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<SEC-DOCUMENT>0000008177-08-000010.txt : 20080404
<SEC-HEADER>0000008177-08-000010.hdr.sgml : 20080404
<ACCEPTANCE-DATETIME>20080404144327
ACCESSION NUMBER:		0000008177-08-000010
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080331
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Termination of a Material Definitive Agreement
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20080404
DATE AS OF CHANGE:		20080404

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ATLANTIC AMERICAN CORP
		CENTRAL INDEX KEY:			0000008177
		STANDARD INDUSTRIAL CLASSIFICATION:	LIFE INSURANCE [6311]
		IRS NUMBER:				581027114
		STATE OF INCORPORATION:			GA
		FISCAL YEAR END:			0228

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-03722
		FILM NUMBER:		08740137

	BUSINESS ADDRESS:	
		STREET 1:		4370 PEACHTREE RD NE
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30319
		BUSINESS PHONE:		4042665500

	MAIL ADDRESS:	
		STREET 1:		4370 PEACHTREE ROAD
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30319
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form_8k2008.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>

<HTML>
<HEAD>
<TITLE>Form 8-K 2008</title>
</head>
<body>
<BR><BR><BR>
<p align=center><font size=3 face="times new roman"> SECURITIES AND EXCHANGE COMMISSION<BR>
 Washington, D.C. 20549</font></p><BR>

<p align=center><font size=3 face="times new roman"><b>FORM 8-K</b></font></p><BR>

<p align=center><font size=3 face="times new roman"> Current Report<BR>
                                                Pursuant to Section 13 or 15(d) of the<BR>
                                                    Securities Exchange Act of 1934<BR></font></p><BR>
<table align=center width=670 cellspacing=0 cellpadding=2 border=0>
<tr>
<td width=33.3%></td>
<td width=33.3%></td>
<td width=33.3%></td>
</tr>
<tr>
<td colspan=3><font size=3 face="times new roman">Date of Report (Date of Earliest Event Reported):
 April 4, 2008 (March 31, 2008)</font></td>
</tr>
</table>

<p align=center><font size=3 face="times new roman"><b> ATLANTIC AMERICAN CORPORATION</b><BR></font>
                                      <font size=1 face="times new roman">
(Exact Name of Registrant as Specified in Its Charter)</font></p><BR><BR><BR>


<table align=center width=670 cellspacing=0 cellpadding=2 border=0>
<tr>
<td width=33.3%></td>
<td width=33.3%></td>
<td width=33.3%></td>
</tr>
<tr>

<td align=center><font size=3 face="times new roman"> Georgia<BR>
</font><font size=1 face="times new roman">(State or Other Jurisdiction of Incorporation)</font></td>
<td align=center><font size=3 face="times new roman">0-3722<BR></font>
<font size=1 face="times new roman"> (Commission File Number)</font></td>
<td align=center><font size=3 face="times new roman">58-1027114<BR></font>
<font size=1 face="times new roman">(I.R.S. Employer Identification No.)</font></td>
</tr>
<tr>
<td colspan=3>&nbsp;</td>
</tr>
<tr>

<td><font size=3 face="times new roman">4370 Peachtree Rd., N.E.<BR>
Atlanta, Georgia <BR></font><font size=1 face="times new roman">(Address of Principal Executive Offices)</font></td>
<td>&nbsp;</td>
<td align=center><font size=3 face="times new roman">30319<BR>
</font><font size=1 face="times new roman">(Zip Code)</font></td>
</tr>
</table>
 <BR><BR>
<table align=center width=550 cellspacing=0 cellpadding=2 border=0>
<tr>
<td width=33.3%></td>
<td width=33.3%></td>
<td width=33.3%></td>
</tr>
<tr>
<td colspan=3><font size=3 face="times new roman">Registrant's Telephone Number, Including Area Code:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(404) 266-5500</font></td>
</tr>
</table>
<BR><BR>

<table align=center width=670 cellspacing=0 cellpadding=2 border=0>
<tr>
<td width=33.3%></td>
<td width=33.3%></td>
<td width=33.3%></td>
</tr>
<tr>
<td colspan=3 align=center><font size=3 face="times new roman">N/A</font></td>
</tr>
<tr>
<td><hr noshade width=670 size=1></td>
</tr>
<tr>
<td colspan=3 align=center><font size=1 face="times new roman">(Former Name or former address, if changed since last report)</font></td>
</tr>
</table>

