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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 Franklin Hilton H. Howell, Jr. Chief Financial Officer Chairman, President & CEO Atlantic American Corporation Atlantic American Corporation 404-266-5580 404-266-5505 Atlantic American Corporation
Financial DataThree 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 Data 2021 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