AmTrust Information Fourth Quarter 2016 Net Profit, Displaying Strengthening Of Reserves

AmTrust Financial Services, Inc. (Nasdaq:AFSI) ("the Company" or "AmTrust") today reported 4th quarter 2016 net profit because of common stockholders of $98.7 million, or $0.57 each diluted share, as opposed to $59.7 million, or $0.35 per diluted share in the 4th quarter 2015. For the fourth quarter 2016, operating earnings had been $66.3 million, or $0.38 per diluted share, compared to $115.7 million, or $0.67 per diluted share, in the 4th quarter 2015. The particular decrease in net profit owing to typical stockholders and also operating revenue echos a reserve charge of $65.0 million, or even around $0.24 per diluted share, mainly based on fortifying of prior year loss in addition to loss adjustment stocks inside our Specialty Program segment.

"Our fourth quarter caps a robust year in which we accomplished and also integrated various strategic acquisitions, supplied higher investment returns, attained record revenue, strengthened our balance sheet through favored stock issuances, returned more than $262 million of capital to stakeholders by means of common share repurchases in addition to dividends, plus created book value per share of $15.15 at year-end, an increase of over 17% from a year ago," proclaimed Barry Zyskind, Chairman and Chief Executive Officer, AmTrust. "We are really pleased with the actual operational performance of our company inside the fourth quarter as well as in 2016, a year in which we continued to maintain higher amounts of policy retention and maintain underwriting self-control. While our cost ratio was elevated in the 4th quarter, because of generally to business mix as well as higher expenses connected with increased year-end resources, expenses were otherwise in accordance with our net earned premium growth."

"Our mixed ratio of 95.5% inside the fourth quarter reflects our ongoing profits, specifically in our two biggest sections, Small Commercial Business as well as Specialty Risk along with Extended Warranty, but we're conditioning prior year loss and loss adjustment reserves inside our Specialty Program segment following substantial internal actuarial reviews. Since we have noted prior to now, this segment has underperformed when compared with our objectives, which often led us to put in new leadership also to modify our method of writing programs for commercial auto, general liability, and workers' reimbursement. We are positive that we are adequately reserved on our merged book of commercial. There is also a firm base to create upon inside 2017, and are dedicated to making investor value as a result of disciplined growth and also steady comes back."

Fourth Quarter 2016 Results

Total revenue was in fact $1.42 billion, an expansion of $219.4 million, or 18%, from $1.20 billion inside the fourth quarter 2015. Gross written premium was $1.91 billion, an increase of $299.8 million, or 19%, from $1.61 billion within the fourth quarter 2015. Net written premium had been $1.15 billion, a rise of $81 million, or 8%, as opposed to $1.07 billion inside the 4th quarter 2015. Net earned premium was $1.22 billion, a boost of $157.7 million, or 15%, from $1.06 billion in the fourth quarter 2015. The combined ratio was 95.5% in comparison with 91.9% in fourth quarter 2015.

Total Year 2016 Final results

Total revenue was $5.45 billion, a growth of $837.7 million, or 18%, from $4.62 billion in 2015. Gross written premium was $7.95 billion, a boost of $1,149.7 million, or 17%, from $6.80 billion in 2015. Net written premium was $4.85 billion, a rise of $591.3 million, or 14%, coming from $4.26 billion in 2015. Net earned premium of $4.67 billion increased $646.2 million, or 16%, coming from $4.02 billion inside 2015. The combined ratio was 92.1% when compared to 91.1% in 2015.

A report about results is listed under along with a link to the earnings release.

Financial Highlights

4th Quarter and also Full Year 2016 Highlights

• Fourth quarter gross written premium of $1.91 billion as well as net earned premium of $1.22 billion, up 19% and 15%, respectively, from the 4th quarter 2015
• 4th quarter service in addition to fee income of $151.0 million, up 26% from the 4th quarter 2015
• Fourth quarter net gain because of common stockholders of $98.7 million, or $0.57 per diluted share, when compared to $59.7 million, or $0.35 for each diluted share, inside the 4th quarter 2015
• Fourth quarter operating earnings of $66.3 million, or $0.38 for every diluted share, in comparison with $115.7 million, or $0.67 for every diluted share, inside the 4th quarter 2015
• Current period net income attributable to common stockholders in addition to operating earnings incorporate a reserve charge of $65.0 million, or about $0.24 for every diluted share;
• Fourth quarter and full year combined ratio of 95.5% and 92.1%, correspondingly
• Full year 2016 capital returned to shareholders of $262.4 million, including $152.3 million of common share repurchases

To view AmTrust Financial Services’ Q4 earnings release, go to the Investor Relations section at http://ir.amtrustgroup.com or click on the following link: http://ir.amtrustgroup.com/releasedetail.cfm?ReleaseID=1014558

For more details about Warrantech feel free to visit: https://warrantech.com/blog/february-2017/amtrust-reports-fourth-quarter-2016-net-income,-re/

Posted March 25, 2017 06:28

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