On Dec 4, 2014, Atlas Financial Holdings, Inc.’s (AFH) shares scaled a new 52-week high of $17.14 on better-than-expected third-quarter 2014 earnings and global expansion strategies.
On Nov 10, 2014, Atlas Financial reported third-quarter earnings that surpassed the Zacks Consensus Estimate. Notably, this insurance broker delivered positive earnings surprises in two of the last four quarters, with an average beat of 0.23%. In fact, the stock rallied 20.2% to close at $17.10 in the trading session following the third-quarter announcement.
Moreover, Atlas Financial’s one-year return of 31.3% was higher than that of other industry players like The Nasdaq OMX Group, Inc. (NDAQ), Dayton & Michigan Railroad Co. (DMRR) and Hallmark Financial Services Inc. (HALL) that recorded returns of 17.5%, 5.7% and 23.7%, respectively.
Meanwhile, the company has been expanding its geographic footprint over quite some time that has led to a significant increase in market share in each of its core markets. Premiums written and combined ratio both demonstrated improvements that contributed to the quarter’s favorable results. In fact, combined ratio dropped below 90% for the first time since the company went public.
In Oct 2014, Atlas Financial entered into an agreement to acquire Global Liberty Insurance Company of New York and its affiliated underwriting and premium finance companies. The company is progressing with this acquisition to enhance its operations, particularly in the automobile market. This takeover definitely bodes well for long-term growth of the company.
Currently, Atlas Financial carries a Zacks Rank #3 (Hold).
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