Want Niche Capabilities? You’ll Want A Unique Company

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It’s important to partner with a company that’s well-versed in your line of work. After all, every industry has a unique set of risks and differentiators. And if you’re a small business owner, having access to someone who is receptive to the specific, yet ever-changing needs of your business can make all the difference.
AmTrust, Warrantech’s parent company, places a deliberate focus on delivering quality programs and services to businesses in underserved niche markets. With a staff of business developers, underwriters and account managers who are experienced, dedicated and client-focused, they strive to develop strong partnerships to ensure that your business plans are expertly executed, fully licensed and well-designed for your particular industry.

Small Commercial Business

Specifically targeting small businesses, AmTrust has crafted its commercial package insurance offering to provide coverage for niche audiences such as: lumber, restaurants, automotive service centers, financial institutions, inland marine, commercial agriculture and much more.

By combining leading technology, proprietary online business submission software and a deep understanding of each market, AmTrust reduces risk, produces efficiencies and provides effective loss control for its clients. AmTrust services small businesses with the same concern and attention to detail expected by large businesses, treating policyholders with the individual attention that they deserve.

Specialty Program

At its core, the program business provides risk funding arrangements to a small group of targeted program business clients dedicated to the long-term proposition of shared risk and shared rewards. The risks to which these policyholders are exposed require in-depth knowledge of the industry segments in which they operate. Underwriting often entails customized coverage, loss control and claims services, as well as risk-sharing mechanisms. Underwriting expertise is the core competency of this specialized business unit.
AmTrust partners with MGAs and claims administrators to originate and manage this book of business. They target sophisticated small- and middle-market businesses, such as retail and wholesale operations, service operations and non-profit organizations. The coverages offered consist primarily of workers’ compensations, general liability, commercial auto liability and property insurance.

Specialty Risk and Extended Warranty

Warrantech’s extended warranty coverage focuses on automotive and consumer product clients, offering accidental damage, mechanical breakdown and related risks, while AmTrust’s specialty risk coverage targets the categories of consumer and commercial goods, auto, involuntary employment and travel/purchase benefits.

 

By serving as both underwriter and third-party administrator of our warranty programs, including our own full-service, state-of-the-art call center, we are uniquely positioned to simplify purchasing and help protect the integrity of our clients’ brands.
To learn more about AmTrust’s niche market capabilities, visit amtrustfinancial.comor call 212.220.7120.

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AmTrust Reports Second Quarter 2017 Net Income And Confidence In Long-Term Financial Strength

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AmTrust Financial Services, Inc. (Nasdaq:AFSI) today announced second quarter 2017 net income attributable to common stockholders of $5.8 million, or $0.03 per diluted share, compared to $127.2 million, or $0.73 per diluted share in the second quarter 2016. For the second quarter 2017, operating earnings were $72.9 million, or $0.40 per diluted share, compared to $135.3 million, or $0.77 per diluted share, in the second quarter 2016.

Net income and operating earnings in the current quarter were impacted by catastrophe losses of $16.1 million after-tax, or $0.09 per diluted share, ($24.8 million pre-tax).

“We took transformative steps in the second quarter, executing on a number of strategic initiatives to increase certainty and confidence in AmTrust’s long-term financial strength, and appointing a new CFO,” said Barry Zyskind, Chairman and Chief Executive Officer, AmTrust. “In particular, we enhanced our balance sheet and capital base through a $300 million equity investment by members of the Karfunkel family to further support our insurance business and organic growth opportunities. Our sale of approximately 86% of our equity position in National General simplifies our balance sheet and reduces concentration in our investment portfolio composition. The reinsurance agreement we entered provides up to $400 million of coverage for adverse net loss reserve development, in excess of our stated net loss reserves as of March 31, 2017, to insulate AmTrust from future reserve volatility. We undertook these actions with a long-term view for the Company and our shareholders, to demonstrate strength and stability to all of our partners, brokers, agents, and insureds, and to enhance our earnings consistency.”

Mr. Zyskind continued, “Our second quarter financial results reflect disciplined sales execution and high policy retention levels with gross written premium of $2.2 billion, up 6.1%. We are focused on maintaining underwriting and pricing rigor in our target markets, and are taking a conservative stance toward our book of business in order to support future profitability and balance sheet strength.”

Second Quarter 2017 Results

Total revenue was $1.6 billion, an increase of $0.2 billion, or 18.2%, from $1.4 billion in the second quarter 2016. Gross written premium was $2.2 billion, an increase of $0.1 billion, or 6.1%, from $2.1 billion in the second quarter 2016. Net written premium was $1.4 billion, an increase of $0.1 billion, or 8.2%, compared to $1.3 billion in the second quarter 2016. Net earned premium was $1.4 billion, an increase of $0.2 billion, or 16.8%, from $1.2 billion in the second quarter 2016. The combined ratio was 101.2%, compared to 91.3% in second quarter 2016, and the adjusted combined ratio was 95.9%, after giving effect to the adverse development cover.

