Business
Atlantic American Corporation Reports Fourth Quarter and Year End Results for 2021; Declares Annual Dividend
ATLANTA, March 25, 2022 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income for the three month period ended December
About this update from Atlantic American Corporation
[{"type":"text","content":"ATLANTA, March 25, 2022 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income for the three month period ended December 31, 2021 of $2.7 million, or $0.12 per diluted share, as compared to net income of $11.8 million, or $0.54 per diluted share, for the comparable period in 2020. For the year ended December 31, 2021, the Company reported net income of $4.3 million, or $0.19 per diluted share, as compared to net income of $12.2 million, or $0.56 per diluted share for the comparable period in 2020. The decrease in net income during the fourth quarter of 2021 was primarily due to an $8.0 million decrease in unrealized gains in equity securities as a result of fluctuation in market values of the Company’s equity investments still held. The decrease in net income for the year ended December 31, 2021 was primarily due to an $11.8 million increase in insurance benefits and losses incurred. The increase in insurance benefits and losses incurred was primarily the result of loss experience within the Company’s life and health operations, returning to historical averages relative to the exceptionally low utilization experienced in 2020 after the onset of the COVID-19 pandemic when many policyholders were sheltered in place. Operating income (as defined below) decreased to $2.6 million in the three month period ended December 31, 2021 as compared to $3.6 million for the three month period ended December 31, 2020. For the year ended December 31, 2021, the Company reported operating loss of $1.5 million compared to operating income of $11.5 million for the comparable period in 2020. The decrease in operating income for the three and twelve month periods was primarily due to an increase in loss experience in the Company’s life and health operations, as mentioned above, predominantly within the Medicare supplement line of business. Commenting on the results, Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, stated, “Our property and casualty operations had an exceptional year and I’m pleased to report the renewal of a significant multi-year state contract, which also included a rate increase. With respect to our life and health operations, the voluntary benefits division had a banner year for new sales and kicked off January of 2022 with a record for issued business. We continue to inve...