<BR><BR>

<table align=center width=670 cellspacing=0 cellpadding=2 border=0>
<tr>
<td width=5%></td>
<td width=5%></td>
<td width=90%></td>
</tr>
<tr>
<td colspan=3><font size=3 face="times new roman">Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions:</font></td>
</tr>
<tr>
<td colspan=3>&nbsp;</td>
</tr>
<tr>
<td align=center>&#143;</td>

<td colspan=2><font size=3 face="times new roman">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
</font></td>
</tr>
<tr>
<td align=center>&#144;</td>

<td colspan=2><font size=3 face="times new roman">Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)</font></td>
</tr>
<tr>
<td align=center>&#144;<BR>&nbsp;</td>

<td colspan=2><font size=3 face="times new roman">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))</font></td>
</tr>
<tr>
<td align=center>&#144;<BR>&nbsp;</td>

<td colspan=2><font size=3 face="times new roman">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))</font></td>
</tr>
</table>


<BR><BR>






<hr noshade size=2>
<PAGE>
<H5 align="left" style="page-break-before:always"></H5>







<table width=670 cellspacing=0 cellpadding=2 border=0>
<tr>
<td width=15%>&nbsp;</td>
<td width=5%>&nbsp;</td>
<td width=30%>&nbsp;</td>
<td width=20%>&nbsp;</td>
<td width=30%>&nbsp;</td>
</tr>
<tr>
<td colspan=4><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Section 1&nbsp;&nbsp;-&nbsp;&nbsp;
Registrant&#146;s Business and Operations</b></FONT></td>
<td>&nbsp;</td>
</tr>
<tr>
<td colspan=4>&nbsp;</td>
</tr>
<tr>
<td><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Item 1.01</b></font></td>

<td colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Entry
into a Material Definitive Agreement.</b></font></td>
</tr>
<tr>
<td colspan=5>&nbsp;</td>
</tr>

<tr>
<td colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On March 31, 2008, Atlantic American
Corporation (the &#147;Company&#148;) completed its previously announced sale
(the &#147;Disposition&#148;) of all of the stock of the Company&#146;s wholly
owned subsidiaries Georgia Casualty &amp; Surety Company (&#147;Georgia
Casualty&#148;), Association Casualty Insurance Company (&#147;Association
Casualty&#148;) and Association Risk Management General Agency, Inc. (&#147;Risk
Management&#148;) to Columbia Mutual Insurance Company (&#147;Columbia&#148;).
The sale was completed in accordance with the previously disclosed terms and
conditions of the Stock Purchase Agreement, dated December&#160;26, 2007,
between the Company and Columbia, subject to certain potential post-closing
adjustments to the purchase price. The gross proceeds were invested by the
Company. Georgia Casualty, Association Casualty and Risk Management comprised
the Company&#146;s Regional Property &amp; Casualty business unit.</font></td>
</tr>
<tr>
<td colspan=5>&nbsp;</td>
</tr>
<tr>
<td colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a part of the overall
transactions related to the completion of the Disposition, the Company and
Columbia entered into a Non Competition Agreement, dated March 31, 2008 (the
&#147;Noncompete Agreement&#148;). The Noncompete Agreement provides that, until
March 31, 2010, the Company generally will not compete with Columbia in certain
territories in connection with the underwriting of primary standard property and
casualty insurance.</font></td>
</tr>
<tr>
<td colspan=5>&nbsp;</td>
</tr>
<tr>
<td colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Also in connection with the
completion of the Disposition, the Company and Wachovia Bank, National
Association (&#147;Wachovia&#148;) entered into a First Amendment to Credit
Agreement and Pledge Agreement, dated as of March 28, 2008 (the &#147;First
Amendment&#148;). The First Amendment amended the Company&#146;s existing
credit, and related pledge, agreement with Wachovia to permit the Company&#146;s
sale of the Regional Property &amp; Casualty business unit and conform certain
terms in those agreements after taking into account the Disposition. </FONT></td>
</tr>
<tr>
<td colspan=5>&nbsp;</td>
</tr>
<tr>
<td colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Additionally, the Company,
its subsidiary Bankers Fidelity Life Insurance Company, Georgia Casualty and
Delta Life Insurance Co. (&#147;Delta Life&#148;), a company controlled by the
Company&#146;s chairman and majority shareholder, entered into a First Amendment
to Lease Agreement (the &#147;Lease Amendment&#148;), dated March&#160;31, 2008,
pursuant to which that certain lease agreement under which Delta Life leases
certain office space to the Company and various of its subsidiaries was modified
to reduce the rented space, and related rental fees and expenses, on a pro rata
basis to reflect the completion of the Disposition.</FONT></td>
</tr>
<tr>
<td colspan=5>&nbsp;</td>
</tr>
<tr>
<td><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Item 1.02</b></font></td>

