AmTrust Financial Services, Inc. (AFSI) Q2 2012 Earnings Call August 6, 2012, 09:00 am ET Executives Hilly Gross - VP, Investor Relations Barry Zyskind - President & CEO Ron Pipoly - CFO Analysts Randy Binner - FBR Mark Hughes - SunTrust Ken Billingsley - BGB Securities Matthew Heimermann - JPMorgan Adam Klauber - William Blair Bob Farnam - KBW Presentation Operator
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Actual results may differ materially from those expressed or implied in these statements as a result of significant risks and uncertainties including the factors set forth in the company’s filings with the Securities and Exchange Commission including its Annual Report on Form 10-K and its quarterly reports on Form 10-Q. The projections and statements in this presentation speak only as of the date of this presentation and the company undertakes no obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise except as may be required by law.Having dispensed with the lingual niceties, it is now pleasure to call upon AmTrust’s CEO and President Mr. Barry Zyskind. Barry? Barry Zyskind Thank you and good morning. I am pleased to report that AmTrust had a strong second quarter in 2012 with growth in each of our segments. The Small Commercial Business segment is writing a wave of improving pricing particularly workers compensation. The positive topline growth momentum is also benefiting from the strength of acquisition, major acquisitions including Majestic last year and more recently BTIS. In our Specialty Program segment, a favorable pricing environment coupled with the success of our underwriting teams contributed to the topline growth. Specialty risk and extended warranty continues to experience gains in our targeted markets both domestically and internationally. Recent acquisitions including the purchase of the Captive Insurance agency’s Case New Holland combined the geographic and product expansions continued to create excellent opportunities for growth. Our fees and services reported double digit growth benefiting from acquisitions and increased demand of our services. The higher margin business contributes to our strong ROE. We expect to continue growing our fees and services business. In terms of acquisitions, we believe we are well positioned with our capital and infrastructure to take advantage of the opportunities that increasingly present themselves across all of our segments. The prospect for building on a profitable success through acquisition has never been more favorable in our opinion. We continue to see a lot of deal flow based on many of the things that are happening in the current marketplace.
In summary, our performance this quarter is a source of prime to everyone in our organization. We are confident we will continue to build shareholder value.With that, I would like to turn the call over to Ron Pipoly for more detailed comments on the quarter. Ron Pipoly Thank you Barry, good morning. The second quarter of 2012 is the second consecutive quarter with gross written premium in excess of $600 million. Unless otherwise noted, my comments this morning will evolve around a discussion of our results this quarter compared with the second quarter of last year. Gross written premium was $637.4 million, an increase of $79 million or 14.1% from the second quarter of last year. The second quarter of 2011 had a total of $45 million of one-time gross written premium events. Without consideration of these events, the increase in premium would have been a $124 million or 24.1%. We experienced growth in all four of our segments during the quarter. Read the rest of this transcript for free on seekingalpha.com