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Small biz insurance company says it found mistakes in reports, shares plunge

Source: AmTrust North America

Shares of AmTrust Financial Services dropped Monday to their lowest in more than two years after the company said it found errors in its financial statements.

AmTrust also said it has requested a 15-day extension from the Securities and Exchange Commission to file its 10-K, an annual performance review.

The New York-based company, which sells insurance to small businesses, said it identified and corrected errors during the fourth quarter related to prior periods in 2016 and 2015.

The errors included those made when accounting for bonuses paid, foreign currency transactions and revenue associated with administration services, according to AmTrust's earnings release.

Shares fell more than 18 percent to lows not seen since late 2014.

In conjunction with those announcements, AmTrust reported diluted fourth-quarter earnings of 57 cents a share that missed a Thomson Reuters consensus estimate of 74 cents. The insurance company posted diluted earnings of 35 cents a share in the year-ago period.

Total revenue for the fourth quarter was $1.42 billion, an increase of $219.4 million, or 18 percent, from the same period last year.

With Monday's losses, shares of AmTrust are down more than 17 percent for the year so far, compared to the S&P 500's more than 5 percent gain.

AmTrust year-to-date performance

Source: FactSet