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Item 2.02.

Results of Operations and Financial Condition

Item 9.01.

Financial Statements and Exhibits

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ATLANTIC AMERICAN CORPORATION REPORTS

FOURTH QUARTER AND YEAR END RESULTS FOR 2019

ATLANTA, Georgia, March 24, 2020 - Atlantic American Corporation (Nasdaq- AAME) today reported its results for the fourth quarter and year ended December 31, 2019.  For the fourth quarter ended December 31, 2019, the Company reported net income of $1.3 million, or $0.06 per diluted share, up from $0.2 million, or $0.01 per diluted share, in the fourth quarter of 2018.  The increase in net income was primarily attributable to an increase in unrealized gains on equity securities recognized in net income of $6.4 million, partially offset by a decrease in realized investment gains of $4.3 million and $0.6 million increase in operating loss.  Premiums for the fourth quarter of 2019 increased 3.0% to $46.7 million compared to $45.3 million for the fourth quarter of 2018, as premiums in the property and casualty operations increased 7.8% while the life and health operations increased slightly, as compared to 2018.

For the year ended December 31, 2019, the Company reported a net loss of $0.4 million, or $0.04 per diluted share, as compared to $0.7 million, or $0.05 per diluted share, for the year ended December 31, 2018.  The decrease in net loss was primarily attributable to an increase in unrealized gains on equity securities recognized in net income of $7.7 million, partially offset by decreases in realized gains of $3.6 million and an increase in operating loss of $3.6 million.  Total premiums during 2019 increased 5.2% to $181.9 million from $172.9 million in 2018, as premiums in the property and casualty operations increased 9.1% while the life and health operations increased 3.5%, as compared to 2018.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We are delighted with the performance of our property and casualty operations, reporting year over year premium growth accompanied by a significant improvement in operating income.  And while profitability in the life and health operations were strained due to prior expansion of our Medicare supplement business, I believe we reached the nadir of this cycle during 2019 and expect a positive trend for 2020 and beyond.”

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.

Atlantic American Corporation

Financial Data

		Three Months Ended December 31,								Year ended December 31,
(Unaudited; In thousands, except per share data)		2019				2018				2019				2018
Insurance premiums
Life and health		$	31,024			$	30,819			$	123,245			$	119,124
Property and casualty			15,645				14,508				58,680				53,807
Insurance premiums, net			46,669				45,327				181,925				172,931
Net investment income			2,145				2,438				8,979				9,549
Realized investment gains, net			9				4,357				1,574				5,154
Unrealized gains (losses) on equity securities, net			3,415				(2,947	)			5,511				(2,194	)
Other income			51				25				190				113
Total revenue			52,289				49,200				198,179				185,553
Insurance benefits and losses incurred
Life and health			23,853				23,887				99,684				93,821
Property and casualty			11,195				10,285				39,541				38,829
Commissions and underwriting expenses			11,482				10,586				45,477				39,042
Interest expense			506				540				2,130				2,037
Other expense			3,612				3,627				11,754				12,795
Total benefits and expenses			50,648				48,925				198,586				186,524
Income (loss) before income taxes			1,641				275				(407	)			(971	)
Income tax expense (benefit)			371				74				(21	)			(267	)
Net income (loss)		$	1,270			$	201			$	(386	)		$	(704	)
Earnings (loss) per common share (basic and diluted)		$	0.06			$	0.01			$	(0.04	)		$	(0.05	)
Reconciliation of Non-GAAP Financial Measure
Net income (loss)		$	1,270			$	201			$	(386	)		$	(704	)
Income tax expense (benefit)			371				74				(21	)			(267	)
Realized investment gains, net			(9	)			(4,357	)			(1,574	)			(5,154	)
Unrealized (gains) losses on equity securities, net			(3,415	)			2,947				(5,511	)			2,194
Non-GAAP Operating loss		$	(1,783	)		$	(1,135	)		$	(7,492	)		$	(3,931	)