<td colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Termination of a Material Definitive Agreement.</b></font></td>
</tr>
<tr>
<td colspan=5>&nbsp;</td>
</tr>

<tr>
<td colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In connection with the
completion of the Disposition, the Company and Georgia Casualty also entered
into a Termination of Management Agreement, dated as of March 31, 2008 (the
&#147;Termination Agreement&#148;). The Termination Agreement terminates that
certain Management Agreement, dated as of July 31, 1993, between the Company and
Georgia Casualty pursuant to which the Company had provided certain management
and related services to Georgia Casualty.</FONT></td>

</tr>

</table>


<table width=670 cellspacing=0 cellpadding=2 border=0>
<tr>
<td width=15%>&nbsp;</td>
<td width=5%>&nbsp;</td>
<td width=30%>&nbsp;</td>
<td width=20%>&nbsp;</td>
<td width=30%>&nbsp;</td>
</tr>
<tr>
<td colspan=4><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Section 2&nbsp;&nbsp;-&nbsp;&nbsp;
Financial Information</b></FONT></td>
<td>&nbsp;</td>
</tr>
<tr>
<td colspan=4>&nbsp;</td>
</tr>
<tr>
<td><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Item 2.01</b></font></td>

<td colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Completion
of Acquisition or Disposition of Assets.</b></font></td>
</tr>
<tr>
<td colspan=5>&nbsp;</td>
</tr>

<tr>
<td colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The information contained
in the first paragraph under &#147;Item 1.01 &#150; Entry into a Material
Definitive Agreement&#148; is incorporated herein by reference.</FONT></td>

<td colspan=5>&nbsp;</td>
</tr>
<tr>
<td colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On March 31, 2008, the
Company issued a press release (the &#147;Press Release&#148;) announcing, among
other things, the completion of the Disposition. A copy of the press release is
attached hereto as Exhibit 99.1. </FONT></td>
</tr>

<tr>
<td colspan=4>&nbsp;</td>
</tr>
<tr>
<td><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Item 2.02</b></font></td>

<td colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Results of Operations and Financial Condition.</b></font></td>
</tr>
<tr>
<td colspan=4>&nbsp;</td>
</tr>
<tr>
<td colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On March 31, 2008, the
Company reported its results for its fourth quarter and year ended
December&#160;31, 2007. The second paragraph of the Press Release is
incorporated herein by this reference. </FONT></td>
</tr>
<tr>
<td colspan=4>&nbsp;</td>
</tr>
<tr>
<td colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The information contained
in this Item 2.02 and in the second paragraph of the accompanying exhibit shall
not be incorporated by reference into any filing of the Company, whether made
before or after the date hereof, regardless of any general incorporation
language in such filing, unless expressly incorporated by specific reference to
such filing. The information in this Item 2.02, including in the second
paragraph of the exhibit hereto, shall not be deemed to be &#147;filed&#148; for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or
otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2)
of the Securities Act of 1933, as amended.  </FONT></td>
</tr>


</table>
<BR><BR><BR>






<hr noshade size=2>
<PAGE>
<H5 align="left" style="page-break-before:always"></H5>











<p align=center><font size=2 face="times new roman"><b> SIGNATURE</b></font></p>
<p><font size=2 face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.</font></p>

<table align=center width=650 cellpadding=5 cellspacing=0 border=0>
<tr>
<td width=50%>
</td>
<td width=50%>
</td>
</tr>
<tr>
<td>&nbsp;</td>
<td><font size=2 face="times new roman"><b>ATLANTIC AMERICAN CORPORATION</b></font></td>
</tr>
</table>

