Atlas Financial Holdings, Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Provides Earnings Guidance for the Year 2018
May 07, 2018 at 04:05 pm
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Atlas Financial Holdings, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company's net premiums earned of $55,892,000 compared to $48,426,000 a year ago. Total revenue was $57,185,000 compared to $49,817,000 a year ago. Income from operations before income taxes was $6,812,000 compared to $7,465,000 a year ago. Net income was $5,529,000 compared to $4,852,000 a year ago. Net income attributable to common shareholders was $5,529,000 compared to $4,852,000 a year ago. Earnings per common share, diluted were $0.45 compared to $0.40 a year ago. Adjusted operating income, before income taxes was $6,418,000 or $0.53 per share compared to $7,485,000 or $0.61 per share a year ago. Return on equity was 24.3% compared to 14.9% a year ago. Return on average common equity was 24.4% compared to 15.0% a year ago. Gross premiums written was $95.6 million compared to $98.5 million for the three month period ended March 31, 2017, representing a 3.0% decrease. Gross premiums written decreased primarily due to the non-renewal of one large Illinois taxi fleet as a result of disciplined underwriting practices. Book value per common share was $7.62 based on 11,944,378 common shares outstanding as of March 31, 2018, compared to $7.42 based on 12,178,857 common shares outstanding as of December 31, 2017. Underwriting profit decreased to $6.0 million for the three month period ended March 31, 2018, compared to $6.3 million in the same period of the prior year, representing a 5.8% decrease.
For the year 2018, the company expects to write in excess of $300 million in premiums in 2018, which is a consistent rate of growth relative to last year, subject to market conditions. Based on recent commercial auto industry results, the company expects further market hardening through 2018. As always, underwriting profit will take precedent over top line growth. At that level of premium and expected use of the Company's existing reinsurance programs, with a full year combined ratio in the mid-80s, it is reasonable to expect annual net earnings per share to exceed $2.00.
Atlas Financial Holdings, Inc. is a financial service holding company. The Companyâs primary business is generating, underwriting and servicing commercial automobile insurance policies in the United States. The Company focuses on a managing general agency (MGA) strategy, primarily through its wholly owned subsidiary, Anchor Group Management, Inc. (AGMI). AGMI focuses on a niche market orientation for the light commercial automobile sector. This sector includes taxi cabs, limousines, livery, full-time transportation network companies (TNC) drivers/operators, and other specialty commercial auto operators. Automobile insurance products provide insurance coverage in three major areas: liability, accident benefits and physical damage. The Company operates in one business segment: the Managing General Agency segment. The Companyâs subsidiaries include UBI Holdings Inc. (UBI Holdings), optOn Digital IP Inc. (OOIP) and optOn Insurance Agency Inc.
Atlas Financial Holdings, Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Provides Earnings Guidance for the Year 2018