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Atlantic American Corporation Reports Third Quarter Profit

^{Published on 2010-11-05 06:25:57 - Market Wire}
 

ATLANTA--([ BUSINESS WIRE ])--Atlantic American Corporation (Nasdaq-AAME) today reported net income of $525,000, or $0.02 per diluted share, for the three month period ended September 30, 2010, compared to a net loss of $2.1 million, or $0.10 per diluted share, for the three month period ended September 30, 2009. For the nine month period ended September 30, 2010, net income was $1.0 million, or $0.03 per diluted share, compared to a net loss of $1.8 million, or $0.10 per diluted share, for the comparable period in 2009. Results for the three month and nine month periods ended September 30, 2009 were primarily the result of an increase in the Companya™s deferred tax asset valuation allowance of approximately $1.8 million.

Total revenues for the three month period ended September 30, 2010, were $27.1 million, increasing 6.3% from $25.5 million for the three month period ended September 30, 2009. Insurance premiums during this quarter increased $1.8 million, or 7.9%, from the comparable 2009 premiums. For the nine month period ended September 30, 2010, revenues were $80.2 million, increasing 4.3% from the comparable 2009 period revenues of $76.9 million. Insurance premiums during the nine month period ended September 30, 2010 increased $3.8 million, or 5.6%, from the comparable period in 2009. Revenue and premium increases during both the three month and nine month periods ended September 30, 2010 occurred primarily in the Companya™s life and health operation.

Commenting on the quarter, Hilton H. Howell, Jr., president and chief executive officer, stated, aWith our increasing premium levels, our core insurance operations remain solidly profitable. We continue to make investments in new products and increase our field force for greater penetration and broader distribution. While pleased with this most recent quarter, we are focused on building our business. Even though the soft property and casualty markets continue to challenge our property and casualty business, we are optimistic that our life and health business will continue with the steady growth exhibited in recent quarters.a

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 consist of American Southern Insurance Company, American Safety Insurance Company, and Bankers Fidelity Life Insurance Company.

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.