EX-99.1
2
pressrelease03312008.htm
PRESS RELEASE DATED 03/31/2008
Press Release 03-31-2008
EXHIBIT 99.1
ATLANTIC AMERICAN CORPORATION REPORTS CLOSING OF SALE OF ITS
REGIONAL PROPERTY AND CASUALTY OPERATIONS AND FOURTH QUARTER AND YEAR
END RESULTS
ATLANTA, Georgia, March 31,
2008 - Atlantic American Corporation (Nasdaq- AAME) reported that today it
closed the sale of its regional property and casualty operations (including
Association Casualty Insurance Company, Association Risk Management General
Agency, Inc. and Georgia Casualty & Surety Company) to Columbia Mutual
Insurance Company of Columbia, Missouri. The sale was originally announced on
December 27, 2007 and Benfield Advisory, Inc. served as financial advisor to
Atlantic American Corporation.
At the same time, the
Company also announced net income for the year ended December 31, 2007 of $7.3
million, or $0.25 per diluted share, as compared to $8.9 million, or $0.33 per
diluted share, for the year ended December 31, 2006. The loss from discontinued
operations was $4.3 million, or $0.20 per diluted share, for the year ended
December 31, 2007 compared to income from discontinued operations of $1.8
million, or $0.06 per diluted share, for the year ended December 31, 2006. Total
revenue for 2007 was $123.0 million, a 1.9% decline from 2006 total revenue of
$125.4 million. Premiums during 2007 decreased $11.8 million, or 10.7%, to $97.8
million from 2006 premiums of $109.6 million. Premium decreases were primarily
attributable to the significant price and product competition in all lines of
business. Realized investment gains for 2007 were $12.6 million as compared to
$3.1 million for 2006 with the increase resulting primarily from the sale of a
common stock holding in Wachovia Corporation. During the fourth quarter ended
December 31, 2007, the Company reported net income of $4.2 million, or $0.15 per
diluted share, compared to $3.0 million, or $0.11 per diluted share, during the
same period in 2006. For the fourth quarter ended December 31, 2007, total
revenue increased 23.2% to $38.4 million from $31.2 million for the fourth
quarter of 2006. Premiums for the fourth quarter of 2007 decreased 10.9% to
$23.7 million compared to $26.6 million for the fourth quarter of 2006. The
increase in fourth quarter 2007 total revenue was the result of the sale of the
common stock holding in Wachovia Corporation which increased realized investment
gains. Excluding consideration of realized investment gains (losses), pre-tax
operating earnings from continuing operations for the year ended December 31,
2007 were $6.5 million, which is comparable to that for the year ended December
31, 2006. Pre-tax operating earnings from continuing operations for the quarter
ended December 31, 2007 were $2.9 million, a 78.6% increase over the $1.6
million in the comparable quarter of 2006.
Commenting, Hilton H.
Howell, Jr., president and chief executive officer, stated, "While we will
deeply miss the daily interaction we had with those individuals who contributed
so much to our regional property and casualty operations, we believe that the
future of those companies is in good hands with the Columbia Insurance Group. As
the United States economy grows more uncertain, we are entering a period in
which we have now narrowed our business focus in the specialty markets to those
products and markets in which we believe we can concentrate and excel. "
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 subsidiaries include American Southern Insurance Company, American
Safety Insurance Company, Bankers Fidelity Life Insurance Company and
Self-Insurance Administrators, Inc.
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 has filed with the Securities and Exchange Commission.
For further information
contact:
John G. Sample, Jr.
