SIGNATURES THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
ATLANTIC AMERICAN CORPORATION 401(K) RETIREMENT SAVINGS PLAN The following exhibits are filed herewith: Exhibit 1: Financial Statements and Supplemental Information for the years ended December 31, 2007 and 2006 together with Report of Independent Registered Public Accounting Firm. Exhibit 2: Consent of Gifford , Hillegass & Ingwersen, LLP, Independent Registered Public Accounting Firm.
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report for the Atlantic American Corporation
401(k) Retirement Savings Plan (the "Plan") on Form 11-K for the period ended
December 31, 2007 as filed with the Securities and Exchange Commission on the
date hereof (the "Report"), I, John G. Sample, Jr., on behalf of Atlantic
American Corporation, as Senior Vice President & CFO, certify, pursuant to 18
U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002, that:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material
respects, the net assets available for the benefits and changes in net assets
available for benefits of the Plan.
/s/ John G. Sample, Jr.
John G. Sample, Jr.
Senior Vice President & CFO for Atlantic American Corporation
Exhibit 1
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS
AND
SUPPLEMENTAL SCHEDULE
For the Years Ended December 31, 2007 and 2006
with
Report of Independent Registered Public Accounting Firm
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
TABLE OF CONTENTS
December 31, 2007 AND 2006
- --------------------------------------------------------------------------------
Report of Independent Registered Public Accounting Firm........................1
Statements of Net Assets Available for Benefits................................2
Statement of Changes in Net Assets Available for Benefits......................3
Notes to Financial Statements..................................................4
Supplemental Schedule:
Schedule H, Line 4i: Schedule of Assets (Held at End of Year)...........14
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Plan Administrator and Plan Participants Atlantic American Corporation
401(k) Retirement Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of the Atlantic American Corporation 401(k) Retirement Savings Plan as of
December 31, 2007 and 2006, and the related statement of changes in net assets
available for benefits for the year ended December 31, 2007. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform an
audit of the Plan's internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Plan's
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Atlantic
American Corporation 401(k) Retirement Savings Plan as of December 31, 2007 and
2006, and the changes in net assets available for benefits for the year ended
December 31, 2007, in conformity with accounting principles generally accepted
in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information listed in
the index is presented for the purpose of additional analysis and is not a
required part of the basic financial statements but is supplementary information
required by the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974. The
supplemental information is the responsibility of the Plan's management. The
supplemental information has been subjected to the auditing procedures applied
in the audits of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
GIFFORD, HILLEGASS & INGWERSEN, LLP
June 19, 2008
Atlanta, Georgia
1
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 2007 and 2006
- --------------------------------------------------------------------------------
2007 2006
------------------ ------------------
Investments, at fair value (Note 3)
Common/collective trusts $ 1,418,329 $ 2,430,200
Employer securities 644,605 1,310,348
Registered investment companies 10,033,157 8,043,319
Participant loans 69,535 140,649
----------------- ------------------
TOTAL INVESTMENTS 12,165,626 11,924,516
Employer contribution receivable -0- 18,443
----------------- ------------------
NET ASSETS AVAILABLE
FOR BENEFITS $ 12,165,626 $ 11,942,959
================== =================
The accompanying notes are an integral part of these financial statements.
2
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
December 31, 2007
- --------------------------------------------------------------------------------
Additions to Net Assets
Contributions:
Participants $ 812,713
Company 489,743
Rollover 20,442
-----------------
TOTAL CONTRIBUTIONS 1,322,898
Interest and dividend income 422,781
Net depreciation in fair market value of investments (Note 3) (164,412)
-----------------
TOTAL ADDITIONS TO NET ASSETS 1,581,267
Deductions from Net Assets
Benefit payments to participants 1,351,693
Fees 6,907
-----------------
TOTAL DEDUCTIONS 1,358,600
-----------------
Net Increase 222,667
Net Assets Available for Benefits at Beginning of Year 11,942,959
-----------------
Net Assets Available for Benefits at End of Year $ 12,165,626
=================
The accompanying notes are an integral part of these financial statements.
3
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 and 2006
NOTE 1-DESCRIPTION OF THE PLAN
The following description of the Atlantic American Corporation 401(k) Retirement
Savings Plan (the "Plan") provides only general information. Participating
members ("Participants") should refer to the Plan document for a more complete
description of the Plan's provisions. Information with regard to eligibility,
contributions, distributions, vesting, withdrawals, restoration, loans, fund
redistribution, and definitions of all terms are contained in that document.
