Atlantic American Corporation announces its second quarter

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ATLANTA, Aug. 10, 2021 (GLOBE NEWSWIRE) – Atlantic American Corporation (Nasdaq-AAME) today reported net income for the three-month period ended June 30, 2021 of $ 3.0 million, or 0 , $ 14 per diluted share, compared to net earnings of $ 6.5 million, or $ 0.30 per diluted share, for the comparable period in 2020. For the six-month period ended June 30, 2021, the Company reported net income of $ 2.5 million, or $ 0.11 per diluted share, compared to net loss of $ 1.6 million, or $ 0.09 per diluted share, for the comparable period of 2020. The decrease in net income in the second quarter of 2021 is primarily due to a $ 4.5 million increase in life and health insurance benefits and losses incurred. This increase was largely the result of higher use of policy benefits compared to the unusually low levels recorded in 2020 during the COVID-19 restrictions in place imposed on our policyholders. The increase in net income for the six-month period ended June 30, 2021 is mainly attributable to $ 4.7 million of unrealized net gains on equity securities, compared to $ 7.1 million of unrealized losses on equity securities during the comparable period in 2020. Changes in unrealized gains and losses on equity securities for the applicable periods result primarily from fluctuations in the market value of the Company’s equity investments.

Operating profit (as defined below) decreased by $ 7.2 million during the three-month period ended June 30, 2021 compared to the three-month period ended June 30, 2020. For For the six-month period ended June 30, 2021, operating income decreased by $ 6.6 million compared to the period in 2020. The decrease in operating income for the three and six month periods is mainly due a less favorable loss experience in life and health operations, resulting from a significant increase in the number of claims incurred within the Medicare supplements business line, as mentioned above.

Commenting on the results, Hilton H. Howell, Jr., Chairman, President and CEO, said, “We are extremely pleased with the new premium growth this year in our P&C business. Despite the challenges faced over the past year related to the COVID-19 pandemic, this business has thrived extremely well. We continue to refine our Medicare supplements business underwriting and have made targeted investments in life and health operations to better meet the needs of our customers. The second half of the year is when the majority of listing periods begin in both the individual and group markets, which we believe are well positioned to serve. We expect a good end for the rest of this year. “

Atlantic American Corporation is an insurance holding company active, through its subsidiaries, in the specialty markets of the life, health and P&C insurance sectors. Its main 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 generally accepted accounting principles (GAAP) in the United States. However, from time to time, the Company may present, in its public statements, press releases and documents filed with the Securities and Exchange Commission, non-GAAP financial measures such as operating profit (loss). Management believes that operating profit (loss) is a useful measure for investors, potential investors, securities analysts and others, as it isolates the “core” operating results of the company prior to consider certain items that are beyond management’s control (such as income tax which is subject to schedule, regulatory and tariff changes depending on the schedule of associated income and expenses) or should not have to ” regular impact on the Company’s operating results (such as realized and unrealized investment gains (losses), which are not part of the Company’s core business and are, to a limited extent, subject to the discretion in terms of implementation schedule). The accompanying financial data includes a reconciliation of operating profit (loss) and net profit (loss), the most comparable GAAP financial measure. The Company’s definition of operating profit (loss) may differ from the financial measures of the same name used by others. This non-GAAP financial measure should be viewed as a supplement and not a substitute for financial information prepared in accordance with GAAP.

Note regarding the Private Securities Litigation Reform Act: With the exception of historical information contained in this document, this press release contains forward-looking statements which involve a number of risks and uncertainties. Actual results could differ materially from those indicated by these forward-looking statements due to a number of factors and risks detailed from time to time in the statements and reports that the Atlantic American Corporation files with the Securities and Exchange Commission.

For more information contact:
J. Ross Franklin Hilton H. Howell, Jr.
Financial director President, President and Chief Executive Officer
Atlantic American Society Atlantic American Society
404-266-5580 404-266-5505

Atlantic American Society
Financial datas

Three months ended Six months ended
June 30th June 30th
(Unaudited; in thousands, except per share data) 2021 2020 2021 2020
Insurance premiums
life and health $ 28,771 $ 30,675 $ 58,246 $ 61,303
Property and damage 16,362 15 824 32 977 30,746
Insurance premiums, net 45 133 46,499 91 223 92,049
Net investment income 2 266 1,850 4.379 3 889
Realized investment gains, net 50 171 249
Unrealized gains (losses) on equity securities, net 4,003 1,355 4 747 (7,100 )
Other income 5 33 12 60
Total income 51 457 49,737 100,532 89 147
Insurance benefits and losses incurred
life and health 21 546 17 055 43,069 41 104
Property and damage 10,157 10,021 21,906 19 555
Subscription fees and commissions 12,179 10 854 24,743 23,480
Interest charges 347 414 693 890
Other expenses 3,474 3 112 6,914 6,064
Total benefits and expenses 47,703 41,456 97,325 91,093
Profit (loss) before income taxes 3 754 8 281 3 207 (1,946 )
Tax expense (benefit) 792 1,749 676 (391 )
Net income (loss) $ 2 962 $ 6,532 $ 2,531 $ (1,555 )
Earnings (loss) per common share (basic) $ 0.14 $ 0.31 $ 0.11 $ (0.09 )
Earnings (loss) per common share (diluted) $ 0.14 $ 0.30 $ 0.11 $ (0.09 )
Reconciliation of non-GAAP financial measures
Net income (loss) $ 2 962 $ 6,532 $ 2,531 $ (1,555 )
Tax expense (benefit) 792 1,749 676 (391 )
Realized investment gains, net (50 ) (171 ) (249 )
Unrealized losses (gains) on equity securities, net (4,003 ) (1,355 ) (4,747 ) 7,100
Non-GAAP operating profit (loss) $ (299 ) $ 6,926 $ (1,711 ) $ 4,905
June 30th The 31st of December,
Selected balance sheet data 2021 2020
Total cash and investments $ 295,556 $ 298 630
Insurance subsidiaries 290 189 292,478
Parent and other 5 367 6,152
Total assets 404 486 405 187
Insurance reserves and insureds’ funds 205 873 198 676
Debt 33,738 33,738
Total equity 142,375 145,060
Book value per common share 6.71 6.84
Statutory capital and surplus
life and health 41 690 42,326
Property and damage 50 017 50 194


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