Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2018; Declares Annual Dividend

Date : 04/01/2019 @ 6:04PM
Source : GlobeNewswire Inc.
Stock : Atlantic American Corporation (AAME)
Quote : 1.91  0.19 (11.05%) @ 8:59PM

Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2018; Declares Annual Dividend

Atlantic American (NASDAQ:AAME)
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1 Year : From Nov 2018 to Nov 2019

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Atlantic American Corporation (Nasdaq- AAME) today reported its results for the fourth quarter and year ended December 31, 2018.  For the fourth quarter ended December 31, 2018, the Company reported net income of $0.2 million, or $0.01 per diluted share, down from $2.5 million, or $0.12 per diluted share, in the fourth quarter of 2017.  The decrease in net income was primarily attributable to an increase in unrealized losses on equity securities recognized in net income of $2.9 million and a decrease in realized investment gains of $2.0 million, partially offset by improvements in underwriting results.  Premiums for the fourth quarter of 2018 increased 12.4% to $45.3 million compared to $40.3 million for the fourth quarter of 2017, as premiums in the life and health operations and property and casualty operations increased 14.4% and 8.3%, respectively, as compared to 2017.

For the year ended December 31, 2018, the Company reported a net loss of $0.7 million, or $0.05 per diluted share, as compared to net income of $4.5 million, or $0.20 per diluted share, for the year ended December 31, 2017.  The decrease was primarily attributable to a decline in realized investment gains of $4.0 million coupled with $2.2 million in unrealized losses on equity securities recognized in net income.  Total premiums during 2018 increased 5.9% to $172.9 million from $163.3 million in 2017, as premiums in the life and health operations increased 8.6% in 2018 as compared to 2017.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We are pleased with the year over year growth in premium revenues in each of our insurance subsidiaries and remain focused on refining processes and improving profitability.  Rate increases implemented in our life and health operations are beginning to take hold and we are pleased to report the renewal of a significant multi-year state contract with our property and casualty operations, which also included a rate increase.  While prudent pricing practices are key to profitability, the Company has embarked on a number of initiatives to enhance underwriting, better educate our agents, and improve the policyholder experience.  We remain confident in the long-term viability of our strategy and in our commitment to deliver value to our shareholders.  Accordingly, the Board of Directors recently approved the Company’s 8th annual dividend, which is payable on April 24, 2019 to shareholders of record on April 10, 2019.”

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.

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 CorporationFinancial Data

 Three Months Ended Year ended
 December 31, December 31,
(Unaudited; In thousands, except per share data)2018 2017 2018 2017
Insurance premiums       
Life and health       
Gross earned premiums$47,425  $39,749  $180,583  $142,251 
Ceded premiums (16,606)  (12,811)  (61,459)  (32,585)
Net earned premiums 30,819   26,938   119,124   109,666 
Property and casualty       
Gross earned premiums 15,914   14,589   58,882   58,449 
Ceded premiums (1,406)  (1,196)  (5,075)  (4,788)
Net earned premiums 14,508   13,393   53,807   53,661 
        
Insurance premiums, net 45,327   40,331   172,931   163,327 
Net investment income 2,438   2,116   9,549   8,496 
Realized investment gains, net 4,357   6,350   5,154   9,168 
Unrealized losses on equity securities, net (2,947)  -   (2,194)  - 
Other income 25   28   113   123 
        
Total revenue   49,200      48,825      185,553      181,114  
        
Insurance benefits and losses incurred       
Life and health 23,887   21,462   93,821   83,029 
Property and casualty 10,285   8,607   38,829   34,486 
Commissions and underwriting expenses 10,586   11,646   39,042   43,446 
Interest expense 540   450   2,037   1,723 
Other expense 3,627   3,773   12,795   13,074 
        
Total benefits and expenses 48,925   45,938   186,524   175,758 
        
Income (loss) before income taxes 275   2,887   (971)  5,356 
Income tax expense (benefit) 74   345   (267)  828 
        
Net income (loss)$   201   $   2,542   $   (704) $   4,528  
        
Earnings (loss) per common share (basic and diluted)$   0.01   $   0.12   $   (0.05) $   0.20  
        
Reconciliation of Non-GAAP Financial Measure       
        
Net income (loss)$201  $2,542  $(704) $4,528 
Income tax expense (benefit) 74   345   (267)  828 
Realized investment gains, net (4,357)  (6,350)  (5,154)  (9,168)
Unrealized losses on equity securities, net 2,947   -   2,194   - 
        
Non-GAAP operating loss$   (1,135) $   (3,463) $   (3,931) $   (3,812)
     
 December 31, December 31, 
Selected Balance Sheet Data2018 2017 
     
Total cash and investments$254,559  $272,058  
Insurance subsidiaries 235,796   244,754  
Parent and other 18,763   27,304  
Total assets 344,274   343,239  
Insurance reserves and policyholder funds 189,048   173,583  
Debt 33,738   33,738  
Total shareholders' equity 101,372   112,983  
Book value per common share 4.75   5.26  
Statutory capital and surplus    
Life and health 34,214   34,135  
Property and casualty 43,467   43,348  
   

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