and other 21,646   24,915     
Total assets 320,265   314,603     
Insurance reserves and policyholder funds 163,345   163,345     
Debt 33,738   33,738     
Total shareholders' equity 108,049   102,492     
Book value per common share 5.01   4.75     
Statutory capital and surplus       
Life and health 34,247   35,322     
Property and casualty 39,916   38,308