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Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2013
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March 24, 2014 at 4:30 PM EDT
Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2013 oNet income of $11.0 million in 2013 up from $4.4 million in 2012 oRealized investment gains, net of $8.7 million in 2013 up from $1.4 million in 2012 oDiluted earnings per share of $0.48 per share in 2013 up from $0.18 per share in 2012 oEarned premiums up 14.9% in 2013 as compared to 2012 ATLANTA, March 24, 2014 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq:AAME) today reported its results for the fourth quarter and year ended December 31, 2013. For the fourth quarter ended December 31, 2013, the Company reported net income of $1.5 million, or $0.06 per diluted share up from $0.9 million, or $0.04 per diluted share in the fourth quarter of 2012.Significantly all of the increase was attributable to realized investment gains.Premiums for the fourth quarter of 2013 increased 18.0% to $37.9 million compared to $32.1 million for the fourth quarter of 2012, as premiums in the property and casualty operations increased by $3.8 million, or 44.1%. Atlantic American reported net income for the year ended December 31, 2013 of $11.0 million, or $0.48 per diluted share, as compared to net income of $4.4 million, or $0.18 per diluted share, for the year ended December 31, 2012. Total premiums during 2013 increased 14.9% to $145.6 million from 2012 premiums of $126.7 million, as premiums in the life and health and property and casualty operations increased 11.8% and 22.4%, respectively, in 2013 as compared to 2012. Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, "We have completed another successful year for our Company with net income of $11.0 million.We experienced significant premium growth during 2013 in both our life and health operations as well as our property and casualty operations which permitted us to continue making investments in not only our worksite product line and our internet and social media initiatives, but also complete an acquisition which should expedite our ability to introduce new products.In addition, a significant portion of our net income was from realized investment gains, as we have been successful in repositioning our investment portfolio to significantly shorten the average maturity.While such action immediately impacts our investment income returns, it better postures us for that future time when interest rates do begin to rise. We continue to be optimistic for the future and again this February, our Board of Directors approved our 3^rd annual dividend of $0.02 per share to shareholders of record on March 27, 2014." 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, 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 Three months ended Year ended December 31, December 31, (Unaudited; In thousands, except per 2013 2012 2013 2012 share data) Insurance premiums Life and health $25,420 $23,458 $99,779 $89,272 Property and casualty 12,433 8,631 45,851 37,471 Investment income 2,596 2,886 10,809 11,504 Realized investment gains, net 326 6 8,741 1,434 Other income 49 41 189 147 Total revenue 40,824 35,022 165,369 139,828 Insurance benefits and losses incurred Life and health 16,561 15,652 70,175 62,480 Property and casualty 8,664 6,109 30,197 27,337 Commissions and underwriting 10,475 8,512 40,556 32,477 expenses Interest expense 441 655 1,898 2,632 Other 3,240 2,542 11,337 9,820 Total benefits and expenses 39,381 33,470 154,163 134,746 Income before income taxes 1,443 1,552 11,206 5,082 Income tax expense (benefit) (17) 638 184 646 Net income $1,460 $914 $11,022 $4,436 Basic earnings per common share $0.06 $0.04 $0.50 $0.19 Diluted earnings per common share $0.06 $0.04 $0.48 $0.18 Reconciliation of Net Income to non-GAAP Measurement Net income $1,460 $914 $11,022 $4,436 Income tax expense (benefit) (17) 638 184 646 Realized investment gains, net (326) (6) (8,741) (1,434) Operating income $1,117 $1,546 $2,465 $3,648 December 31, December 31, Selected Balance Sheet Data 2013 2012 Total cash and investments $262,063 $265,843 Insurance subsidiaries 228,605 236,934 Parent and other 33,458 28,909 Total assets 319,381 320,177 Insurance reserves and policyholder 162,373 154,558 funds Debt 41,238 41,238 Total shareholders' equity 100,927 105,736 Book value per common share 4.47 4.65 Statutory capital and surplus Life and health 34,530 33,059 Property and casualty 39,092 36,947 CONTACT: John G. Sample, Jr. Senior Vice President and Chief Financial Officer Atlantic American Corporation 404-266-5501 Hilton H. Howell, Jr. Chairman, President & CEO Atlantic American Corporation 404-266-5505