AmTrust Financial Services Inc.
) reported operating earnings per share (EPS) of $1.03 for the
fourth quarter of 2013. The results outpaced the Zacks Consensus
Estimate of 80 cents and the year-ago figure of 70 cents.
Consequently, operating net income surged 53.4% year over year to
Including extraordinary items, reported net income escalated
to $64.7 million or 82 cents per share from $55.3 million or 72
cents a share in the year-ago quarter. Growth was primarily
driven by significant improvement in the top line and agency
acquisitions implemented in the past one year. The positives
were, however, partially offset by higher-than-expected
AmTrust's total revenue jumped 76.9% year over year to $816.4
million. The upside was attributable to net earned premiums that
increased 84.6% to $707.6 million. Additionally, service and fee
income escalated 71.9% to $93 million and net investment income
improved 10.1% to $20.8 million. However, the company incurred
net realized loss of $4.9 million deteriorating considerably from
a gain of $5.2 million in the year-ago quarter.
However, total expenses spiked 72.7% year over year to $715.7
million. The upsurge was led by higher loss and loss adjusted
expenses (LAE) along with raised acquisition, underwriting and
other expenses. Combined ratio improved marginally to 89.9%
against 90.5% in the year-ago quarter.
Full-Year 2013 Highlights
For full-year 2013, AmTrust's operating EPS stood at $3.39,
exceeding both the Zacks Consensus Estimate of $3.16 and the 2012
equivalent of $2.52. Operating net income soared 38.1% year over
year to $264.6 million. On a GAAP basis, net income soared to a
whopping $286.9 million or $3.67 per share in 2013 from $178.0
million or $2.34 per share in 2012.
Total revenue surged 61.7% year over year to $2.7 billion,
driven by contribution from the recent acquisitions. Conversely,
total expenses also increased 60.8% to $2.34 billion in 2013.
At the end of Dec 2013, AmTrust held cash and cash equivalents
of $4.6 billion, up from $2.7 billion at 2012-end. Total assets
surged to $11.3 billion from $7.4 billion at 2012-end, whereas
shareholder equity rose to $1.45 billion from $1.14 billion at
the end of Dec 2012.
Additionally, book value per share grew 15.3% from 2012-end to
$17.85 at 2013-end. Operating return on equity (ROE) also
improved to 21.3% from 18.8% in 2012.
Along with AmTrust,
White Mountains Insurance Group Ltd.
OneBeacon Insurance Group Ltd.
) carry a Zacks Rank #1 (Strong Buy).
AMTRUST FIN SVC (AFSI): Free Stock Analysis
ONEBEACON INSUR (OB): Free Stock Analysis
RLI CORP (RLI): Free Stock Analysis Report
WHITE MTN INS (WTM): Free Stock Analysis
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