Atlas Financial Holdings, Inc. Announces Unaudited Gross Written Premium Results for the Full Year Ended December 31, 2017; Provides Earnings Guidance for the Full Year Ended December 31, 2017 and Year of 2018
March 02, 2018 at 04:31 pm EST
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Atlas Financial Holdings, Inc. announced unaudited gross written premium results for the full year ended December 31, 2017. For the year, the company generated gross written premium of $276.0 million, an increase of 22.6% over the prior year.
After considering the potential residual effect of reserve strengthening, the company anticipates its reported loss & LAE ratio for the most current accident year to be in the range of 60%-62%. Based on preliminary unaudited financial results, after the effect of reserve strengthening as well as an approximate $0.55 per share DTA write down resulting from the Tax Cuts and Jobs Act (the TCJA) that was enacted in December of 2017, book value per share as of December 31, 2017 is expected to be between $7.25 - $8.00 and statutory surplus across Atlas' four insurance company subsidiaries is expected to be between $85 million- 90 million. Net loss for the full year 2017 was approximately $3.20 per share.
For the year of 2018, the company expects to write in excess of $300 million in premiums in 2018, which is a consistent rate of growth relative to last year, subject to market conditions. At that level of premium and expected use of the company's existing reinsurance programs, with a combined ratio in the mid-80s, it is reasonable to expect annual net earnings per share to exceed $2.00.
Atlas Financial Holdings, Inc. is a financial service holding company. The Companyâs primary business is generating, underwriting and servicing commercial automobile insurance policies in the United States. The Company focuses on a managing general agency (MGA) strategy, primarily through its wholly owned subsidiary, Anchor Group Management, Inc. (AGMI). AGMI focuses on a niche market orientation for the light commercial automobile sector. This sector includes taxi cabs, limousines, livery, full-time transportation network companies (TNC) drivers/operators, and other specialty commercial auto operators. Automobile insurance products provide insurance coverage in three major areas: liability, accident benefits and physical damage. The Company operates in one business segment: the Managing General Agency segment. The Companyâs subsidiaries include UBI Holdings Inc. (UBI Holdings), optOn Digital IP Inc. (OOIP) and optOn Insurance Agency Inc.
Atlas Financial Holdings, Inc. Announces Unaudited Gross Written Premium Results for the Full Year Ended December 31, 2017; Provides Earnings Guidance for the Full Year Ended December 31, 2017 and Year of 2018