Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2020; Declares Annual Dividend
Atlantic American Corporation (Nasdaq: AAME) reported a significant rise in net income for Q4 2020, reaching $11.8 million or $0.54 per diluted share, compared to $1.3 million or $0.06 in Q4 2019. For the full year, net income was $12.2 million or $0.56 per diluted share, recovering from a net loss of $0.4 million in 2019. Key factors included a $7.0 million increase in realized gains and improved loss experience in insurance operations. The Board announced the reinstatement of the annual dividend at $0.02 per share, payable on April 27, 2021.
- Net income increased significantly to $11.8 million for Q4 2020 and $12.2 million for the full year 2020.
- Operating income improved to $3.6 million in Q4 2020 from an operating loss of $1.8 million in Q4 2019.
- Reinstatement of the annual dividend at $0.02 per share reflects the company's commitment to shareholder value.
- Decreased net unrealized gains and losses on equity securities by $8.9 million for the year 2020 compared to 2019.
ATLANTA, March 23, 2021 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income for the three month period ended December 31, 2020 of
Operating income (as defined below) increased to
Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are exceptionally encouraged by the strong operating results reported by our family of insurance companies. Despite the many uncertainties we were faced with in 2020 due to the COVID-19 pandemic and many of our employees shifting to a work-from-home environment, we overcame the challenges and have recently resumed in-person operations for the majority of our staff. Our insurance subsidiaries reported record financial results and we are excited about the prospects for this upcoming year. In recognition of an outstanding earnings report and our commitment to delivering value to our shareholders, we are pleased to announce our Board’s decision to reinstate the Company’s annual dividend in the amount of
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 | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(Unaudited; In thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Insurance premiums | |||||||||||||||
Life and health | $ | 29,656 | $ | 31,024 | $ | 121,167 | $ | 123,245 | |||||||
Property and casualty | 16,856 | 15,645 | 62,372 | 58,680 | |||||||||||
Insurance premiums, net | 46,512 | 46,669 | 183,539 | 181,925 | |||||||||||
Net investment income | 2,027 | 2,145 | 7,744 | 8,979 | |||||||||||
Realized investment gains, net | 6,988 | 9 | 7,420 | 1,574 | |||||||||||
Unrealized gains (losses) on equity securities, net | 4,400 | 3,415 | (3,431 | ) | 5,511 | ||||||||||
Other income | 5 | 51 | 76 | 190 | |||||||||||
Total revenue | 59,932 | 52,289 | 195,348 | 198,179 | |||||||||||
Insurance benefits and losses incurred | |||||||||||||||
Life and health | 19,345 | 23,853 | 80,537 | 99,684 | |||||||||||
Property and casualty | 10,653 | 11,195 | 39,339 | 39,541 | |||||||||||
Commissions and underwriting expenses | 12,129 | 11,482 | 46,811 | 45,477 | |||||||||||
Interest expense | 357 | 506 | 1,610 | 2,130 | |||||||||||
Other expense | 2,432 | 3,612 | 11,548 | 11,754 | |||||||||||
Total benefits and expenses | 44,916 | 50,648 | 179,845 | 198,586 | |||||||||||
Income (loss) before income taxes | 15,016 | 1,641 | 15,503 | (407 | ) | ||||||||||
Income tax expense (benefit) | 3,168 | 371 | 3,334 | (21 | ) | ||||||||||
Net income (loss) | $ | 11,848 | $ | 1,270 | $ | 12,169 | $ | (386 | ) | ||||||
Earnings (loss) per common share (basic) | $ | 0.58 | $ | 0.06 | $ | 0.58 | $ | (0.04 | ) | ||||||
Earnings (loss) per common share (diluted) | $ | 0.54 | $ | 0.06 | $ | 0.56 | $ | (0.04 | ) | ||||||
Reconciliation of Non-GAAP Financial Measure | |||||||||||||||
Net income (loss) | $ | 11,848 | $ | 1,270 | $ | 12,169 | $ | (386 | ) | ||||||
Income tax expense (benefit) | 3,168 | 371 | 3,334 | (21 | ) | ||||||||||
Realized investment gains, net | (6,988 | ) | (9 | ) | (7,420 | ) | (1,574 | ) | |||||||
Unrealized (gains) losses on equity securities, net | (4,400 | ) | (3,415 | ) | 3,431 | (5,511 | ) | ||||||||
Non-GAAP Operating income (loss) | $ | 3,628 | $ | (1,783 | ) | $ | 11,514 | $ | (7,492 | ) | |||||
December 31, | December 31, | ||||||||||||||
Selected Balance Sheet Data | 2020 | 2019 | |||||||||||||
Total cash and investments | $ | 298,630 | $ | 281,530 | |||||||||||
Insurance subsidiaries | 292,478 | 274,730 | |||||||||||||
Parent and other | 6,152 | 6,800 | |||||||||||||
Total assets | 405,187 | 377,626 | |||||||||||||
Insurance reserves and policyholder funds | 198,676 | 201,906 | |||||||||||||
Debt | 33,738 | 33,738 | |||||||||||||
Total shareholders' equity | 145,060 | 118,394 | |||||||||||||
Book value per common share | 6.84 | 5.51 | |||||||||||||
Statutory capital and surplus | |||||||||||||||
Life and health | 42,326 | 35,546 | |||||||||||||
Property and casualty | 50,194 | 45,827 | |||||||||||||
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