Atlas Financial Holdings, Inc. (NASDAQ:AFH) Q3 2018 Earnings Conference Call Transcript

Nov 06, 2018 • 08:30 am ET

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Atlas Financial Holdings, Inc. (NASDAQ:AFH) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings, and welcome to Atlas Financial Holdings 2018 Third Quarter Earning Results Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Scott Wollney, CEO. Please go ahead, sir.

Executive
Scott David Wollney

Thank you very much, Brock, and good morning, everyone. With me today is Paul Romano, our Vice President and CFO. We're very pleased to report continued strong underwriting performance in the third quarter highlighted by a better than industry combined ratio, greater than 20% return on equity and book value appreciation. Tangible achievements resulting from our focus on analytics and fintech-related initiatives were also notable in the quarter.

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 Anthony Romano

Thank you, Scott, and good morning, everyone. Yesterday, after market close, Atlas issued its third quarter 2018 financial results. Copies of this press release are available at our 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 our, which are not defined under US GAAP. In the event of any unintentional difference between the presentation materials and our GAAP results, investors 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 this document. The presentation is available on our website's Investor Relations section and then under the Earnings Release Info selection. It will also be shared with those of you on the live webcast version on this call. For those of you following along with our presentation, we'll begin on slide three.

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

Executive
Scott David Wollney

Thanks, Paul. Atlas reported a strong third quarter, which included positive net income, book value appreciation and an annualized return on equity of 22.6%. The commercial auto insurance segment continues to demonstrate relatively hard market conditions. And our focus has been to best position the company to maximize return on deployed capital.

We're also excited about incremental opportunities, especially in the transportation network company, or TNC space, coupled with our fintech-related initiatives, including a new program launched with a leasing company in connection with a major TNC in the quarter.

And finally, the data that we've been providing quarterly to investors in connection with our claim activities and reserves is coming in as anticipated to date. I will detail this information later in the call after Paul walks through our quarterly financial results.

Our continuing use of predictive analytics is helping to both select better than