Message #6 From:
NewsBot Date: December 28, 2007 08:38:23 AM
Atlantic American Corporation Announces Entry into Agreement to Sell Regional Property & Casualty Operations
Atlantic American Corporation (Nasdaq: AAME) (the “Company”)
today announced that it is has entered into a definitive agreement with
Columbia Mutual Insurance Company of Columbia, Missouri, part of the
Columbia Insurance Group (“Columbia”),
pursuant to which the Company has agreed to sell to Columbia the
businesses comprising the Company’s regional
property and casualty business unit. The regional property and casualty
business unit consists of Georgia Casualty & Surety Company, Association
Risk Management General Agency and Association Casualty Insurance
Company. The transaction, which is subject to various conditions and the
receipt of certain regulatory approvals, is expected to close in the
first quarter of 2008. The purchase price, to be paid in cash, is equal
to the adjusted statutory capital and surplus, as defined, of each
company at December 31, 2007, plus $4.5 million.
Commenting on the transaction, Hilton Howell, President and Chief
Executive Officer of the Company stated “We
are pleased to find a larger property and casualty organization that
closely resembles ours with such a high degree of respect for their
customers, agents and employees. We believe that the employees of our
regional property and casualty business unit will become valued
participants in Columbia’s success.”
Bob Wagner, President and Chief Executive Officer of Columbia also
commented, “We are very excited about this
strategic acquisition. The talented staff of Association Casualty and
Georgia Casualty and the strong agency relationships they have developed
will allow us to enhance and expand our presence in the Southern United
States.”
Benfield Advisory, Inc. served as financial advisor to Atlantic American
Corporation with respect to this transaction.
Columbia Mutual Insurance Company is part of the Columbia Insurance
Group which is a regional multi-line insurance carrier marketing its
products through a network of approximately 650 independent agencies in
the Midwest and Southeastern United States.Gross written
premiums in 2007 are estimated at $220 million with total assets of
approximately $400 million.
Atlantic American is an insurance holding company involved through
its subsidiary companies in specialty markets of the life, health,
property and casualty insurance industries.Its principal
subsidiaries include American Southern Insurance Company, American
Safety Insurance Company, Bankers Fidelity Life Insurance Company,
Georgia Casualty & Surety Company, Association Risk Management General
Agency, Association Casualty Insurance Company and Self-Insurance
Administrators, Inc.
Note regarding Private Securities Litigation Reform Act: Except for
historical information contained herein, this press release contains
forward-looking statements that involve a number of risks and
uncertainties.Actual results could differ materially from those
indicated by such forward-looking statements due to a number of factors
and risks detailed from time to time in statements and reports that
Atlantic American Corporation has filed with the Securities and Exchange
Commission.
Atlantic American Corporation John G. Sample, Jr. Senior Vice
President and Chief Financial Officer 404-266-5501
