AmTrust Reports First Quarter 2017 Net Income

By: Jeff Hatch

May 08, 2017

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

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

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