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Atlantic American Corporation Reports Second Quarter Results for 2023; Declares Annual Dividend

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ATLANTA, Aug. 08, 2023 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income for the three month period ended June 30, 2023 of $1.7 million, or $0.08 per diluted share, as compared to net loss of $1.7 million, or $0.09 per diluted share, for the comparable period in 2022. For the six month period ended June 30, 2023, the Company reported net income of $0.3 million, or nil per diluted share, as compared to net income of $1.2 million, or $0.05 per diluted share, for the comparable period in 2022. The increase in net income for the three month period ended June 30, 2023 was primarily the result of a $5.4 million increase in unrealized gains on equity securities due to appreciation in market values in addition to more favorable loss experience in the life and health operations, from the comparable period in 2022. The decrease in net income for the six month period ended June 30, 2023 was primarily attributable to ancillary costs related to implementation of the new actuarial valuation system, coupled with an increase in administrative costs related to the growth in the group lines of business within the life and health operations.

Operating income (as defined below) decreased $1.2 million in the three month period ended June 30, 2023 from the three month period ended June 30, 2022. For the six month period ended June 30, 2023, operating income decreased $2.2 million from the comparable period in 2022. The decrease in operating income for the three and six months period ended June 30, 2023 was primarily attributable to ancillary costs related to implementation of the new actuarial valuation system, coupled with an increase in administrative costs related to the growth in the group lines of business within the life and health operations, as mentioned above.

Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “Overall we are quite pleased with our second quarter results and excited to report that our subsidiary, Atlantic Capital Life Assurance Company, has expanded its footprint into additional states. Furthermore, the Worksite division has enjoyed a steady pace of premium growth and we believe the division is well positioned to have a successful open enrollment season. Although inflationary pressures have impacted claims within our property and casualty operations, we remain profitable and optimistic about the future. Accordingly, the Board of Directors recently approved the Company’s annual dividend of $0.02 per share, which is payable on September 12, 2023 to shareholders of record on August 22, 2023.”

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, Bankers Fidelity Assurance Company and Atlantic Capital Life 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). We define operating income (loss) as net income (loss) excluding: (i) income tax expense (benefit); (ii) realized investment gains, net; and (iii) unrealized (gains) losses on equity securities, net. 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 (benefit), 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, including the Company’s ability to remediate the identified material weakness in its internal control over financial reporting and those other risks and uncertainties detailed in statements and reports that Atlantic American Corporation files from time to time with the Securities and Exchange Commission.

For further information contact: 
J. Ross FranklinHilton H. Howell, Jr.
Chief Financial OfficerChairman, President & CEO
Atlantic American CorporationAtlantic American Corporation
404-266-5580404-266-5505


Atlantic American Corporation
Financial Data
 
 Three Months Ended Six Months Ended
 June 30, June 30,
(Unaudited; In thousands, except per share data)2023 2022 2023 2022
Insurance premiums       
Life and health$28,180  $28,296  $57,069  $58,034 
Property and casualty 17,880   18,769   35,091   36,112 
Insurance premiums, net 46,060   47,065   92,160   94,146 
        
Net investment income 2,559   2,529   5,100   4,869 
Realized investment gains (losses), net 70   (62)  70   (72)
Unrealized gains (losses) on equity securities, net 494   (4,866)  (1,881)  (2,673)
Other income 5   3   8   7 
        
Total revenue 49,188   44,669   95,457   96,277 
        
Insurance benefits and losses incurred       
Life and health 15,817   18,713   33,617   39,404 
Property and casualty 13,548   14,040   26,208   24,518 
Commissions and underwriting expenses 12,848   10,215   25,766   23,051 
Interest expense 807   414   1,557   768 
Other expense 3,951   3,402   7,910   6,855 
        
Total benefits and expenses 46,971   46,784   95,058   94,596 
        
Income (loss) before income taxes 2,217   (2,115)  399   1,681 
Income tax expense (benefit) 473   (436)  101   518 
        
Net income (loss)$1,744  $(1,679) $298  $1,163 
        
Earnings (loss) per common share (basic)$0.08  $(0.09) $-  $0.05 
Earnings (loss) per common share (diluted)$0.08  $(0.09) $-  $0.05 
        
Reconciliation of non-GAAP financial measure       
        
Net income (loss)$1,744  $(1,679) $298  $1,163 
Income tax expense (benefit) 473   (436)  101   518 
Realized investment (gains) losses, net (70)  62   (70)  72 
Unrealized (gains) losses on equity securities, net (494)  4,866   1,881   2,673 
        
Non-GAAP operating income$1,653  $2,813  $2,210  $4,426 
        
    
 June 30, December 31,    
Selected Balance Sheet Data2023 2022    
        
Total cash and investments$252,209  $257,575     
Insurance subsidiaries 245,520   251,378     
Parent and other 6,689   6,197     
Total assets 372,955   367,064     
Insurance reserves and policyholder funds 209,304   202,651     
Debt 36,738   35,747     
Total shareholders' equity 103,486   102,193     
Book value per common share 4.80   4.74     
Statutory capital and surplus       
Life and health 35,650   36,672     
Property and casualty 51,955   53,023     

Atlantic American Corp

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Insurance - Life
Life Insurance
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United States of America
ATLANTA