Building Blocks to Success: The Warrantech Advantage

By: Jeff Hatch

September 12, 2017

When choosing a provider for your extended service plan (ESP) program, it’s important to consider someone with the ability to adapt quickly to your company’s unique needs. The market moves fast and your ESP administrator has to be able to keep up in order to meet the growing and fluctuating demands of your business.

One of Warrantech’s core strengths is the scalability of our infrastructure. Rapid expansion capability is a hallmark of our business and woven into the very fabric of our company. As your needs change, our modular approach allows you to make changes to your program in order to reach your goals and, most importantly, maintain superior customer service and financial stability. 


Flexibility

Customized to grow with your needs

Program incubation and growth strategies

Complete training and support solutions


Transparency

Real-time program performance

Monetization of product performance data 

Pricing and underwriting data sharing


Scalability

State-of-the-art infrastructure and technologies 

Profit sharing / reinsurance / alternative risk transfer

Modular solutions


Dedication

Dedicated staffing model

Segregated data/systems

Creation of dedicated obligor company for your business


Execution

Industry expertise 

Proven implementation and project management expertise

Focused, entrepreneurial and accountable philosophy 


Financial Stability

A 2017 Fortune 500 company

Rated “A” (Excellent) by A.M. Best Company for financial strength and stability

Ranked 45 on Fortune magazine’s “Fastest-Growing Companies” list

Named Forbes’ “2014 Best-Managed Company (Insurance)”

To learn more about our customized extended service plan programs, visit warrantech.com or call 800.833.8801.

Filed Under: dedication, financial, flexibility, stability, transparency, Warrantech

AmTrust Strengthens Senior Management Team with Appointment of Ariel Gorelik as SVP and Chief Information Officer

By: Jeff Hatch

August 23, 2017

AmTrust Strengthens Senior Management Team with Appointment of Ariel Gorelik as SVP and Chief Information Officer

AmTrust veteran Christopher Longo continues as Chief Operating Officer

NEW YORK, Aug. 16, 2017 (GLOBE NEWSWIRE) -- AmTrust today announced that Ariel Gorelik, an experienced  global insurance industry executive and most recently Chief Operating Officer of AmTrust's AMT Warranty division, has been appointed Senior Vice President and Chief Information Officer (CIO), reporting to Chairman and Chief Executive Officer Barry Zyskind. Mr. Gorelik succeeds Christopher Longo who continues as EVP and Chief Operating Officer, appointed in 2016, who has guided technology development at AmTrust as the Company's CIO since 2006.

Mr. Gorelik will lead AmTrust's global IT organization, with a focus on operational excellence across the IT function. He is responsible for ensuring that AmTrust will continue to lead through technology innovation and capitalizing on technology solutions to help enable AmTrust to fulfill its business goals. Mr. Gorelik's extensive operational leadership experience in the insurance sector includes expertise in centralization of operations and transformation of service delivery to improve customer satisfaction.

Mr. Gorelik joined AmTrust in 2014 as Senior Vice President AmTrust operations, and in January 2016 was promoted to Chief Operating Officer of AMT Warranty, one of the Company's operating subsidiaries in the U.S. Prior to joining AmTrust, from 2013 to 2014, Mr. Gorelik was a managing consultant of the ICON division for Zurich North America, a property and casualty insurer. From 2010 to 2013, he served as deputy chief operating officer at SK Allianz/Allianz Group, a German property and casualty insurer. He was responsible for the procurement, real estate management, and transportation departments, as well as for areas of IT relating to Allianz's core insurance system. He also led the organization's full automation of the policy life cycle. Prior to his role as deputy COO, Mr. Gorelik served as head of Allianz Eurasia's business services, where he established a shared service center with a number of back and middle office functions, including claims handling, P&C policy administration, payments, and call center.

"AmTrust has always led with technology and innovation, which have been a competitive differentiator for us," said Barry Zyskind, Chairman and Chief Executive Officer. "Under Ariel Gorelik's leadership as Chief Information Officer, we will continue to harness the power of our technology platforms and digital capabilities. Similarly, we now can maximize Chris Longo's management focus as AmTrust's Chief Operating Officer to enable us to undertake the initiatives and processes to optimize results across our business units and product and service offerings."

Mr. Zyskind continued, "With more than 400 knowledge developers within our IT staff of 1,000 men and women supported by in-house underwriting, actuarial and claims processing experience, innovation is in our DNA. Chris has been instrumental in developing our technology platforms and building our IT organization into the powerhouse it is today. He led the development of a single proprietary platform that allows us to continually improve the experience of our agents and our customers. It also allows us to develop new products and integrate emerging technologies quickly. With our IT function well established, Ariel, as Chief Information Officer, can move us further forward, utilizing his abilities to increase efficiencies across broad organizations and platforms, while enhancing the experience of our brokers, agents, and policyholders."

Filed Under: Ariel, Financial, Gorelik

AmTrust Reports Second Quarter 2017 Net Income And Confidence In Long-Term Financial Strength

By: Jeff Hatch

August 09, 2017

AmTrust today announced second quarter 2017 net income attributable to common stockholders of $5.8 million, or $0.03 per diluted share, compared to $127.2 million, or $0.73 per diluted share in the second quarter 2016. For the second quarter 2017, operating earnings were $72.9 million, or $0.40 per diluted share, compared to $135.3 million, or $0.77 per diluted share, in the second quarter 2016.

Net income and operating earnings in the current quarter were impacted by catastrophe losses of $16.1 million after-tax, or $0.09 per diluted share, ($24.8 million pre-tax).