Senior Vice President and Chief Financial Officer
Atlantic American Corporation
404-266-5501
Atlantic American Corporation
Financial Data
As of December 31, 2007
Three months ended
Dec. 31,
Year ended
Dec. 31,
(Unaudited; In thousands, except per share data)
2007
2006
2007
2006
Insurance premiums
$ 23,734
$ 26,649
$ 97,824
$ 109,580
Investment income
2,926
3,061
11,722
11,926
Realized investment gains, net
11,556
1,304
12,627
3,084
Other income
200
170
799
768
Total revenue
38,416
31,184
122,972
125,358
Insurance benefits and losses incurred
13,478
16,242
58,701
65,460
Commissions and underwriting expenses
7,441
8,077
32,663
36,404
Interest expense
1,045
1,212
4,160
4,605
Other
1,982
2,717
8,350
9,265
Total benefits and expenses
23,946
28,248
103,874
115,734
Income from continuing operations before taxes
14,470
2,936
19,098
9,624
Income tax expense
5,696
244
7,513
2,458
Income from continuing operations
8,774
2,692
11,585
7,166
Income (loss) from discontinued operations, net of tax
(4,613)
272
(4,333)
1,770
Net income
$ 4,161
$ 2,964
$ 7,252
$ 8,936
Basic income (loss) per common share:
Income from continuing operations
$ 0.38
$ 0.11
$ 0.46
$ 0.27
Income (loss) from discontinued operations
(0.21)
0.01
(0.20)
0.09
Net income
$ 0.17
$ 0.12
$ 0.26
$ 0.36
Diluted income (loss) per common share:
Income from continuing operations
$ 0.32
$ 0.10
$ 0.45
$ 0.27
Income (loss) from discontinued operations
(0.17)
0.01
(0.20)
0.06
Net income
$ 0.15
$ 0.11
$ 0.25
$ 0.33
Selected Balance Sheet Data
December 31,
2007
December 31,
2006
Total investments
$ 178,059
$ 193,197
Assets of discontinued operations
196,154
194,248
Total assets
458,254
459,152
Insurance reserves and policy funds
128,078
134,316
Debt
53,988
53,988
Total shareholders' equity
87,794
94,188
Book value per common share
3.09
3.44

EX - 99 . 1 2 pressrelease03312008 . htm PRESS RELEASE DATED 03 / 31 / 2008 Press Release 03 - 31 - 2008 EXHIBIT 99 . 1 ATLANTIC AMERICAN CORPORATION REPORTS CLOSING OF SALE OF ITS REGIONAL PROPERTY AND CASUALTY OPERATIONS AND FOURTH QUARTER AND YEAR END RESULTS ATLANTA , Georgia , March 31 , 2008 - Atlantic American Corporation ( Nasdaq - AAME ) reported that today it closed the sale of its regional property and casualty operations ( including Association Casualty Insurance Company , Association Risk Management General Agency , Inc . and Georgia Casualty & Surety Company ) to Columbia Mutual Insurance Company of Columbia , Missouri . The sale was originally announced on December 27 , 2007 and Benfield Advisory , Inc . served as financial advisor to Atlantic American Corporation . At the same time , the Company also announced net income for the year ended December 31 , 2007 of $ 7.3 million , or $ 0.25 per diluted share , as compared to $ 8.9 million , or $ 0.33 per diluted share , for the year ended December 31 , 2006 . The loss from discontinued operations was $ 4.3 million , or $ 0.20 per diluted share , for the year ended December 31 , 2007 compared to income from discontinued operations of $ 1.8 million , or $ 0.06 per diluted share , for the year ended December 31 , 2006 . Total revenue for 2007 was $ 123.0 million , a 1 . 9 % decline from 2006 total revenue of $ 125.4 million . Premiums during 2007 decreased $ 11.8 million , or 10 . 7 % , to $ 97.8 million from 2006 premiums of $ 109.6 million . Premium decreases were primarily attributable to the significant price and product competition in all lines of business . Realized investment gains for 2007 were $ 12.6 million as compared to $ 3.1 million for 2006 with the increase resulting primarily from the sale of a common stock holding in Wachovia Corporation . During the fourth quarter ended December 31 , 2007 , the Company reported net income of $ 4.2 million , or $ 0.15 per diluted share , compared to $ 3.0 million , or $ 0.11 per diluted share , during the same period in 2006 . For the fourth quarter ended December 31 , 2007 , total revenue increased 23 . 