ATLANTA, Nov. 10, 2020 (GLOBE NEWSWIRE) -- Atlantic American Corporation (Nasdaq- AAME) today reported net income for the three month period ended September 30, 2020 of $1.9 million, or $0.09 per diluted share, as compared to net loss of $1.4 million, or $0.07 per diluted share, for the comparable period in 2019. For the nine month period ended September 30, 2020, the Company reported net income of $0.3 million, or nil per diluted share, as compared to net loss of $1.7 million, or $0.10 per diluted share, for the comparable period in 2019. The increase in net income during the third quarter of 2020 was primarily due to a $5.5 million decrease in insurance benefits and losses incurred somewhat offset by a decrease in unrealized gains on equity securities of $1.7 million for the third quarter of 2020 as compared to the third quarter of 2019. The increase in net income for the nine month period ended September 30, 2020 was primarily due to a $14.3 million decrease in insurance benefits and losses incurred mostly offset by a decrease of $9.9 million of net unrealized gains on equity securities during the nine month period ended September 30, 2020 as compared to the comparable period in 2019. Changes in unrealized gains and losses on equity securities for the applicable periods are primarily the result of fluctuations in the market values of the Company’s equity investments.

Excluding the effects of realized or unrealized gains or losses and taxes, operating income (as defined below) increased $5.2 million in the three month period ended September 30, 2020 from the three month period ended September 30, 2019. For the nine month period ended September 30, 2020, operating income increased $13.6 million over the comparable period in 2019. The increase in operating income for the three and nine month periods was primarily due to improved loss experience in the Company’s life and health operations, resulting from a significant decrease in the number of incurred claims within the Medicare supplement line of business. The decrease in number of incurred claims was primarily attributable to the Company’s individual policy holders being subject to varying degrees of shelter in place orders instituted throughout the United States during the second and third quarters of 2020 as a result of COVID-19.

Commenting on the results, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “I’m proud to announce we are celebrating 65 years in business for our Bankers Fidelity Life Insurance subsidiary and have reached nearly $200 million in annualized gross premium. Rate adequacy in the Medicare supplement block continues to improve, while expansion of our ancillary product lines has promoted further diversification of premium revenue. Our property and casualty operations continue to do extremely well and we anticipate a good close to the current year.”

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 and Bankers Fidelity Assurance Company.