AmTrust Financial Services, Inc. (AFSI) has reported a 39.88 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $115.13 million, or $0.60 a share in the quarter, compared with $191.50 million, or $1.09 a share for the same period last year.
Revenue during the quarter grew 14.75 percent to $1,411 million from $1,229.66 million in the previous year period. Net premium earned for the quarter increased 14.43 percent or $150.83 million to $1,196.24 million. During the quarter, the company has written premium worth $1,216.05 million on net basis, up 6.39 percent or $73.07 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $1,232.55 million, or 103.04 percent of premium earned from $1,084.52 million or 103.74 percent of premium earned in the last year period. Operating income for the quarter was $178.45 million, compared with $145.14 million in the previous year period.
Net investment income was at $59.92 million for the quarter, up 48.22 percent or $19.49 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 16.23 percent or $20.47 million to $146.61 million. The company has recorded a gain on investments of $8.23 million in the quarter compared with a gain of $17.68 million for the previous year period.
"We delivered a solid performance in the third quarter, with strong investment results, higher service and fee income, and growth in gross written premiums, compared with the same period a year ago," said Barry Zyskind, Chairman, President and Chief Executive Officer, AmTrust. "Our performance reflects a full quarter’s contribution from Republic Companies, as well as continued strong policy retention and disciplined underwriting of new business in our small commercial business segment, as demonstrated by our stable loss ratio. The top-line results of our specialty risk and extended warranty segment reflect the impact of the decline in the British pound relative to the third quarter a year ago, and we are pleased with the underlying performance of this segment."
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