"We took transformative steps in the second quarter, executing on a number of strategic initiatives to increase certainty and confidence in AmTrust's long-term financial strength, and appointing a new CFO," said Barry Zyskind, Chairman and Chief Executive Officer, AmTrust. "In particular, we enhanced our balance sheet and capital base through a $300 million equity investment by members of the Karfunkel family to further support our insurance business and organic growth opportunities. Our sale of approximately 86% of our equity position in National General simplifies our balance sheet and reduces concentration in our investment portfolio composition. The reinsurance agreement we entered provides up to $400 million of coverage for adverse net loss reserve development, in excess of our stated net loss reserves as of March 31, 2017, to insulate AmTrust from future reserve volatility. We undertook these actions with a long-term view for the Company and our shareholders, to demonstrate strength and stability to all of our partners, brokers, agents, and insureds, and to enhance our earnings consistency."

Mr. Zyskind continued, "Our second quarter financial results reflect disciplined sales execution and high policy retention levels with gross written premium of $2.2 billion, up 6.1%. We are focused on maintaining underwriting and pricing rigor in our target markets, and are taking a conservative stance toward our book of business in order to support future profitability and balance sheet strength."

Second Quarter 2017 Results

Total revenue was $1.6 billion, an increase of $0.2 billion, or 18.2%, from $1.4 billion in the second quarter 2016. Gross written premium was $2.2 billion, an increase of $0.1 billion, or 6.1%, from $2.1 billion in the second quarter 2016. Net written premium was $1.4 billion, an increase of $0.1 billion, or 8.2%, compared to $1.3 billion in the second quarter 2016. Net earned premium was $1.4 billion, an increase of $0.2 billion, or 16.8%, from $1.2 billion in the second quarter 2016. The combined ratio was 101.2%, compared to 91.3% in second quarter 2016, and the adjusted combined ratio was 95.9%, after giving effect to the adverse development cover.

Year-to-Date 2017 Results

Total revenue was $3.1 billion, an increase of $0.4 billion, or 16.0%, from $2.6 billion YTD 2016. Gross written premium was $4.5 billion, an increase of $459.8 million, or 11.5%, from $4.0 billion YTD 2016. Net written premium was $2.7 billion, an increase of $0.2 billion, or 9.1%, compared to $2.5 billion YTD 2016. Net earned premium was $2.6 billion, an increase of $347.2 million, or 15.4%, from $2.3 billion YTD 2016. The combined ratio was 98.6% compared to 91.6% YTD 2016. The adjusted combined ratio was 95.8% compared to 91.6% YTD 2016.

A summary of Q2 results is listed below along with a link to the earnings release. 

Financial Highlights

Second Quarter 2017 Highlights

Second quarter gross written premium of $2.2 billion and net earned premium of $1.4 billion, up 6.1% and 16.8%, respectively, from the second quarter 2016

Second quarter service and fee income of $168.4 million, up 35.5% from the second quarter of 2016

Second quarter net income attributable to common stockholders of $5.8 million, or $0.03 per diluted share, compared to $127.2 million, or $0.73 per diluted share, in the second quarter 2016

Second quarter operating earnings of $72.9 million, or $0.40 per diluted share, compared to $135.3 million, or $0.77 per diluted share, in the second quarter 2016

Second quarter gain of $68.4 million on sale of 10.6 million shares of National General stock

Second quarter loss ratio of 74.2% compared with 66.4% in the second quarter of 2016

Second quarter loss ratio of 68.9% after giving effect to the adverse development cover

Second quarter combined ratio of 101.2% compared with 91.3% in the second quarter 2016

Adjusted combined ratio of 95.9%, after giving effect to the adverse development cover, versus 91.3% in the second quarter 2016

Second quarter annualized return on common equity and annualized operating return on common equity of 0.9% and 11.4%, respectively

Board of Directors approves payment of quarterly dividend on common stock of $0.17

Filed Under: 2017, earnings, financial, Q2, share, Warrantech

Our Financial Strength Is Your Peace Of Mind

By: Jeff Hatch

June 19, 2017

An extended service plan is a smart move. It confirms that you do indeed have a specific idea of how your products will be used and a reliable backup plan should anything go wrong. But in addition to giving time and thought to the type of coverage you’re interested in, it makes just as much sense to consider the company who will be backing your contract.  
With more than 30 years of leadership in service contract administration, Warrantech is comprised of industry veterans who average more than 23 years of experience in program evaluation and design. This wellspring of knowledge provides us with vast insight and enables our team to uncover hidden growth opportunities and structure programs that offer a high-value proposition for our partners and their customers. 

Warrantech is also a subsidiary of The Amynta Group, one of the strongest, most financially secure insurance companies in the industry. With an unwavering focus on your success, we go out of our way to deliver unparalleled service excellence in all that we do. 

A.M. Best rating of “A” (Excellent)

Named to the 2017 Fortune 500 list

Ranked 63rd on Fortune Magazine’s Fastest Growing Companies 

Named “2014 Best-Managed Company (Insurance)” by Forbes magazine 

Recognized as the most “warranty-centric” company in the industry by Warranty Week

Ranked 6th nationwide in National Association of Insurance Commissioners (NAIC) March 2014 workers’ comp market share report

A+ rated and accredited by the Better Business Bureau

Publicly traded (NASDAQ: AFSI)

More than $23.9 billion in assets

Multinational operations with offices worldwide

Having this financial strength allows us to bundle both underwriting and administration. And, as a result, it creates complete transparency and visibility to information that enables our customers to change and create plans that are both highly customized and profitable.

So whether you’re a customer, retailer, dealer, distributor, or manufacturer in the consumer or automotive market, Warrantech has a knowledgeable team that can provide a customized solution that will work specifically for you. And, just as important, offer you the financial stability to back it up so you can rest assured that you’re getting the best plan possible.

For more information, visit www.warrantech.com or call 800.833.8801.

Filed Under: best, financial, forbes, fortune, stability, Warrantech

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

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