AmTrust Financial Services, Inc. Reports First Quarter 2017 Net Income

By: Jeff Hatch

May 08, 2017

AmTrust Financial Services, Inc. (Nasdaq:AFSI) ("the Company" or "AmTrust") today announced first quarter 2017 net income attributable to common stockholders of $22.6 million, or $0.13 per diluted share, compared to $84.0 million, or $0.47 per diluted share in the first quarter 2016. For the first quarter 2017, operating earnings was $55.7 million, or $0.32 per diluted share, compared to $122.9 million, or $0.69 per diluted share, in the first quarter 2016. Net income and operating earnings in the current year were impacted by catastrophe losses of $16.4 million after-tax ($25.3 million pre-tax), or $0.10 per diluted share.
 
“We achieved record gross written premium of $2.3 billion, driven by continued organic growth and contributions from prior acquisitions in our Small Commercial Business and Specialty Risk and Extended Warranty segments. Strong service and fee income and investment results also contributed to higher revenue, up 13.6% over the first quarter a year ago,” said Barry Zyskind, Chairman and Chief Executive Officer, AmTrust.
 
“Operating earnings of $55.7 million, or $0.32 per diluted share, reflect several items including primarily the impact of catastrophe losses related to wind and hail events in the personal lines business of Republic Companies, which is included in our Small Commercial Business segment, prior year adverse development related to one discontinued general liability program in our Specialty Program segment, higher professional service fees of approximately $17 million, and a higher effective tax rate compared with the prior year period. The first-quarter 2017 combined ratio of 95.6% includes approximately 2.1 percentage points related to the catastrophe events and 1.6 percentage points of prior year reserve development, resulting in an underlying combined ratio of 91.9%.”
 
First Quarter 2017 Results
 
Total revenue was $1.4 billion, an increase of $171.5 million, or 13.6%, from $1.3 billion in the first quarter 2016. Gross written premium was $2.3 billion, an increase of $333.2 million, or 17.2%, from $1.9 billion in the first quarter 2016. Net written premium was $1.3 billion, an increase of $123.4 million, or 10.1%, compared to $1.2 billion in the first quarter 2016. Net earned premium was $1.2 billion, an increase of $148.3 million, or 13.8%, from $1.1 billion in the first quarter 2016. The combined ratio was 95.6% compared to 91.9% in first quarter 2016.
 
A summary of Q1 results is listed below along with a link to the earnings release. 
 
First Quarter 2017 Highlights
 
First quarter gross written premium of $2.3 billion and net earned premium of $1.2 billion, up 17.2% and 13.8%, respectively, from the first quarter 2016
First quarter service and fee income of $137.5 million, up 6.7% from the first quarter 2016
First quarter net income attributable to common stockholders of $22.6 million, or $0.13 per diluted share, compared to $84.0 million, or $0.47 per diluted share, in the first quarter 2016
First quarter operating earnings of $55.7 million, or $0.32 per diluted share, compared to $122.9 million, or $0.69 per diluted share, in the first quarter 2016
First quarter combined ratio of 95.6%, compared with 91.9%, in the first quarter 2016
First quarter catastrophe losses of $25.3 million (pre-tax), compared to $2.0 million (pre-tax) in the first quarter of 2016
 
To view AmTrust Financial Services’ Q1 earnings release, visit the Investor Relations section at http://ir.amtrustgroup.com or click on the following link: http://ir.amtrustgroup.com/releasedetail.cfm?ReleaseID=1025385 

Filed Under: AmTrust, Barry, earnings, financial, income, Q1, Zyskind

AmTrust Reports Fourth Quarter 2016 Net Income, Reflecting Strengthening Of Reserves

By: Jeff Hatch

February 27, 2017

AmTrust Financial Services, Inc. (Nasdaq:AFSI) ("the Company" or "AmTrust") today announced fourth quarter 2016 net income attributable to common stockholders of $98.7 million, or $0.57 per diluted share, compared to $59.7 million, or $0.35 per diluted share in the fourth quarter 2015. For the fourth quarter 2016, operating earnings was $66.3 million, or $0.38 per diluted share, compared to $115.7 million, or $0.67 per diluted share, in the fourth quarter 2015. The decrease in net income attributable to common stockholders and operating earnings reflects a reserve charge of $65.0 million, or approximately $0.24 per diluted share, primarily related to strengthening of prior year loss and loss adjustment reserves in our Specialty Program segment.
 
