AmTrust Reports Fourth Quarter 2016 Net Gain, Highlighting Strengthening Of Reserves

AmTrust Financial Services, Inc. (Nasdaq:AFSI) ("the Company" or "AmTrust") today declared fourth quarter 2016 net gain owing to common stockholders of $98.7 million, or $0.57 for each diluted share, as opposed to $59.7 million, or $0.35 per diluted share in the fourth quarter 2015. For the 4th quarter 2016, operating earnings was $66.3 million, or $0.38 per diluted share, in comparison to $115.7 million, or $0.67 per diluted share, inside the fourth quarter 2015. The particular reduction in post tax profit owing to common stockholders along with operating profits reflects a reserve charge of $65.0 million, or perhaps roughly $0.24 per diluted share, primarily connected with toning up of earlier year loss in addition to loss adjustment stores in our Specialty Program segment.
 
"Our 4th quarter caps an effective year in which we concluded and also integrated several strategic acquisitions, sent higher investment returns, accomplished record revenue, heightened our balance sheet through favored stock issuances, came back more than $262 million of capital to stakeholders in the form of common share repurchases as well as dividends, along with developed book value per share of $15.15 at year-end, a growth well over 17% from a year ago," explained Barry Zyskind, Chairman as well as Chief Executive Officer, AmTrust. "All of us are very happy with the actual functional performance of our business inside the 4th quarter plus in 2016, a year in which we continued to maintain higher numbers of policy retention and keep underwriting self-control. While our expense ratio has been improved in the fourth quarter, due mainly to business mix in addition to increased costs associated with increased year-end resources, expenditures were otherwise in line with our net earned premium development."
 
"Our combined ratio of 95.5% in the fourth quarter demonstrates our ongoing earnings, particularly in our 2 most significant sections, Small Commercial Business in addition to Specialty Risk as well as Extended Warranty, but we are strengthening prior year loss and loss modification reserves inside our Specialty Program segment following intensive internal actuarial reviews. Since we have known in past times, this kind of segment has underperformed compared to our targets, which led us to put in new leadership and to adjust our method of writing programs for commercial auto, general liability, along with employees' pay out. We are positive that we are adequately reserved on our combined book of economic. There is also a solid foundation to make upon inside 2017, and so are committed to generating shareholder value through self-displined development as well as regular comes back."
 
4th Quarter 2016 Final results
 
Total earnings was basically $1.42 billion, a boost of $219.4 million, or 18%, from $1.20 billion within the fourth quarter 2015. Gross written premium was $1.91 billion, a growth of $299.8 million, or 19%, from $1.61 billion inside the 4th quarter 2015. Net written premium was $1.15 billion, a rise of $81 million, or 8%, as compared with $1.07 billion inside the fourth quarter 2015. Net earned premium was $1.22 billion, a boost of $157.7 million, or 15%, from $1.06 billion within the fourth quarter 2015. The particular combined percentage was 95.5% when compared with 91.9% in fourth quarter 2015.
 
Total Year 2016 Results
 
Total revenue was $5.45 billion, a boost of $837.7 million, or 18%, from $4.62 billion in 2015. Gross written premium was $7.95 billion, an expansion of $1,149.7 million, or 17%, from $6.80 billion in 2015. Net written premium was $4.85 billion, an expansion of $591.3 million, or 14%, coming from $4.26 billion within 2015. Net earned premium of $4.67 billion increased $646.2 million, or 16%, from $4.02 billion within 2015. The particular combined ratio was 92.1% in comparison to 91.1% in 2015.
 
A breakdown of results is listed under in addition to a link to the earnings release. 
 
Financial Highlights
 
4th Quarter and also Full Year 2016 Highlights
 
• 4th quarter gross written premium of $1.91 billion and net earned premium of $1.22 billion, up 19% and 15%, respectively, from the fourth quarter 2015
• Fourth quarter service and also fee income of $151.0 million, up 26% from the fourth quarter 2015
• 4th quarter net income thanks to common stockholders of $98.7 million, or $0.57 per diluted share, when compared with $59.7 million, or $0.35 for every diluted share, inside the 4th quarter 2015
• 4th quarter operating earnings of $66.3 million, or $0.38 for each diluted share, as compared with $115.7 million, or $0.67 for every diluted share, in the fourth quarter 2015
• Current period net gain due to common stockholders as well as operating earnings incorporate a reserve charge of $65.0 million, or perhaps around $0.24 per diluted share;
• Fourth quarter in addition to full year combined ratio of 95.5% and 92.1%, correspondingly
• Full year 2016 capital delivered to shareholders of $262.4 million, which includes $152.3 million of common share repurchases
 
To look at AmTrust Financial Services’ Q4 earnings release, look at the Investor Relations section at http://ir.amtrustgroup.com or click on the following link: http://ir.amtrustgroup.com/releasedetail.cfm?ReleaseID=1014558 

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