• Atlantic American Corporation Reports Fourth Quarter and Year-End Results for 2022, First Quarter Results for 2023

    来源: Nasdaq GlobeNewswire / 30 6月 2023 15:32:29   America/New_York

    ATLANTA, June 30, 2023 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq: AAME) announced today that the Company has filed its Annual Report on Form 10-K for the year ended December 31, 2022 (the “Form 10-K”) and its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 (the “Form 10-Q”).

    As previously announced, the Company was unable to file its Form 10-K and Form 10-Q within the prescribed time periods because the Company required additional time to finalize its actuarial valuation procedures and related financial statement balances within the Company’s life and health segment, Bankers Fidelity. The need for additional time resulted from a change in the systems used to perform the actuarial valuations. Effective today, the Company is up-to-date on its filing of periodic financial reports with the Securities and Exchange Commission.

    Quarter and Year Ended December 31, 2022
    The Company reported net income for the three month period ended December 31, 2022 of $1.0 million, or $0.05 per diluted share, as compared to net income of $2.7 million, or $0.12 per diluted share, for the comparable period in 2021. For the year ended December 31, 2022, the Company reported net income of $1.5 million, or $0.06 per diluted share, as compared to net income of $4.3 million, or $0.19 per diluted share for the comparable period in 2021. The decrease in net income during the fourth quarter of 2022 was primarily due to a $4.4 million decrease in realized gains, partially offset by a $2.5 million decrease in insurance benefits and losses incurred within the Company’s life and health operations. The decrease in net income for the year ended December 31, 2022 was primarily due to a $9.5 million decrease in unrealized gains on equity securities coupled with a $4.9 million decrease in realized gains, partially offset by an $11.0 million decrease in benefits and losses incurred within the Company’s life and health operations. As a percentage of premium, losses incurred within the Medicare supplement line of business decreased for the three month period and year ended December 31, 2022, primarily as a result of improved rate adequacy.

    Operating income (Non-GAAP, as defined below) increased to $3.5 million in the three month period ended December 31, 2022 as compared to $2.6 million for the three month period ended December 31, 2021. For the year ended December 31, 2022, the Company reported operating income of $9.6 million compared to operating loss of $1.5 million for the comparable period in 2021. The increase in operating income for the three and twelve month periods was primarily due to a decrease in insurance benefits and losses in the Company’s life and health operations, as mentioned above, predominantly within the Medicare supplement line of business.

    Quarter Ended March 31, 2023
    The Company reported net loss of $1.4 million, or $0.08 per common share, in the first quarter of 2023 compared to net income of $2.8 million, or $0.13 per common share, in the first quarter of 2022. The decrease in net income for the first quarter of 2023 is primarily the result of a $4.6 million decrease in unrealized gains on equity securities due to fluctuations in market values.

    Operating income decreased to $0.6 million in the three month period ended March 31, 2023 compared to $1.6 million in the three month period ended March 31, 2022. The decrease in operating income was primarily due to unfavorable loss experience in the property and casualty operations due to an increase in the frequency and severity of claims within the automobile liability line of business.

    Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “We are absolutely delighted to finally release our fourth quarter 2022 and first quarter 2023 results. It is unfortunate that the process of converting our valuation systems resulted in delays in filing our financial reports, but we are very pleased to report that this was one of our best years ever with $9.6 million in operating income for the Company during 2022. Each of our life, health, and property and casualty segments is performing quite well and we look forward to the balance of 2023 with optimism.”

    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, Bankers Fidelity Assurance Company and Atlantic Capital Life 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 the Company’s ability to remediate the identified material weakness in its internal control over financial reporting and those other risks and uncertainties 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 Data

     Three Months Ended Twelve Months Ended
     December 31, December 31,
    (Unaudited; In thousands, except per share data) 2022   2021   2022   2021 
    Insurance premiums       
    Life and health$28,391  $29,216  $115,164  $116,234 
    Property and casualty 16,523   17,685   70,276   67,982 
    Insurance premiums, net 44,914   46,901   185,440   184,216 
            
