AmTrust Announces Net Income For The Third Quarter 2016

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Warrantech’s parent company, AmTrust Financial Services, Inc. (AFSI) today announced third quarter 2016 net income attributable to common stockholders was $103.6 million, or $0.60 per diluted share, compared to $182.7 million, or $1.09 per diluted share, in the third quarter 2015.

For the third quarter 2016, operating earnings was $126.3 million, or $0.73 per diluted share, compared to $150.9 million, or $0.89 per diluted share, in the third quarter 2015. Annualized return on common equity was 15.9% for the third quarter 2016 compared to 35.4% for the third quarter 2015. Third quarter 2016 annualized operating return on common equity was 19.4% compared to 29.2% in the third quarter 2015.

“We delivered a solid performance in the third quarter, with strong investment results, higher service and fee income, and growth in gross written premiums, compared with the same period a year ago,” said Barry Zyskind, Chairman, President and Chief Executive Officer, AmTrust. “Our performance reflects a full quarter’s contribution from Republic Companies, as well as continued strong policy retention and disciplined underwriting of new business in our small commercial business segment, as demonstrated by our stable loss ratio. The top-line results of our specialty risk and extended warranty segment reflect the impact of the decline in the British pound relative to the third quarter a year ago, and we are pleased with the underlying performance of this segment.”

Mr. Zyskind also stated, “We are optimistic about our organic growth prospects, given our differentiated model in workers’ compensation and commercial lines products in the U.S., as well as opportunities in our warranty insurance offering globally. We remain focused on building a portfolio of business that leverages our proprietary technology and our efficient operating structure to enhance shareholder returns.”

Third Quarter 2016 Results

Total revenue was $1.41 billion, an increase of $181.3 million, or 15%, from $1.23 billion in the third quarter 2015. Gross written premium was $2.03 billion, an increase of $253.3 million, or 14%, from $1.78 billion in the third quarter 2015. Net written premium was $1.22 billion, an increase of $73.1 million, or 6%, compared to $1.14 billion in the third quarter 2015. Net earned premium was $1.20 billion, an increase of $150.8 million, or 14%, from $1.05 billion in the third quarter 2015. The combined ratio was 91.5% compared to 92.6% in third quarter 2015.

A summary of Q3 results is listed below along with a link to the earnings release.

Financial Highlights

Third Quarter 2016

• Gross written premium of $2.03 billion, up 14.2% compared to $1.78 billion in the third quarter 2015
• Net earned premium of $1.20 billion, up 14.4% from $1.05 billion in the third quarter 2015
• Net income attributable to common stockholders of $103.6 million compared to $182.7 million in the third quarter 2015
• Operating earnings of $126.3 million compared to $150.9 million in the third quarter 2015
• Diluted EPS of $0.60 compared to $1.09 in the third quarter 2015
• Operating diluted EPS of $0.73 compared to $0.89 in the third quarter 2015
• Service and fee income of $146.6 million, up 16% from $126.1 million in the third quarter 2015
• Combined ratio of 91.5% compared to 92.6% in the third quarter 2015
• Weighted average diluted shares outstanding of 173.1 million, up 3% compared to 168.3 million in the third quarter 2015

For more details feel free to visit here:-https://sites.google.com/site/amtwarranty/amt-warranty-corp-offer-original-equipment-manufacturer-oem-warranties-and-protect-it-card

AmTrust Announces Net Income For The Second Quarter 2016

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Warrantech’s parent company, AmTrust Financial Services, Inc. (AFSI) today announced second quarter 2016 net income attributable to common stockholders was $134.8 million, or $0.78 per diluted share, compared to $70.7 million, or $0.42 per diluted share, in the second quarter 2015.
For the second quarter 2016, operating earnings was $140.3 million, or $0.81 per diluted share, compared to $130.5 million, or $0.78 per diluted share, in the second quarter of 2015. Annualized return on common equity was 21.1% for the second quarter of 2016 compared to 14.3% for the second quarter of 2015. Second quarter 2016 annualized operating return on common equity was 21.9% compared to 26.3% in the second quarter 2015.

