• Atlantic American Corporation Reports Third Quarter Results for 2022

    ソース: Nasdaq GlobeNewswire / 08 11 2022 14:37:34   America/New_York

    ATLANTA, Nov. 08, 2022 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net loss for the three month period ended September 30, 2022 of $0.7 million, or $0.04 per diluted share, as compared to net loss of $0.9 million, or $0.05 per diluted share, for the comparable period in 2021. For the nine month period ended September 30, 2022, the Company reported net income of $0.5 million, or $0.01 per diluted share, as compared to net income of $1.6 million, or $0.06 per diluted share, for the comparable period in 2021.   The decrease in net loss for the three month period ended September 30, 2022 was primarily attributable to more favorable loss experience in the life and health operations, partially offset by a decrease in unrealized gains of $3.5 million, from the comparable period in 2021. The decrease in net income for the nine month period ended September 30, 2022 was primarily attributable to the decrease in unrealized gains of $10.9 million from the comparable period in 2021, partially offset by more favorable loss experience in the life and health operations.

    Operating income (as defined below) increased $4.1 million in the three month period ended September 30, 2022 from the three month period ended September 30, 2021. For the nine month period ended September 30, 2022, operating income increased $10.2 million from the comparable period in 2021. The increase in operating income was primarily due to favorable loss experience in the life and health operations, resulting from an increase in earned premium within the group lines of business coupled with a decrease in the number of claims incurred in the Medicare supplement line of business.
       
    Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are quite pleased to report an over $10 million improvement in operating income for the first nine months of 2022 as compared to 2021. The life and health operations have done a phenomenal job in diversifying the business through its competitive group products, as well as carefully managing the Medicare supplement line back to profitability. Additionally, our property and casualty operations continue to perform exceptionally well, maintaining profitability coupled with top line growth. Finally, it is with great enthusiasm that we announce our newly formed subsidiary, Atlantic Capital Life Assurance Company, which recently obtained its certificate of authority in our state of domicile.”

    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 (loss) excluding: (i) income tax expense (benefit); (ii) realized investment gains, net; and (iii) unrealized (gains) losses 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 (benefit), 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent 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 Data

     Three Months Ended Nine Months Ended
     September 30, September 30,
    (Unaudited; In thousands, except per share data) 2022   2021   2022   2021 
    Insurance premiums       
        Life and health$28,739  $28,772  $86,773  $87,018 
        Property and casualty 17,641   17,320   53,753   50,297 
            Insurance premiums, net 46,380   46,092   140,526   137,315 
            
    Net investment income 2,641   2,137   7,510   6,516 
    Realized investment gains, net 101   349   29   520 
    Unrealized gains (losses) on equity securities, net (2,783)  711   (5,456)  5,458 
    Other income 4   1   11   13 
            
    Total revenue 46,343   49,290   142,620   149,822 
            
    Insurance benefits and losses incurred       
        Life and health 18,599   23,394   58,003   66,463 
        Property and casualty 12,031   11,651   36,549   33,557 
    Commissions and underwriting expenses 12,843   11,927   35,894   36,670 
    Interest expense 523   347   1,291   1,040 
    Other expense 3,296   3,264   10,151   10,178 
            
      Total benefits and expenses 47,292   50,583   141,888   147,908 
            
    Income (loss) before income taxes (949)  (1,293)  732   1,914 
    Income tax expense (benefit) (265)  (378)  253   298 
            
    Net income (loss)$ (684) $ (915) $ 479  $ 1,616 
            
    Earnings (loss) per common share (basic and diluted)$ (0.04) $ (0.05) $ 0.01  $ 0.06 
            
    Reconciliation of Non-GAAP Financial Measure       
            
    Net income (loss)$(684) $(915) $479  $1,616 
    Income tax expense (benefit) (265)  (378)  253   298 
    Realized investment gains, net (101)  (349)  (29)  (520)
    Unrealized (gains) losses on equity securities, net 2,783   (711)  5,456   (5,458)
            
    Non-GAAP Operating income (loss)$ 1,733  $ (2,353) $ 6,159  $ (4,064)
            
        
     September 30,December 31,    
    Selected Balance Sheet Data 2022   2021     
            
    Total cash and investments$246,340  $308,195     
        Insurance subsidiaries 240,860   302,302     
        Parent and other 5,480   5,893     
    Total assets 360,349   402,286     
    Insurance reserves and policyholder funds 204,289   201,797     
    Debt 34,738   33,738     
    Total shareholders' equity 97,911   141,286     
    Book value per common share 4.54   6.66     
    Statutory capital and surplus       
        Life and health 35,325   38,625     
        Property and casualty 52,981   52,724     
            


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