AmTrust Announces An Increase In Operated Earnings For The Third Quarter 2015

 

AmTrust Financial Services, Inc. (AFSI) today announced continued growth of operating earnings and strong operating return on equity for the third quarter. AMT Warranty excels at understanding and responding to the needs of businesses in our target markets, and we offer a variety of programs to serve those needs.

 

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