AAME Atlantic American Corporation

Atlantic American Corporation (Nasdaq- AAME) today reported its results for the fourth quarter and year ended December 31, 2018.  For the fourth quarter ended December 31, 2018, the Company reported net income of $0.2 million, or $0.01 per diluted share, down from $2.5 million, or $0.12 per diluted share, in the fourth quarter of 2017.  The decrease in net income was primarily attributable to an increase in unrealized losses on equity securities recognized in net income of $2.9 million and a decrease in realized investment gains of $2.0 million, partially offset by improvements in underwriting results.  Premiums for the fourth quarter of 2018 increased 12.4% to $45.3 million compared to $40.3 million for the fourth quarter of 2017, as premiums in the life and health operations and property and casualty operations increased 14.4% and 8.3%, respectively, as compared to 2017.

For the year ended December 31, 2018, the Company reported a net loss of $0.7 million, or $0.05 per diluted share, as compared to net income of $4.5 million, or $0.20 per diluted share, for the year ended December 31, 2017.  The decrease was primarily attributable to a decline in realized investment gains of $4.0 million coupled with $2.2 million in unrealized losses on equity securities recognized in net income.  Total premiums during 2018 increased 5.9% to $172.9 million from $163.3 million in 2017, as premiums in the life and health operations increased 8.6% in 2018 as compared to 2017.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “We are pleased with the year over year growth in premium revenues in each of our insurance subsidiaries and remain focused on refining processes and improving profitability.  Rate increases implemented in our life and health operations are beginning to take hold and we are pleased to report the renewal of a significant multi-year state contract with our property and casualty operations, which also included a rate increase.  While prudent pricing practices are key to profitability, the Company has embarked on a number of initiatives to enhance underwriting, better educate our agents, and improve the policyholder experience.  We remain confident in the long-term viability of our strategy and in our commitment to deliver value to our shareholders.  Accordingly, the Board of Directors recently approved the Company’s 8th annual dividend, which is payable on April 24, 2019 to shareholders of record on April 10, 2019.”

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 insurance subsidiaries are American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance 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.

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 CorporationFinancial Data

	Three Months Ended								Year ended
	December 31,								December 31,
(Unaudited; In thousands, except per share data)	2018				2017				2018				2017
Insurance premiums
Life and health
Gross earned premiums	$	47,425			$	39,749			$	180,583			$	142,251
Ceded premiums		(16,606	)			(12,811	)			(61,459	)			(32,585	)
Net earned premiums		30,819				26,938				119,124				109,666
Property and casualty
Gross earned premiums		15,914				14,589				58,882				58,449
Ceded premiums		(1,406	)			(1,196	)			(5,075	)			(4,788	)
Net earned premiums		14,508				13,393				53,807				53,661
Insurance premiums, net		45,327				40,331				172,931				163,327
Net investment income		2,438				2,116				9,549				8,496
Realized investment gains, net		4,357				6,350				5,154				9,168
Unrealized losses on equity securities, net		(2,947	)			-				(2,194	)			-
Other income		25				28				113				123
Total revenue		49,200				48,825				185,553				181,114
Insurance benefits and losses incurred
Life and health		23,887				21,462				93,821				83,029
Property and casualty		10,285				8,607				38,829				34,486
Commissions and underwriting expenses		10,586				11,646				39,042				43,446
Interest expense		540				450				2,037				1,723
Other expense		3,627				3,773				12,795				13,074
Total benefits and expenses		48,925				45,938				186,524				175,758
Income (loss) before income taxes		275				2,887				(971	)			5,356
Income tax expense (benefit)		74				345				(267	)			828
Net income (loss)	$	201			$	2,542			$	(704	)		$	4,528
Earnings (loss) per common share (basic and diluted)	$	0.01			$	0.12			$	(0.05	)		$	0.20
Reconciliation of Non-GAAP Financial Measure
Net income (loss)	$	201			$	2,542			$	(704	)		$	4,528
Income tax expense (benefit)		74				345				(267	)			828
Realized investment gains, net		(4,357	)			(6,350	)			(5,154	)			(9,168	)
Unrealized losses on equity securities, net		2,947				-				2,194				-
Non-GAAP operating loss	$	(1,135	)		$	(3,463	)		$	(3,931	)		$	(3,812	)
	December 31,				December 31,
Selected Balance Sheet Data	2018				2017
Total cash and investments	$	254,559			$	272,058
Insurance subsidiaries		235,796				244,754
Parent and other		18,763				27,304
Total assets		344,274				343,239
Insurance reserves and policyholder funds		189,048				173,583
Debt		33,738				33,738
Total shareholders' equity		101,372				112,983
Book value per common share		4.75				5.26
Statutory capital and surplus
Life and health		34,214				34,135
Property and casualty		43,467				43,348