AmTrust operating earnings soar
US insurer AmTrust has posted a strong set of second quarter results as it continues to benefit from its cut-through reinsurance agreement with Tower International Group.
Its operating earnings jumped 86.6 percent to $107.1 million in the quarter, compared with $57.4 million in the second quarter of 2013.
The insurer’s gross written premiums rose to $1.4 billion, up 38.7 percent compared with $1 billion in the prior year quarter. Its net earned premiums also increased to $874.9 million, up 63.1 percent from the second quarter of 2013.
The increase was partly driven by the cut-through reinsurance agreement with insurer Tower International Group which contributed approximately $139 million to gross written premium.
Its total revenue was $1 billion, an increase of $361.6 million, or 55.7 percent, from $649.3 million in the second quarter 2013. Its combined ratio improved to 90.9 percent compared with 92.1 percent in the second quarter 2013.
During the company’s conference call, Barry Zyskind, chief executive officer, said: “I am pleased to announce that we grew both our top line and our profits in all operations. Workers compensation continues to enjoy the benefits of an attractive rate environment, especially in the US where we are strongest.
“Again, our programme business had nice growth and profitability. This is the one line we have always stayed in that we would grow in hardening market. That is happening and we have done that as there continues to be dislocation in the programme market.
“We are very optimistic about the remainder of 2014 and look forward to strong 2015.”