"Our fourth quarter caps a strong year in which we completed and integrated several strategic acquisitions, delivered higher investment returns, achieved record revenue, strengthened our balance sheet through preferred stock issuances, returned more than $262 million of capital to shareholders in the form of common share repurchases and dividends, and produced book value per share of $15.15 at year-end, an increase of over 17% from a year ago," said Barry Zyskind, Chairman and Chief Executive Officer, AmTrust. "We are very pleased with the underlying operational performance of our business in the fourth quarter and in 2016, a year in which we continued to maintain high levels of policy retention and maintain underwriting discipline. While our expense ratio was elevated in the fourth quarter, due largely to business mix as well as higher costs related to increased year-end resources, expenses were otherwise in line with our net earned premium growth."
 
"Our combined ratio of 95.5% in the fourth quarter reflects our continued profitability, particularly in our two largest segments, Small Commercial Business and Specialty Risk and Extended Warranty, but we are strengthening prior year loss and loss adjustment reserves in our Specialty Program segment following extensive internal actuarial reviews. As we have noted in the past, this segment has underperformed relative to our expectations, which led us to install new leadership and to adjust our approach to writing programs for commercial auto, general liability, and workers' compensation. We are confident that we are adequately reserved on our consolidated book of business. We have a solid foundation to build upon in 2017, and are committed to creating shareholder value through disciplined growth and steady returns."
 
Fourth Quarter 2016 Results
 
Total revenue was $1.42 billion, an increase of $219.4 million, or 18%, from $1.20 billion in the fourth quarter 2015. Gross written premium was $1.91 billion, an increase of $299.8 million, or 19%, from $1.61 billion in the fourth quarter 2015. Net written premium was $1.15 billion, an increase of $81 million, or 8%, compared to $1.07 billion in the fourth quarter 2015. Net earned premium was $1.22 billion, an increase of $157.7 million, or 15%, from $1.06 billion in the fourth quarter 2015. The combined ratio was 95.5% compared to 91.9% in fourth quarter 2015.
 
Full Year 2016 Results
 
Total revenue was $5.45 billion, an increase of $837.7 million, or 18%, from $4.62 billion in 2015. Gross written premium was $7.95 billion, an increase of $1,149.7 million, or 17%, from $6.80 billion in 2015. Net written premium was $4.85 billion, an increase of $591.3 million, or 14%, from $4.26 billion in 2015. Net earned premium of $4.67 billion increased $646.2 million, or 16%, from $4.02 billion in 2015. The combined ratio was 92.1% compared to 91.1% in 2015.
 
A summary of results is listed below along with a link to the earnings release. 
 
Financial Highlights
 
Fourth Quarter and Full Year 2016 Highlights
 
Fourth quarter gross written premium of $1.91 billion and net earned premium of $1.22 billion, up 19% and 15%, respectively, from the fourth quarter 2015
Fourth quarter service and fee income of $151.0 million, up 26% from the fourth quarter 2015
Fourth quarter net income attributable to common stockholders of $98.7 million, or $0.57 per diluted share, compared to $59.7 million, or $0.35 per diluted share, in the fourth quarter 2015
Fourth quarter operating earnings of $66.3 million, or $0.38 per diluted share, compared to $115.7 million, or $0.67 per diluted share, in the fourth quarter 2015
Current period net income attributable to common stockholders and operating earnings include a reserve charge of $65.0 million, or approximately $0.24 per diluted share;
Fourth quarter and full year combined ratio of 95.5% and 92.1%, respectively
Full year 2016 capital returned to shareholders of $262.4 million, including $152.3 million of common share repurchases
 
To view AmTrust Financial Services’ Q4 earnings release, visit the Investor Relations section at http://ir.amtrustgroup.com or click on the following link: http://ir.amtrustgroup.com/releasedetail.cfm?ReleaseID=1014558 

Filed Under: AmTrust, earnings, financial, profitability, Q4, services, Warrantech

AmTrust Announces Net Income For The Third Quarter 2016

By: Jeff Hatch

November 03, 2016

Warrantech’s parent company, AmTrust Financial Services, Inc. (AFSI) today announced third quarter 2016 net income attributable to common stockholders was $103.6 million, or $0.60 per diluted share, compared to $182.7 million, or $1.09 per diluted share, in the third quarter 2015. 