<table align=center width=650 cellpadding=0 cellspacing=0 border=0>
<tr>
<td width=50%>
</td>
<td width=50%>
</td>
</tr>
<tr>
<td colspan=2>&nbsp;</td>
</tr>
<tr>
<td>&nbsp;</td>
<td><font size=2 face="times new roman">&nbsp;&nbsp;&nbsp;By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ John G. Sample, Jr.</font><hr size=1 noshade></td>
</tr>
<tr>
<td>&nbsp;</td>
<td><font size=2 face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John G. Sample, Jr.<BR>
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President &amp; Chief Financial Officer</font></td>
</tr>
</table>

<p><font size=2 face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;Date: &nbsp;&nbsp;April 4, 2008</font></p>
<BR><BR><BR>





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<p align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>EXHIBIT INDEX</b></font></p>

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<tr>
<td>&nbsp;</td>
<td><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Exhibit No.</u></font></td>
<td colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Exhibit Description</u></font></td>
</tr>
<tr>
<td>&nbsp;</td>
<td valign=top><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.1</font></td>
<td colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Press release, dated March 31, 2008</font></td>
</tr>

</table>
<BR><BR><BR>


</body>
</html>












</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>pressrelease03312008.htm
<DESCRIPTION>PRESS RELEASE DATED 03/31/2008
<TEXT>




<html>
<head>
<title>
Press Release 03-31-2008
</title>
</head>
<body>

<p align=right><font face="times new roman, serif" size=2><B><U>EXHIBIT 99.1</U></B></font></p>

<p ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><b>ATLANTIC AMERICAN CORPORATION REPORTS CLOSING OF SALE OF ITS
REGIONAL PROPERTY AND CASUALTY OPERATIONS AND FOURTH QUARTER AND YEAR<BR>END RESULTS</b></font></p>




<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ATLANTA, Georgia, March 31,
2008 - Atlantic American Corporation (Nasdaq- AAME) reported that today it
closed the sale of its regional property and casualty operations (including
Association Casualty Insurance Company, Association Risk Management General
Agency, Inc. and Georgia Casualty &amp; Surety Company) to Columbia Mutual
Insurance Company of Columbia, Missouri. The sale was originally announced on
December 27, 2007 and Benfield Advisory, Inc. served as financial advisor to
Atlantic American Corporation. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At the same time, the
Company also announced net income for the year ended December 31, 2007 of $7.3
million, or $0.25 per diluted share, as compared to $8.9 million, or $0.33 per
diluted share, for the year ended December 31, 2006. The loss from discontinued
operations was $4.3 million, or $0.20 per diluted share, for the year ended
December 31, 2007 compared to income from discontinued operations of $1.8
million, or $0.06 per diluted share, for the year ended December 31, 2006. Total
revenue for 2007 was $123.0 million, a 1.9% decline from 2006 total revenue of
$125.4 million. Premiums during 2007 decreased $11.8 million, or 10.7%, to $97.8
million from 2006 premiums of $109.6 million. Premium decreases were primarily
attributable to the significant price and product competition in all lines of
business. Realized investment gains for 2007 were $12.6 million as compared to
$3.1 million for 2006 with the increase resulting primarily from the sale of a
common stock holding in Wachovia Corporation. During the fourth quarter ended
December 31, 2007, the Company reported net income of $4.2 million, or $0.15 per
diluted share, compared to $3.0 million, or $0.11 per diluted share, during the
same period in 2006. For the fourth quarter ended December 31, 2007, total
revenue increased 23.2% to $38.4 million from $31.2 million for the fourth
quarter of 2006. Premiums for the fourth quarter of 2007 decreased 10.9% to
$23.7 million compared to $26.6 million for the fourth quarter of 2006. The
increase in fourth quarter 2007 total revenue was the result of the sale of the
common stock holding in Wachovia Corporation which increased realized investment
gains. Excluding consideration of realized investment gains (losses), pre-tax
operating earnings from continuing operations for the year ended December 31,
2007 were $6.5 million, which is comparable to that for the year ended December
31, 2006. Pre-tax operating earnings from continuing operations for the quarter
ended December 31, 2007 were $2.9 million, a 78.6% increase over the $1.6
million in the comparable quarter of 2006. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commenting, Hilton H.
Howell, Jr., president and chief executive officer, stated, &#147;While we will
deeply miss the daily interaction we had with those individuals who contributed
so much to our regional property and casualty operations, we believe that the
future of those companies is in good hands with the Columbia Insurance Group. As
the United States economy grows more uncertain, we are entering a period in
which we have now narrowed our business focus in the specialty markets to those
products and markets in which we believe we can concentrate and excel. &#148; </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Atlantic American is an
insurance holding company involved through its subsidiary companies in specialty
markets of the life, health, and property and casualty insurance industries. Its
principal subsidiaries include American Southern Insurance Company, American
Safety Insurance Company, Bankers Fidelity Life Insurance Company and
Self-Insurance Administrators, Inc.</I></FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>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.</I></FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For further information
contact: </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John G. Sample, Jr.<BR>
Senior Vice President and Chief Financial Officer<BR>
Atlantic American Corporation<BR>
404-266-5501</font></p>








