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

By: Jeff Hatch

August 04, 2015

AmTrust Financial Services (AFSI), 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
 
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=925456   

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