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 Net Income For The Third Quarter 2016

By: Jeff Hatch

November 03, 2016

Warrantech’s parent company, AmTrust 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

Filed Under: 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 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

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

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