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): |
November 5, 2010 (November 5, 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 November 5, 2010, Atlantic American Corporation (the Registrant) reported its results of operations for its third quarter ended September 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 November 5, 2010, reporting the results of operations of the Registrant for its third quarter ended September 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: November 5, 2010
EXHIBIT INDEX
Exhibits:
Exhibit 99.1 Press release dated November 5, 2010
EXHIBIT 99.1
ATLANTIC AMERICAN CORPORATION REPORTS THIRD QUARTER PROFIT
ATLANTA, Georgia, November 5, 2010 - Atlantic American Corporation (Nasdaq-AAME) today reported net income of $525,000, or $0.02 per diluted share, for the three month period ended September 30, 2010, compared to a net loss of $2.1 million, or $0.10 per diluted share, for the three month period ended September 30, 2009. For the nine month period ended September 30, 2010, net income was $1.0 million, or $0.03 per diluted share, compared to a net loss of $1.8 million, or $0.10 per diluted share, for the comparable period in 2009. Results for the three month and nine month periods ended September 30, 2009 were primarily the result of an increase in the Companys deferred tax asset valuation allowance of approximately $1.8 million.
Total revenues for the three month period ended September 30, 2010, were $27.1 million, increasing 6.3% from $25.5 million for the three month period ended September 30, 2009. Insurance premiums during this quarter increased $1.8 million, or 7.9%, from the comparable 2009 premiums. For the nine month period ended September 30, 2010, revenues were $80.2 million, increasing 4.3% from the comparable 2009 period revenues of $76.9 million. Insurance premiums during the nine month period ended September 30, 2010 increased $3.8 million, or 5.6%, from the comparable period in 2009. Revenue and premium increases during both the three month and nine month periods ended September 30, 2010 occurred primarily in the Companys life and health operation.
Commenting on the quarter, Hilton H. Howell, Jr., president and chief executive officer, stated, With our increasing premium levels, our core insurance operations remain solidly profitable. We continue to make investments in new products and increase our field force for greater penetration and broader distribution. While pleased with this most recent quarter, we are focused on building our business. Even though the soft property and casualty markets continue to challenge our property and casualty business, we are optimistic that our life and health business will continue with the steady growth exhibited in recent quarters.
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 September 30, |
Nine months ended September 30, |
||||||
(Unaudited; In thousands, except per share data) | 2010 |
2009 |
2010 |
2009 |
|||
Insurance premiums | $ 24,577 | $ 22,774 | $ 72,322 | $ 68,512 | |||
Investment income | 2,302 | 2,699 | 7,435 | 8,142 | |||
Realized investment gains, net | 211 | 14 | 224 | 1 | |||
Other income | 56 |
51 |
215 |
202 |
|||
Total revenue | 27,146 |
25,538 |
80,196 |
76,857 |
|||
Insurance benefits and losses incurred | 16,451 | 15,840 | 49,266 | 45,753 | |||
Commissions and underwriting expenses | 7,409 | 6,804 | 21,376 | 21,734 | |||
Interest expense | 660 | 679 | 1,955 | 2,094 | |||
Other | 2,045 |
2,044 |
6,381 |
6,848 |
|||
Total benefits and expenses | 26,565 |
25,367 |
78,978 |
76,429 |
|||
Income before income taxes | 581 | 171 | 1,218 | 428 | |||
Income tax expense | 56 |
2,279 |
200 |
2,268 |
|||
Net income (loss) | $ 525 |
$ (2,108) |
$ 1,018 |
$ (1,840) |
|||
Net income (loss) per common share (basic and diluted) | $ 0.02 |
$ (0.10) |
$ 0.03 |
$ (0.10) |
Selected Balance Sheet Data |
September 30, 2010 |
December 31, 2009 |
||
Total cash and investments | $ 228,498 | $ 215,539 | ||
Total assets | 273,563 | 262,086 | ||
Insurance reserves and policy funds | 133,113 | 129,213 | ||
Debt | 41,238 | 41,238 | ||
Total shareholders' equity | 86,939 | 77,470 | ||
Book value per common share | 3.59 | 3.16 |