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<p align=center><font size=2 face="times new roman, serif"><B>Atlantic American Corporation<BR>
Financial Data<BR>As of December 31, 2007</b>
</font></p>

<table align=center width=630 cellspacing=0 cellpadding=0 border=0>
<tr>
<td width=50%>&nbsp;</td>
<td width=12%>&nbsp;</td>
<td width=1%>&nbsp;</td>
<td width=12%>&nbsp;</td>
<td width=1%>&nbsp;</td>
<td width=12%>&nbsp;</td>
<td width=1%>&nbsp;</td>
<td width=12%>&nbsp;</td>
</tr>
<tr>
<td>&nbsp;</td>
<td bgcolor="#eeeeee" align=center colspan=3><font size=2 face="times new roman, serif">Three months ended<BR>Dec. 31,</font></td>
<td bgcolor="#eeeeee">&nbsp;</td>
<td bgcolor="#eeeeee" align=center colspan=3><font size=2 face="times new roman, serif">Year ended<BR>Dec. 31,</font></td>
</tr>
<tr>

<td><font face="times new roman, serif" size=2><i>(Unaudited; In thousands, except per share data)</i></font></td>

<td align=center colspan=2><font size=2 face="times new roman, serif">2007</font><HR NOSHADE SIZE=1></td>
<td align=center><font size=2 face="times new roman, serif">2006</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=center colspan=2><font size=2 face="times new roman, serif">2007</font><HR NOSHADE SIZE=1></td>
<td align=center><font size=2 face="times new roman, serif">2006</font><HR NOSHADE SIZE=1></td>
</tr>

<tr bgcolor="#eeeeee">
<td><font size=2 face="times new roman, serif">Insurance premiums</font></td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;23,734</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;26,649</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97,824</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;109,580</font></td>
</tr>
<tr>
<td><font size=2 face="times new roman, serif">Investment income</font></td>
<td align=right><font size=2 face="times new roman, serif">2,926</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">3,061</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">11,722</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">11,926</font></td>
</tr>

<tr bgcolor="#eeeeee">
<td><font size=2 face="times new roman, serif">Realized investment gains, net</font></td>
<td align=right><font size=2 face="times new roman, serif">11,556</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">1,304</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">12,627</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">3,084</font></td>
</tr>

<tr valign=top>
<td><font size=2 face="times new roman, serif">Other income</font></td>
<td align=right><font size=2 face="times new roman, serif">200</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">170</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">799</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">768</font><HR NOSHADE SIZE=1></td>
</tr>
<tr valign=top bgcolor="#eeeeee">
<td><font size=2 face="times new roman, serif"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue</b></font></td>
<td align=right><font size=2 face="times new roman, serif"><b>38,416</b></font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif"><b>31,184</b></font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif"><b>122,972</b></font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif"><b>125,358</b></font><HR NOSHADE SIZE=1></td>
</tr>


<tr>
<td><font size=2 face="times new roman, serif">Insurance benefits and losses incurred</font></td>
<td align=right><font size=2 face="times new roman, serif">13,478</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">16,242</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">58,701</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">65,460</font></td>
</tr>

