AmTrust Reports Outstanding Fourth Quarter And Year-End Results For 2014

AmTrust Financial Services (AFSI), the parent company of Warrantech, issued strong fourth quarter and year-end earnings today with significant momentum for 2015.

For the fourth quarter, the company’s earnings per share (EPS) beat the $1.20 EPS street estimate by $0.26. Gross written premium (GWP) for 2014 was $1.46 billion, up 38% from the same period last year. Small Commercial Business contributed 49% of total company GWP in 2014 and grew by 81% from 2013 to 2014.

On a profitability basis for 2014, the company is running at a loss ratio of 66.4% and an expense ratio just over 24%. Precisely, AFSI’s year-end combined ratio was 90.7%, up only 0.2% points from last year. 

Lastly, the company booked $101.7 million in service and fee income in Q4, up 9.4% from the same time period last year. Most of that income was contributed by AMT Warranty/Warrantech, AMT Consumer Services, CNH Capital and Car Care Plan (the company’s overseas vehicle service contract operation).

A summary of Q4 results is listed below, and the earnings release is linked below as well. Thanks to all of our employees and agents who contributed to these tremendous revenue and profitability results. Keep up the great work!

Financial Highlights:

Fourth Quarter 2014

• Gross written premium of $1.46 billion, up 37.9%, and net earned premium of $908.2 million, up 28.4% from the fourth quarter 2013
• Operating diluted EPS of $1.46 ($0.12 attributable to gain on life settlements) compared to $1.24 ($0.03 attributable to gain on life settlements) in the fourth quarter 2013
• Annualized operating return on common equity of 27.7% and annualized return on common equity of 16.7%
• Service and fee income of $101.7 million, up 9.4% from the fourth quarter 2013
• Operating earnings of $118.5 million compared to $98.5 million from the fourth quarter 2013
• Net income attributable to common stockholders of $71.6 million compared to $64.7 million in the fourth quarter 2013
• Diluted EPS of $0.88 compared with $0.82 in the fourth quarter 2013
• Combined ratio of 90.8% compared to 89.9% in the fourth quarter 2013

Full Year 2014

• Gross written premium of $6.09 billion, up 47.9%, and net earned premium of $3.53 billion, up 55.6% over 2013
• Operating diluted EPS of $5.75 ($0.08 attributable to gain on life settlements) compared to $3.56 ($0.03 attributable to gain on life settlements) in 2013
• Operating return on common equity of 29.9% and return on common equity of 28.4%
• Service and fee income of $409.7 million, up 23.6% from 2013
• Operating earnings of $458.4 million compared to $278.2 million in 2013
• Net income attributable to common stockholders of $434.3 million compared to $278.2 million in 2013
• Diluted EPS of $5.45 compared with $3.56 in 2013
• Combined ratio of 90.7% compared to 90.5% in 2013
• Book value per common share of $22.34, up from $17.74 at December 31, 2013
• AmTrust's stockholders' equity was $2.04 billion as of December 31, 2014

To view AmTrust Financial Services’ Q4/2014 earnings release, visit the Investor Relations section athttp://ir.amtrustgroup.com/ 

Source : https://warrantech.com/blog/february-2015/amtrust-reports-outstanding-fourth-quarter-and-yea/

Tips For Buying A Vehicle Service Contract

A vehicle service contract (VSC) is a smart investment. It can help cover the cost of unexpected repairs and keep your vehicle running at its best. But how do you know if the plan is right for you? Here are a few questions you can ask your VSC salesperson to make sure you know exactly what you’re getting.

Never Ever Worry About Repairs

  

How Much Does The VSC Cost?

Obviously, money is one of the most important factors in the decision-making process. Is your vehicle worth the investment? If so, you’ll want more coverage, which means more money. However, the amount you pay now could add up to hundreds of dollars in savings later. 

What Does The VSC Cover?

Consider your driving habits and the make and model of your vehicle. For instance, if the company who manufactures your car is known for the quality of their interior components and you plan on keeping your vehicle in a garage, then you probably don’t need paint and fabric protection as part of your VSC. 

How Long Does The VSC Last?

