Atlantic American Reports Third Quarter Results
ATLANTA, Nov. 12, 2019 (GLOBE NEWSWIRE) — Atlantic American Corporation (Nasdaq- AAME) today reported net loss for the three month period ended September 30, 2019 of $1.4 million, or $0.07 per common share, as compared to net income of $0.9 million, or $0.04 per common share, for the comparable period in 2018. For the nine month period ended September 30, 2019, the Company reported net loss of $1.7 million, or $0.10 per common share, as compared to net loss of $0.9 million, or $0.06 per common share, for the comparable period in 2018.
Premium revenue for the three month period ended September 30, 2019 increased $2.4 million, or 5.8%, to $45.0 million from $42.6 million for the comparable period in 2018. For the nine month period ended September 30, 2019, premium revenue increased $7.7 million, or 6.0%, to $135.3 million from $127.6 million for the comparable period in 2018. The increase in premium revenue was primarily attributable to an increase in the Medicare supplement line of business in the Company’s life and health operations, coupled with an increase in the automobile physical damage line of business in the Company’s property and casualty operations.Excluding the effects of realized or unrealized gains or losses and taxes, operating loss (as defined below) increased to $2.3 million for the three month period ended September 30, 2019, as compared to operating loss of $0.5 million for the comparable period in 2018. For the nine month period ended September 30, 2019, the Company reported operating loss of $5.7 million, as compared to operating loss of $2.8 million for the comparable period in 2018. The increase in operating losses for the three and nine month periods ended September 30, 2019 was primarily the result of increased claims in the Medicare supplement line of business in the Company’s life and health operations. Commenting on the third quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We are working vigorously to turn our Medicare supplement line of business back to profitability with appropriate rate adjustments coupled with controlled underwriting and distribution. And sales in the Company’s ancillary lines of business have reached historical highs, primarily as a result of success in the Worksite division. This is proof positive that our product diversification efforts are bearing fruit. Additionally, our property and casualty operations continue to steadily grow the business and return profits to the bottom line.”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). 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 detailed from time to time in statements and reports that Atlantic American Corporation files with the Securities and Exchange Commission.
Atlantic American Corporation