** charts after earnings **
** 2 days later **
The quarter benefited from improved premiums and lower expenses.
Behind the Headlines
Gross premiums written increased 6.5% year over year to $57.7 billion. Gross premiums written grew in its core business across 24 states.
Operating revenues of $52.1 million declined 11.8% year over year and were almost in line with the Zacks Consensus Estimate. Lower net premiums earned as well as net investment income resulted in the downside.
Net investment income suffered due to lower returns on equity method investments and less interest income from collateral loans due to loan pay-offs though higher interest income on fixed income securities portfolio limited the downside.
Total expense of $94.2 million decreased 25.8% year over year driven by lower net claims incurred and decline in acquisition costs.
Atlas Financial’s underwriting loss was $39.6 million, narrower than 69.1 million incurred in the year-ago quarter. Combined ratio improved 4480 basis points (bps) to 175.5%.
