• Atlantic American Corporation Reports Second Quarter Results For 2021

    Source: Nasdaq GlobeNewswire / 10 Aug 2021 13:00:38   America/New_York

    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, as compared to net income 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, as compared to net loss of $1.6 million, or $0.09 per diluted share, for the comparable period in 2020. The decrease in net income during the second quarter of 2021 was primarily due to a $4.5 million increase in life and health insurance benefits and losses incurred. Such increase was largely the result of higher utilization of policy benefits as compared to the unusually low levels experienced in 2020 during the COVID-19 shelter in place restrictions imposed on our policyholders. The increase in net income for the six month period ended June 30, 2021 was primarily due to $4.7 million of net unrealized gains on equity securities as 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 are primarily the result of fluctuations in the market values of the Company’s equity investments.

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

    Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are extremely pleased with the new premium growth this year in our property and casualty operations. Despite the challenges faced over the most recent year related to the COVID-19 pandemic, that business has prospered exceedingly well. We continue to refine the underwriting on our Medicare supplement business and have made targeted investments in the life and health operations to better serve the needs of our customers. The second half of the year is when the majority of enrollment periods begin in both the individual and group markets, which we believe we are well positioned to serve. We anticipate a strong finish for the balance of this year.”

    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 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 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 Corporation
    Financial Data

     Three Months Ended Six Months Ended
     June 30, June 30,
    (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 casualty 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 revenue 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 casualty 10,157   10,021   21,906   19,555 
    Commissions and underwriting expenses 12,179   10,854   24,743   23,480 
    Interest expense 347   414   693   890 
    Other expense 3,474   3,112   6,914   6,064 
            
      Total benefits and expenses 47,703   41,456   97,325   91,093 
            
    Income (loss) before income taxes 3,754   8,281   3,207   (1,946)
    Income 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 Measure       
            
    Net income (loss)$2,962  $6,532  $2,531  $(1,555)
    Income tax expense (benefit) 792   1,749   676   (391)
    Realized investment gains, net (50)  -   (171)  (249)
    Unrealized (gains) losses on equity securities, net (4,003)  (1,355)  (4,747)  7,100 
            
    Non-GAAP Operating income (loss)$ (299) $ 6,926  $ (1,711) $ 4,905 


     June 30, December 31,
    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 policyholder funds 205,873   198,676 
    Debt 33,738   33,738 
    Total shareholders' 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 casualty 50,017   50,194 
        

    Primary Logo

Share on,