General: The Plan is a defined contribution plan available to all U.S. employees
of Atlantic American Corporation (the "Company"). All employees of the Company,
except collective bargaining employees, nonresident aliens, and leased employees
are eligible to participate and are automatically enrolled, effective on the
date of employment. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 ("ERISA"), as amended.
Plan Administration: As of December 3, 2007, Wachovia Bank, National Association
(the "Trustee") became the Trustee of the Plan and has custodial responsibility
for the Plan's assets, including the authority and power to, among other things,
invest the principal and income of the Plan's assets. Prior thereto, the Trustee
of the Plan was Merrill Lynch Trust Company FSB.
Contributions: Eligible employees automatically become a participant and are
enrolled into the Plan at a 3% deferral rate on their date of hire. At any time,
a participant may stop his or her contribution or change his or her deferral
percentage in 1% increments up to 50% of his or her annual compensation, as
defined by the Plan, subject to certain limitations under the Internal Revenue
Code (the "Code"), and elect to contribute into any of the investment funds
offered by the Plan. Participant pre-tax limitations were limited to $15,500 for
2007 and $15,000 for 2006.
Participants may also contribute amounts representing distributions from other
qualified benefit plans. These contributions are classified as rollover
contributions in the statement of changes in net assets available for benefits.
Participants who have attained age 50 before the end of the Plan year are
eligible to make catch-up contributions to the Plan. The maximum individual
catch-up contribution amount for both 2007 and 2006 was $5,000.
The Company provides a matching contribution equal to a certain percentage of
each participant's contributions. For the years ended December 31, 2007 and
2006, the Company's matching contribution equaled 50% of each participant's tax
deferred contribution up to 6% of eligible compensation. All Company matching
contributions are in Company common stock. The Company may also elect to make
additional discretionary matching and/or profit sharing contributions. The
Company made a special profit sharing contribution of $242,262 during 2007.
4
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 and 2006
NOTE 1--DESCRIPTION OF THE PLAN--Continued
Vesting: Participants are always fully vested in their own contributions. Each
participant becomes vested in the Company contributions based on years of
continuous service. The vesting percentage for the Company matching
contributions are as follows:
Years of service:
Less than one 0%
One 20%
Two 40%
Three 60%
Four 80%
Five 100%
In addition, participants become fully vested upon retirement, death, or
disability.
Benefits: Upon termination of service due to death, disability, retirement, or
separation from service, a participant or his or her beneficiary with a vested
balance greater than $5,000 may elect to receive an amount equal to the value of
the participant's vested interest in his or her account. The form of payment,
selected by the participant or his or her beneficiary, is either a lump-sum
distribution, an annuity to be paid in monthly installments over a fixed number
of years, or a direct rollover into a qualified retirement plan or individual
retirement account. Terminated participants with a vested balance less than
$5,000 will be automatically distributed after termination.
Participant Accounts: Individual accounts are maintained for each of the Plan's
participants and reflect the participant's contributions, employer
contributions, and the participant's share of the Plan's investment income
(loss). Allocations of income (loss) are based on the proportion that each
participant's account balance bears to the total of all participant account
balances and their investment elections.
Investment Options: Participants may direct their contributions and any related
earnings into several investment options in 1% increments. Participants may
change their investment elections at any time. The participants in the Plan can
invest in any of the following investment options:
Atlantic American Stable Value Fund - seeks to provide rates of return
greater than three-month Treasury bills while maintaining a relatively
stable principal value.
Core Bond Fund - seeks to maximize total return through a combination of
current income and capital growth. The fund normally invests at least 80%
of assets in U.S. dollar-denominated investment grade debt securities,
including debt securities issued
5
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 and 2006
NOTE 1--DESCRIPTION OF THE PLAN--Continued
or guaranteed by the U.S. Treasury or by an agency or instrumentality of
the U.S. government, corporate bonds, mortgage-backed securities,
asset-backed securities, and other income producing securities. It intends
to limit duration to a two-year minimum and a six-year maximum while the
dollar-average weighted maturity is expected to be longer than the average
duration.