Year-to-Date 2017 Results

Total revenue was $3.1 billion, an increase of $0.4 billion, or 16.0%, from $2.6 billion YTD 2016. Gross written premium was $4.5 billion, an increase of $459.8 million, or 11.5%, from $4.0 billion YTD 2016. Net written premium was $2.7 billion, an increase of $0.2 billion, or 9.1%, compared to $2.5 billion YTD 2016. Net earned premium was $2.6 billion, an increase of $347.2 million, or 15.4%, from $2.3 billion YTD 2016. The combined ratio was 98.6% compared to 91.6% YTD 2016. The adjusted combined ratio was 95.8% compared to 91.6% YTD 2016.

A summary of Q2 results is listed below along with a link to the earnings release.

Financial Highlights

Second Quarter 2017 Highlights

• Second quarter gross written premium of $2.2 billion and net earned premium of $1.4 billion, up 6.1% and 16.8%, respectively, from the second quarter 2016
• Second quarter service and fee income of $168.4 million, up 35.5% from the second quarter of 2016
• Second quarter net income attributable to common stockholders of $5.8 million, or $0.03 per diluted share, compared to $127.2 million, or $0.73 per diluted share, in the second quarter 2016
• Second quarter operating earnings of $72.9 million, or $0.40 per diluted share, compared to $135.3 million, or $0.77 per diluted share, in the second quarter 2016
• Second quarter gain of $68.4 million on sale of 10.6 million shares of National General stock
• Second quarter loss ratio of 74.2% compared with 66.4% in the second quarter of 2016
• Second quarter loss ratio of 68.9% after giving effect to the adverse development cover
• Second quarter combined ratio of 101.2% compared with 91.3% in the second quarter 2016
• Adjusted combined ratio of 95.9%, after giving effect to the adverse development cover, versus 91.3% in the second quarter 2016
• Second quarter annualized return on common equity and annualized operating return on common equity of 0.9% and 11.4%, respectively
• Board of Directors approves payment of quarterly dividend on common stock of $0.17

Article Resource:-https://warrantech.com/blog/august-2017/amtrust-reports-second-quarter-2017-net-income-and/

AmTrust Financial Services, Inc. Reports First Quarter 2017 Net Income

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AmTrust Financial Services, Inc. (Nasdaq:AFSI) (“the Company” or “AmTrust”) today announced first quarter 2017 net income attributable to common stockholders of $22.6 million, or $0.13 per diluted share, compared to $84.0 million, or $0.47 per diluted share in the first quarter 2016. For the first quarter 2017, operating earnings was $55.7 million, or $0.32 per diluted share, compared to $122.9 million, or $0.69 per diluted share, in the first quarter 2016. Net income and operating earnings in the current year were impacted by catastrophe losses of $16.4 million after-tax ($25.3 million pre-tax), or $0.10 per diluted share.

“We achieved record gross written premium of $2.3 billion, driven by continued organic growth and contributions from prior acquisitions in our Small Commercial Business and Specialty Risk and Extended Warranty segments. Strong service and fee income and investment results also contributed to higher revenue, up 13.6% over the first quarter a year ago,” said Barry Zyskind, Chairman and Chief Executive Officer, AmTrust.

“Operating earnings of $55.7 million, or $0.32 per diluted share, reflect several items including primarily the impact of catastrophe losses related to wind and hail events in the personal lines business of Republic Companies, which is included in our Small Commercial Business segment, prior year adverse development related to one discontinued general liability program in our Specialty Program segment, higher professional service fees of approximately $17 million, and a higher effective tax rate compared with the prior year period. The first-quarter 2017 combined ratio of 95.6% includes approximately 2.1 percentage points related to the catastrophe events and 1.6 percentage points of prior year reserve development, resulting in an underlying combined ratio of 91.9%.”

First Quarter 2017 Results

Total revenue was $1.4 billion, an increase of $171.5 million, or 13.6%, from $1.3 billion in the first quarter 2016. Gross written premium was $2.3 billion, an increase of $333.2 million, or 17.2%, from $1.9 billion in the first quarter 2016. Net written premium was $1.3 billion, an increase of $123.4 million, or 10.1%, compared to $1.2 billion in the first quarter 2016. Net earned premium was $1.2 billion, an increase of $148.3 million, or 13.8%, from $1.1 billion in the first quarter 2016. The combined ratio was 95.6% compared to 91.9% in first quarter 2016.

A summary of Q1 results is listed below along with a link to the earnings release.

First Quarter 2017 Highlights

• First quarter gross written premium of $2.3 billion and net earned premium of $1.2 billion, up 17.2% and 13.8%, respectively, from the first quarter 2016
• First quarter service and fee income of $137.5 million, up 6.7% from the first quarter 2016
• First quarter net income attributable to common stockholders of $22.6 million, or $0.13 per diluted share, compared to $84.0 million, or $0.47 per diluted share, in the first quarter 2016
• First quarter operating earnings of $55.7 million, or $0.32 per diluted share, compared to $122.9 million, or $0.69 per diluted share, in the first quarter 2016
• First quarter combined ratio of 95.6%, compared with 91.9%, in the first quarter 2016
• First quarter catastrophe losses of $25.3 million (pre-tax), compared to $2.0 million (pre-tax) in the first quarter of 2016

Article Resource:-https://warrantech.com/blog/may-2017/amtrust-financial-services,-inc-reports-first-qua/

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