Atlanta-based Atlantic American Corp. announced net income of $1.2 million, or $0.04 per diluted share, for the second quarter ended June 30, 2005, compared to net income of $1.1 million, or $0.04 per diluted share, for the second quarter ended June 30, 2004.
Realized gains included in 2005-second quarter income were $0.5 million compared to $0.1 million in the second quarter of 2004. For the six months ended June 30, 2005, net income was $0.4 million, or a $0.01 loss per diluted share, compared to net income of $2.6 million, or $0.09 per diluted share, for the same period in 2004.
Total revenues for the second quarter of 2005 were $50.2 million,
increasing 6% over 2004 second quarter revenues of $47.4 million. Insurance premiums during this quarter increased 5% over the comparable 2004 premiums and were supplemented by modest increases in investment income and realized investment gains.
For the six months ended June 30, 2005, revenues were $100.5 million, increasing 7% over the comparable 2004 revenues of $93.8
million. Substantially all revenue and premium growth during the second quarter and first six months of 2005 occurred in the company’s property and casualty businesses.
Commenting on the quarter, Hilton Howell, Jr., president and chief
executive officer, stated, “While our second quarter is a marked improvement from the first, we have invested a substantial amount of time reassessing our property and casualty book of business, particularly in Georgia Casualty. While we do not expect the results of our efforts to be immediately apparent, we do believe that we have positioned Georgia Casualty for a return to profitability in the intermediate term.
“Further, our property and casualty reinsurance costs have become an increasingly significant component of our costs and we are now evaluating specific business opportunities relative to the potential impact on our reinsurance costs. Our life and health business
continues to perform well and we remain cautiously optimistic for the balance of 2005.”
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