Fidelity Puritan Fund - seeks income and capital growth consistent with
reasonable risk. The fund invests 60% of assets in stocks and other equity
securities and the remainder in bonds and other debt securities, including
lower-quality debt securities, when its outlook is neutral. It invests at
least 25% of total assets in fixed-income senior securities (including debt
securities and preferred stock). The fund also invests in domestic and
foreign issuers and in Fidelity's central funds.
AllianceBernstein Retirement Strategy Funds - seek the highest total return
over time consistent with asset mix. The funds invest in a combination of
portfolios of the AllianceBernstein pooling portfolios representing a
variety of asset classes and investment styles. The asset mix becomes more
conservative each year until reaching the year approximately fifteen years
after the target year, at which time the asset allocation mix will become
static. The static allocation of the asset mix is 27.5% short- duration
bonds, 37.5% fixed-income securities and 35% equities.
Allianz NFJ Dividend Value Fund - seeks to provide long-term growth of
capital and income. The fund normally invests at least 80% of net assets in
equity securities that pay or are expected to pay dividends. The fund
invests a significant portion of assets in common stocks of companies with
market capitalizations greater than $2 billion. It may also invest a
portion of assets in non-U.S. securities, including emerging market
securities.
Enhanced Stock Market Fund of Wachovia - seeks to provide a total rate of
return equal to or exceeding that of the S&P 500 market index.
T. Rowe Price Blue Chip Growth Fund - seeks long-term growth of capital;
income is secondary. The fund will normally invest at least 80% of assets
in the common stocks of large and medium-sized blue chip growth companies.
These are firms that are well established in their industries and have the
potential for above-average earnings growth. It focuses on companies with
leading market position, seasoned management and strong financial
fundamentals. While the fund invests most assets in U.S. common stocks, it
may also purchase other securities including foreign stocks, futures and
options.
6
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 and 2006
NOTE 1--DESCRIPTION OF THE PLAN--Continued
Columbia Mid Cap Value Fund - seeks to provide long-term growth of capital.
The fund normally invests at least 80% of assets in equity securities of
U.S. companies whose market capitalizations are within the range of the
companies within the Russell MidCap Value Index and that are believed to
have the potential for long-term growth of capital.
Vanguard Midcap Index Fund - seeks to trace the performance of a benchmark
index that measures the investment return of mid-capitalization stocks. The
fund employs a passive management investment approach designed to track the
performance of the MSCI US Mid Cap 450 index, a broadly diversified index
of the stocks of medium-size U.S. companies. It attempts to replicate the
target index by investing all, or substantially all, of assets in the
stocks that make up the index, holding each stock in approximately the same
proportion as its weighting in the index.
AIM Dynamics Fund - seeks long-term capital growth. The fund normally
invests at least 65% of assets in equity securities of mid-capitalization
companies. These companies are included in the Russell MidCap Growth Index
at the time of purchase. The fund may also invest in preferred stocks,
convertible securities and bonds.
AllianceBernstein International Value Fund - seeks long-term growth of
capital. The fund invests primarily in a diversified portfolio of equity
securities of established companies selected from more than 40 industries
and more than 40 developed and emerging market countries. It normally
invests in companies in at least three countries other than then United
States. These countries currently include the developed nations in Europe
and the Far East, Canada, Australia and emerging countries worldwide.
Putnam International Capital Opportunities Fund - seeks long-term capital
appreciation. The fund normally invests in common stocks of companies
outside the United States that are believed to have favorable investment
potential. It primarily invests in equities of small-to mid-capitalization
issuers; however, it can invest in companies of any size. The fund may also
invest in securities issued in both developed and emerging markets.
Oppenheimer Global Opportunities Fund - seeks capital appreciation,
consistent with preservation of principal, while providing current income.
The fund may invest in equities and fixed-income securities. It may invest
without limit in foreign securities and normally maintains investments in
at least three foreign countries. The fund may invest up to 25% of assets
in bonds rated below investment-grade. It may invest up to 10% of assets in
warrants or rights.
7
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 and 2006
NOTE 1-DESCRIPTION OF THE PLAN-Continued
Columbia Small Cap Value Fund - seeks long-term growth of capital. The fund
normally invests at least 80% of assets in equity securities of U.S.
companies in the range as the Russell 2000 value index and that are
believed to be undervalued and have the potential for long-term growth of
capital. It may invest up to 20% of total assets in foreign securities.
