AmTrust Announces Continued Growth of Operated Earnings For The Fourth Quarter 2015

By: Jeff Hatch

February 10, 2016

AmTrust today announced continued growth of operating earnings and strong operating return on equity for the fourth quarter and full year of 2015.

For the fourth quarter of 2015, operating earnings were $123.9 million, or $0.72 per diluted share compared to $118.5 million, or $0.73 per diluted share, in the fourth quarter of 2014. Fourth quarter 2015 net income attributable to common stockholders was $63.9 million, or $0.37 per diluted share, compared to $71.6 million, or $0.44 per diluted share, in the fourth quarter 2014. Annualized return on common equity was 11.2% for the fourth quarter of 2015 compared to 16.7% for the fourth quarter of 2014. For 2015, operating earnings were $526.7 million, or $3.13 per diluted share, an increase of 15%, compared to $458.4 million, or $2.87 per diluted share, in 2014. During 2015, net income attributable to common stockholders grew to $472.0 million, or $2.80 per diluted share, an increase of 9% from $434.3 million, or $2.72 per diluted share, in 2014. Operating return on common equity for 2015 was 25.3% compared to 29.9% from 2014. Return on common equity for 2015 was 22.7% compared to 28.4% for 2014.

Fourth Quarter 2015 Results

Total revenue was $1.21 billion, an increase of $0.16 billion, or 16%, from $1.05 billion in the fourth quarter 2014. Gross written premium was $1.61 billion, an increase of $0.15 billion, or 10%, from $1.46 billion in the fourth quarter of 2014. Fourth quarter 2015 gross written premium was negatively impacted by $49.3 million due to declines in European currencies compared to a $12.0 million negative impact to gross written premium in the fourth quarter 2014. Net written premium was $1.07 billion, an increase of $166.7 million, or 19%, compared to $898.5 million in the fourth quarter 2014. Net earned premium was $1.06 billion, an increase of $149.8 million, or 16%, from $908.2 million in the fourth quarter 2014. The combined ratio was 91.9% compared to 90.8% in fourth quarter 2014.

A summary of Q4 results is listed below along with a link to the earnings release. 

Financial Highlights

Fourth Quarter 2015

Gross written premium of $1.61 billion, up 10% (14% excluding the impact of European currency fluctuations) compared to $1.46 billion in the fourth quarter of 2014
Net earned premium of $1.06 billion, up 16% from $908.2 million in the fourth quarter 2014
Operating diluted EPS of $0.72 compared to $0.73 in the fourth quarter 2014
Diluted EPS of $0.37 compared with $0.44 in the fourth quarter 2014
Annualized operating return on common equity of 21.7% and annualized return on common equity of 11.2%
Service and fee income of $131.4 million, up 29% from $101.7 million in the fourth quarter 2014
Operating earnings of $123.9 million compared to $118.5 million in the fourth quarter 2014
Net income attributable to common stockholders of $63.9 million compared to $71.6 million in the fourth quarter 2014
Combined ratio of 91.9% compared to 90.8% in the fourth quarter 2014
Weighted average diluted shares outstanding of 172.0 million, up 6% compared to 162.1 million in the fourth quarter 2014

Full Year 2015

Gross written premium of $6.80 billion, up 12% (14% excluding the impact of European currency fluctuations) compared to $6.09 billion in 2014
Net earned premium of $4.02 billion, up 14% from $3.53 billion in 2014
Operating diluted EPS of $3.13 compared to $2.87 in 2014
Diluted EPS of $2.80 compared with $2.72 in 2014
Operating return on common equity of 25.3% and return on common equity of 22.7% 
Service and fee income of $478.2 million, up 17% from $409.7 million in 2014
Operating earnings of $526.7 million, up 15% compared to $458.4 million in 2014 
Net income attributable to common stockholders of $472.0 million compared to $434.3 million in 2014
Combined ratio of 91.0% compared to 90.7% in 2014
Book value per common share of $13.81, up 24% from $11.17 at December 31, 2014
AmTrust's stockholders’ equity was $2.91 billion as of December 31, 2015, up 43% compared to $2.04 billion as of December 31, 2014
Weighted average diluted shares outstanding of 168.4 million, up 6% compared to 159.0 million in 2014

Filed Under: 2015, currency, earnings, financial, fourth, growth, investor, quarter, results, shares

AmTrust Announces An Increase In Operated Earnings For The Third Quarter 2015

By: Jeff Hatch

November 03, 2015

AmTrust today announced continued growth of operating earnings and strong operating return on equity for the third quarter ended September 30, 2015.
 
For the third quarter of 2015, operating earnings were $150.9 million, or $1.79 per diluted share, an increase of 11%, compared to $135.4 million, or $1.70 per diluted share, in the third quarter of 2014. Third quarter 2015 net income attributable to common stockholders was $182.7 million, or $2.17 per diluted share, compared to $156.6 million, or $1.97 per diluted share, in the third quarter 2014. In the third quarter 2015, changes in currencies resulted in a non-cash $24.7 million, or $0.29 per diluted share, increase in net income. Third quarter 2015 annualized operating return on common equity was 29.2% compared to 34.2% in the third quarter 2014. Annualized return on common equity was 35.4% for the third quarter of 2015 compared to 39.5% for the third quarter of 2014.
 
