Tuesday, 18 August 2015
AmTrust Financial Services (AFSI), the parent company of Warrantech, recently announced continued growth of operating earnings and strong operating on equity for the second quarter ended June 30, 2015.
Operating earnings were $130.5 million, or $1.55 per diluted share, an increase of 22%, compared to $107.1 million, or $1.34 per diluted share, in the second quarter of 2014. Second quarter 2015 net income attributable to common stockholders was $70.7 million, or $0.84 per diluted share, compared to $106.3 million, or $1.33 per diluted share, in the second quarter 2014. Second quarter 2015 annualized operating return on common equity was 26.3% compared to 28.0% in the second quarter 2014. Annualized return on common equity was 14.3% for the second quarter of 2015 compared to 27.8% for the second quarter of 2014.
Second Quarter 2015 Results
Total revenue was $1.11 billion, an increase of $0.10 billion, or 10%, from $1.01 billion in the second quarter 2014. Gross written premium was $40.3 billion and net written premium was $1.01 billion, an increase of $85.0 million, or 9%, compared to $923.7 million in the second quarter 2014. Net earned premium was $969.0 million, an increase of $94.0 million, or 11%, from $874.9 million in the second quarter 2014. The combined ratio was 90.5% compared to 90.9% in second quarter 2014.
A summary of Q2 results is listed below along with a link to the earnings release.
Second Quarter 2015
• Gross written premium of $1.68 billion, up 16% compared to $1.44 billion in the second quarter of 2014
• Net earned premium of $969.0 million, up 11% from $874.9 million in the second quarter 2014
• Operating diluted EPS of $1.55 compared to $1.34 in the second quarter 2014
• Diluted EPS of $0.84 compared with $1.33 in the second quarter 2014
• Annualized operating return on common equity of 26.3% and annualized return on common equity of 14.3%
• Service and fee income of $107.7 million, up 8% from the second quarter 2014
• Operating earnings of $130.5 million, up 22% compared to $107.1 million in the second quarter 2014
• Net income attributable to common stockholders of $70.7 million compared to $106.3 million in the second quarter 2014
• Combined ratio of 90.5% compared to 90.9% in the second quarter 2014
• Gross written premium of $3.41 billion, up 10% compared to $3.11 billion YTD 2014
• Net earned premium of $1.92 billion, up 13% from $1.70 billion YTD 2014
• Operating diluted EPS of $3.01 compared to $2.58 YTD 2014
• Diluted EPS of $2.69 compared with $2.60 in YTD 2014
• Annualized operating return on common equity of 27.1% and annualized return on common equity of 24.2%
• Service and fee income of $220.6 million, up 16% from $190.5 million YTD 2014
• Operating earnings of $251.9 million, up 23% compared to $204.5 million in YTD 2014
• Net income attributable to common stockholders of $225.4 million compared to $206.1 million in YTD 2014
• Combined ratio of 89.8% compared to 90.4% in YTD 2014
• Book value per common share of $24.05, up 8% from $22.34 at December 31, 2014
• AmTrust's stockholders' equity was $2.47 billion as of June 30, 2015 up 21% compared to $2.04 billion as of December 31, 2014
Wednesday, 12 August 2015
AMT Warranty Corp's extended-warranty providers are rolling out a host of new services and programs for clients and end users to help lower costs and raise attachment rates during the slow economic recovery.
AMT warranty service is placing greater emphasis on extended-service plan (ESP) bundles that provide a value-add for consumers. “You can boost sales by providing extended warranties with a different twist,” said President of the company, such as an identity-theft protection offer included free with the purchase of a plan, or 15 months of coverage for the price of 12. “We are giving the consumer a more robust offering so they feel they are getting more for their money,” he explained.
AMT Service Corp is also maintaining “an intense focus” on account management through enhanced training, point-of-sale material and sales techniques. “Sales people need a different dialogue today,” said, one of the company officials, as hard-pressed consumers question an extra ESP outlay in a tough economy. “Clients welcome a different message for different times.”
For Service Net Warranty, growth has come from multiple channels, including OEM aftermarket programs; subscription-based coverage for notebooks and wireless devices that can be extended from month to month; and an early entry into the burgeoning e-book reader business, which has given it a dominant position in that category.
For manufacturers, Service Net is providing a stepped-up marketing program that reaches out to consumers both during and at the conclusion of their extended-service contracts through email, direct calls, social networking and direct mail pieces. The company is also now offering factory service programs on Amazon.com for a wider array of clients including Panasonic, Sharp and the recently signed LG Electronics.
