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
| Date of Report (Date of earliest event reported): |
August 6, 2010 (August 6, 2010) |
|
ATLANTIC AMERICAN CORPORATION |
|
| (Exact name of registrant as specified in its charter) | |
| Georgia |
0-3722 |
58-1027114 |
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
| 4370 Peachtree Rd., N.E., Atlanta, Georgia |
30319 |
|
| (Address of principal executive offices) | (Zip Code) | |
| Registrant's telephone number, including area code |
(404) 266-5500 |
| N/A |
|
| (Former name or former address, if changed since last report) | |
| 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: | ||
| | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition
On August 6, 2010, Atlantic American Corporation (the “Registrant”) reported its results of operations for its second quarter ended June 30, 2010. 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
(d) Exhibits
99.1 Press Release, dated August 6, 2010, reporting the results of operations of the Registrant for its second quarter ended June 30, 2010.
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 and 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.
| ATLANTIC AMERICAN CORPORATION |
| By: /s/ John G. Sample, Jr. |
|
| John G. Sample, Jr. Senior Vice President and Chief Financial Officer |
|
Date: August 6, 2010
EXHIBIT INDEX
Exhibits:
Exhibit 99.1 Press release dated August 6, 2010
EXHIBIT 99.1
ATLANTIC AMERICAN CORPORATION REPORTS SECOND QUARTER RESULTS
ATLANTA, Georgia, August 6, 2010 - Atlantic American Corporation (Nasdaq-AAME) today reported net income of $76 thousand, or nil per diluted share, for the three month period ended June 30, 2010, compared to net income of $12 thousand, or a loss of $0.01 per diluted share, for the three month period ended June 30, 2009. For the six month period ended June 30, 2010, net income was $493 thousand, or $0.01 per diluted share, compared to net income of $268 thousand, or nil per diluted share, for the comparable period in 2009. Book value increased to $3.45 per share at June 30, 2010 from $3.16 per share at the end of last year.
Total revenues for the three month period ended June 30, 2010 were $27.1 million, increasing 5.4% from the $25.7 million for the three month period ended June 30, 2009. Insurance premiums during this quarter increased 6.3% from the comparable 2009 premiums. For the six month period ended June 30, 2010, revenues were $53.1 million, increasing 3.4% from the comparable 2009 revenues of $51.3 million. The increase in premiums during the three month and six month periods ended June 30, 2010 resulted from increased sales of both the traditional life and medicare supplement products in the life and health segment. Declining investment income in both the three and six month periods ended June 30, 2010 reflected the low current interest rate environment and partially offset the increase in total revenues.
Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We are extremely pleased with our top line growth. The marketing initiatives and investments which we have been making to grow our life and health business are now evident in our results. Our property and casualty operations continue to be challenged with the extremely soft market; however in the three month period ended June 30, 2010, we experienced a moderate increase in quarter on quarter earned premium which we hope is a precursor to the future. Even with this top line growth in our insurance operations, we remain focused on growth and profitability. Our benefits and losses were higher in the second quarter than we would have expected; however, we believe that those will return to more normal levels in future quarters, resulting in increased profitability as we continue to grow. With our high level of liquidity at the parent company, we are continuing our stock buy back program as appropriate.”
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 subsidiaries consist of American Southern Insurance Company, American Safety Insurance Company, and Bankers Fidelity Life Insurance 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.
For further information contact:
John G. Sample, Jr.
Senior Vice President and Chief Financial Officer
Atlantic American Corporation
404-266-5501
Atlantic American Corporation
Consolidated Financial Data
| Three months ended June 30, |
Six months ended June 30, |
||||||
| (Unaudited; In thousands, except per share data) | 2010 |
2009 |
2010 |
2009 |
|||
| Insurance premiums | $ 24,387 | $ 22,941 | $ 47,745 | $ 45,738 | |||
| Investment income | 2,576 | 2,708 | 5,133 | 5,443 | |||
| Realized investment gains (losses), net | 13 | (26) | 13 | (13) | |||
| Other income | 111 |
84 |
159 |
151 |
|||
| Total revenue | 27,087 |
25,707 |
53,050 |
51,319 |
|||
| Insurance benefits and losses incurred | 17,425 | 15,033 | 32,815 | 29,913 | |||
| Commissions and underwriting expenses | 6,827 | 7,412 | 13,967 | 14,930 | |||
| Interest expense | 653 | 694 | 1,295 | 1,415 | |||
| Other | 2,119 |
2,618 |
4,336 |
4,804 |
|||
| Total benefits and expenses | 27,024 |
25,757 |
52,413 |
51,062 |
|||
| Income (loss) before income taxes | 63 | (50) | 637 | 257 | |||
| Income tax expense (benefit) | (13) |
(62) |
144 |
(11) |
|||
| Net income | $ 76 |
$ 12 |
$ 493 |
$ 268 |
|||
| Net income (loss) per common share (basic and diluted) | $ - |
$ (0.01) |
$ 0.01 |
$ - |
|||
| Selected Balance Sheet Data |
June 30, 2010 |
December 31, 2009 |
||
| Total investments | $ 177,487 | $ 195,410 | ||
| Total assets | 268,559 | 262,086 | ||
| Insurance reserves and policy funds | 132,252 | 129,213 | ||
| Debt | 41,238 | 41,238 | ||
| Total shareholders' equity | 83,938 | 77,470 | ||
| Book value per common share | 3.45 | 3.16 | ||