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/