Atlantic American Corporation Reports First Quarter Results for 2021
Atlantic American Corporation (Nasdaq- AAME) reported a net loss of $0.4 million, or $0.03 per share, for Q1 2021, a significant improvement from a loss of $8.1 million or $0.40 per share in Q1 2020. This change was driven by unrealized gains on equity securities of $0.7 million, contrasting with losses of $8.5 million in the prior year. Premium revenue rose by 1.2% to $46.1 million, largely due to growth in automobile insurance lines. The operating loss decreased by $0.6 million to $1.4 million, attributed to better performance in life and health operations.
- Net loss improved from $8.1 million in Q1 2020 to $0.4 million in Q1 2021.
- Premium revenue increased by 1.2%, reaching $46.1 million.
- Operating loss decreased to $1.4 million from $2.0 million in the previous year.
- Favorable loss experience in life and health insurance operations.
- None.
ATLANTA, May 11, 2021 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net loss of
Premium revenue for the three month period ended March 31, 2021 increased
Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “As the disruption caused by the COVID-19 pandemic begins to fade, the dedication and focus of our employees has not wavered. Operating results for the quarter improved over prior year along with moderate growth in our premium revenue. We are also excited to announce that our voluntary employee benefits division, BankersWorksite has rebranded and will now operate under the trade name of Atlantic American Employee Benefits. Additionally, we are extremely proud to report AM Best recently announced they have affirmed the credit ratings of Atlantic American Corporation and its subsidiaries.”
Atlantic American Corporation 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 non-GAAP financial measure: Atlantic American Corporation presents its consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP). However, from time to time, the Company may present, in its public statements, press releases and filings with the Securities and Exchange Commission, non-GAAP financial measures such as operating income (loss). Management believes operating income (loss) is a useful metric for investors, potential investors, securities analysts and others because it isolates the “core” operating results of the Company before considering certain items that are either beyond the control of management (such as income tax expense, which is subject to timing, regulatory and rate changes depending on the timing of the associated revenues and expenses) or are not expected to regularly impact the Company’s operating results (such as any realized and unrealized investment gains (losses), which are not a part of the Company’s primary operations and are, to a limited extent, subject to discretion in terms of timing of realization). The financial data attached includes a reconciliation of operating income (loss) to net income (loss), the most comparable GAAP financial measure. The Company’s definition of operating income (loss) may differ from similarly titled financial measures used by others. This non-GAAP financial measure should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.
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. | |
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 | |||||||
March 31, | |||||||
(Unaudited; In thousands, except per share data) | 2021 | 2020 | |||||
Insurance premiums | |||||||
Life and health | $ | 29,475 | $ | 30,628 | |||
Property and casualty | 16,615 | 14,922 | |||||
Insurance premiums, net | 46,090 | 45,550 | |||||
Net investment income | 2,113 | 2,039 | |||||
Realized investment gains, net | 121 | 249 | |||||
Unrealized gains (losses) on equity securities, net | 744 | (8,455 | ) | ||||
Other income | 7 | 27 | |||||
Total revenue | 49,075 | 39,410 | |||||
Insurance benefits and losses incurred | |||||||
Life and health | 21,523 | 24,049 | |||||
Property and casualty | 11,749 | 9,534 | |||||
Commissions and underwriting expenses | 12,564 | 12,626 | |||||
Interest expense | 346 | 476 | |||||
Other expense | 3,440 | 2,952 | |||||
Total benefits and expenses | 49,622 | 49,637 | |||||
Loss before income taxes | (547 | ) | (10,227 | ) | |||
Income tax benefit | (116 | ) | (2,140 | ) | |||
Net loss | $ | (431 | ) | $ | (8,087 | ) | |
Loss per common share (basic & diluted) | $ | (0.03 | ) | $ | (0.40 | ) | |
Reconciliation of Non-GAAP Financial Measure | |||||||
Net loss | $ | (431 | ) | $ | (8,087 | ) | |
Income tax benefit | (116 | ) | (2,140 | ) | |||
Realized investment gains, net | (121 | ) | (249 | ) | |||
Unrealized (gains) losses on equity securities, net | (744 | ) | 8,455 | ||||
Non-GAAP Operating loss | $ | (1,412 | ) | $ | (2,021 | ) | |
March 31, | December 31, | ||||||
Selected Balance Sheet Data | 2021 | 2020 | |||||
Total cash and investments | $ | 291,569 | $ | 298,630 | |||
Insurance subsidiaries | 286,268 | 292,478 | |||||
Parent and other | 5,301 | 6,152 | |||||
Total assets | 383,127 | 405,187 | |||||
Insurance reserves and policyholder funds | 191,983 | 198,676 | |||||
Debt | 33,738 | 33,738 | |||||
Total shareholders' equity | 133,235 | 145,060 | |||||
Book value per common share | 6.26 | 6.84 | |||||
Statutory capital and surplus | |||||||
Life and health | 42,119 | 42,326 | |||||
Property and casualty | 49,347 | 50,194 | |||||
FAQ
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