Atlas Financial Holdings, Inc. (NASDAQ:AFH) stated its financial results for the first quarter ended March 31, 2018.
On Monday, Atlas Financial Holdings, Inc. (NASDAQ:AFH) signaled green percentage +5.71% in trading session and finally closed at $9.25 . The firm after opening the first trading session at $8.70 Over the one year trading period, the stock has an above price of $21.50 and it’s below is recorded at $8.45. The company has a market cap of $95.895M. The company most recent volume stood at 145,798 shares as compared to its average volume of 115,303 shares.
Premiums Written: For the 3 month time ended March 31, 2018, gross premiums written was $95.6M contrast to $98.5M for the three month period ended March 31, 2017, representing a 3.0% decrease and the Gross premiums written reduced primarily Because of the non-renewal of one large Illinois taxi fleet as a result of disciplined underwriting practices.
Loss Ratio: The loss ratio relating to claims incurred for the three month period ended March 31, 2018 was 62.7%, contrast to 60.5% for the three month period ended March 31, 2017. The loss ratio increased over the previous year period primarily as a result of the Company’s continued review of underwriting profitability by product and state and higher than predictable claim cost associated with Atlas’ participation in non-voluntary assigned risk pools and run-off commercial auto. For reference, 1.4 % points of the year-over-year difference is attributable to assigned risk business, reflecting the challenges facing broader marketable auto, with the remainder of the change attributable to a more conservative present year loss ratio selection.
As before reported, the Firm is using machine learning based predictive analytics in the claim area, in addition to using it as an underwriting tool, to further benefit from the data and experience within its organization. Atlas accept as true this approach amplifies the value of the assets collected over its operating subsidiaries’ many years spent focusing on niche target markets to model potential risk and deliver value for both consumers and stakeholders. On a 1 over year basis, the firm anticipates its loss ratio to continue to normally trend in a positive direction based on previous year and potential future pricing, underwriting and claims activities.
Underwriting Expense Ratio: The underwriting expense ratio for the three month period ended March 31, 2018 was 26.6% contrast to 26.4% for the three month period ended March 31, 2017. The ratio increased mainly because of higher than average acquisition costs in the quarter. The average was much higher Because of the non-renewal of the one large taxi fleet in Illinois which had been historically underwritten at zero commissions. As before indicated, Because of seasonality and the timing of certain expenses, the Company believes the full year expense ratio is a more indicative measure of efficiency that the ratio in any given quarter. Atlas remains focused on frequently enhancing its value proposition throughout re-investment into research and development to ensure that its organization is able to continue leading the industry in terms of existing and developing niche markets on which Atlas focuses.
Underwriting Results: Underwriting profit reduced to $6.0M for the three month period ended March 31, 2018, contrast to $6.3M in the same period of the previous year, representing a 5.8% decrease.
Atlas Financial Holdings, Inc.’s (AFH) has price-to-cash ratio of 2.20 and price to sale ratio of 0.51. The company net profit margin is -16.60%. A look on the firm performance, its monthly performance is -15.91% and a quarterly performance of -9.76%. The stock price is moving down from its 20 days moving average with -11.24% and isolated negatively from 50 days moving average with -12.65%.
Net Income before Income Taxes: Net income before income taxes reduced to $6.8M for the three month period ended March 31, 2018, contrast to $7.5M in the same period of the previous year, representing a 8.7% decrease.
Atlas’ President and CEO, Scott D. Wollne said that the company achieved best start to 2018 with a focus on underwriting profitability. The firm is confident that investment in technology and analytics is also having a positive impact on underwriting activities. The first quarter illustrates the earnings power of company business with an annualized return on equity of 24.3% in the first quarter contrast to 14.9% in the previous year quarter.
Income Taxes: Atlas recognized tax expense of $1.3M for the three month period ended March 31, 2018 contrast to a tax expense of $2.6M in the same period of the previous year.
Net Income: Atlas stated net income of $5.5M for the three month period ended March 31, 2018, contrast to $4.9M for the three month period ended March 31, 2017.
Atlas generated $0.45 earnings per ordinary share diluted for the 3 month period ended March 31, 2018. This measure up to $0.40 earnings per ordinary share diluted as stated for the three month period ended March 31, 2017.