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): May 5, 2005 (May 3, 2005) | ||
ATLANTIC AMERICAN CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
| Georgia (State or Other Jurisdiction of Incorporation) |
0-3722 (Commission File Number) |
58-1027114 (I.R.S. Employer Identification No.) |
| 4370 Peachtree Rd., N.E. Atlanta, Georgia (Address of Principal Executive Offices) |
30319 (Zip Code) |
|
| Registrant's Telephone Number, Including Area Code: (404) 266-5500 | ||
| 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 May 3, 2005, Atlantic American Corporation (the “Registrant”) reported its results of operations for its quarter ended March 31, 2005. 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.
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, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release, dated May 3, 2005, reporting the results of operations of the Registrant for its quarter ended March 31, 2005.
SIGNATURE
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: May 5, 2005
EXHIBIT INDEX
Exhibits:
Exhibit 99.1 Press release dated May 3, 2005
EXHIBIT 99.1
ATLANTIC AMERICAN CORPORATION REPORTS FIRST QUARTER RESULTS
ATLANTA, Georgia, May 3, 2005 - Atlantic American Corporation (Nasdaq- AAME) today reported a net loss for the first quarter ended March 31, 2005 of $0.8 million or $0.05 per diluted share, compared to net income of $1.5 million or $0.06 per diluted share in the first quarter of 2004. Revenue for the first quarter of 2005 increased to $50.3 million, an increase of 8.3% over 2004 first quarter revenue of $46.4 million. Premiums for the first quarter of 2005 increased 11.8% to $46.3 million from $41.4 million for the comparable quarter in 2004. The increase in premiums for the quarter was primarily attributable to increased volumes in two of the Company’s property and casualty companies. In the first quarter of 2005, increases in premium revenue were offset by $0.4 million in realized investment losses compared to $0.7 million in realized investment gains in the first quarter of 2004.
Commenting on the quarter, Hilton H. Howell, Jr., president and chief executive officer, stated “We are clearly disappointed with our first quarter’s results. January began with what appeared to be a very profitable quarter. Beginning in February and continuing through March, one of our property and casualty subsidiaries experienced a significant increase in claims both in terms of frequency and severity. Numerous fires, fatalities and a tornado in south Georgia resulted in the claims increase which produced this loss. We sincerely hope that this quarter proves to be the anomaly for the year as losses subsequent to March 31 initially appear to have returned to a more normal level. We continue to be cautiously optimistic for the balance of the year.”
Atlantic American is an insurance holding company involved through its subsidiary companies in specialty markets of the life, health, property and casualty insurance industries. Its principal subsidiaries include American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company, Georgia Casualty & Surety Company, Association Risk Management General Agency, Association Casualty Insurance Company and Self-Insurance Administrators, Inc.
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 has filed 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
Financial Data
As of March 31, 2005
(Unaudited; In thousands, except per share data)
| Three months ended Mar. 31, |
||||
| 2005 |
2004 |
|||
| Insurance premiums | $ 46,294 | $ 41,392 | ||
| Investment income | 4,036 | 3,979 | ||
| Realized investment gains (losses), net | (440) | 707 | ||
| Other income | 383 |
326 |
||
| Total revenue | 50,273 |
46,404 |
||
| Insurance benefits and losses incurred | 32,924 | 26,719 | ||
| Commissions and underwriting expenses | 14,497 | 13,427 | ||
| Interest expense | 792 | 814 | ||
| Other | 3,692 |
3,263 |
||
| Total benefits and expenses | 51,905 |
44,223 |
||
| Income (loss) before income tax expense (benefit) | (1,632) | 2,181 | ||
| Income tax expense (benefit) | (800) |
673 |
||
| Net income (loss) | $
(832) |
$
1,508 |
||
| Net income (loss) per common share: | ||||
| Basic | $ (0.05)
|
$ 0.06
|
||
| Diluted | $ (0.05)
|
$ 0.06
|
||
| Selected Balance Sheet Data |
March 31, 2005 |
December 31, 2004 |
| Total investments | $ 278,602 | $ 279,035 |
| Total assets | 461,314 | 470,511 |
| Insurance reserves and policy funds | 294,993 | 292,287 |
| Debt | 53,238 | 53,238 |
| Total shareholders' equity | 81,770 | 88,960 |
| Book value per common share | 3.21 | 3.56 |