• Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2021; Declares Annual Dividend

    ソース: Nasdaq GlobeNewswire / 25 3 2022 11:45:27   America/New_York

    ATLANTA, March 25, 2022 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income for the three month period ended December 31, 2021 of $2.7 million, or $0.12 per diluted share, as compared to net income of $11.8 million, or $0.54 per diluted share, for the comparable period in 2020. For the year ended December 31, 2021, the Company reported net income of $4.3 million, or $0.19 per diluted share, as compared to net income of $12.2 million, or $0.56 per diluted share for the comparable period in 2020. The decrease in net income during the fourth quarter of 2021 was primarily due to an $8.0 million decrease in unrealized gains in equity securities as a result of fluctuation in market values of the Company’s equity investments still held. The decrease in net income for the year ended December 31, 2021 was primarily due to an $11.8 million increase in insurance benefits and losses incurred. The increase in insurance benefits and losses incurred was primarily the result of loss experience within the Company’s life and health operations, returning to historical averages relative to the exceptionally low utilization experienced in 2020 after the onset of the COVID-19 pandemic when many policyholders were sheltered in place.

    Operating income (as defined below) decreased to $2.6 million in the three month period ended December 31, 2021 as compared to $3.6 million for the three month period ended December 31, 2020. For the year ended December 31, 2021, the Company reported operating loss of $1.5 million compared to operating income of $11.5 million for the comparable period in 2020. The decrease in operating income for the three and twelve month periods was primarily due to an increase in loss experience in the Company’s life and health operations, as mentioned above, predominantly within the Medicare supplement line of business.

    Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “Our property and casualty operations had an exceptional year and I’m pleased to report the renewal of a significant multi-year state contract, which also included a rate increase. With respect to our life and health operations, the voluntary benefits division had a banner year for new sales and kicked off January of 2022 with a record for issued business. We continue to invest in various initiatives that we believe will position the company for a successful 2022 and beyond. In our continued commitment to deliver value to our shareholders, the Board of Directors recently approved the Company’s annual dividend of $0.02 per share, which is payable on April 27, 2022 to shareholders of record on April 13, 2022.”
      
    Atlantic American Corporation 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 non-GAAP financial measure: Atlantic American Corporation presents its consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP). However, from time to time, the Company may present, in its public statements, press releases and filings with the Securities and Exchange Commission, non-GAAP financial measures such as operating income (loss). [We define operating income (loss) as net income excluding: (i) income tax expense; (ii) realized investment gains, net; and (iii) unrealized losses (gains) on equity securities, net.] Management believes operating income (loss) is a useful metric for investors, potential investors, securities analysts and others because it isolates the “core” operating results of the Company before considering certain items that are either beyond the control of management (such as income tax expense, which is subject to timing, regulatory and rate changes depending on the timing of the associated revenues and expenses) or are not expected to regularly impact the Company’s operating results (such as any realized and unrealized investment gains (losses), which are not a part of the Company’s primary operations and are, to a limited extent, subject to discretion in terms of timing of realization). The financial data attached includes a reconciliation of operating income (loss) to net income (loss), the most comparable GAAP financial measure. The Company’s definition of operating income (loss) may differ from similarly titled financial measures used by others. This non-GAAP financial measure should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.

    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, including those detailed in statements and reports that Atlantic American Corporation files from time to time with the Securities and Exchange Commission.

    For further information contact: 
    J. Ross FranklinHilton H. Howell, Jr.
    Chief Financial OfficerChairman, President & CEO
    Atlantic American CorporationAtlantic American Corporation
    404-266-5580404-266-5505

    Atlantic American Corporation
    Financial Data

     Three Months Ended Twelve Months Ended
     December 31, December 31,
    (Unaudited; In thousands, except per share data)2021
     2020
     2021
     2020
    Insurance premiums       
    Life and health$29,216  $29,656  $116,234  $121,167 
    Property and casualty 17,685   16,856   67,982   62,372 
    Insurance premiums, net 46,901   46,512   184,216   183,539 
            
    Net investment income 2,012   2,027   8,528   7,744 
    Realized investment gains, net 4,383   6,988   4,903   7,420 
    Unrealized gains (losses) on equity securities, net (3,564)  4,400   1,894   (3,431)
    Other income -   5   13   76 
            
    Total revenue 49,732   59,932   199,554   195,348 
            
    Insurance benefits and losses incurred       
    Life and health 20,798   19,345   87,261   80,537 
    Property and casualty 10,876   10,653   44,433   39,339 
    Commissions and underwriting expenses 10,826   12,129   47,496   46,811 
    Interest expense 347   357   1,387   1,610 
    Other expense 3,497   2,432   13,675   11,548 
            
    Total benefits and expenses 46,344   44,916   194,252   179,845 
            
    Income before income taxes 3,388   15,016   5,302   15,503 
    Income tax expense 723   3,168   1,021   3,334 
            
    Net income$2,665  $11,848  $4,281  $12,169 
            
    Earnings per common share (basic)$0.13  $0.58  $0.19  $0.58 
    Earnings per common share (diluted)$0.12  $0.54  $0.19  $0.56 
            
    Reconciliation of Non-GAAP Financial Measure       
            
    Net income$2,665  $11,848  $4,281  $12,169 
    Income tax expense 723   3,168   1,021   3,334 
    Realized investment gains, net (4,383)  (6,988)  (4,903)  (7,420)
    Unrealized (gains) losses on equity securities, net 3,564   (4,400)  (1,894)  3,431 
            
    Non-GAAP Operating income (loss)$2,569  $3,628  $(1,495) $11,514 
            
        
     December 31, December 31,    
    Selected Balance Sheet Data2021
     2020
        
            
    Total cash and investments$308,195  $298,630     
    Insurance subsidiaries 302,302   292,478     
    Parent and other 5,893   6,152     
    Total assets 402,286   405,187     
    Insurance reserves and policyholder funds 201,797   198,676     
    Debt 33,738   33,738     
    Total shareholders' equity 141,286   145,060     
    Book value per common share 6.66   6.84     
    Statutory capital and surplus       
    Life and health 38,625   42,326     
    Property and casualty 52,724   50,194     


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