AAME Atlantic American Corporation

Atlantic American Corporation (Nasdaq- AAME) today reported net income of $2.8 million, or $0.13 per common share, in the first quarter of 2022 compared to net loss of $0.4 million, or $0.03 per common share, in the first quarter of 2021.   Premium revenue for the three month period ended March 31, 2022 increased $1.0 million, or 2.2%, to $47.1 million from $46.1 million in the three month period ended March 31, 2021.

Operating income (as defined below) increased to $1.6 million in the three month period ended March 31, 2022 compared to operating loss of $1.4 million in the three month period ended March 31, 2021. The increase in operating income was primarily due to more favorable loss experience in the Company’s life and health operations.

Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “Our first quarter is typically the most challenging and we are quite pleased with our bottom line results. Both the property and casualty and life and health operations turned in respectable operating income numbers for the quarter.   Additionally, the momentum in our Company’s voluntary benefits division continues to build and we are beginning to see significant premium growth in the group lines of coverage. We believe that with the continued efforts and focus of our people, we are well positioned for success in our future quarters.”   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). We define operating income (loss) as net income (loss) excluding: (i) income tax expense (benefit); (ii) realized investment (gains) losses, 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, 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 those 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 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
	March 31,
(Unaudited; In thousands, except per share data)		2022				2021
Insurance premiums
Life and health	$	29,738			$	29,475
Property and casualty		17,343				16,615
Insurance premiums, net		47,081				46,090
Net investment income		2,340				2,113
Realized investment gains (losses), net		(10	)			121
Unrealized gains on equity securities, net		2,193				744
Other income		4				7
Total revenue		51,608				49,075
Insurance benefits and losses incurred
Life and health		20,691				21,523
Property and casualty		10,478				11,749
Commissions and underwriting expenses		12,836				12,564
Interest expense		354				346
Other expense		3,453				3,440
Total benefits and expenses		47,812				49,622
Income (loss) before income taxes		3,796				(547	)
Income tax expense (benefit)		954				(116	)
Net income (loss)	$	2,842			$	(431	)
Earnings (loss) per common share (basic & diluted)	$	0.13			$	(0.03	)
Reconciliation of Non-GAAP Financial Measure
Net income (loss)	$	2,842			$	(431	)
Income tax expense (benefit)		954				(116	)
Realized investment (gains) losses, net		10				(121	)
Unrealized gains on equity securities, net		(2,193	)			(744	)
Non-GAAP operating income (loss)	$	1,613			$	(1,412	)
	March 31,				December 31,
Selected Balance Sheet Data		2022				2021
Total cash and investments	$	280,476			$	308,195
Insurance subsidiaries		275,528				302,302
Parent and other		4,948				5,893
Total assets		375,031				402,286
Insurance reserves and policyholder funds		191,571				201,797
Debt		33,738				33,738
Total shareholders' equity		126,423				141,286
Book value per common share		5.93				6.66
Statutory capital and surplus
Life and health		38,513				38,625
Property and casualty		53,378				52,724