Atlantic American Corporation Reports Q3 Net Loss of $2.1M

ATLANTA -- Atlantic American Corporation (Nasdaq-AAME) today reported a net loss of $2.1 million, or $0.10 per diluted share, for the three month period ended September 30, 2009, compared to a net loss of $0.2 million, or $0.03 per diluted share, for the three month period ended September 30, 2008. For the nine month period ended September 30, 2009, the net loss was $1.8 million, or $0.10 per diluted share, compared to a net loss of $1.1 million, or $0.11 per diluted share, for the comparable period in 2008. Results for the three month and nine month periods ended September 30, 2009 were impacted by an increase in the Company's deferred tax asset valuation allowance of approximately $1.8 million; whereas the results for the nine month period ended September 30, 2008 included a loss from discontinued operations of approximately $2.2 million.

Total revenues for the three month period ended September 30, 2009, were $25.5 million, decreasing slightly from $25.6 million for the three month period ended September 30, 2008. Insurance premiums during this quarter decreased less than $0.1 million from the comparable 2008 premiums. For the nine month period ended September 30, 2009, revenues were $76.9 million, decreasing less than 1% from the comparable 2008 period revenues of $77.1 million. Insurance premiums during the nine month period ended September 30, 2009 increased 0.4% from the comparable period in 2008. Nominal revenue and premium changes during both the three month and nine month periods ended September 30, 2009 continue to reflect stabilized business levels.

Commenting on the quarter, Hilton H. Howell, Jr., president and chief executive officer, stated, "While our core operations remain solidly profitable, the non-cash accounting adjustments to our tax provision resulted in a loss for the three month and nine month periods ended September 30, 2009. Premiums in our life and health operation are now increasing across the board, but this increase is being somewhat offset by premium decreases in our property and casualty operations."

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.