Vanguard Small Cap Index Fund - seeks to track the performance of a
benchmark index that measures the investment return of small capitalization
stocks. The fund employs a passive management investment approach designed
to track the performance of the MSCI US Small Cap 1750 index, a broadly
diversified index of the stocks of smaller U.S. companies. It attempts to
replicate the target index by investing all, or substantially all, of
assets in the stocks that make up the index, holding each stock in
approximately the same proportion as its weighting in the index.
Baron Growth Fund - seeks capital appreciation. The fund invests primarily
in common stocks of smaller growth companies selected for their capital
appreciation potential. It considers a small sized company as one having a
market value of under $2.5 billion at the time of purchase. The management
seeks to purchase securities that are expected to increase in value 100% in
four years and then double again in the following four or five years.
Atlantic American Corporation Common Stock Fund - is comprised of Atlantic
American common stock and a small percentage of cash to allow for daily
transfers in and out of the Fund. Fund performance will differ from the
actual performance of Atlantic American common stock because of the cash
held in the Fund for liquidity purposes.
Forfeitures: Amounts forfeited from non-vested accounts are used to reduce
future employer contributions. Forfeitures of $25,461 were used in 2007 to
reduce employer contributions. At December 31, 2007, $41,697 was available to be
used in the future.
Participant Loans: Participants may borrow from their fund accounts a minimum of
$1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested
account balance. Participants may elect to have their loans disbursed from
specific investment funds. Loan terms range from six months to five years or
within a reasonable time if used for the purchase of a primary residence. The
loans are secured by the vested value of the participants' account balances and
bear interest at the prime rate of interest on the date of the loan plus 1%.
Principal and interest are paid ratably through payroll deductions.
8
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 and 2006
NOTE 1-DESCRIPTION OF THE PLAN-Continued
Specified Hardship Withdrawals: Upon written application by a participant for a
specified hardship withdrawal and approval by the plan administrator, the
participant may withdraw from his or her fund accounts. Such withdrawal may be
made only upon the express determination that it is necessary to prevent a
severe financial hardship to such participant and specific to the following
events: expenses for medical care; costs directly related to the purchase of a
principal residence; payment of tuition and related educational fees; and to
prevent eviction from a principal residence or foreclosure on the mortgage of a
principle residence. A participant who has made a specified hardship withdrawal
may include any amounts necessary to pay and federal, state or local income
taxes or penalties reasonably anticipated to result from the distribution; shall
make no more than one withdrawal during any calendar quarter; and shall incur a
mandatory suspension of all contributions for twelve months after such
withdrawal.
Administrative Expenses: The Company pays certain administrative expenses of the
Plan. Trustee fees are paid by the Plan. Fees resulting from individual
participant transactions, such as loan origination and benefit payments, or
certain investment elections, are paid by the participant and are included in
the fee amount on the statement of changes in net assets available for benefits.
NOTE 2-ACCOUNTING POLICIES
Use of Estimates and Basis of Accounting: The preparation of financial
statements in conformity with generally accepted accounting principles requires
management to make estimates that affect the financial statements and
accompanying notes. Actual results could differ from those estimates.
As described in Financial Accounting Standards Board Staff Position (FSP) AAG
INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts
Held by Certain Investment Companies Subject to the AICPA Investment Company
Guide and Defined-Contribution Health and Welfare and Pension Plans (the FSP),
investment contracts held by a defined contribution plan are required to be
reported at fair value. However, contract value is the relevant measurement
attribute for that portion of the net assets available for benefits of a defined
contribution plan attributable to fully benefit-responsive investment contracts
because contract value is the amount participants would receive if they were to
initiate permitted transactions under the terms of the plan. The plan invests in
investment contracts through a collective trust. The fair value of the
collective trusts approximates contract value as of December 31, 2007 and 2006.
9
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 and 2006
NOTE 2-ACCOUNTING POLICIES-Continued
Investment Valuation and Income Recognition: The plan's investments are stated
at fair value. Quoted market prices are used to value investments. Shares of
registered investment companies are valued at the net asset value of shares held
by the plan at year-end. Participant loans are valued at their outstanding
balances, which approximate fair value. The plan's interest in the
common/collective trusts is valued based on information reported by the
investment advisor using the audited financial statements of the trusts at
year-end.
Purchases and sales of securities are recorded on a trade date basis. Dividends
are recorded on the ex-dividend date. Interest income is recorded on an accrual
basis.