Third Quarter 2015 Results
 
Total revenue was $1.23 billion, an increase of $0.16 billion, or 15%, from $1.07 billion in the third quarter 2014. Gross written premium was $1.78 billion, an increase of $0.26 billion, or 17%, from $1.52 billion in the third quarter of 2014. Third quarter 2015 gross written premium was negatively impacted by $29.4 million due to declines in European currencies. Net written premium was $1.14 billion, an increase of $138.8 million, or 13.8%, compared to $1.0 billion in the third quarter 2014. Net earned premium was $1.05 billion, an increase of $131.0 million, or 14%, from $914.4 million in the third quarter 2014. The combined ratio was 92.6% compared to 91.3% in third quarter 2014.
 
A summary of Q3 results is listed below along with a link to the earnings release. 
 
Financial Highlights
 
Third Quarter 2015
 
Gross written premium of $1.78 billion, up 17% compared to $1.52 billion in the third quarter of 2014
Net earned premium of $1.05 billion, up 14% from $914.4 million in the third quarter 2014
Operating diluted EPS of $1.79 compared to $1.70 in the third quarter 2014
Diluted EPS of $2.17 compared with $1.97 in the third quarter 2014
Annualized operating return on common equity of 29.2% and annualized return on common equity of 35.4%
Service and fee income of $126.1 million, up 7% from the third quarter 2014
Operating earnings of $150.9 million, up 11% compared to $135.4 million in the third quarter 2014
Net income attributable to common stockholders of $182.7 million compared to $156.6 million in the third quarter 2014
Combined ratio of 92.6% compared to 91.3% in the third quarter 2014
 
YTD 2015
 
Gross written premium of $5.19 billion, up 12% compared to $4.63 billion in YTD 2014
Net earned premium of $2.96 billion, up 13% from $2.62 billion in YTD 2014
Operating diluted EPS of $4.80 compared to $4.28 in YTD 2014
Diluted EPS of $4.86 compared with $4.57 in YTD 2014
Annualized operating return on common equity of 27.7% and annualized return on common equity of 28.1%
Service and fee income of $346.8 million, up 13% from $308.1 million in YTD 2014
Operating earnings of $402.8 million, up 19% compared to $339.9 million in YTD 2014
Net income attributable to common stockholders of $408.2 million compared to $362.7 million in YTD 2014
Combined ratio of 90.8% compared to 90.7% in YTD 2014
Book value per common share of $25.81, up 16% from $22.34 at December 31, 2014
AmTrust's stockholders' equity was $2.62 billion as of September 30, 2015, up 29% compared to $2.04 billion as of December 31, 2014

Filed Under: 2015, earnings, income, operated, premium, Q3, quarter, results, third

AmTrust Announces Solid Profit Growth For The First Quarter 2015

By: Jeff Hatch

May 06, 2015

AmTrust, the parent company of Warrantech, issued strong earnings today for the first quarter ended March 31, 2015. 
 
Operating earnings were $121.4 million, or $1.45 per diluted share, an increase of 24.6%, compared to $97.4 million, or $1.24 per diluted share, in the first quarter of 2014. First quarter 2015 net income attributable to common stockholders grew to $154.7 million, or $1.85 per diluted share, an increase of 54.9% from $99.9 million, or $1.27 per diluted share, in the first quarter 2014. First quarter 2015 annualized operating return on common equity was 26.1% compared to 27.8% in the first quarter 2014. Annualized return on common equity was 33.3% for the first quarter of 2015 compared to 28.5% for the first quarter of 2014. 
 
First Quarter 2015 Results
 
Total revenue was $1.11 billion, an increase of $0.16 billion, or 16.6%, from $0.95 billion in the first quarter 2014. Gross written premium was $1.73 billion, an increase of $0.24 billion, or 16.0%, from $1.49 billion in the same period a year ago after excluding from the first quarter 2014 $174 million in non-recurring gross written premium from the Cut Through Reinsurance Agreement with Tower Group International, Ltd. in first quarter 2014.
 
A summary of Q1 results is listed below, and the earnings release is linked below as well. Thanks to all of our employees and agents who contributed to these results. We look forward to having another strong year and appreciate everyone’s hard work in making it happen.
 
Financial Highlights
 
First Quarter 2015
 
Gross written premium of $1.73 billion, up 16.0% after excluding from first quarter 2014 the impact of $174 million of non-recurring gross written premium related to the Cut Through Reinsurance Agreement with Tower Group International, Ltd.
Net earned premium of $949.4 million, up 14.5% from first quarter 2014
Operating diluted EPS of $1.45 ($0.07 attributable to gain on life settlements) compared to $1.24 ($0.02 attributable to gain on life settlements) in the first quarter 2014
Diluted EPS of $1.85 compared with $1.27 in the first quarter 2014
Annualized operating return on common equity of 26.1% and annualized return on common equity of 33.3%
Service and fee income of $112.9 million, up 24.1% from the first quarter 2014
Operating earnings of $121.4 million compared to $97.4 million from the first quarter 2014
Net income attributable to common stockholders of $154.7 million compared to $99.9 million in the first quarter 2014
Combined ratio of 89.0% compared to 89.9% in the first quarter 2014
Book value per common share of $24.00, up from $22.34 at December 31, 2014
AmTrust's stockholders' equity was $2.46 billion as of March 31, 2015

Filed Under: 2015, first, highlights, Q1, quarter, revenue, Warrantech