This marks the fifth quarter in which the company has generated more than $1 billion in

gross written premium ($1.44 billion GWP this quarter, an increase of $403 million, or
38.7%, from $1.04 billion in the second quarter of 2013). Small Commercial Business
contributed 49% of total company GWP and grew by 170% from 2013 to 2014, while lowering
the expense ratio by .2 points. This is quite the impressive performance from both organic
and acquired growth as well as cost containment.

On a profitability basis, the company is running at a loss ratio of about 67% and an
expense ratio just under 24%. Precisely, AFSIs Q2 combined ratio was 90.9%, which is an
improvement upon the Q2 2013 combined ratio of 92.1%. The majority of that profit
improvement came from disciplined underwriting and associated reduction in loss ratio in
both Small Commercial Business and, particularly, Specialty Risk & Extended Warranty.

Lastly, the company booked $99.5 million in service and fee income in Q2, up 13% from the
same time period last year (and up 28.2% year to date 2014 vs. 2013). Most of that income
was contributed by AMT Warranty/Warrantech, AMT Consumer Services, CNH Capital and
Car Care Plan (overseas VSC operation).
Second Quarter 2014 Financial Highlights

Gross written premium of $1.44 billion, up 38.7%, and net earned premium of $874.9
million, up 63.1% from the second quarter 2013

Operating diluted EPS of $1.34 ($0.03 attributable to loss on life settlements) compared
to $0.75 ($0.01 attributable to gain on life settlements) in the second quarter 2013

Annualized operating return on common equity of 28.0% and annualized return on
common equity of 27.8%

Service and fee income of $99.5 million, up 13.0% from the second quarter 2013

Operating earnings of $107.1 million compared to $57.4 million from the second quarter
2013

Net income attributable to common stockholders of $106.3 million compared to $71.4
million in the second quarter 2013
Diluted EPS of $1.33 compared with $0.93 in the second quarter 2013

Combined ratio of 90.9% compared to 92.1% in the second quarter 201

Service and fee income of $190.5 million, up 28.2% from YTD 2013

Am Trusts stockholders equity was $1.71 billion as of June 30, 2014

For more information about Warrantech free visit here:-
http://www.pinterest.com/warrantech/warrantech-automotive/

Article resource:-http://warrantechbedford.blogspot.in/2014/08/amtrust-reports-
strong-profit-growth.html