Again, the way you drive has a big impact. If you plan on keeping the vehicle for several years or know you’ll be spending a lot of time on the road, then having a VSC makes a lot of sense. You’ll also want to know if your vehicle is currently under a manufacturer’s warranty since the VSC typically goes into effect after the manufacturer’s warranty expires.

Who Backs The VSC?

Make sure that the company behind your plan is reputable. Some good indicators to help determine credibility include an A.M. Best rating, which demonstrates financial strength and stability, and a Better Business Bureau rating, which assesses the company’s business practices. Also, look at how long the company has been in business and examine their background.

How Are Services And Claims Handled?

Find out if the company has a network of service providers. Are they in your area and readily available to work on your vehicle? Once this has been determined, inquire about claim submission and processing. Can you submit claims online? Does the company have a reliable customer service department to assist you? And do they provide fast and convenient service to help get you back on the road as soon as possible?

Don’t Be Afraid To Ask Any Other Questions You Might Have

You should never feel pressured into purchasing coverage that you don’t understand. If there is anything about your vehicle service contract that doesn’t make sense to you, don’t hesitate to ask. Always remember, it is the salesperson’s responsibility to assist you. If you don’t feel that you are getting the help you need to make a proper purchasing decision regarding your VSC, then you probably aren’t going to get the right help should something go wrong with your vehicle.

Article Source :: https://warrantech.com/blog/december-2014/tips-for-buying-a-vehicle-service-contract/

Warrantech Announces the “Best of the Best" for 2014

Warrantech Consumer Product Services, a subsidiary of Warrantech Corporation, today announced that 11 companies are recipients of the company’s Best of the Best award. The prestigious awards were presented by Joel San Antonio, CEO of Warrantech Corporation and Sean Hicks, the Master of Ceremonies for the event.

In an academy awards-style ceremony held at the Mandalay Bay Hotel in Las Vegas, the winners were recognized for their outstanding work in service contract sales and repair service. The 2008 “Best of the Best” award recipients – listed with their category are:
Dealer of the Year - BrandsMart U.S.A.
Regional Dealer of the Year - Karl’s TV Audio Appliances Furniture
Online Dealer of the Year - Venue
Appliance Dealer of the Year - ApplianceSmart Factory Outlet
Electronics Dealer of the Year - Jetson Appliance & Electronics Experts
Electronics Servicer of the Year - DTR-Denver
Buying Group of the Year - MARTA USA
Repairmaster Distributor of the Year - Gotham Sales
Self Servicing Dealer of the Year - BrandsMart U.S.A.
Appliance Servicer of the Year - Jetson Appliance & Electronics Experts
Outstanding Partner of the Year - AmTrust Financial Group
“I am pleased to congratulate the 11 outstanding dealers and service companies that have been recognized this year,” said San Antonio. “These companies exemplify professionalism, top performance and world-class dedication to the sale of service contracts while excelling at providing service to their customers. All too often hard work goes unnoticed, and we felt the time had come to give these dealers the recognition they so richly deserve.”

The Best of the Best Awards is an annual event that measures how well companies implement plans to improve customer service through extended service contracts and warranties in a variety of consumer electronic and appliance product categories.

The 2008 Best of the Best recipients were selected from a field of over 1,000 companies. Through careful evaluation by a panel of experts from Warrantech’s senior management team, each company was chosen based on several criteria including sales increases, penetration rate by product category, customer service scores, and cost control. “While our eye-candy theme made for a light-hearted, enjoyable party, we had a serious reason for hosting this event,” noted Hicks. “These dealers and servicers deserve recognition for the creative solutions they have implemented during 2008 in order to successfully deal with an extremely challenging business climate.”

“Being named Dealer of the Year is an honor,” noted Lary Sinewitz, executive vice president of BrandsMart USA. “In the past, quantifying the effectiveness of enhancing customer service through service contracts and extended warranty programs was problematic – especially in the face of stiff competition and high performance standards. Now, Warrantech is raising the bar with an innovative new program that acknowledges the achievements of successful companies. Everyone at BrandsMart worked especially hard this past year, and we appreciate being recognized for our accomplishments.”

