Atlantic American Reports Second Quarter Earnings

Insurance premiums increased 2.6% and 4.3% for the three month and six month periods ended June 30, 2017, respectively, as compared to the comparable periods of 2016
Net income for the three month and six month periods ended June 30, 2017 was $1.5 million and $1.2 million, respectively, as compared to $0.2 million and $1.1 million, respectively, for the comparable periods of 2016

ATLANTA, Aug. 14, 2017 -- Atlantic American Corporation (Nasdaq:AAME) today reported net income of $1.5 million, or $0.07 per diluted share, for the three month period ended June 30, 2017, compared to net income of $0.2 million, or $0.01 per diluted share, for the three month period ended June 30, 2016. For the six month period ended June 30, 2017, net income was $1.2 million, or $0.05 per diluted share, compared to net income of $1.1 million, or $0.05 per diluted share, for the comparable period in 2016. Realized investment gains for the three month and six month periods ended June 30, 2017 were $1.4 million and $2.3 million, respectively, as compared to $0.1 million and $0.9 million in the comparable three month and six month periods of 2016. Operating income (income before income taxes and realized investment gains, net) for the three month period ended June 30, 2017 was $0.8 million, as compared to $0.2 million for the three month period ended June 30, 2016. For the six month period ended June 30, 2017, the Company had an operating loss of $0.4 million as compared to operating income of $0.8 million for the comparable six month period of 2016. The operating loss was attributable to higher than expected levels of claims in both life and health lines of business during the first quarter of 2017.

Total revenues for the three month period ended June 30, 2017 were $43.6 million, increasing 4.2% from $41.9 million for the three month period ended June 30, 2016. While life and health premiums increased 6.4%, property and casualty premiums decreased 4.6%. For the six month period ended June 30, 2017, total revenues were $87.5 million, increasing 4.7% from the comparable 2016 period. Premiums earned from the Company’s life and health operation increased 9.2% for the six month period ended June 30, 2017 while decreasing 4.6% in the property and casualty operation during the comparable period.

Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, noted, “We are pleased that the level of Medicare supplement benefit expenses and life insurance claims returned to historical levels in the second quarter. Our distribution network for the life and health operation continues to perform exceptionally well and we expect another record year in premium growth. In addition, the Worksite division has enjoyed a steady pace of sales activity and we believe they are well positioned going into the second half of the year when open enrollment kicks into high gear. Although premiums in the property and casualty operations were down slightly, they continue to produce strong profits.”

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 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.

Atlantic American Corporation Financial Data

	Three months ended						Six months ended
	June 30,						June 30,
(Unaudited; In thousands, except per share data)	2017			2016			2017			2016

Insurance premiums
Life and health	$26,989			$25,355			$54,680			$50,088
Property and casualty		13,131			13,767			26,222			27,492
Investment income		2,085			2,563			4,244			5,070
Realized investment gains, net		1,396			132			2,279			884
Other income		31			37			66			67

Total revenue		43,632			41,854			87,491			83,601

Insurance benefits and losses incurred
Life and health		19,100			18,105			40,813			35,016
Property and casualty		7,932			8,817			16,216			16,731
Commissions and underwriting expenses		11,010			10,954			21,624			22,781
Interest expense		424			385			833			758
Other expense		2,981			3,236			6,167			6,582

Total benefits and expenses		41,447			41,497			85,653			81,868

Income before income taxes		2,185			357			1,838			1,733

Income tax expense		725			116			599			594

Net income		$1,460			$241			$1,239			$1,139

Earnings per common share (basic and diluted)	$0.07				$0.01			$0.05			$0.05

Reconciliation of Non-GAAP Financial Measure

Net income	$1,460			$241			$1,239			$1,139
Income tax expense		725			116			599			594
Realized investment gains, net		(1,396	)		(132	)		(2,279	)		(884	)

Operating income (loss)		$789			$225		($441		)		$849


	June 30,			December 31,
Selected Balance Sheet Data	2017			2016

Total cash and investments	$253,308			$257,429
Insurance subsidiaries		233,416			235,499
Parent and other		19,892			21,930
Total assets		332,741			318,600
Insurance reserves and policyholder funds		176,780			162,679
Debt		33,738			33,738
Total shareholders' equity		107,536			105,506
Book value per common share		5.00			4.89
Statutory capital and surplus
Life and health		30,137			33,430
Property and casualty		42,482			41,489

For further information contact:
J. Ross Franklin
Interim Chief Financial Officer
Atlantic American Corporation
404-266-5580

Hilton H. Howell, Jr.
Chairman, President & CEO
Atlantic American Corporation
404-266-5505

Atlantic American Reports Second Quarter Earnings

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