Second Quarter 2016 Results

Total revenue was $1.39 billion, an increase of $0.28 billion, or 25%, from $1.11 billion in the second quarter 2015. Gross written premium was $2.07 billion, an increase of $0.39 billion, or 24%, from $1.68 billion in the second quarter of 2015. Net written premium was $1.27 billion, an increase of $0.26 billion, or 26%, compared to $1.01 billion in the second quarter 2015. Net earned premium was $1.18 billion, an increase of $0.21 billion, or 22%, from $0.97 billion in the second quarter 2015. The combined ratio was 91.7% compared to 90.5% in second quarter 2015.
A summary of Q2 results is listed below along with a link to the earnings release.

Financial Highlights

Second Quarter 2016

• Gross written premium of $2.07 billion, up 23.5% compared to $1.68 billion in the second quarter 2015

• Net earned premium of $1.18 billion, up 22.0% from $0.97 billion in the second quarter 2015

• Net income attributable to common stockholders of $134.8 million compared to $70.7 million in the second quarter 2015

• Operating earnings of $140.3 million compared to $130.5 million in the second quarter 2015

• Diluted EPS of $0.78 compared to $0.42 in the second quarter 2015

• Operating diluted EPS of $0.81 compared to $0.78 in the second quarter 2015

• Annualized return on common equity of 21.1% and annualized operating return on common equity of 21.9%

• Service and fee income of $138.3 million, up 28% from $107.7 million in the second quarter 2015

• Combined ratio of 91.7% compared to 90.5% in the second quarter 2015

• Weighted average diluted shares outstanding of 173.0 million, up 3% compared to 168.1 million in the second quarter 2015

• Repurchased 3.58 million common shares at a weighted average price of $24.82 per share

Article Resource- https://warrantech.com/blog/august-2016/amtrust-announces-net-income-for-the-second-quarte/

When Is An Extended Service Plan Worth The Investment?

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AMT Warranty handles each of the administration of Protect-it plans. You finally worked up the gumption to buy the one product you’ve debated purchasing for months. Whether it is a brand new car, technologically advanced appliance or the latest electronic gadget, you’ve made it through second guesses, financial calculations and a lengthy checkout line to finally make your purchase. Relieved and excited, you smile as the sales associate rings up your coveted item.

AMT Warranty, AMT Service Corp, AMT Warranty Corp, Amtrust Warranty

AMT Warranty, AMT Service Corp, AMT Warranty Corp, Amtrust Warranty

As you daydream about how wonderful life will be with your new “toy,” you realize the sales associate asked you a question. You beg their pardon.

“I asked what sort of protection plan you’d like. We have a number of extended warranty options,” the associate replies.

Your smile fades. Apparently the decision making isn’t quite over after all.

Does this sound familiar? For many people, the question of whether or not to purchase an extended warranty (more appropriately referred to as an extended service plan, or ESP)* is a tough one, and may not be a decision they are prepared to make. When is such a purchase advisable? Will it save money, or just add cost to a purchase? The answers to these questions depend upon a number of factors specific to each purchase. Consider the following before you reach the point-of-sale in the future, and you may save time and avoid stress:

*NOTE: While many store associates and consumers consider the purchase to be an extended warranty, this is often not the case. Many extended plans are not truly adding on to the original manufacturer’s warranty, but rather, extend the post-warranty service options and are therefore more appropriately referred to as an extended service plan, or ESP.

What is the product and who produced it?

Reputation is always an important consideration when attempting to predict the longevity of a product. Some types of items are statistically more likely than others to need repairs in their first few years of use. According to Consumer Reports, for example, computers, self-powered lawn mowers and certain refrigerator designs top the list of items most likely to fail.

It is important, also, to consider whether the product you’re buying incorporates cutting-edge technology or is a first-generation product. With less of these products existing in the marketplace, there is a higher likelihood of glitches or problems that may not have been discovered during testing. Also, factor in what company created the product you are purchasing. Do they have a history of releasing products before the “bugs” have been worked out?

How much does the product cost and how tough would it be to replace?

If purchasing an expensive item, it is important to consider how much repairs or replacement would cost versus the cost of an ESP. If the item is of critical importance to you, such as a computer used to make a living, an expensive part failure could be very detrimental.

