CHICAGO--(BUSINESS WIRE)--Atlas Financial Holdings, Inc. (TSX.V: AFH) (“Atlas” or the “Company”) today reported its financial results for the second quarter ended June 30, 2012.

Scott D. Wollney, Atlas' President & CEO noted, “We are pleased to report another profitable quarter, which was the result of our effective re-organization as implemented following Atlas' going public transaction approximately 19 months ago. This included shifting new business writings to the specialty commercial transportation sector (taxi, limo, para-transit) in geographic areas where our value proposition delivers a benefit to all stakeholders. During this period we implemented and are now utilizing our cost-efficient operating infrastructure. We continued to see growing business from our new and existing agent network, which is now geographically spread over 31 states. Atlas has an operating infrastructure in place which allows us to write significantly more policies without substantial increases in operational cost, and we expect the results of our efforts to become increasingly evident in our book of business beginning with third quarter 2012.”

Atlas grew its commercial auto business by 107% through the first six months of 2012 and achieved improvements in key operating metrics. The Company began transitioning to a vertical growth strategy as its focus in the second half of 2012, leveraging its current platform and strong capital position with an emphasis on generating more business from existing agents.

2012 Second Quarter Financial and Operational Review

• Net income for the three month period ended June 30, 2012 was $130,000, or $0.00 per diluted share, compared to net income of $193,000 or $0.00 per diluted share, for the prior year period.
• Gross premium written, as it relates to the Company's commercial automobile lines, increased 223% versus the prior year period to $8.2 million.
• At the time of Atlas' going public transaction, the Company committed to a strategic focus on specialty commercial automobile lines of insurance. The successful winding down of other insurance lines last year, coupled with the successful expansion of the Company's multi-state retail agent focused distribution channel, now enables Atlas to devote its resources to its core lines of business. As a percentage of Atlas' subsidiaries book of business, commercial auto gross premiums written now represent 89% for the three month period ended June 30, 2012, compared to 32% for the prior year period.
• The Company's loss ratio improved to 71.6% compared to a loss ratio of 74.2% for the prior year quarter. As a result, Atlas' combined ratio improved for the three month period ended June 30, 2012 to 111.5%, versus 114.1% for the corresponding prior year period.
• Underwriting losses improved by $410,000 versus the three month period ended June 30, 2011, in part due to the Company's shift away from non-core lines of business which were primarily non-standard private passenger automobile insurance products.

Investment Overview

• Cash and investment assets as at the period ended June 30, 2012 totaled $123.5 million, consisting primarily of fixed income securities.
• Atlas aligns its securities portfolio to support the liabilities and operating cash needs of the insurance subsidiaries, to preserve capital and to generate investment returns. Atlas invests predominantly in corporate and government bonds with relatively short durations that correlate with the payout patterns of Atlas' claims liabilities.
• During the three month period ended June 30, 2012, Atlas reported net investment income of $948,000, of which $291,000 was recognized as realized gains. The net investment income generated by the investment portfolio resulted in a 3.2% annual yield.

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Following the call, a webcast will be made available and can be accessed through the Company's website at www.atlas-fin.com/atlas_investor_relations.html.

About Atlas

The primary business of Atlas is commercial automobile insurance in the United States, with a niche market orientation and focus on insurance for the "light" commercial automobile sector including taxi cabs, non-emergency paratransit, limousine/livery and business auto. The business of Atlas is carried on through its insurance subsidiaries American Country Insurance Company and American Service Insurance Company, Inc. Atlas' insurance subsidiaries have decades of experience with a commitment to always being an industry leader in these specialized areas of insurance.

For more information about Atlas, please visit www.atlas-fin.com.

Financial Information

Atlas' financial statements reflect consolidated results of Atlas' subsidiaries: American Insurance Acquisition Inc., American Country Insurance Company and American Service Insurance Company, Inc. Additional information about Atlas, including a copy of Atlas' second quarter 2012 Form 10-Q unaudited condensed consolidated financial statements and Management Discussion & Analysis, can be accessed on the Canadian Securities Administrators' website at www.sedar.com, via the U.S. Securities and Exchange Commission internet site at www.sec.gov or through Atlas' website at www.atlas-fin.com.

Forward-Looking Statements:

This release includes forward-looking statements regarding Atlas and its insurance subsidiaries and businesses. Such statements are based on the current expectations of the management of each entity. The words "anticipate," "expect," "believe," "may," "should," "estimate," "project," "outlook," "forecast" or similar words are used to identify such forward looking information. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Companies, including risks regarding the insurance industry, economic factors and the equity markets generally and the risk factors discussed in the “Risk Factors” section of the Company's Form 10-K for the year ended December 31, 2011. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Atlas and its subsidiaries undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.