Attached files
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| 8-K - 8-K - ATLANTIC AMERICAN CORP | form8k.htm |
Exhibit 99.1
ATLANTIC AMERICAN REPORTS FIRST QUARTER RESULTS
ATLANTA, Georgia, May 12, 2017 - Atlantic American Corporation (Nasdaq- AAME) today reported a first quarter 2017 net loss of $0.2 million, or $0.02 per common share, as compared to net income of $0.9 million, or $0.04 per common share, in the first quarter of 2016. Realized investment gains during the first quarter of 2017 were $0.9 million as compared to $0.8 million in the first quarter of 2016. The net loss was attributable to higher than expected levels of claims in both life and health lines of business. Most notable were the early season Medicare Supplement Part B deductible reimbursements on new business which have not yet been through an annual earnings cycle. Total insurance premiums for the quarter ended March 31, 2017 increased 6.0% to $40.8 million as compared to $38.5 million in the first quarter of 2016; while Medicare Supplement premiums increased 14.1% during the comparable period to $23.9 million from $20.9 million. Total revenues were $43.9 million for the quarter ended March 31, 2017 as compared to $41.7 million for the quarter ended March 31, 2016.
Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We continue to move forward with great optimism and confidence in our business strategies. Our Worksite/Group division was officially launched in the first quarter and is experiencing an encouraging level of sales. Our Individual division has recently released a new hospital indemnity product that we feel will have high market acceptance. Diversification of our sales portfolio continues to be a primary focus. We expect that the increased level of Medicare supplement benefit expenses and life insurance claims we experienced in the first quarter will moderate naturally and historically, thus allowing us to return to expected levels of profitability throughout the remainder of the year. Our property and casualty operations continue to perform well and we look forward to better quarters in 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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2017
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2016
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Insurance premiums
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Life and health
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$
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27,691
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$
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24,733
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Property and casualty
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13,091
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13,725
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Investment income
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2,159
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2,507
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Realized investment gains, net
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883
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752
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Other income
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35
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30
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Total revenue
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43,859
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41,747
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Insurance benefits and losses incurred
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Life and health
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21,713
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16,911
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Property and casualty
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8,284
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7,914
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Commissions and underwriting expenses
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10,614
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11,827
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Interest expense
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409
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373
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Other expense
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3,186
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3,346
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Total benefits and expenses
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44,206
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40,371
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Income (loss) before income taxes
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(347
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)
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1,376
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|||||
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Income tax expense (benefit)
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(126
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)
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478
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Net income (loss)
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$
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(221
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)
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$
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898
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Earnings (loss) per common share (basic and diluted)
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$
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(0.02
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)
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$
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0.04
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Reconciliation of Non-GAAP Financial Measure
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Net income (loss)
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$
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(221
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)
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$
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898
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Income tax expense (benefit)
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(126
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)
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478
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|||||
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Realized investment gains, net
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(883
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)
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(752
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)
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Operating income (loss)
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$
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(1,230
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)
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$
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624
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Selected Balance Sheet Data
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March 31,
2017
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December 31,
2016
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Total cash and investments
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$
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255,119
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$
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257,429
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Insurance subsidiaries
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231,870
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235,499
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Parent and other
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23,249
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21,930
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Total assets
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312,914
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318,600
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Insurance reserves and policyholder funds
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158,403
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162,679
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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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106,981
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105,506
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Book value per common share
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4.97
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4.89
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Statutory capital and surplus
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Life and health
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31,048
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33,430
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Property and casualty
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42,349
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41,489
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