AmTrust 2015 revenues and growth boosted by investment income

AmTrust Financial Services, which operates as a multinational property/casualty insurance company through its subsidiaries, has reported an increase of 14 percent, or $580 million, in its revenue to $4.66 billion in 2015, compared with $4.08 billion in 2014.

Gross written premiums also increased to $6.8 billion last year, compared with $6.1 billion.

Its 2015 gross written premiums were negatively impacted by $155.6 million due to declines in European currencies compared to a positive impact of $31.2 million in 2014 due to increases in European currencies.

Net written premiums were $4.26 billion in 2015, an increase of $303.4 million, or 7.7 percent, from $3.96 billion in 2014. Net earned premium of $4.02 billion increased $495.2 million, or 14 percent, from $3.53 billion in 2014.

The combined ratio faltered slightly to 91.0 percent last year however, compared to 90.7 percent in 2014.

Investment income, excluding net realised gains and losses, totalled $156.3 million, an increase of 19 percent from $131.6 million in 2014.

In addition, 2015 results included net realised investment gains of $8.1 million, or $5.3 million after-tax, on certain fixed income and equity investments compared with net realised investment gains of $16.4 million, or $10.7 million after-tax, in 2014.

Loss and loss adjustment expense increased however to $2.68 billion in 2015, compared to $2.34 billion in 2014, and resulted in a loss ratio of 66.7 percent compared with 66.4 percent for 2014.

Acquisition costs and other underwriting expense also increased to $979.5 million last year, up $122.6 million from $856.9 million in 2014.