ATLAS ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER 2011

TORONTO, June 20, 2011 /CNW/ -- 
TORONTO, June 20, 2011 /CNW/ - (TSX.V: AFH) Atlas Financial Holdings,
 Inc. ("Atlas" or the "Company") today announced its financial results
 for the first quarter 2011. All amounts are in U.S. dollars unless
 indicated otherwise.


As at March 31, 2011, shareholder's equity was  $55.7 million. 
 Factoring in the Company's convertible preferred shares, common
 shareholder's equity was $40.2 million or $2.19 per outstanding share. 
 The Company carries a provision for deferred tax assets currently
 deemed unrealizable in the amount of $0.54 per share at March 31, 2011,
 primarily related to loss carry-forwards assumed through the
 acquisition of its operating insurance subsidiaries.  These deferred
 tax assets could be realized in the future based on profitability
 during the next twenty year period.


Including approximately $627,000 of non-recurring costs related to the
 closing of the qualifying transaction forming Atlas and the transition
 to the Company's "go forward" infrastructure, the Company reported a
 net loss of $889,000 or a loss of $0.05 per share diluted as compared
 to a loss of $0.62 per share diluted for the fourth quarter 2010. 
 Excluding non-recurring charges, the first quarter 2011 net loss per
 share would have been $0.01 diluted.


Commercial automobile gross premium written in the first quarter 2011
 was $6.6 million,  representing an increase of 113% over the prior
 quarter.  These core lines of business represented 53% of net premium
 written in the quarter.


The Company's loss and loss adjustment expense ratio was 78.2% in the
 first quarter 2011 as compared with 87.0% in the prior quarter.  This
 improvement was due to core lines of business becoming an increasingly
 larger percentage of total premiums earned coupled with the positive
 impact of the Company's more efficient infrastructure.


Other underwriting expense in the first quarter 2011 was $2.4 million,
 representing a 45.8% reduction from $4.4 million in the prior quarter
 despite the $627,000 impact of non-recurring costs.  Expense reductions
 were the result of strategic activities and contract renegotiations
 undertaken to align the Company's infrastructure with its business
 plans.


Excluding non-recurring costs, the Company's combined operating ratio
 was 116% for the first quarter 2011.  The combined operating ratio was
 140.7% in the prior quarter.


"We are very pleased with this result for the first quarter," said Scott
 D. Wollney, Atlas President & CEO.  "Our loss ratio is moving towards
 expected levels reflecting the results of core specialty lines of
 commercial auto business.  Expenses are in-line with our plan and the
 Company is on track to return to profitability in 2011 as expected. 
 Renewal retention rates in core lines continue to improve and new
 business application volumes are also increasing."


Premiums were written in twelve states in the first quarter 2011.  The
 Company expects to actively write its core lines of business in more
 than twenty states by the end of 2011.


Financial Information


Additional information about Atlas, including a copy of the Company's
 first quarter 2011 financial statements and MD&A, can be accessed on
 the Canadian Securities Administrators' website at www.sedar.com or through the Company's website at www.atlas-fin.com.


Continuation Accounting


The Company was formed on December 31, 2010 through a reverse triangular
 merger and the consolidated financial statements for 2010 are those of
 Atlas and two operating insurance subsidiaries, American Country
 Insurance Company and American Service Insurance Company, Inc., which
 have been prepared in accordance with continuation accounting concepts
 included in IFRS 3 - Business Combinations and IAS 27 Consolidated and
 Separate Financial Statements. Accordingly, and as a result of the
 merger date, shareholder's equity and earnings per share information
 provided herein for 2010 reflect the ordinary voting shares outstanding
 at the date of the merger as well as the ordinary voting shares,
 restricted voting shares and preferred shares that were issued in
 connection with the merger, as if such capitalization structure were in
 place during all 2010 periods for which financial information is being
 provided.


Financial Statement Presentation


As noted above, Atlas' financial statements reflect the Company's
 consolidated results including prior periods based on historical
 financial statements of the Company's subsidiaries American Insurance
 Acquisition Inc., American Country Insurance Company and American
 Service Insurance Company, Inc. while under the management of its
 previous owners. The 2010 financial statements and the historic results
 reflected therein contain certain expenses and fees that supported the
 infrastructure of the previous parent of these subsidiaries. The
 Company does not expect to incur similar expenses, which included
 management fees, allocated overhead cost, and shared infrastructure
 expenses, after the December 31, 2010 date of the reverse triangular
 merger.


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 operating insurance
 subsidiaries American Country Insurance Company and American Service
 Insurance Company, Inc.  Atlas' operating insurance subsidiaries have
 decades of experience with a commitment to always be an industry leader
 in these specialized areas of insurance.                           


Notice regarding forward-looking statements:


This release includes forward-looking statements regarding the Company
 and its 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 our
 Management Discussion and Analysis and Annual Report for the year ended
 December 31, 2010. 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 the
 Company 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.


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p Scott Wollney, Chief Executive Officer of Atlas Financial Holdings, Inc.  at 847-700-8600 /p 

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