Investment securities, in general, are exposed to various risks, including
interest rate, credit, and overall market volatility risks. Due to the level of
risk associated with certain investment securities, it is reasonably possible
that changes in the values of investment securities will occur in the near term,
and such changes could materially affect the amounts reported in the statements
of net assets available for benefits.
New Accounting Pronouncements: In September 2006, the FASB issued Statement on
Financial Accounting Standards No. 157 (SFAS 157), Fair Value Measurements. SFAS
157 establishes a single authoritative definition of fair value, sets out a
framework for measuring fair value and requires additional disclosures about
fair value measurement. SFAS 157 is effective for financial statements issued
for fiscal years beginning after November 15, 2007. The Company does not believe
the adoption of SFAS 157 will have a material impact on the financial
statements.
Net Appreciation (Depreciation): Net realized gains (losses) and unrealized
appreciation (depreciation) are recorded in the accompanying statement of
changes in net assets available for benefits as net appreciation (depreciation)
in fair market value of investments.
Payment of Benefits: Distributions to participants are recorded when payment is
made.
10
ATLANTIC AMERICAN CORPORATION
401(k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 and 2006
NOTE 3-INVESTMENTS
The fair market values of individual investments that represent 5% or more of
the Plan's net assets as of December 31, 2007 and 2006 are as follows:
ATLANTIC AMERICAN CORPORATION 401(k) RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS December 31, 2007 and 2006 NOTE 4-NONPARTICIPANT-DIRECTED INVESTMENTS Information about the net assets as of December 31, 2007 and 2006 and the significant components of the change in net assets for the years then ended relating to the Company's common stock (nonparticipant-directed investments) is as follows:
ATLANTIC AMERICAN CORPORATION 401(k) RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS December 31, 2007 and 2006 NOTE 7-PARTY-IN-INTEREST TRANSACTIONS The Plan held 409,309 and 442,685 shares of Atlantic American Corporation (the Plan Sponsor) as of December 31, 2007 and 2006 in the Atlantic American Stock Fund. The fund invests in Atlantic American stock and money market funds with a fair value of $644,605 and $1,310,348, respectively. Princeton Retirement Group was the recordkeeper for the Plan through December 3, 2007 and, as such, qualifies as a party-in-interest. Certain plan investments as of December 31, 2006 totaling $2,430,000 were shares of registered investment companies and common/collective trusts managed by Merrill Lynch Trust Company, trustee through December 3, 2007, as defined by the Plan. These transactions qualify as party-in-interest transactions. The Plan paid $6,907 in contract administrative fees to Princeton Retirement Group in 2007. Subsequent to December 3, 2007, Wachovia Bank, National Association was the trustee as defined by the Plan and certain investments totaling $1,418,329 were held by the Plan at December 31, 2007 are managed by Wachovia Bank, National Association. These transactions qualify as party-in-interest transactions. NOTE 8-SUBSEQUENT EVENT In December 2007, Atlantic American Corporation entered into an agreement for the sale of its regional property and casualty operations, comprised of two subsidiaries, the employees of which participate in the Plan: Association Casualty Insurance Company and Association Risk Management General Agency, Inc. (collectively known as Association Casualty) and Georgia Casualty & Surety Company. The sale was completed on March 31, 2008. 13
SUPPLEMENTAL SCHEDULE
ATLANTIC AMERICAN CORPORATION 401(k) RETIREMENT SAVINGS PLAN PLAN NUMBER 001 58-1027114 SCHEDULE H, LINE 4i-SCHEDULE OF ASSETS (HELD AT END OF YEAR) December 31, 2007 - --------------------------------------------------------------------------------
ATLANTIC AMERICAN CORPORATION 401(k) RETIREMENT SAVINGS PLAN PLAN NUMBER 001 58-1027114 SCHEDULE H, LINE 4i-SCHEDULE OF ASSETS (HELD AT END OF YEAR) - CONTINUED December 31, 2007 - --------------------------------------------------------------------------------
Exhibit 2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 33-90890) pertaining to the Atlantic American Corporation 401(k)
Retirement Savings Plan of our report dated June 19, 2008, with respect to the
financial statements and schedule of Atlantic American Corporation 401(k)
Retirement Savings Plan included in this Annual Report (Form 11-K) for the year
ended December 31, 2007.
GIFFORD, HILLEGASS & INGWERSEN, LLP
Atlanta, Georgia
June 19, 2008
16