Attached files
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| 8-K - ATLANTIC AMERICAN CORP 8-K 5-12-2016 - ATLANTIC AMERICAN CORP | form8k.htm |
Exhibit 99.1
ATLANTIC AMERICAN REPORTS FIRST QUARTER RESULTS
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Pre-tax income for the 1st quarter of 2016 increases 36.2% from the 1st quarter of 2015.
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Insurance premiums increase 2.9% with increases in both the life and health and property and casualty operations.
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ATLANTA, Georgia, May 12, 2016 - Atlantic American Corporation (Nasdaq- AAME) today reported first quarter 2016 net income of $0.9 million or $0.04 per common share as compared to $0.7 million or $0.03 per common share in the first quarter of 2015. Pre-tax income was up 36.2% as compared to the 2015 first quarter; however, a higher effective tax rate in the first quarter of 2016 resulted in a 30% increase in net income. Insurance premiums for the quarter ended March 31, 2016 increased to $38.5 million as compared to $37.4 million in the first quarter of 2015 and total revenues were $41.7 million and $40.9 million for the same corresponding periods, respectively. Realized investment gains during the first quarter of 2016 were $0.8 million as compared to $1.0 million in the first quarter of 2015.
Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “The year is off to a great start and we couldn’t be more pleased. Our property and casualty operations continue to post increasing profits and have recently been successful in renewing several large accounts. Our life and health operations have spent the past year on product development, distribution and pricing refinement and the increase in our first quarter premium revenues confirms that our actions are paying off. We believe that our first quarter is a good indicator for the balance of the year.”
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.
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For further information contact:
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John G. Sample, Jr.
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Hilton H. Howell, Jr.
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Senior Vice President and Chief Financial Officer
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Chairman, President & CEO
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Atlantic American Corporation
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Atlantic American Corporation
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404-266-5501
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404-266-5505
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Atlantic American Corporation
Financial Data
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Three Months Ended
March 31, |
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(Unaudited; In thousands, except per share data)
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2016
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2015
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Insurance premiums
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Life and health
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$
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24,733
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$
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24,123
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Property and casualty
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13,725
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13,263
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Investment income
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2,507
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2,597
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Realized investment gains, net
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752
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951
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Other income
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30
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15
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Total revenue
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41,747
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40,949
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Insurance benefits and losses incurred
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Life and health
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16,911
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16,753
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Property and casualty
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7,914
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8,488
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Commissions and underwriting expenses
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11,827
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10,721
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Interest expense
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373
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349
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Other expense
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3,346
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3,628
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Total benefits and expenses
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40,371
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39,939
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Income before income taxes
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1,376
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1,010
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Income tax expense
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478
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319
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Net income
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$
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898
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$
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691
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Earnings per common share (basic and diluted)
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$
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0.04
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$
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0.03
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Reconciliation of Net Income to non-GAAP measurement
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Net income
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$
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898
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$
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691
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Income tax expense
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478
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319
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Realized investment gains, net
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(752
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)
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(951
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)
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Operating income
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$
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624
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$
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59
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Selected Balance Sheet Data
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March 31,
2016 |
December 31,
2015 |
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Total cash and investments
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$
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246,811
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$
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254,007
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Insurance subsidiaries
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225,089
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229,092
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Parent and other
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21,722
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24,915
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Total assets
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300,133
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314,603
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Insurance reserves and policyholder funds
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149,138
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163,345
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Debt
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33,738
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33,738
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Total shareholders' equity
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103,824
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102,492
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Book value per common share
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4.82
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4.75
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Statutory capital and surplus
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Life and health
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35,290
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35,322
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Property and casualty
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38,144
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38,308
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