“For many people, peace of mind is the greatest benefit of an extended service plan,” according to Sean Stapleton, CEO of  Warrantech. “They want to know that if their product should cease to function correctly, they will be covered, especially if replacement would be difficult to finance.”

Who is this product for and how will they handle it?

It is important to consider who will be using the product you’re purchasing, the environment in which it will reside, and the frequency it will be used. Are you buying a product for a young person? Is the item for use while on-the-go? Will you use the product routinely? If the answer to any of these questions is “yes,” you may want the confidence and protection that the product will last. Knowing your end user and end-use environment is important when deciding whether to invest in an extended service plan. Always review plan information carefully, ensuring you know exactly what is and isn’t covered.

The next time you make a significant investment in a product, ask yourself these three questions and be prepared once you get to the point-of-purchase.

Article Source: – https://warrantech.com/blog/december-2015/when-is-an-extended-service-plan-worth-the-investm/

Top 10 Ways To Improve ESP Attachment Rates On The Retail Floor

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AMT Warranty excels at understanding and responding to the needs of businesses in our target markets, and we offer a variety of programs to serve those needs. In the world of extended service plans (ESPs), extended warranties, or service and parts replacement programs, many consumers have become immune to the common tactics used to sell these programs. In fact, if your sales team is still selling the “what if” scenario to today’s ultra educated consumers, your store is losing out on valuable sales that help drive high-margin growth and revenue.

According to NBC News, extended warranties help fuel a booming $15 billion-a-year business; therefore, it’s imperative that retail sales personnel hone their sales approaches for “add on” sales such as ESPs. Through ongoing training and education, sales teams are better able to overcome “new” objections to these profitable plans and figure out which plan best suits the consumer’s need.

AMT Warranty, AMT Service Corp, AMT Warranty Corp, Amtrust Warranty
AMT Warranty, AMT Service Corp, AMT Warranty Corp, Amtrust Warranty

The below selling strategies are simple, but effective ways to help your sales team illustrate the value of ESPs and therefore convert more consumers:

  • Get consumers’ attention: – By stating the obvious such as, “This product is covered under the manufacturer’s warranty for only one year,” you may pique the consumer’s interest enough to have him/her asking more about warranty coverage.
  • Listen to consumers’ answers: -It seems simple, but often sales representatives get so busy pushing sales out the door, they don’t hear what consumers really want to know more about. If a representative addresses some of the comments consumers share during the sales process, then consumers may be more inclined to listen to sales talk about protection plans. Remember, always address consumers’ objections and point out how ESPs overcome the objection.
  • Give options: -Often consumers may be more inclined to purchase extended coverage if they know they have options. This puts them in the driver’s seat to select the coverage that best suits their needs. For example, offer extended or standard warranty coverage and let them ask questions about the difference, which will lead to the sale of a plan that they believe in.
  • Stay positive: -Much like in life, if you focus on the positives, you’ll more likely receive favorable feedback. Focusing on the strong features and benefits of the ESP, consumers may find the up front fee is well worth the investment.
  • Expert source: -Provide consumers with sales representatives’ credentials or the training they receive prior to selling on the floor. (This is most effective if the store posts signs on the floor about the quality of its staff.) In doing so, when a sales member states, “In my experience, ESPs are essential,” the consumer has a frame of reference for why this is a quantifiable statement. Testimonials are another great way to communicate value and benefits (leverage your personal experiences, your customer, your store’s customer, etc.).
  • Brands that matter: -We’ve all fallen victim to the brand game at one point in our lives and consumers are no different. Consumers generally buy the brands they think represent quality or status and frown upon unknown brands. But while some brands make a great washing machine, they may not make a great TV and it shows in the manufacturer warranty details (especially parts and labor). Your staff needs to know the details of the manufacturer warranties just as well as the ESP to help drive home the value extended coverage offers.
  • Explain the fine print: -Helping consumers better understand what’s covered, what’s not and why makes your sales staff their ally. This type of dialogue not only builds trust, but also gives sales staff an opportunity to reveal some of the holes in the manufacturer’s warranty.
  • Think about it: -Once consumers have all the facts about the warranties or ESPs, it’s okay to let them think about their options. Have them walk around the store, talk to their spouse/significant other or speak with customer service representatives about the items they see coming back or how much it costs to repair various products. Often, a different source can be a welcomed change of pace for consumers who don’t want to fall victim to “sales hype.”
  • Recommend it: -If you believe in it, your customers will too. Familiarize yourself with the features and benefits and remind customers how costly repairs or replacements can be if they’re not backed by an ESP.
  • Ask “why not” an ESP: -Sometimes the most obvious questions go unasked such as “Why wouldn’t you want to protect your purchase?” or, “What’s holding you back?” Once your sales staff knows the answer to why, they may be able to employ any number of sales tactics to sell or attach an ESP.

