AFSI

AmTrust Financial Services Inc

Finance/Real Estate


Presented:05/10/2017
Price:$13.41
Cap:$2.31B
Current Price:$14.75
Cap:$2.92B

Presented

Date05/10/2017
Price$13.41
Market Cap$2.31B
Ent Value$6.15B
P/E Ratio6.44x
Book Value$13.92
Div Yield5.18%
Shares O/S172.69M
Ave Daily Vol3,250,125
Short Int10.08%

Current

Price$14.75
Market Cap$2.92B
AmTrust Financial Services, Inc. provides insurance services. It operates through the following segments: Small Commercial Business, Specialty Risk and Extended Warranty, and Specialty Program Business. The Small Commercial Business segment gives workers compensation to small businesses that operate in low and medium hazard classes, such as restaurants, retail stores and physicians and other professional offices and commercial package, and other property and casualty insurance products to small businesses. The Specialty Risk and Extended Warranty segment offers coverage for consumer and commercial goods and custom designed coverages, such as accidental damage plans and payment protection plans offered in connection with the sale of consumer and commercial goods, and niche property, casualty and specialty liability risks in the U.S. and Europe, which includes general, employers, professional, and medical liabilities. The Specialty Program Business segment delivers worker's compensation, package products, general and commercial auto liabilities and other specialty commercial property and casualty insurance to a narrowly defined, homogeneous, group of small and middle market companies whose business model and risk profile generally requires in-depth knowledge of a specific industry or sector focus in order to appropriately evaluate, price, and manage the coverage risk. The company was founded by Michael Karfunkel in 1998 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: AmTrust Financial Services Inc (AFSI)

Highlights

The presenter is short shares of AmTrust Financial Services (AFSI), an insurance company specializing in worker’s compensation. The presenter believes AFSI’s aggressive growth via acquisition and increasing reserves means AFSI could be losing money on underwriting at a rate that is not accurately reflected in the accounting. The presenter believes AFSI will be forced to continue revising numbers downwards as earnings miss, and in a worst-case scenario, could see a review from insurance regulators.

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Idea Discussion

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