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AmTrust Financial Services, Inc. Reports Fourth Quarter Operating Earnings(1) Of $53.4 Million And Net Income Of $55.3 Million

Stocks in this article: AFSI

Financial Highlights

Fourth Quarter 2012

  • Gross written premium of $773.6 million, up 31.9%, and net earned premium of $383.4 million, up 28.1% from fourth quarter 2011
  • Operating diluted EPS (1)(2) of $0.77 ($0.07 attributable to gain on life settlement contracts) compared to $0.60 (($0.02) attributable to loss on life settlement contracts) in the fourth quarter 2011
  • Annualized operating return on equity (1) of 19.3% and annualized return on equity of 19.9%
  • Service and fee income of $54.1 million, up 79.5% from fourth quarter 2011
  • Operating earnings (1) of $53.4 million compared to $40.7 million, up 31.2% from fourth quarter 2011
  • Fourth quarter 2012 results include gain on life settlement contracts net of non-controlling interest of $4.5 million compared to a loss of $1.0 million in fourth quarter 2011
  • Net income of $55.3 million compared to $37.9 million from fourth quarter 2011
  • Diluted EPS of $0.79 compared to $0.56 in the fourth quarter 2011
  • Combined ratio of 90.1% compared to 89.0% in the fourth quarter 2011

Full Year 2012

  • Gross written premium of $2.75 billion, up 27.8%, and net earned premium of $1.42 billion, up 36.8% over 2011
  • Operating diluted EPS (1)(2) of $2.77 ($0.10 attributable to gain on life settlement contracts) compared to $2.65 ($0.39 attributable to gain on life settlement contracts) in 2011
  • Operating return on equity (1) of 18.8% and return on equity of 17.5%
  • Service and fee income of $172.2 million, up 58.5% from 2011
  • Operating earnings (1) of $191.6 million compared to $179.5 million in 2011
  • 2012 results include gain on life settlement contracts net of non-controlling interest of $6.7 million compared to $26.4 million in 2011
  • Net income of $178.0 million compared to $170.4 million in 2011
  • Diluted EPS of $2.57 compared with $2.52 in 2011
  • Combined ratio of 89.5% compared to 89.0% in 2011
  • Book value per share of $17.03, up from $13.47 at year-end 2011
  • Shareholders' equity was $1.14 billion as of December 31, 2012

NEW YORK, Feb. 14, 2013 (GLOBE NEWSWIRE) -- AmTrust Financial Services, Inc. (Nasdaq:AFSI) ("the Company") today reported fourth quarter 2012 operating earnings (1) of $53.4 million, or $0.77 per diluted share compared to $40.7 million, or $0.60 per diluted share, in the fourth quarter of 2011. Net income totaled $55.3 million, or $0.79 per diluted share for the fourth quarter of 2012 compared $37.9 million, or $0.56 per diluted share in the fourth quarter of 2011. Fourth quarter 2012 annualized operating return on equity increased to 19.3% from 18.8% in the fourth quarter of 2011.

During 2012, net income totaled $178.0 million, an increase of 4.4% from $170.4 million in 2011. Earnings per diluted share (2) totaled $2.57 in 2012, an increase of 2.0% from $2.52 in 2011. Operating earnings (1) totaled $191.6 million, or $2.77 per diluted share, an increase of 6.8% from $179.5 million, or $2.65 per diluted share (2) in 2011. December 31, 2012 book value per share rose 26.4% to $17.03 and full year operating return on equity was 18.8%. Per share results for the fourth quarter and year reflect a 10% stock dividend the Board of Directors declared on August 6, 2012.

Fourth Quarter 2012 Results

For the fourth quarter of 2012, total revenue of $517.8 million increased $131.3 million, or 34.0%, from $386.5 million in the fourth quarter of 2011. Gross written premium of $773.6 million rose $186.9 million, or 31.9%, from $586.8 million in the same period a year ago. Net written premium of $413.0 million increased $68.0 million, or 19.7%, from $345.0 million in the fourth quarter in 2011. Net earned premium of $383.4 million increased $84.0 million, or 28.1%, from $299.4 million in the fourth quarter of 2011.

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