ESPs add significantly to a retail organization’s bottom line because they don’t require inventory space or carrying costs and they offer high margins. Many consumers are receptive to buying ESPs, but they do need to be convinced to add a plan to their basket and are looking to your sales staff to communicate the features and benefits of the plans, as well as your organization’s commitment behind the plans. Sharpening your sales strategies — on and off the sales floor — is a critical step to increasing ESP sales and enhancing the value these plans bring to consumers.

For more information about AMT Warranty Corp feel free to visit:–https://amtrustgroup.com/warranty-special-risk/extended-warranty-administration

Top 10 Reasons To Select AmTrust

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AMT Warranty Corp/Warrantech is a subsidiary of AmTrust Financial Services, Inc., one of the strongest and most financially stable companies in the industry. AmTrust brings this financial strength to Warrantech, which allows us to offer customizable plans and benefits that most competitors simply cannot provide.

AMT Warranty Corp1

  1. Financial Strength and Stability – Publicly traded on the NASDAQ (AFSI) with more than $6.1 billion in gross written premium and over $15 billion in assets, with an A.M. Best rating of “A” (Excellent), Financial Size “XIII.”
  1. Multi-State Capability – Workers’ comp written in over 40 states, and all lines of insurance written in more than 30 states.
  1. Flexible Payment Plans – Installment plans, AmTrust AutoPay (direct debit) and Pay-As-You-Owe® (PAYO®) provide seamless premium payments, saving time and money.
  1. Superior Claims Handling – 24/7 claims reporting with live assistance, and seasoned claims professionals with assigned case loads well below the industry average.
  1. Exceptional Loss Control – Representatives located nationwide to conduct safety inspections, site evaluations and loss prevention training.
  1. User-Friendly Submission System – Easy-to-use, web-based system provides policy, endorsement and loss history at your fingertips, and allows you to submit and chat online with your underwriter about a submitted risk.
  1. Competitive LCM Rate Structure – We are continuously evaluating and adjusting our LCMs to reflect our loss experience and competitive environment.
  1. Competitive Agency Commission – Our commission rates generally range from 9%-20% based upon the product written.
  1. Expanding P&C Product Offering – We are continuously evaluating the market and our agents’ needs to deliver new coverage’s from Workers’ Comp to Commercial Package and a wide variety of niche products.
  1. Satisfying Customer Service – Exceptional service is the mantra at AmTrust, delivered by our field marketing representatives, regional underwriters and centralized customer service professionals.

For more information about AMT Warranty Corp feel free to visit:–https://amtrustgroup.com/warranty-special-risk/extended-warranty-administration

 

Sym-Tech Dealer Services & AMT Warranty, a Subsidiary of AmTrust Financial Services, Announce Partnership that Provides the Canadian Market with Enhanced Services and Product Offerings

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Sym‐Tech Dealer Services (the “Company” or “Sym‐Tech”) announced today that AmTrust Financial Services, Inc. (NASDAQ: AFSI), through its subsidiary AMT Warranty, has partnered with Sym‐Tech through a minority investment in the Company.

AMT Warranty Corp

AMT Warranty, AMT Service Corp, AMT Warranty Corp, Amtrust Warranty

“We are very pleased that AMT Warranty chose to partner with Sym‐Tech,” said Brad Wells, CEO of Sym‐Tech Dealer Services. “AMT Warranty’s automotive expertise as well as their underwriting, OEM, insurance and reinsurance knowledge and experience will allow for an expanded offering of F&I products and services for clients in Canada.”