<tr bgcolor="#eeeeee">
<td><font size=2 face="times new roman, serif">Commissions and underwriting expenses</font></td>
<td align=right><font size=2 face="times new roman, serif">7,441</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">8,077</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">32,663</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">36,404</font></td>
</tr>

<tr>
<td><font size=2 face="times new roman, serif">Interest expense</font></td>
<td align=right><font size=2 face="times new roman, serif">1,045</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">1,212</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">4,160</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">4,605</font></td>
</tr>

<tr valign=top bgcolor="#eeeeee">
<td><font size=2 face="times new roman, serif">Other</font></td>
<td align=right><font size=2 face="times new roman, serif">1,982</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">2,717</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">8,350</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">9,265</font><HR NOSHADE SIZE=1></td>
</tr>

<tr valign=top>
<td><font size=2 face="times new roman, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total benefits and expenses</font></td>
<td align=right><font size=2 face="times new roman, serif">23,946</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">28,248</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">103,874</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">115,734</font><HR NOSHADE SIZE=1></td>
</tr>

<tr bgcolor="#eeeeee">
<td><font size=2 face="times new roman, serif">Income from continuing operations before taxes</font></td>
<td align=right><font size=2 face="times new roman, serif">14,470</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">2,936</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">19,098</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">9,624</font></td>
</tr>

<tr valign=top>
<td><font size=2 face="times new roman, serif">Income tax expense</font></td>
<td align=right><font size=2 face="times new roman, serif">5,696</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">244</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">7,513</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">2,458</font><HR NOSHADE SIZE=1></td>
</tr>

<tr bgcolor="#eeeeee">
<td><font size=2 face="times new roman, serif">Income from continuing operations</font></td>
<td align=right><font size=2 face="times new roman, serif">8,774</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">2,692</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">11,585</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">7,166</font></td>
</tr>
<tr valign=top>
<td><font size=2 face="times new roman, serif">Income (loss) from discontinued operations, net of tax</font></td>
<td align=right><font size=2 face="times new roman, serif">(4,613)</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">272</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">(4,333)</font><HR NOSHADE SIZE=1></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">1,770</font><HR NOSHADE SIZE=1></td>
</tr>

<tr valign=top bgcolor="#eeeeee">

<td><font size=2 face="times new roman, serif"><b>Net income</b></font></td>
<td align=right><font size=2 face="times new roman, serif"><b>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,161</b></font><HR NOSHADE SIZE=2></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif"><b>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,964</b></font><HR NOSHADE SIZE=2></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif"><b>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,252</b></font><HR NOSHADE SIZE=2></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif"><b>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,936</b></font><HR NOSHADE SIZE=2></td>
</tr>


<tr>
<td><font size=2 face="times new roman, serif"><b>Basic income (loss) per common share:</b></font></td>
<td colspan=7>&nbsp;</td>
</tr>

<tr valign=top bgcolor="#eeeeee">
<td><font size=2 face="times new roman, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations</font></td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.38</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.11</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.46</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.27</font></td>
</tr>
<tr valign=top>
<td><font size=2 face="times new roman, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from discontinued operations</font></td>
<td align=right><font size=2 face="times new roman, serif">(0.21)</font><HR NOSHADE SIZE=2></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">0.01</font><HR NOSHADE SIZE=2></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">(0.20)</font><HR NOSHADE SIZE=2></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">0.09</font><HR NOSHADE SIZE=2></td>
</tr>
<tr valign=top bgcolor="#eeeeee">
<td><font size=2 face="times new roman, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17</font><HR NOSHADE SIZE=3></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.12</font><HR NOSHADE SIZE=3></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.26</font><HR NOSHADE SIZE=3></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.36</font><HR NOSHADE SIZE=3></td>
</tr>
<tr>
<td><font size=2 face="times new roman, serif"><b>Diluted income (loss) per common share:</b></font></td>
<td colspan=7>&nbsp;</td>
</tr>

