Atlantic American Corporation (AAME) announces fourth-quarter and year-end results for 2021

WAN CHAI, Hong Kong - May 1, 2022 - PRLog -- The Company recorded a net income of $4.3 million, or $0.19 per diluted share, for the year ended December 31, 2021, compared to net income of $12.2 million, or $0.56 per diluted share, for the same period in 2020. The drop in net income in the fourth quarter of 2021 was largely attributable to a $8 million drop in unrealized gains in equity securities as a consequence of market fluctuations in the Company's still-held equity assets. The drop in net income for the fiscal year ended December 31, 2021 was largely attributable to an increase of $11.8 million in insurance pay outs and losses. The increase in insurance benefits and losses was primarily due to loss experience in the Company's life and health operations, which returned to historical averages after the unusually low utilization seen in 2020 following the onset of the COVID-19 pandemic, when many policyholders were sheltered in place.

Operating income (as defined below) fell to $2.6 million in the three months ending December 31, 2021, compared to $3.6 million in the same period the previous year. The Company lost $1.5 million in operating income for the year ending December 31, 2021, compared to $11.5 million in operating income for the same period in 2020. The drop in operating income for the three and twelve month periods was principally attributable to an increase in loss experience in the Company's life and health operations, particularly in the Medicare supplement line of business, as previously noted.

"Our property and casualty operations had a great year," said Hilton H. Howell, Jr., Chairman, President and Chief Executive Officer, "and I'm thrilled to announce the renewal of a substantial multi-year state contract, which also includes a rate rise." In terms of our life and health activities, the optional benefits division experienced a record year for new sales and began January 2022 with a record amount of issued business. We are continuing to invest in a number of projects that we believe will help the firm succeed in 2022 and beyond. The Board of Directors today authorized the Company's annual dividend of $0.02 per share, which will be paid on April 27, 2022, as part of our ongoing commitment to deliver value to our shareholders.

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