Tower boosts Q1 results for AmTrust
US insurer AmTrust posted a 19 percent profit increase for the first quarter of the year, aided by the cut-through reinsurance agreement with ailing rival Tower International.
The company’s net income rose to $99.9 million in the quarter compared with $83.9 million in the first quarter of 2013.
Its net written premiums increased by $598.2 million, or 112.4 percent, to $1.13 billion compared with $532.1 million in the first quarter 2013.
AmTrust reported gross written premiums of $1.67 billion, up 76.5 percent compared with $944 million in the previous year first quarter, and its net earned premiums were $829.1 million, up 103.2 percent from $408 million in the first quarter 2013.
Its cut-through reinsurance agreement with Tower contributed approximately $268 million to gross written premiums.
Its combined ratio fell to 89.9 percent, compared with 91.3 percent in the first quarter 2013.
For the first quarter 2014, operating earnings were $97.4 million, or $1.24 per diluted share, an increase of 70.4 percent, compared to $57.2 million, or $0.74 per diluted share, in the first quarter of 2013.
Barry Zyskind, president and chief executive officer of AmTrust, said: “Our significant return on shareholders' equity and profit growth in the first quarter is the result of a long term strategy of leveraging the company's unique capabilities and disciplined growth of the business. Improving market conditions will create even more opportunities to build shareholders' value."