The company recently began providing factory and aftermarket warranty programs for two of the industry's leading flat-panel TV vendors, and continues to expand its extended-warranty offering with current manufacturer clients.
AMT Warranty Corp has also enjoyed a significant expansion in the fitness category as that business extends into the CE space, and has upped its profile with furniture dealers, where CE is also playing an increasingly significant role.
For NEW Customer Service Companies, the answer is a new suite of interactive plug-and-play Web tools that can help optimize sales of extended-service plans and other premium services for retailers by providing an appealing and convenient online interface for consumers.
“As online retailing has grown, and as services are continually being added to support product offerings such as extended-service plans, NEW identified a need for tools to manage that system and provide a more engaging experience for customers,” said the CEO of the company.
About AMT Warranty Corp
AmTrust Financial Services, Inc. was founded in 1998 to provide workers' compensation insurance to small businesses across the United States. AMT Warranty develops specialized programs to meet your individual business needs. We look forward to the opportunity to demonstrate how extended service plans bring value to you and your customers. Extended Service Plan agreements offer customers the highest level of product protection against potential failures of their new purchase - beyond the product's original OEM warranty.For more consumer tips and information regarding extended warranties and vehicle service contracts, be sure to visit: https://about.me/amtservicecorp
Friday, 7 August 2015
AMT Warranty Corp. announced last week that it has purchased the remaining 73 percent of Warrantech Corp., bringing its interest in the company to 100 percent.
AMT is a subsidiary of AmTrust Financial Services, Inc.
“We are excited about the additional revenue opportunities and diversification that the Warrantech transaction provides,” AmTrust Financial Services, Inc. President and CEO Barry Zyskind said as part of the announcement. “By bringing together these two robust warranty administration platforms, we expect to significantly increase our fee income and benefit from enhanced scale and technology efficiencies while further strengthening AmTrust’s market presence and premium opportunities in the warranty space.
Wednesday, 5 August 2015
Losing a favorite place to buy a book, procure the latest electronic gadget or update the home can send passionate shoppers into an emotional spiral much like the stages of grief.
Denial sets in first. “They can’t go out of business; they are always so helpful and sell only the best products.”
Soon after comes the inevitable anger stage. “Great, they went out of business. Now my extended service plan (ESP)* won’t be any good. How could they do this to me?”
*NOTE: While many store associates and consumers consider the purchase to be an extended warranty, this is often not the case. Many extended plans are not truly adding on to the original manufacturer’s warranty, but rather, extend the post-warranty service options and are therefore more appropriately referred to as an extended service plan, or ESP.
Retailer bankruptcies have been an unfortunate reality, as almost 3,000 stores in the U.S. closed, were downsized or went out of business in the 2013 calendar year. While many analysts believe that the worst is now over, many consumers are still left wondering what will happen to their ESPs. The truth is there are a number of ways it can go.
In a worst case scenario, extended service contracts are voided when the company files for bankruptcy. This is often the case if the retailer underwrites its own ESPs. On a positive note, manufacturers’ warranties are in no way affected when a retailer closes. So, some repairs and replacements might still be covered.
In a better scenario, the retailer outsourced its warranty underwriting to a reputable third party.
“The end of a retailer doesn’t necessarily mean the end of the extended service plan,” said Sean Stapleton, CEO of Warrantech. “Responsible companies have safeguards in place, such as third-party contract underwriters, that protect their customers, even after bankruptcy.”
So, the first step is to read the service contract papers if a store closes. Chances are that the ESP isn’t actually owned by the retailer, so there’s no reason to panic. But, rather than waiting until the unthinkable happens, Stapleton advises to read the service contract before it’s purchased to avoid potential problems down the road.
“Check the fine print for a third-party provider and consider the reputation of the company,” Stapleton said. “Look for an address to write to or a phone number you can call if there are issues.”
Consumers are spending more on electronics and other big-ticket items than ever before, so ESPs are becoming increasingly important — as long as they will be there when they are needed. On its consumer protection website, the Federal Trade Commission urges shoppers to read warranty and ESP paperwork and look for answers to the following questions:
- How long does the warranty and ESP last?
- Who do I contact to get warranty and ESP service?
- What will the company do if the product fails?
- What parts and repair problems are covered?
- Are there any conditions or limitations on the warranty or ESP?
By asking these questions upfront and ensuring that their ESPs are backed by a reputable third party, shoppers can gain peace of mind that their purchases will be covered — even if a favorite retailer permanently closes.
For more consumer tips and information regarding extended warranties and vehicle service contracts, be sure to visit: https://vimeo.com/amtwarrantycorp