Atlas Financial Holdings, Inc. (NASDAQ:AFH) Q2 2018 Earnings Conference Call - Final Transcript

Aug 07, 2018 • 08:30 am ET

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Atlas Financial Holdings, Inc. (NASDAQ:AFH) Q2 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to Atlas Financial Holdings 2018 Q2 Earnings Results.

(Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Scott Wollney, Chief Executive Officer of Atlas Financial.

Executive
Scott Wollney

Thank you very much, Jeremy, and good morning everyone. With me today is Paul Romano, our Vice President and CFO. We're very pleased to report continued favorable underwriting performance in the second quarter highlighted by a strong combined ratio, greater than 20% return on equity, and book value appreciation.

I'll now turn it over to Paul to provide details about our quarterly materials and review our policy regarding forward-looking statements.

Executive
Paul Romano

Thank you, Scott, and good morning everyone. Yesterday, after market close, Atlas issued its second quarter 2018 financial results. Copy of this press release are available at the Investor Relations section at the Company's website at www.atlas-fin.com.

(Forward-Looking Cautionary Statements)

When discussing our business operations, we may use certain terms of art which are not defined under US GAAP. In the event of any unintentional difference between the presentation materials and our GAAP results, investor should rely on the financial information in our public filings. All amounts discussed on this call are in US dollars unless otherwise indicated.

We will be utilizing a slide show presentation in conjunction with this call. Though we may address a few slides specifically and generally -- in general, we will use this as an accompaniment. Feel free to follow along as we will follow the basic structure of the document. This presentation is available on our website's Investor Relations section and then under the Earnings Release Info selection. For those of you following along with our presentation, we'll begin on Slide 3.

With that, I'll turn the call back over to Scott.

Executive
Scott Wollney

Thanks, Paul. We continue to be pleased with our results in 2018. Our earnings per share are on track to achieve the level to which we previously guided and we're taking advantage of the favorable competitive environment in commercial auto and our niche in particular from a rate perspective. As always, we're focused on margin expansion as opposed to top line growth and want to emphasize the importance of that dynamic.

The significant investment we've made in predictive analytics is helping to optimize the value we're able to deliver as a specialist. Results from our in-vehicle technology initiatives continued to show promise and are beginning to create opportunities to generate meaningful amounts of new business at above-average level of expected profitability.

As highlighted on Slide 3, our results in the quarter include a strong combined ratio based on our measured approach to new business writings, improved net income per share, and an annualized return on equity of 23.8%. We're confident that continued progress in these areas will create significant shareholder value and book value growth going forward. Paul will provide more detail on our financial results in a few minutes.

Atlas has a longstanding focus on delivering a strong value proposition as