Atlas Financial Beats on Earnings & Revenues - Analyst Blog


Atlas Financial Holdings, Inc . ( AFH ) delivered operating net income of 16 cents per share in second quarter of 2013, surpassing the Zacks Consensus Estimate by 2 cents. Earnings rebounded from a loss of 1 cent incurred in the prior-year quarter. The upside was driven by substantial improvement in premiums earned.

Behind the Headlines

Total revenue for Atlas Financial grew more than double on a year over year basis to $17.9 million. Robust growth in net premiums earned aided the increase. Total revenue surpassed the Zacks Consensus Estimate of $15 million as well.

Including an increase of 90.6% in the core commercial auto business, gross premium written improved 79.2% year over year. Net earned premiums were $16.9 million, surging from $8.6 million in the year-ago quarter.

Net investment income of Atlas Financial slumped 16.7% year over year to $547 million in the reported quarter.

Total expenses of Atlas Financial escalated to $16.1 million from $8.4 million in the prior-year quarter. The increase was attributable to higher net claims, higher acquisition costs as well as higher other underwriting expenses.

Atlas Financial delivered underwriting profit of $0.828 million in the second quarter, rebounding from a loss of $0.868 million in year-ago quarter.

Loss ratio was 64.6% in the reported quarter, better than 71.6% in year-ago quarter.  Combined ratio improved 1650 basis points year over year to 95% in the quarter under review.

Financial Details

Atlas Financial exited the quarter with $25.3 million in cash and cash equivalents, up from $19.9 million at 2012-end.

Claims liabilities of Atlas Financial increased to $105.2 million at the end of the quarter from $70.1 million at 2012 end.

Book value as on Jun 30, 2013 was $6.07 per share, down from $6.15 as on Jun 30, 2012.

Performance of other property and casualty insurers

Berkshire Hathaway Inc. ( BRK.A ) ( BRK.B ) reported second quarter 2013 operating earnings of $1.53 per share, surpassing the Zack Consensus Estimate of $1.45 per share. Earnings also compared favorably with $1.50 per share reported in the year-ago quarter.

Everest Re Group Ltd . ( RE ) reported second quarter 2013 operating earnings of $5.10 per share, substantially beating the Zacks Consensus Estimate of $4.26 per share. Earnings were also up 20% year over year.

The Chubb Corporation ( CB ) reported earnings of $1.77 per share in the second quarter of 2013. The results beat the Zacks Consensus of Estimate of $1.38 per share and were ahead of the year-ago figure of $1.37.

Zacks Rank

Atlas Financial carries a Zacks Rank #3 (Hold).

ATLAS FINL HLDG (AFH): Free Stock Analysis Report

BERKSHIRE HTH-A (BRK.A): Free Stock Analysis Report

BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report

CHUBB CORP (CB): Free Stock Analysis Report

EVEREST RE LTD (RE): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: AFH , CB , RE

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