Robert L.Thompson, managing director and general manager of MARTA Cooperative of America said, “What a sweet way to end a tough year. Winning Warrantech’s Best of the Best Award for Buying Group of the Year helps make us redouble our efforts to continue creating new ways to serve our customers, while enhancing our bottom line. Warrantech’s Best of the Best Award is just the incentive we need going into 2009.”

The achievements and number of award winners is impressive,” said San Antonio. “We recognize and congratulate all of the Best of the Best Awards recipients for their hard work and dedication to the industry as we look forward to expanding this popular program in the coming year.”

About Warrantech:

Warrantech Corporation administers and markets service contracts and after-market warranties on automobiles, automotive components, recreational vehicles, appliances, consumer electronics, homes, computer and computer peripherals for retailers, distributors and manufacturers.  Acquired by H.I.G. Capital in 2007, the company continues to expand its domestic and global penetration, and now provides its services in the United States and Canada.For more information about Warrantech free visit here:-http://www.indeed.com/cmp/Warrantech-Corporation

AmTrust Reports Strong Profit Growth For Second Quarter 2014

This marks the fifth quarter in which the company has generated more than $1 billion in gross written premium ($1.44 billion GWP this quarter, an increase of $403 million, or 38.7%, from $1.04 billion in the second quarter of 2013). Small Commercial Business contributed 49% of total company GWP and grew by 170% from 2013 to 2014, while lowering the expense ratio by .2 points. This is quite the impressive performance from both organic and acquired growth as well as cost containment.

On a profitability basis, the company is running at a loss ratio of about 67% and an expense ratio just under 24%. Precisely, AFSI’s Q2 combined ratio was 90.9%, which is an improvement upon the Q2 2013 combined ratio of 92.1%. The majority of that profit improvement came from disciplined underwriting and associated reduction in loss ratio in both Small Commercial Business and, particularly, Specialty Risk & Extended Warranty.

Lastly, the company booked $99.5 million in service and fee income in Q2, up 13% from the same time period last year (and up 28.2% year to date 2014 vs. 2013). Most of that income was contributed by AMT Warranty/Warrantech, AMT Consumer Services, CNH Capital and Car Care Plan (overseas VSC operation).

Second Quarter 2014 Financial Highlights

Gross written premium of $1.44 billion, up 38.7%, and net earned premium of $874.9 million, up 63.1% from the second quarter 2013

Operating diluted EPS of $1.34 ($0.03 attributable to loss on life settlements) compared to $0.75 ($0.01 attributable to gain on life settlements) in the second quarter 2013

 Annualized operating return on common equity of 28.0% and annualized return on common equity of 27.8%

Service and fee income of $99.5 million, up 13.0% from the second quarter 2013

Operating earnings of $107.1 million compared to $57.4 million from the second quarter 2013
     
 Net income attributable to common stockholders of $106.3 million compared to $71.4 million in the second quarter 2013

Diluted EPS of $1.33 compared with $0.93 in the second quarter 2013

Combined ratio of 90.9% compared to 92.1% in the second quarter 201

Service and fee income of $190.5 million, up 28.2% from YTD 2013

AmTrust’s stockholders’ equity was $1.71 billion as of June 30, 2014

For more information about Warrantech free visit here:-https://www.linkedin.com/company/warrantech

Top 10 Reasons to Maintain Your Vehicle

A vehicle is one of the largest investments that most people will make, second only to buying a house. That is why it is so important for you to take care of your investment through regular maintenance. warrantech basic automotive care provides several other benefits that you might not have considered:

1. Protects your investment (on average, auto owners keep their vehicle for 10 years).

2. Provides your family with safer, more reliable means of transportation.

3. Saves you money on any unforeseen, expensive repairs.

4. Honors the commitment outlined in your OEM warranty.

5. Keeps your vehicle running smoothly and more dependably.

6. Contributes to better fuel economy.

7. Eliminates unexpected breakdowns.

8. Increases your vehicle’s resale value.

9. Reduces harmful emissions, which can endanger your family and the environment.

10. Gives you greater peace of mind, knowing that your vehicle is good to go.

For more information about Warrantech free visit here:-http://www.indeed.com/cmp/Warrantech-Corporation

