Amtrust Financial Services Inc 7.50% Dep Shs Rep 1/40th Pfd Ser D Usd25 · OTC:AFFS
Amtrust Financial Services Inc 7.50% Dep Shs Rep 1/40th Pfd Ser D Usd25 — AmTrust Financial Services — Investor Presentation (September 2008)
16 slides from Amtrust Financial Services Inc 7.50% Dep Shs Rep 1/40th Pfd Ser D Usd25's investor presentation, Sep 5, 2008
Slide 1: AmTrust Financial
Exhibit 99.1 AmTrust Financial
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may include forward-looking statements. These forward-looking statements include comments with respect to our objectives and strategies, and the results of our operations and business. By their nature, however, these forward-looking statements involve num
Slide 3: Who We Are
Who We Are Multinational specialty property and casualty insurance company NASDAQ ticker symbol “AFSI” Inside ownership 57% “A-” rating from A.M. Best We focus on underserved, niche markets: Low hazard Predictable Non-catastrophic Low volatility Historical organic premium growth of over 15% annually
Slide 4: Company Financial Highlights
Company Financial Highlights Gross Premium Written $839.4 Net Income from Continuing Operations $526.0 $286.1 $210.9 $97.5 $286.1 Gross$210.9 Premium Written $535.8* $53.4 $97.5 $48.6 $42.9 $399.7 $215.1 $35.7 $117.3 $119.3 $114.3 $168.1 $201.4* All graphs represent figures in millions *Includes 19.
Slide 5: Business Overview
Business Overview Mix of Business Small Commercial Business Specialty Risk and Extended Specialty Middle-Market P&C Warranty Insurance $182.1* MM GPW through 6/30/08 $215.1 MM GPW through 6/30/08 $119.4 MM GPW through 6/30/08 $308.8 MM GPW in 2007 $306.4 MM GPW in 2007 $224.2 MM GPW in 2007 US only
Slide 6: Small Commercial Business
Small Commercial Business We focus on low hazard small businesses Target Customers AmTrust Approach Result Low to mid hazard small Cost efficient expense $182.1* MM through 6/30/08 businesses control $308.8 MM GPW in 2007 Restaurants Paperless proprietary Historically high retention and Retail under
Slide 7: Specialty Risk and Extended Warranty
Specialty Risk and Extended Warranty We provide extended warranties for a wide range of consumer and commercial goods Target Customers AmTrust Approach Result Manufacturers and retailers Extensive front-end $215.1 MM through 6/30/08 of consumer and diligence and actuarial $306.4 MM GPW in 2007 comme
Slide 8: Specialty Middle Market P&C
Specialty Middle Market P&C Expansion of workers’ comp, general liability & commercial auto and property coverage Target Customers AmTrust Approach Result Retail, wholesale, service Extensive front-end $119.4 MM through 6/30/08 operations diligence and actuarial $224.2 MM GPW in 2007 Workers’ compen
Slide 9: History of Disciplined Growth
History of Disciplined Growth Since 1998, we have grown our business organically and through: Key hires of underwriting teams in the US and Europe Opportunistic renewal rights transactions and acquisitions Dec. Early Dec. Aug. Dec. Feb. May June April June Sep. June 2002 2003 2003 2004 2005 2006 200
Slide 10: Maiden Transaction Rationale
Maiden Transaction Rationale Long-term capital partner for future growth Organic growth Acquisition of additional books of business Higher ROE Ability to write additional premium on existing capital base Ceding commission on reinsured premium Accretive to earnings per share $0.46 operating earnings
Slide 11: Financial Performance
Financial Performance We produce an underwriting profit by having consistent loss ratios and focusing on expenses As our premium has grown, we have: Increased our operating leverage – Combined ratio 79.6% through 6/30/08 vs. 89.6% in 2007 Decreased our expense ratio – Expense ratio 19%* through 6/30
Slide 12: Recent Financial Results
Recent Financial Results Summary Income Statement ($ in millions) Through 6/30/08 2007 2006 Gross Premium Written $535.8* $839.4 $526.1 Net Premium Written 249.5 419.9 436.3 Net Premium Earned 213.4 444.2 329.0 Fee Income 14.7 20.4 12.4 Ceding Commission 55.4 59.1 - Net Investment Income and Realize
Slide 13: Recent Financial Position
Recent Financial Position Balance Sheet Highlights ($ in millions except for book value per share) 6/30/08 12/31/07 12/31/06 Cash and Investments $1,547.8 $1,289.6 $824.2 Reinsurance Recoverable 353.7 281.9 44.1 Premiums Receivable, Net 395.0 257.8 147.8 Other 699.1 493.5 207.6 $2,995.6 $2,322.8 $1,
Slide 14: Investment Portfolio
Investment Portfolio Total invested assets as of 6/30/08 - $1.5 Billion 60% of fixed maturities are rated AAA or US Government or Agencies 90% of fixed maturities are rated A or better No exposure to sub-prime 1% 3.7% 29% 66.3% 14
Slide 15: Business Model
Business Model Continue to deliver 20%+ ROE through: Focus on underwriting profit: Economies of scale Lower expense ratio 19% net expense ratio for first half of 2008 Disciplined pricing and risk selection 60.6% net loss ratio for first half of 2008 Proprietary technology platform designed to proces
Slide 16: AmTrust Financial
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