    Net investment income 2,422   2,012   9,932   8,528 
    Realized investment gains, net 1   4,383   30   4,903 
    Unrealized gains (losses) on equity securities, net (2,106)  (3,564)  (7,562)  1,894 
    Other income -   -   11   13 
            
    Total revenue 45,231   49,732   187,851   199,554 
            
    Insurance benefits and losses incurred       
    Life and health 18,278   20,798   76,281   87,261 
    Property and casualty 10,626   10,876   47,175   44,433 
    Commissions and underwriting expenses 10,819   10,826   46,713   47,496 
    Interest expense 661   347   1,952   1,387 
    Other expense 3,483   3,497   13,634   13,675 
            
    Total benefits and expenses 43,867   46,344   185,755   194,252 
            
    Income before income taxes 1,364   3,388   2,096   5,302 
    Income tax expense 318   723   571   1,021 
            
    Net income$ 1,046  $ 2,665  $ 1,525  $ 4,281 
            
    Earnings per common share (basic)$ 0.05  $ 0.13  $ 0.06  $ 0.19 
    Earnings per common share (diluted)$ 0.05  $ 0.12  $ 0.06  $ 0.19 
            
    Reconciliation of Non-GAAP financial measure       
            
    Net income$1,046  $2,665  $1,525  $4,281 
    Income tax expense 318   723   571   1,021 
    Realized investment gains, net (1)  (4,383)  (30)  (4,903)
    Unrealized (gains) losses on equity securities, net 2,106   3,564   7,562   (1,894)
            
    Non-GAAP operating income (loss)$ 3,469  $ 2,569  $ 9,628  $ (1,495)
                
     December 31, December 31,    
    Selected balance sheet data 2022   2021     
            
    Total cash and investments$257,575  $308,195     
    Insurance subsidiaries 251,378   302,302     
    Parent and other 6,197   5,893     
    Total assets 367,064   402,286     
    Insurance reserves and policyholder funds 202,651   201,797     
    Debt 35,747   33,738     
    Total shareholders' equity 102,193   141,286     
    Book value per common share 4.74   6.66     
    Statutory capital and surplus       
    Life and health 36,672   38,625     
    Property and casualty 53,023   52,724     
            

    Atlantic American Corporation
    Financial Data

     Three Months Ended
     March 31,
    (Unaudited; In thousands, except per share data) 2023   2022 
    Insurance premiums   
    Life and health$28,889  $29,738 
    Property and casualty 17,211   17,343 
    Insurance premiums, net 46,100   47,081 
        
    Net investment income 2,541   2,340 
    Realized investment losses, net -   (10)
    Unrealized gains (losses) on equity securities, net (2,375)  2,193 
    Other income 3   4 
        
    Total revenue 46,269   51,608 
        
    Insurance benefits and losses incurred   
    Life and health 17,800   20,691 
    Property and casualty 12,660   10,478 
    Commissions and underwriting expenses 12,918   12,836 
    Interest expense 750   354 
    Other expense 3,959   3,453 
        
    Total benefits and expenses 48,087   47,812 
        
    Income (loss) before income taxes (1,818)  3,796 
    Income tax expense (benefit) (372)  954 
        
    Net income (loss)$ (1,446) $ 2,842 
        
    Earnings (loss) per common share (basic & diluted)$ (0.08) $ 0.13 
        
    Reconciliation of Non-GAAP financial measure   
        
    Net income (loss)$(1,446) $2,842 
    Income tax expense (benefit) (372)  954 
    Realized investment losses, net -   10 
    Unrealized (gains) losses on equity securities, net 2,375   (2,193)
        
    Non-GAAP operating income (loss)$ 557  $ 1,613 
            
     March 31, December 31,
    Selected balance sheet data 2023   2022 
        
    Total cash and investments$249,207  $257,575 
    Insurance subsidiaries 243,965   251,378 
    Parent and other 5,242   6,197 
    Total assets 353,595   367,064 
    Insurance reserves and policyholder funds 191,243   202,651 
    Debt 36,738   35,747 
    Total shareholders' equity 104,379   102,193 
    Book value per common share 4.85   4.74 
    Statutory capital and surplus   
    Life and health 32,426   36,672 
    Property and casualty 53,302   53,023 
        

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