Atlas Financial Holdings Announces Unaudited Fourth Quarter 2018 Financial Results

Atlas Financial Holdings, Inc. (NASDAQ: AFH) ("Atlasa?? or the
today reported its unaudited financial results for the
fourth quarter and year ended December 31, 2018.

Management Comments

Scott D. Wollney, Atlasa?? President and CEO, stated, "Our financial
results this year were impacted by our decision to make changes in our
claim reserve estimates. Actuarial work conducted in connection with
year-end indicated a need to increase reserve estimates for unpaid
losses due primarily to bodily injury claims from accident years 2016
and prior. These claims are showing higher severity and have been open
for longer periods than we had estimated. Specifically, we strengthened
reserves to account for the possibility of higher costs for the tail on
these prior accident years. While our use of predictive analytics in
underwriting and claims is having a positive impact on claim closures,
we are still addressing historic challenges affecting commercial
automobile insurance generally and in our book of business specifically.
However, we believe that claim closure data for more recent accident
years demonstrates the fundamental efficacy of our predictive
model-driven processes.a??

Current Actions

To further strengthen its processes and review its capital allocation
and opportunities, the Company is engaging industry experts with broad
knowledge of insurance finance, analytics, claims-handling, reserve
estimation, financial risk management, and capital efficiency.
Management and the Companya??s Board of Directors will examine the
conclusions and recommendations of this work and report the results by

Financial and Operational Review

Premiums Written: Gross premiums written was $57.7 million for
the three months ended December 31, 2018 compared to $54.2 million
the three months ended December 31, 2017.
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