For the third quarter 2016, operating earnings was $126.3 million, or $0.73 per diluted share, compared to $150.9 million, or $0.89 per diluted share, in the third quarter 2015. Annualized return on common equity was 15.9% for the third quarter 2016 compared to 35.4% for the third quarter 2015. Third quarter 2016 annualized operating return on common equity was 19.4% compared to 29.2% in the third quarter 2015.

"We delivered a solid performance in the third quarter, with strong investment results, higher service and fee income, and growth in gross written premiums, compared with the same period a year ago," said Barry Zyskind, Chairman, President and Chief Executive Officer, AmTrust. "Our performance reflects a full quarter's contribution from Republic Companies, as well as continued strong policy retention and disciplined underwriting of new business in our small commercial business segment, as demonstrated by our stable loss ratio. The top-line results of our specialty risk and extended warranty segment reflect the impact of the decline in the British pound relative to the third quarter a year ago, and we are pleased with the underlying performance of this segment."

Mr. Zyskind also stated, "We are optimistic about our organic growth prospects, given our differentiated model in workers' compensation and commercial lines products in the U.S., as well as opportunities in our warranty insurance offering globally. We remain focused on building a portfolio of business that leverages our proprietary technology and our efficient operating structure to enhance shareholder returns."

Third Quarter 2016 Results

Total revenue was $1.41 billion, an increase of $181.3 million, or 15%, from $1.23 billion in the third quarter 2015. Gross written premium was $2.03 billion, an increase of $253.3 million, or 14%, from $1.78 billion in the third quarter 2015. Net written premium was $1.22 billion, an increase of $73.1 million, or 6%, compared to $1.14 billion in the third quarter 2015. Net earned premium was $1.20 billion, an increase of $150.8 million, or 14%, from $1.05 billion in the third quarter 2015. The combined ratio was 91.5% compared to 92.6% in third quarter 2015.

A summary of Q3 results is listed below along with a link to the earnings release. 

Financial Highlights

Third Quarter 2016

Gross written premium of $2.03 billion, up 14.2% compared to $1.78 billion in the third quarter 2015
Net earned premium of $1.20 billion, up 14.4% from $1.05 billion in the third quarter 2015 
Net income attributable to common stockholders of $103.6 million compared to $182.7 million in the third quarter 2015
Operating earnings of $126.3 million compared to $150.9 million in the third quarter 2015
Diluted EPS of $0.60 compared to $1.09 in the third quarter 2015
Operating diluted EPS of $0.73 compared to $0.89 in the third quarter 2015
Service and fee income of $146.6 million, up 16% from $126.1 million in the third quarter 2015
Combined ratio of 91.5% compared to 92.6% in the third quarter 2015
Weighted average diluted shares outstanding of 173.1 million, up 3% compared to 168.3 million in the third quarter 2015

To view AmTrust Financial Services’ Q3 earnings release, visit the Investor Relations section at http://ir.amtrustgroup.com or click on the following link: http://ir.amtrustgroup.com/releasedetail.cfm?ReleaseID=997294 

Filed Under: AmTrust, earnings, Financial, gross, income, premium, Q3, quarter, third, Warrantech, written

AmTrust Announces Net Income For The Second Quarter 2016

By: Jeff Hatch

August 02, 2016

Warrantech’s parent company, AmTrust Financial Services, Inc. (AFSI) today announced second quarter 2016 net income attributable to common stockholders was $134.8 million, or $0.78 per diluted share, compared to $70.7 million, or $0.42 per diluted share, in the second quarter 2015. 
 
For the second quarter 2016, operating earnings was $140.3 million, or $0.81 per diluted share, compared to $130.5 million, or $0.78 per diluted share, in the second quarter of 2015. Annualized return on common equity was 21.1% for the second quarter of 2016 compared to 14.3% for the second quarter of 2015. Second quarter 2016 annualized operating return on common equity was 21.9% compared to 26.3% in the second quarter 2015.
 
Second Quarter 2016 Results
 
Total revenue was $1.39 billion, an increase of $0.28 billion, or 25%, from $1.11 billion in the second quarter 2015. Gross written premium was $2.07 billion, an increase of $0.39 billion, or 24%, from $1.68 billion in the second quarter of 2015. Net written premium was $1.27 billion, an increase of $0.26 billion, or 26%, compared to $1.01 billion in the second quarter 2015. Net earned premium was $1.18 billion, an increase of $0.21 billion, or 22%, from $0.97 billion in the second quarter 2015. The combined ratio was 91.7% compared to 90.5% in second quarter 2015.
 
