67 WALL STREET, New York - February 20, 2014 - The Wall Street Transcript has just published its 2013 IPOs Report offering a timely review of companies new to the stock market. This special feature contains expert industry commentary through in-depth, detailed interviews with CEOs and senior executives of new public companies. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Initial Public Offerings - IPOs
Companies include: AFH and many others.
In the following excerpt from the 2013 IPOs Report, the CEO of Atlas Financial gives a detailed strategic plan for his company for investors:
TWST: Can you give us a brief overview of Atlas Financial's business?
Mr. Wollney: Atlas owns three insurance companies. We started Atlas about three years ago as an acquisition platform with the goal of acquiring specialty, property-casualty and insurance companies that have a long heritage successfully writing niche lines of business. We look for a situation where that heritage and focus has been diluted by an insurance company's former parent focusing on other things, either multiple lines of insurance or other aspects of business. Upon acquisition we've refocused and consolidated the businesses, shutting down the noncore and nonprofitable aspects of what they had been doing and entirely refocusing them on the niche markets that we believe will generate higher-than-average return on equity over time - which, at this point for Atlas, is specifically insurance for taxis, limousines and paratransit operators.
TWST: How has the recent acquisition of Gateway worked out?
Mr. Wollney: It's worked out very well. Gateway, like the first two companies we bought, had a long heritage - about 60 years of experience - successfully insuring taxis and limousines. In recent years, their former owner had expanded their focus to include other aspects of insurance. And so like our first two companies, the goal and objective was the same - acquire the company and wind down the lines of business that are noncore for Atlas, which we've now done. At this point, we are no longer writing any noncore lines of business through Gateway. We have successfully integrated the infrastructure into Atlas' best-practice-based work flow. We are keeping the physical location in St. Louis, Missouri, out of which they had operated, as a regional office. All the employees in that office are now fully integrated with Atlas' overall staff and infrastructure in terms of work flows and reporting structure.
We have had nonrecurring costs related to this transaction in each quarter in 2013. In our quarterly reporting, we've been very transparent about how much of our expense ratio related to those costs. We do anticipate a small amount of nonrecurring cost in the fourth quarter of this year, which we haven't yet reported, but with the first quarter of 2014 we no longer expect to have any drag from that acquisition from an expense standpoint. So we were very happy with their integration. We're pleased with the way that our team has been able to wind down the nonrecurring expenses, and we are beginning to see very positive signs of vertical integration in terms of being able to grow our core business in the incremental states where Gateway was licensed and operating prior to the acquisition.
TWST: What is your philosophy on future acquisitions? How quickly do you hope to do more?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.