Atlas Financial Holdings, Inc. (AFH) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $13.56 million, or $ 1.13 a share in the quarter, against a net profit of $4.33 million, or $0.34 a share in the last year period. Revenue during the quarter grew 7.05 percent to $46.30 million from $43.25 million in the previous year period. Net premium earned for the quarter increased 5.55 percent or $2.33 million to $44.25 million.
Total expenses increase substantially Benefits, losses and expenses for the quarter were at $69.52 million, or 157.10 percent of premium earned from $37.22 million or 88.78 percent of premium earned in the last year period. Operating loss for the quarter was $23.22 million, compared with an operating income of $6.03 million in the previous year period. Net investment income was at $1.66 million for the quarter, up 52.63 percent or $0.57 million from year-ago period. The company has recorded a gain on investments of $0.21 million in the quarter compared with a gain of $0.18 million for the previous year period.
Scott D. Wollney, Atlas' president and chief executive officer, stated, "2016 was a year in which Atlas continued to leverage its expertise as a specialty niche insurance business to overcome a number of unique circumstances that impacted the Company and its markets, and we feel properly positioned us for strong underwriting performance in 2017. We have begun to see a favorable turn in our traditional taxi business, with premium reductions that occurred in the middle of the year beginning to abate; and, thus far in 2017 we are seeing early indications that this reversal of headwinds facing our growth last year may not have a substantial impact this year. In addition, our limo and paratransit markets have also both seen meaningful growth. Overall, we continue to see favorable competitive and pricing environments in most of our geographic markets."
Liabilities outpace assets growth Total assets increased 2.98 percent or $12.28 million to $423.58 million on Dec. 31, 2016. On the other hand, total liabilities were at $296.24 million as on Dec. 31, 2016, up 5.17 percent or $14.56 million from year-ago.
Investments come down
Investments stood at $194.89 million as on Dec. 31, 2016, down 7.61 percent or $16.06 million from year-ago. Meanwhile, yield on investments went up 34 basis points to 0.85 percent in the quarter.
Total debt was at $19.19 million as on Dec. 31, 2016, up 11.43 percent or $1.97 million from year-ago. Shareholders equity stood at $127.34 million as on Dec. 31, 2016, down 1.76 percent or $2.28 million from year-ago. As a result, debt to equity ratio went up 2 basis points to 0.15 percent in the quarter from 0.13 percent in the last year period.
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