Atlanta-based Atlantic American Corporation announced net income for the first quarter ended March 31, 2003 of $696,000 or $0.02 per diluted share, compared to a net loss of $14.3 million or $0.69 per diluted share in the first quarter of 2002.
The first quarter of 2002 included a $15.8 million ($0.73 per diluted share) non-cash charge due to the cumulative effect of a change in accounting principle dealing with the company’s goodwill. Revenue for the first quarter of 2003 increased to $44.0 million, an increase of 9.9 percent over 2002 first quarter revenue of $40.1 million. Premiums for the quarter increased 9.8 percent to $39.7 million from $36.1 million for the comparable quarter in 2002. The increase in premiums and revenues for the quarter was primarily attributable to continued pricing increases in all of Atlantic American’s insurance operations as well as greater retentions in the regional property casualty operations and increased investment income.
Commenting on the quarter, Hilton Howell, Jr., president and CEO, noted, “While our regional property and casualty operation continues to be challenged with the losses from several years ago, the combination of improved underwriting, greater business diversification and very respectable current year loss ratios instills a high degree of confidence for the future. Further, the balance of our organization continues to perform exceptionally well and in line with our expectations. Revenue increases not only reflect cumulative pricing adjustments but also signal the high level of confidence by our agents and customers and provide the solid foundation for our continued growth.”
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