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 Reports A 16% Increase In Operated Earnings For The Second Quarter 2015

By: Jeff Hatch

August 04, 2015

AmTrust, the parent company of Warrantech, recently announced continued growth of operating earnings and strong operating on equity for the second quarter ended June 30, 2015.
 
Operating earnings were $130.5 million, or $1.55 per diluted share, an increase of 22%, compared to $107.1 million, or $1.34 per diluted share, in the second quarter of 2014. Second quarter 2015 net income attributable to common stockholders was $70.7 million, or $0.84 per diluted share, compared to $106.3 million, or $1.33 per diluted share, in the second quarter 2014. Second quarter 2015 annualized operating return on common equity was 26.3% compared to 28.0% in the second quarter 2014. Annualized return on common equity was 14.3% for the second quarter of 2015 compared to 27.8% for the second quarter of 2014. 
 
Second Quarter 2015 Results
 
Total revenue was $1.11 billion, an increase of $0.10 billion, or 10%, from $1.01 billion in the second quarter 2014. Gross written premium was $40.3 billion and net written premium was $1.01 billion, an increase of $85.0 million, or 9%, compared to $923.7 million in the second quarter 2014. Net earned premium was $969.0 million, an increase of $94.0 million, or 11%, from $874.9 million in the second quarter 2014. The combined ratio was 90.5% compared to 90.9% in second quarter 2014.
 
A summary of Q2 results is listed below along with a link to the earnings release. 
 
Financial Highlights
 
Second Quarter 2015
 
Gross written premium of $1.68 billion, up 16% compared to $1.44 billion in the second quarter of 2014
Net earned premium of $969.0 million, up 11% from $874.9 million in the second quarter 2014
Operating diluted EPS of $1.55 compared to $1.34 in the second quarter 2014
Diluted EPS of $0.84 compared with $1.33 in the second quarter 2014
Annualized operating return on common equity of 26.3% and annualized return on common equity of 14.3%
Service and fee income of $107.7 million, up 8% from the second quarter 2014
Operating earnings of $130.5 million, up 22% compared to $107.1 million in the second quarter 2014
Net income attributable to common stockholders of $70.7 million compared to $106.3 million in the second quarter 2014
Combined ratio of 90.5% compared to 90.9% in the second quarter 2014
 
YTD 2015
 
Gross written premium of $3.41 billion, up 10% compared to $3.11 billion YTD 2014
Net earned premium of $1.92 billion, up 13% from $1.70 billion YTD 2014
Operating diluted EPS of $3.01 compared to $2.58 YTD 2014
Diluted EPS of $2.69 compared with $2.60 in YTD 2014
Annualized operating return on common equity of 27.1% and annualized return on common equity of 24.2%
Service and fee income of $220.6 million, up 16% from $190.5 million YTD 2014
Operating earnings of $251.9 million, up 23% compared to $204.5 million in YTD 2014
Net income attributable to common stockholders of $225.4 million compared to $206.1 million in YTD 2014
Combined ratio of 89.8% compared to 90.4% in YTD 2014
Book value per common share of $24.05, up 8% from $22.34 at December 31, 2014
AmTrust's stockholders' equity was $2.47 billion as of June 30, 2015 up 21% compared to $2.04 billion as of December 31, 2014

Filed Under: earnings, Financial, growth, Q2, quarter, results, second, share

Warrantech’s Parent Company, AmTrust, Named Best-Managed Insurance Company By Forbes Magazine

By: Jeff Hatch

January 14, 2015

Warrantech is proud to announce that its parent company, AmTrust, has been selected as the best-managed company in the insurance industry by Forbes magazine. The article appears in the December 29, 2014 issue.

Forbes screened 1,190 U.S.-listed companies across 27 industry categories and selected the "Best-Managed Company" in each category. AmTrust ranked number one in the insurance industry category.

The following metrics were used to calculate the rankings:

• Minimum of $1 billion in sales
• Sales growth
• Return on total capital
• Earnings outlook
• Stock market returns

Forbes Staff Writer Liyan Chen summed up the report this way: "Here you see the best of the best, by our criteria."

Forbes magazine is a global business magazine published bi-weekly by Forbes, Inc. Founded in New York City in 1917, Forbes remains one of the foremost leaders in reporting on topics relating to finance, marketing, investing, technology, science, government, law and communications.

Click here to view an excerpt of the article: http://www.forbes.com/sites/liyanchen/2014/12/10/americas-best-managed-companies/

AmTrust: Financial Strength, Unprecedented Growth And A Bright Future Ahead

• AmTrust has earned an "A" (Excellent) rating for financial strength by A.M. Best, financial size category (FSC) "XI"
• AmTrust ranks 6th nationwide in the National Association of Insurance Commissioners' (NAIC) March 2014 Workers' Comp Market Share Report
• AmTrust has earned an "A" in Long-Term Issuer Credit Rating
• AmTrust continues to experience unprecedented growth across all lines of business

To learn more about how AmTrust can assist you in growing your book of business, please visit our website or contact your regional sales manager. 

Filed Under: best-managed, earnings, Forbes, growth, returns, sales

Warrantech Hits 30

By: Jeff Hatch

February 02, 2014

BEDFORD, TEXAS – CE and majap service plan provider Warrantech recently celebrated its 30th anniversary.
 
Founded in 1983 as a dedicated service contract administrator, the company was acquired four years ago by Amtrust, a Fortune 100 fastest-growing company.
 
Warrantech said the acquisition provided it with a financial strength that allowed it to become “a respected industry leader through product innovation and an unparalleled dedication to service.”
 
Among its latest introductions is a dynamic program that’s designed to capture missed point-of-sales opportunities, increase penetration rates, and provide additional value to customers by enabling retailers to offer extended service contracts outside of the traditional store environment.
 
In other Warrantech news, Gabriella Roberts has been appointed account management senior VP. With more than 20 years of experience in the insurance and service contract industry, Roberts’ background includes positions in sales, underwriting and client management. Warrantech said she is “passionate about leading the teams responsible for supporting [our] valued clients and is focused on meeting their needs by providing growth strategies and exceptional service.”

This article by Alan Wolf originally appeared in the February 2014 edition of TWICE magazine and can be found online at: http://www.twice.com/news/news/warrantech-hits-30/43193

Filed Under: Fortune, growth, sales, service, TWICE, Warrantech