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ATLANTIC AMERICAN CORPORATION REPORTS

FOURTH QUARTER AND YEAR END RESULTS FOR 2016

AND DECLARES 2017 ANNUAL DIVIDEND

ATLANTA, Georgia, March 15, 2017 - Atlantic American Corporation (Nasdaq- AAME) today reported its results for the fourth quarter and year ended December 31, 2016.  For the fourth quarter ended December 31, 2016, the Company reported net income of $1.3 million, or $0.06 per diluted share, up from $0.1 million, or nil per diluted share, in the fourth quarter of 2015.  The increase was attributable to an increase in realized investment gains of $1.4 million.  Premiums for the fourth quarter of 2016 decreased 2.9% to $36.5 million compared to $37.5 million for the fourth quarter of 2015 as the Company entered into a reinsurance agreement to moderate statutory capital requirements related to premium growth in the Medicare Supplement line of business.

Net income for the year ended December 31, 2016 was $2.6 million, or $0.11 per diluted share, as compared to $4.4 million, or $0.19 per diluted share, for the year ended December 31, 2015.  Total premiums earned during 2016 increased 1.7% to $153.5 million from $150.9 million in 2015.  Premiums in the property and casualty operations decreased 1.4% in 2016 as compared to 2015; but were offset by a 3.4% premium increase in the life and health operations in the comparable years.  Benefits and losses increased 1.8% in 2016 as compared with 2015; while commissions and underwriting expenses increased 3.6% in the comparable period.  Realized investment gains were $2.6 million in 2016 as compared to $4.9 million in 2015.

Further, the Board of Directors at its recent meeting, declared the Company’s regular annual dividend of $0.02 per share, payable on or about April 24, 2017 to shareholders of record on April 14, 2017.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We have completed another successful year and many of our marketing initiatives, particularly in our life and health operations, have resulted in solid premium growth.  With such premium growth, managing statutory capital becomes very important, and accordingly we also entered into a reinsurance agreement during the 4^th quarter.  Our property and casualty operations also turned in another very profitable year.  We believe that our Company is well postured for continued growth in 2017 and beyond and our Board of Directors has affirmed such belief with their declaration of our annual dividend.”

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 forward-looking statements:  This news release contains forward-looking statements subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements may relate to, among other things, our future strategies, or our expected operating or financial performance.  Forward looking statements are based on management’s assumptions regarding, among other things, general economic and industry-specific business conditions, as well as the execution of our business strategy.  Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks, including those detailed from time to time in statements and reports that Atlantic American Corporation files with the Securities and Exchange Commission.

 

Atlantic American Corporation

Selected Financial Data

 

 

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