A summary of Q2 results is listed below along with a link to the earnings release. 
 
Financial Highlights
 
Second Quarter 2016
 
Gross written premium of $2.07 billion, up 23.5% compared to $1.68 billion in the second quarter 2015
Net earned premium of $1.18 billion, up 22.0% from $0.97 billion in the second quarter 2015 
Net income attributable to common stockholders of $134.8 million compared to $70.7 million in the second quarter 2015
Operating earnings of $140.3 million compared to $130.5 million in the second quarter 2015
Diluted EPS of $0.78 compared to $0.42 in the second quarter 2015
Operating diluted EPS of $0.81 compared to $0.78 in the second quarter 2015
Annualized return on common equity of 21.1% and annualized operating return on common equity of 21.9% 
Service and fee income of $138.3 million, up 28% from $107.7 million in the second quarter 2015
Combined ratio of 91.7% compared to 90.5% in the second quarter 2015
Weighted average diluted shares outstanding of 173.0 million, up 3% compared to 168.1 million in the second quarter 2015
Repurchased 3.58 million common shares at a weighted average price of $24.82 per share

To view AmTrust Financial Services’ Q2 earnings release, visit the Investor Relations section at http://ir.amtrustgroup.com or click on the following link: http://ir.amtrustgroup.com/releasedetail.cfm?ReleaseID=982270

Filed Under: AmTrust, earnings, financials, income, quarter, second

AmTrust Announces Continued Growth of Operated Earnings For The First Quarter 2016

By: Jeff Hatch

May 03, 2016

AmTrust Financial Services, Inc. (AFSI) today announced continued growth of operating earnings and strong operating return on equity for the first quarter of 2016.

For the first quarter 2016, operating earnings were $136.6 million, or $0.77 per diluted share, compared to $121.4 million, or $0.73 per diluted share, in the first quarter of 2015. First quarter 2016 net income attributable to common stockholders was $100.3 million, or $0.56 per diluted share, compared to $154.7 million, or $0.93 per diluted share, in the first quarter 2015. First quarter 2016 annualized operating return on common equity was 22.1% compared to 26.1% in the first quarter 2015. Annualized return on common equity was 16.2% for the first quarter of 2016 compared to 33.3% for the first quarter of 2015.

First Quarter 2016 Results

Total revenue was $1.28 billion, an increase of $0.16 billion, or 15%, from $1.11 billion in the first quarter 2015. Gross written premium was $1.93 billion, an increase of $0.20 billion, or 12%, from $1.73 billion in the first quarter of 2015. Net written premium was $1.22 billion, an increase of $0.18 billion, or 17%, compared to $1.04 billion in the first quarter 2015. Net earned premium was $1.07 billion, an increase of $0.12 billion, or 13%, from $0.95 billion in the first quarter 2015. The combined ratio was 91.2% compared to 89.0% in first quarter 2015.

A summary of Q1 results is listed below along with a link to the earnings release. 

Financial Highlights

First Quarter 2016

Gross written premium of $1.93 billion, up 12% compared to $1.73 billion in the first quarter 2015

Net earned premium of $1.07 billion, up 13% from $0.95 billion in the first quarter 2015 

Operating diluted EPS of $0.77 compared to $0.73 in the first quarter 2015

Diluted EPS of $0.56 compared to $0.93 in the first quarter 2015

Annualized operating return on common equity of 22.1% and annualized return on common equity of 16.2%

Service and fee income of $144.2 million, up 28% from $112.9 million in the first quarter 2015

Operating earnings of $136.6 million compared to $121.4 million in the first quarter 2015 

Net income attributable to common stockholders of $100.3 million compared to $154.7 million in the first quarter 2015

Combined ratio of 91.2% compared to 89.0% in the first quarter 2015

Weighted average diluted shares outstanding of 177.9 million, up 7% compared to 166.9 million in the first quarter 2015

Book value per common share of $14.35, up 20% from $12.00 at March 31, 2015

AmTrust’s stockholders' equity was $3.14 billion as of March 31, 2016, up 8% compared to $2.91 billion as of December 31, 2015

To view AmTrust Financial Services’ Q1 earnings release, visit the Investor Relations section at http://ir.amtrustgroup.com or click on the following link: http://ir.amtrustgroup.com/releasedetail.cfm?ReleaseID=968650

Filed Under: AmTrust, earnings, financial, first, quarter, results

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