Warrantech Consumer Product Services Announces 1.2 Million Customers Purchased Service Contracts in 2009

Warrantech Consumer Product Services (CPS), a subsidiary of Warrantech Corporation, today announced sales of over 1.2 million extended warranties for the calendar year ending 2009  – a 70 percent increase in contract sales compared to 2008.  Accordingly, the jump in unit sales caused gross revenue to rise 66 percent above the comparable year-end 2008 figure.  Robust increases in the sale of service contracts for appliances, and electronics, and its entry into offering extended warranties on furniture drove the positive financial results

“For most companies, 2009 was a challenging year,” said Joel San Antonio, CEO of Warrantech Corporation.  “In spite of a sagging economy, Warrantech set some aggressive goals for the year, and the CPS team redoubled their efforts, achieving phenomenal growth in sales and dealer base in 2009.  By any measure, these results set a record for this division.”

Despite an ailing economy, Warrantech added 1,800 dealers in 2009, giving the company 2,300 outlets in the United States as of Dec 31, 2009. During this period, the CPS group more than tripled the number of retailers, manufacturers, and distributers selling the company’s full line of service contract offerings.

“This year, we pulled out all the stops,” said Sean Hicks, who led the charge for Warrantech CPS.   “Our ability to execute programs with our buying group partners was a primary driver behind this growth.  Not only did we sign a record number of new retailers, but we also found innovative ways to help support our dealer base.”

During 2009, Warrantech launched “Successful Selling,” a monthly series of “how to” flyers that is distributed to all 2,300 retailers which provides these retailers tips on creative ways to market service contracts.  In addition, the company continued to roll out innovative enhancements for WCPSOnline, the company’s cutting edge internet reporting and processing system.  The latest generation of WCPSOnline gives dealers instant access to streamlined sales and claims reports, plus automated repair orders – all in real time.”

Just this year, WCPSOnline has added another new reporting feature, Dealer Loss Experience, a high-tech solution that analyzes specific dealer portfolio loss history.  This report provides valuable information to dealers enabling them to understand the key drivers that help dealers minimize problem areas and maximize long-term profitability.

“Warrantech’s ability to achieve this level of growth is a testament to the reliability of our products, the quality of our customer service and hard work of our employees,” noted San Antonio.  “At Warrantech Consumer Product Services, 2009 was a great year!”

For more information about Warrantech free visit here:-http://www.linkedin.com/company/warrantech

The Changing Face Of Extended Service Warranties

Extended service warranties were meant to be insurance contracts that retailers sold to consumers to cover repairs on products that were either not covered by the manufacturer's warranty or that went into effect after the manufacturer's warranty expired. In theory this was and is still a great idea that should have protected consumers and increased profits for retailers. In the past however, the warranty business gained a mixed reputation for leaving some consumers holding the bag. Consumers were less likely to buy warranties on electronics and retailers were losing out on all the potential profits. But that is old news. Today, consumers and retailers alike are opting in on service warranties for a variety of reasons and benefits.

Today's Warrantech service plans are an upgrade from the past and offer better services for customers — whether it is in customer service, product repairs or product replacements. Shawn DuBravac, CEA's chief economist and senior director of research says "The whole service environment has changed. It's no longer just about increasing margins, but also improving the customer experience. You want your customers to be happy and to come back," he recently told TWICE.

This expanding definition may be raising the bar on consumer expectations of their warranty coverage. Some service contracts now include such perks as 24-hour/seven days a week technical support. Consumers can tap online resources that are at once intuitive and automated and give technicians remote access for real-time troubleshooting and fixes. Plus some contracts offer protection for previously uncovered circumstances such as accidental damage and typically exempt services such as installation, says the Consumer Electronics Association (CEA).

These consumer-friendly upgrades appeal to a key CE demographic, millennial. The young consumers are dependent on their mobile devices, and those products have a greater chance of sustaining drops, spills and other accidental damage precisely because of their portability. As a consequence, millennials are more inclined than preceding generations to insure their products with repair and replacement plans. CEA research shows that these consumers are not only open to buying protection plans but want to buy them to protect their most important possession — their mobile devices.

For more information about Warrantech free vist here:http://www.slideshare.net/warrantech