Atlantic American Corporation (AAME) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.22 million, or $ 0.02 a share in the quarter, against a net profit of $0.90 million, or $0.04 a share in the last year period.
Revenue during the quarter grew 5.06 percent to $43.86 million from $41.75 million in the previous year period. Net premium earned for the quarter increased 6.04 percent or $2.32 million to $40.78 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $44.21 million, or 108.40 percent of premium earned from $40.37 million or 104.97 percent of premium earned in the last year period. Operating loss for the quarter was $0.35 million, compared with an operating income of $1.38 million in the previous year period.
Net investment income was at $2.16 million for the quarter, down 13.88 percent or $0.35 million from year-ago period. The company has recorded a gain on investments of $0.88 million in the quarter compared with a gain of $0.75 million for the previous year period.
Commenting on the quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, "We continue to move forward with great optimism and confidence in our business strategies. Our Worksite/Group division was officially launched in the first quarter and is experiencing an encouraging level of sales. Our Individual division has recently released a new hospital indemnity product that we feel will have high market acceptance. Diversification of our sales portfolio continues to be a primary focus. We expect that the increased level of Medicare supplement benefit expenses and life insurance claims we experienced in the first quarter will moderate naturally and historically, thus allowing us to return to expected levels of profitability throughout the remainder of the year. Our property and casualty operations continue to perform well and we look forward to better quarters in the balance of the year."
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