Atlas Financial Holdings, Inc.
) continue to rally riding on the strength of fourth-quarter
earnings results. Shares surged almost 12.3% since the earnings
announcement on Mar 10.
The Zacks Consensus Estimate for 2014 moved north by 4.2% to
$1.00 while that for 2015 rose 8.9% to $1.35 over the last seven
Atlas Financial's fourth-quarter net operating earnings per share
of 22 cents, increased 46.7% year over year. The number also beat
the Zacks Consensus Estimate by a penny.
Bottom-line growth was largely driven by the company's revenue
accretion. Significant improvement in net premiums earned drove
the top line, which surged 72.2% year over year. Total revenue
also exceeded the Zacks Consensus Estimate by 20.7%.
Atlas Financial's gross premium written surged substantially
during the reported quarter, which resulted from higher premiums
written in the commercial auto business line.
Underwriting results of Atlas Financial also exhibited
improvement during the fourth quarter increasing 28.6% year over
Atlas Financial is witnessing operating synergies owing to its
well-managed vertical expansion throughout its geographic base,
established over the past two years. The company's acquisition of
Gateway, in early 2013, has also contributed to top-line growth.
We expect the company's 2014 earnings to gain from insurance
price strengthening and augmenting business operations. It is
also worth noting that Atlas Financial is not materially exposed
to catastrophic risk which eliminates potential earnings
Atlas Financial is also equipped with strong assets. Total assets
of the company as of 2013-end stood at $219.3 million compared to
$163 million as of 2012-end.
Atlas Financial presently carries a Zacks Rank #1 (Strong Buy).
Investors interested in the property and casualty insurance
industry may also consider some other top-ranked stocks like
American Financial Group Inc.
AmTrust Financial Services, Inc.
). All these stocks sport the same Zacks Rank as Atlas Financial.
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