AAME - Atlantic American Corporation Reports First Quarter Results for 2019

ATLANTA, May 13, 2019 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income of $4.2 million in the first quarter of 2019 compared to a net loss of $5.0 million in the first quarter of 2018.  The increase in net income is primarily the result of unrealized gains on equity securities of $6.5 million in the current quarter compared to unrealized losses on equity securities of $4.4 million in the prior year quarter.  Excluding the effects of realized or unrealized gains or losses and taxes, operating loss (as defined below) increased to $2.6 million in the current year quarter from $2.3 million in the prior year quarter, primarily as a result of unfavorable loss experience in the Medicare supplement line of business in the Company’s life and health operations.  Total insurance premiums increased 6.1% to $44.8 million in the current year quarter compared to $42.2 million in the prior year quarter, with increases in insurance premiums reported in both the Company’s life and health and property and casualty operations. 

Commenting on the quarterly results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “Our property and casualty operations continue to perform exceptionally well and they are on track for another year of premium growth.  While the first quarter is typically the most challenging in the life and health operations due to early season Medicare supplement Part B deductible reimbursements, we trust the performance of that product line will see improvement over the balance of the year.  Additionally, we are delighted to announce two key hires within our life and health executive sales team who collectively bring us over four decades of experience in both the individual and group product portfolio.  We remain optimistic about the future growth and profitability of our companies.”

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 operational results (such as any realized and unrealized investment gains, 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.