<tr valign=top bgcolor="#eeeeee">
<td><font size=2 face="times new roman, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations</font></td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.32</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.10</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.45</font></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.27</font></td>
</tr>
<tr valign=top>
<td><font size=2 face="times new roman, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from discontinued operations</font></td>
<td align=right><font size=2 face="times new roman, serif">(0.17)</font><HR NOSHADE SIZE=2></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">0.01</font><HR NOSHADE SIZE=2></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">(0.20)</font><HR NOSHADE SIZE=2></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">0.06</font><HR NOSHADE SIZE=2></td>
</tr>
<tr valign=top bgcolor="#eeeeee">
<td><font size=2 face="times new roman, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.15</font><HR NOSHADE SIZE=3></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.11</font><HR NOSHADE SIZE=3></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.25</font><HR NOSHADE SIZE=3></td>
<td>&nbsp;</td>
<td align=right><font size=2 face="times new roman, serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.33</font><HR NOSHADE SIZE=3></td>
</tr>

</table>



<table align=center width=630 cellspacing=0 cellpadding=0 border=0>
<tr>
<td width=50%>&nbsp;</td>
<td width=12%>&nbsp;</td>
<td width=1%>&nbsp;</td>
<td width=12%>&nbsp;</td>
<td width=25%>&nbsp;</td>
</tr>
<tr>
<td><font size=2 face="times new roman, serif"><b>&nbsp;<BR>Selected Balance Sheet Data</b></font></td>
<td align=center colspan=2><font face="times new roman, serif" size=2>December 31,<BR>2007</font><HR NOSHADE SIZE=1></td>


<td align=center><font face="times new roman, serif" size=2>December 31,<BR>2006</font><HR NOSHADE SIZE=1></td>

<td>&nbsp;</td>

</tr>
<tr>
<td bgcolor="#eeeeee"><font size=2 face="times new roman, serif">Total investments</font></td>
<td bgcolor="#eeeeee" align=right><font face="times new roman, serif" size=2>$&nbsp;178,059</font></td>
<td bgcolor="#eeeeee">&nbsp;</td>
<td bgcolor="#eeeeee" align=right><font face="times new roman, serif" size=2>$&nbsp;&nbsp;&nbsp;193,197</font></td>
<td>&nbsp;</td>
</tr>
<tr>
<td><font size=2 face="times new roman, serif">Assets of discontinued operations</font></td>
<td align=right><font face="times new roman, serif" size=2>196,154</font></td>
<td>&nbsp;</td>
<td align=right><font face="times new roman, serif" size=2>194,248</font></td>
<td>&nbsp;</td>
</tr>
<tr>
<td bgcolor="#eeeeee"><font size=2 face="times new roman, serif">Total assets</font></td>
<td bgcolor="#eeeeee" align=right><font face="times new roman, serif" size=2>458,254</font></td>
<td bgcolor="#eeeeee">&nbsp;</td>
<td bgcolor="#eeeeee" align=right><font face="times new roman, serif" size=2>459,152</font></td>
<td>&nbsp;</td>
</tr>
<tr>
<td><font size=2 face="times new roman, serif">Insurance reserves and policy funds</font></td>
<td align=right><font face="times new roman, serif" size=2>128,078</font></td>
<td>&nbsp;</td>
<td align=right><font face="times new roman, serif" size=2>134,316</font></td>
<td>&nbsp;</td>
</tr>
<tr>
<td bgcolor="#eeeeee"><font size=2 face="times new roman, serif">Debt</font></td>
<td bgcolor="#eeeeee" align=right><font face="times new roman, serif" size=2>53,988</font></td>
<td bgcolor="#eeeeee">&nbsp;</td>
<td bgcolor="#eeeeee" align=right><font face="times new roman, serif" size=2>53,988</font></td>
<td>&nbsp;</td>
</tr>
<tr>
<td><font size=2 face="times new roman, serif">Total shareholders' equity</font></td>
<td align=right><font face="times new roman, serif" size=2>87,794</font></td>
<td>&nbsp;</td>
<td align=right><font face="times new roman, serif" size=2>94,188</font></td>
<td>&nbsp;</td>
</tr>
<tr>
<td bgcolor="#eeeeee"><font size=2 face="times new roman, serif">Book value per common share</font></td>
<td bgcolor="#eeeeee" align=right><font face="times new roman, serif" size=2>3.09</font></td>
<td bgcolor="#eeeeee">&nbsp;</td>
<td bgcolor="#eeeeee" align=right><font face="times new roman, serif" size=2>3.44</font></td>
<td>&nbsp;</td>
</tr>
</table>

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