Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

AmTrust Financial Services Inc. (AFSI - Snapshot Report) 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 $81.9 million.

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 expenses.

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.

Financial Update

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.

Other Stocks

Along with AmTrust, RLI Corp. (RLI - Analyst Report), White Mountains Insurance Group Ltd. (WTM - Snapshot Report) and OneBeacon Insurance Group Ltd. (OB - Snapshot Report) carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%