Sym‐Tech drives improved business office performance. A full suite of F&I products, industry‐proven training and in‐dealership development, as well as F&I menu and proprietary technology, combine to drive dealer performance and profitability.

Sym‐Tech’s 40 year history of serving Canadian dealers, combined with AMT Warranty’s extensive insurance services and solid financial backing, create a unique partnership that provides Canadian OEMs, auto dealers and automotive dealer groups with one of the most comprehensive offerings available. The full suite of solutions includes:

  • A complete line of F&I products and programs
  • Training and in‐dealership development
  • Proprietary F&I technology
  • Expertise in underwriting, actuary, insurance and re‐insurance services

“AMT Warranty has experienced tremendous success in the United States and we look forward to extending our success to the Canadian marketplace through a long‐term relationship with Sym‐Tech,” said Sean Stapleton, President and CEO of AMT Warranty. “Sym‐Tech has a solid reputation, one of the best F&I software platforms in the industry, extensive knowledge of the market and significant experience. Importantly, Sym‐Tech’s vision, values and strengths are strongly aligned with AmTrust.”

About AMT Warranty

AMT Warranty Corporation, a wholly owned subsidiary of AmTrust Financial Services, Inc. (NASDAQ: AFSI), provides finance and insurance products to automobile, RV/trailer, marine and power sports retailers, manufacturers and financial institutions. AMT Warranty offers innovative F&I products, program development and customer support. With over 25 million active contracts, AMT Warranty has a reputation for providing highly scalable and financially successful programs. By incorporating extensive industry knowledge, customized program options and a customer centric approach to service, AMT Warranty has become the leading provider of F&I products in the aftermarket industry.

About SymTech Dealer Services Inc.

Founded in 1971, Sym‐Tech Dealer Services Inc. is a leading Canadian F&I provider to the retail automotive industry. Sym‐Tech is a performance‐driven company with the mandate to help improve business office performance. Sym‐Tech offers F&I products, industry‐proven training and in‐dealership development, as well as F&I menu and a proprietary software platform (d.a.v.e®) which drive dealer performance and profitability.

For more information about AMT Warranty Corp feel free to visit: – https://amtrustgroup.com/warranty-special-risk/extended-warranty-administration

Top 10 Reasons to Purchase an Extended Service Plan

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AMT Warranty,  AMT Service Corp,  AMT Warranty Corp,  Amtrust Warranty

AMT Warranty, AMT Service Corp, AMT Warranty Corp, Amtrust Warranty

Extended warranty service plan is AMT Warranty‘s program that provides customers with the highest level of coverage. They can be set up to protect new electronic products against most, if not all, potential malfunctions or failures, including those that are not covered by the product’s original equipment manufacturer (OEM) warranty.

  1. Allows customers to prepare for the unexpected and possibly avoid having to pay for any large, unforeseen repair bills.
  2. Convenient, efficient and stress free, it takes away anxiety consumers might have should something go wrong with their purchase.
  3. Affordable and costs a fraction of what one might typically pay for a new replacement.
  4. Saves time as customers no longer have to search for a repair company to fix their damaged merchandise.
  5. If a covered product is not repairable, it could be replaced with a new model.
  6. Consumer products have become more complex and contain more electronics than they did just 10 years ago, which makes an extended service contract even more valuable to have.
  7. As a value-added benefit, numerous service contracts provide toll-free call center support for immediate help with in-home repair and questions about covered products.
  8. Some OEM warranties offer limited protection, which can be supplemented with an extended service contract once the warranty expires.
  9. Electronic products have become more mobile over the years, which mean that they can be more susceptible to accidental damage from typical everyday use.
  10. Many service plans offer on-site repair for added convenience.

For more consumer tips and information regarding extended warranties and vehicle service contracts, be sure to visit: http://amtwarranty.jimdo.com/amt-warranty-blog/amt-warranty-corp-offer/

AMT Warranty,  AMT Service Corp,  AMT Warranty Corp,  Amtrust Warranty

AMT Warranty, AMT Service Corp, AMT Warranty Corp, Amtrust Warranty