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/

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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

AmTrust 2014 hurricane season commercial lines binding limitations

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Hurricane_2a

August 1 marked two months into a relatively calm 2014 hurricane season; however, with the potential for increased activity it’s important to be aware of our commercial lines binding limitations during hurricane season ending November 30.

An agent’s authority to bind or increase coverage for wind storm, flood or extended coverage is suspended when the eye of a hurricane is reported by the National Weather Service (NWS) to be within 600 miles of the state in which a property is located.  This limitation applies to all property located within 200 miles of the coast, and does not apply to workers’ compensation coverage. 

In order for any new policy, binder or endorsement to be accepted by our companies, your request must be postmarked or uploaded before the eye of the hurricane is reported by the NWS to be within 600 miles of the state in which a property is located.  After this cutoff time, we will not be responsible for new coverage written.
During the moratorium period, you may process business scheduled for renewal, but you cannot increase limits beyond that required for the annual values update or where the expiring policy provides automatic increases, and you may not reduce deductibles.

Coverages impacted during the moratorium include all Property, Inland Marine, Personal Auto Physical Damage and Commercial Auto Physical Damage coverage.

Click here to view the official announcement distributed in May.

Resource; http://www.amtwarranty.com/

AMT Warranty Corp one stop for all Business Intelligence needs

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Generally, mathematical algorithms along with statistical techniques joined with software tools are expected in the process of data mining. The actual output is the easy to use software that’s further utilized by non-mathematicians to effectively evaluate the data. The process of data mining is required in a variety of applications for example analyzing buyer characteristics, market exploration, direct marketing, genetics, text assessment, scams determination, e-commerce industry, designing warranty products, financial solutions, customer management etc.

Role of data mining with business intelligence in accordance to AMT Warranty Corp

However, business intelligence is usually a expansive arena of decision making. Business intelligence makes use of data mining as one of the most well known tools to make the info a lot more appropriate in a number of applications. The particular data mining will be coupled with business intelligence and is utilized in text mining, relational databases, audio data mining etc. to really make the information helpful for future functions.

These days, business intelligence has arrived up as a solution encouraging corporations reach their set goals of profit optimisation. It is no longer just a smart support program. Due to the fact, managers are necessary to take a variety of crucial decisions every day in an organization hence reasonable along with timely conclusions are mandatory. Companies have got to concentrate on consumers along with opponents features as well along with focusing on available scenarios.

To gather the material from numerous methods, data mining can be clubbed with business intelligence to meet those needs. Business intelligence continues to be established as an best solution in enterprises supporting 1000’s achieve the goals of profit optimisation. Business intelligence presents host of advantages in planning warranty products in an business.

Cutting down costs in agencies

In most cases, executives are required to retrieve information through various sources as to why the company outcomes of several certain months are low. It consumes lots of time and cost. However, with BI methods, information is fetched through multiple sources along with aids professionals evaluate the effects. It decreases the actual expenses since buying BI option would be all one group needs. Besides this, BI remedies in addition cut down the intake of time. To put it differently, extracting data right away is an efficient remedy in order to lower your expenses in addition to increase performance of the firm.

AMT Warranty – Eliminating Low-quality products

BI remedies support executives know about the ineffective products ingesting cost by data mining and eliminate those at once. The key performance indicators or KPIs are measured and thus, inferior products are wiped out.

Examine the efficiency of promotion programs together with AMT Service Corp

BI remedies assists with liberating an assessment report with the marketing strategies by acquiring data of sales, expense, consumers, products along with return. It will help supervisors keep track of the actual programs that were powerful in past and could be implemented once again, if necessary.

Consider opponents, broaden market share the Amtrust Warranty method

The most crucial of any company is to understand about the particular competitor’s capability. As a result, BI solutions help the professionals evaluate competition list and put together a checklist of potential clients. It helps in computing sales, customers, accounts of promotion campaigns, hence helping administrators with growing strategies.

The usage of business intelligence and data mining has significantly aided companies in designing efficient processes to broaden the enterprise. It’s been bringing out wise along with quick ways to assist businesses substantially. Even though every large or small scale company is deploying efficient BI options but there are lots of such evaluations envisioned in years to come.

For more details visit here – http://amt-warranty.blogspot.in/

Article Source – http://www.slideshare.net/amtwarranty/amt-service-corp-leaders-in-data-mining-29464408