UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date of report (Date of earliest event reported)
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April 1, 2019
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ATLANTIC AMERICAN CORPORATION
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(Exact name of registrant as specified in its charter)
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Georgia
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0-3722
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58-1027114
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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4370 Peachtree Road, N.E., Atlanta, Georgia
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30319
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code
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(404) 266-5500
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N/A
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. |
Results of Operations and Financial Condition
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On April 1, 2019, Atlantic American Corporation (the “Registrant”) reported its results of operations for its fourth quarter and year ended December 31,
2018. A copy of the press release issued by the Registrant concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
| Item 9.01. |
Financial Statements and Exhibits
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| (d) |
Exhibits
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| 99.1 |
Press release dated April 1, 2019, reporting the results of operations of the Registrant for its fourth quarter and year ended December 31, 2018.
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The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the Registrant, whether made
before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this report, including the exhibit hereto, shall not be deemed
to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section or Sections 11 or 12(a)(2) of the Securities Act of 1933.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, hereunto duly authorized.
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ATLANTIC AMERICAN CORPORATION
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By:
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/s/ J. Ross Franklin
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J. Ross Franklin
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Vice President, Chief Financial Officer and Secretary
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Date: April 1, 2019
Exhibit 99.1
ATLANTIC AMERICAN CORPORATION REPORTS
FOURTH QUARTER AND YEAR END RESULTS FOR 2018;
DECLARES ANNUAL DIVIDEND
ATLANTA, Georgia, April 1, 2019 - Atlantic American Corporation (Nasdaq- AAME) today reported its results for the fourth quarter and year ended December
31, 2018. For the fourth quarter ended December 31, 2018, the Company reported net income of $0.2 million, or $0.01 per diluted share, down from $2.5 million, or $0.12 per diluted share, in the fourth quarter of 2017. The decrease in net income
was primarily attributable to an increase in unrealized losses on equity securities recognized in net income of $2.9 million and a decrease in realized investment gains of $2.0 million, partially offset by improvements in underwriting results.
Premiums for the fourth quarter of 2018 increased 12.4% to $45.3 million compared to $40.3 million for the fourth quarter of 2017, as premiums in the life and health operations and property and casualty operations increased 14.4% and 8.3%,
respectively, as compared to 2017.
For the year ended December 31, 2018, the Company reported a net loss of $0.7 million, or $0.05 per diluted share, as compared to net income of $4.5
million, or $0.20 per diluted share, for the year ended December 31, 2017. The decrease was primarily attributable to a decline in realized investment gains of $4.0 million coupled with $2.2 million in unrealized losses on equity securities
recognized in net income. Total premiums during 2018 increased 5.9% to $172.9 million from $163.3 million in 2017, as premiums in the life and health operations increased 8.6% in 2018 as compared to 2017.
Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We are pleased with the year over year growth
in premium revenues in each of our insurance subsidiaries and remain focused on refining processes and improving profitability. Rate increases implemented in our life and health operations are beginning to take hold and we are pleased to report
the renewal of a significant multi-year state contract with our property and casualty operations, which also included a rate increase. While prudent pricing practices are key to profitability, the Company has embarked on a number of initiatives to
enhance underwriting, better educate our agents, and improve the policyholder experience. We remain confident in the long-term viability of our strategy and in our commitment to deliver value to our shareholders. Accordingly, the Board of
Directors recently approved the Company’s 8th annual dividend, which is payable on April 24, 2019 to shareholders of record on April 10, 2019.”
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 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.
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For further information contact:
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J. Ross Franklin
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Hilton H. Howell, Jr.
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Chief Financial Officer
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Chairman, President & CEO
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Atlantic American Corporation
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Atlantic American Corporation
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404-266-5580
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404-266-5505
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Atlantic American Corporation
Financial Data
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Three Months Ended
December 31,
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Year ended
December 31,
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(Unaudited; In thousands, except per share data)
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2018
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2017
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2018
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2017
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Insurance premiums
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Life and health
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Gross earned premiums
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$
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47,425
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$
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39,749
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$
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180,583
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$
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142,251
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Ceded premiums
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(16,606
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)
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(12,811
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)
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(61,459
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)
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(32,585
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)
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Net earned premiums
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30,819
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26,938
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119,124
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109,666
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Property and casualty
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Gross earned premiums
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15,914
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14,589
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58,882
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58,449
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Ceded premiums
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(1,406
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)
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(1,196
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)
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(5,075
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)
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(4,788
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)
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Net earned premiums
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14,508
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13,393
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53,807
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53,661
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Insurance premiums, net
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45,327
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40,331
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172,931
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163,327
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Net investment income
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2,438
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2,116
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9,549
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8,496
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Realized investment gains, net
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4,357
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6,350
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5,154
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9,168
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Unrealized losses on equity securities, net
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(2,947
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)
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-
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(2,194
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)
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-
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Other income
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25
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28
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113
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123
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Total revenue
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49,200
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48,825
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185,553
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181,114
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Insurance benefits and losses incurred
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Life and health
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23,887
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21,462
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93,821
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83,029
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Property and casualty
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10,285
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8,607
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38,829
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34,486
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Commissions and underwriting expenses
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10,586
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11,646
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39,042
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43,446
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Interest expense
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540
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450
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2,037
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1,723
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Other expense
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3,627
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3,773
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12,795
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13,074
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Total benefits and expenses
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48,925
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45,938
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186,524
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175,758
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Income (loss) before income taxes
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275
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2,887
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(971
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)
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5,356
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Income tax expense (benefit)
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74
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345
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(267
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)
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828
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Net income (loss)
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$
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201
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$
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2,542
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$
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(704
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)
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$
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4,528
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Earnings (loss) per common share (basic and diluted)
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$
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0.01
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$
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0.12
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$
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(0.05
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)
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$
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0.20
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Reconciliation of Non-GAAP Financial Measure
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||||||||||||||||
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Net income (loss)
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$
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201
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$
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2,542
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$
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(704
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)
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$
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4,528
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|||||||
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Income tax expense (benefit)
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74
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345
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(267
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)
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828
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Realized investment gains, net
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(4,357
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)
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(6,350
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)
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(5,154
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)
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(9,168
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)
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Unrealized losses on equity securities, net
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2,947
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-
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2,194
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-
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Non-GAAP operating loss
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$
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(1,135
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)
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$
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(3,463
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)
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$
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(3,931
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)
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$
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(3,812
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)
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Selected Balance Sheet Data
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December 31,
2018
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December 31,
2017
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Total cash and investments
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$
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254,559
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$
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272,058
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Insurance subsidiaries
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235,796
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244,754
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Parent and other
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18,763
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27,304
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Total assets
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344,274
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343,239
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Insurance reserves and policyholder funds
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189,048
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173,583
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Debt
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33,738
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33,738
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Total shareholders' equity
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101,372
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112,983
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Book value per common share
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4.75
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5.26
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Statutory capital and surplus
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||||||||
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Life and health
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34,214
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34,135
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Property and casualty
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43,467
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43,348
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