2 % to $ 38.4 million from $ 31.2 million for the fourth quarter of 2006 . Premiums for the fourth quarter of 2007 decreased 10 . 9 % to $ 23.7 million compared to $ 26.6 million for the fourth quarter of 2006 . The increase in fourth quarter 2007 total revenue was the result of the sale of the common stock holding in Wachovia Corporation which increased realized investment gains . Excluding consideration of realized investment gains ( losses ) , pre - tax operating earnings from continuing operations for the year ended December 31 , 2007 were $ 6.5 million , which is comparable to that for the year ended December 31 , 2006 . Pre - tax operating earnings from continuing operations for the quarter ended December 31 , 2007 were $ 2.9 million , a 78 . 6 % increase over the $ 1.6 million in the comparable quarter of 2006 . Commenting , Hilton H . Howell , Jr . , president and chief executive officer , stated , " While we will deeply miss the daily interaction we had with those individuals who contributed so much to our regional property and casualty operations , we believe that the future of those companies is in good hands with the Columbia Insurance Group . As the United States economy grows more uncertain , we are entering a period in which we have now narrowed our business focus in the specialty markets to those products and markets in which we believe we can concentrate and excel . " 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 subsidiaries include American Southern Insurance Company , American Safety Insurance Company , Bankers Fidelity Life Insurance Company and Self - Insurance Administrators , Inc . 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 has filed with the Securities and Exchange Commission . For further information contact : John G . Sample , Jr . Senior Vice President and Chief Financial Officer Atlantic American Corporation 404 - 266 - 5501 Atlantic American Corporation Financial Data As of December 31 , 2007 Three months ended Dec. 31 , Year ended Dec. 31 , ( Unaudited ; In thousands , except per share data ) 2007 2006 2007 2006 Insurance premiums $ 23,734 $ 26,649 $ 97,824 $ 109,580 Investment income 2,926 3,061 11,722 11,926 Realized investment gains , net 11,556 1,304 12,627 3,084 Other income 200 170 799 768 Total revenue 38,416 31,184 122,972 125,358 Insurance benefits and losses incurred 13,478 16,242 58,701 65,460 Commissions and underwriting expenses 7,441 8,077 32,663 36,404 Interest expense 1,045 1,212 4,160 4,605 Other 1,982 2,717 8,350 9,265 Total benefits and expenses 23,946 28,248 103,874 115,734 Income from continuing operations before taxes 14,470 2,936 19,098 9,624 Income tax expense 5,696 244 7,513 2,458 Income from continuing operations 8,774 2,692 11,585 7,166 Income ( loss ) from discontinued operations , net of tax ( 4,613 ) 272 ( 4,333 ) 1,770 Net income $ 4,161 $ 2,964 $ 7,252 $ 8,936 Basic income ( loss ) per common share : Income from continuing operations $ 0.38 $ 0.11 $ 0.46 $ 0.27 Income ( loss ) from discontinued operations ( 0 . 21 ) 0 . 01 ( 0 . 20 ) 0 . 09 Net income $ 0.17 $ 0.12 $ 0.26 $ 0.36 Diluted income ( loss ) per common share : Income from continuing operations $ 0.32 $ 0.10 $ 0.45 $ 0.27 Income ( loss ) from discontinued operations ( 0 . 17 ) 0 . 01 ( 0 . 20 ) 0 . 06 Net income $ 0.15 $ 0.11 $ 0.25 $ 0.33 Selected Balance Sheet Data December 31 , 2007 December 31 , 2006 Total investments $ 178,059 $ 193,197 Assets of discontinued operations 196,154 194,248 Total assets 458,254 459,152 Insurance reserves and policy funds 128,078 134,316 Debt 53,988 53,988 Total shareholders ' equity 87,794 94,188 Book value per common share 3 . 09 3 . 44