AmTrust Financial Services Inc Hikes Quarterly Dividend
AmTrust Increases Payout 13%
New York, NY — Amid increasing uncertainty across the globe, one multinational insurance company keeps rewarding its shareholders.
On Tuesday, AmTrust Financial Services Inc (NASDAQ:AFSI) announced that its board of directors approved a quarterly dividend of $0.17 per share. This represents a 13% increase from the current quarterly payout of $0.15 per share. The dividend will be payable on October 19, 2016 to shareholders of record as of October 5. (Source: “AmTrust Financial Services Inc Announces 13% Increase in the Common Stock Cash Dividend,” AmTrust Financial Services Inc, August 2, 2016.)
With the new dividend rate, the company has an annual dividend yield of 2.68%.
Along with the dividend hike, AmTrust also reported earnings. For the second quarter of 2016, the company’s gross written premium grew 23.5% year-over-year to $2.07 billion. Net earned premium totaled $1.18 billion, up 22.0% from the second quarter of 2015. (Source: “AmTrust Financial Services Inc Reports Second Quarter 2016 Net Income Per Diluted Share of $0.78 and Operating Earnings Per Diluted Share of $0.81,” AmTrust Financial Services Inc, August 2, 2016.)
Revenue came in at $1.39 billion, an increase of 25% year-over-year. Net income was $134.8 million, or $0.78 per diluted share. This compares to a net income of $70.7 million, or $0.42 per share in the year-ago period.
Note that the company has a focus on book value because it is a key measure of shareholder value creation.
“Since our IPO in 2006, we have delivered annualized book value growth of more than 20% inclusive of dividends to common shareholders. At the end of the second quarter, book value per share was up 26% compared to a year ago,” said AmTrust’s president and chief executive officer, Barry Zyskind, in the earnings conference call. (Source: “AmTrust Financial Service’ CEO Barry Zyskind on Q2 2016 Results – Earnings Call Transcript,” Seeking Alpha, August 2, 2016.)