/C O R R E C T I O N from Source -- Atlas Financial Holdings, Inc./

      




 Please note that this release replaces c9575 disseminated today at  06:30ET. Corrected copy follows. 

 Atlas Announces Financial Results for Third Quarter 2011 

 CHICAGO, Nov. 28, 2011 /CNW/ -  Atlas Financial Holdings,  Inc. ("Atlas" or the "Company") today announced its financial results  for the third quarter 2011. All amounts are in U.S. dollars. 




        --  Q3 2011 net income was $984,000 or $0.05 per common share
            diluted
        --  Core commercial auto lines gross premium written for Q3 2011
            increased 57.7% over Q3 2010 reflecting a continuing positive
            market reaction to the transaction which formed Atlas
        --  Quarter over quarter expenses in 2011 have remained flat, and
            are consistent with Atlas' expected ability to grow core
            business without materially increasing infrastructure costs
        --  Atlas expanded its underwriting into five additional states
            during Q3 2011
        --  Book value per common share diluted at September 30, 2011 was
            $2.18
        --  Atlas carries a provision, in the amount of $0.64 per common
            share diluted at September 30, 2011, against its deferred tax
            asset.




 Total gross premium written for the third quarter 2011 was $10.9 million  reflecting a 7.5% increase from the third quarter 2010 and a 39.1%  increase from the second quarter 2011. In Atlas' core lines of  business, commercial automobile insurance, gross premium written in the  third quarter 2011 was $5.4 million, an increase of 57.7% over third  quarter 2010 and an increase of 115.1% as compared to the second  quarter 2011.  The increased volume in the third quarter as compared to  the second is the result of growth in Atlas' core business activity  coupled with seasonality in these lines of business. 

 Net premium earned was $8.8 million in the third quarter 2011, a 13.7%  decrease compared with the third quarter of 2010 and a 2.9% decrease  compared to the second quarter 2011.  Premiums are earned ratably over  the term of underlying policies; therefore, changes in earned premiums  follow any changes in written premium during the trailing twelve month  period based on Atlas' typical policy term. 

 Atlas' loss and loss adjustment expense ratio was 79.4% in the third  quarter 2011 as compared with 76.1% in the third quarter 2010 and 74.2%  in the second quarter 2011.  The increase was primarily due to higher  ULAE in the third quarter 2011.  Atlas reduced claim inventories  substantially in 2011 and is committed to retaining its claim handling  expertise as a core competency, expecting ULAE as a percentage of  earned premium to return to scale levels as the volume of business  continues to increase.  The Company's loss ratio is also expected to  improve as premium earnings related to terminated non-core and  non-profitable lines wind down. 

 Other underwriting expense in the third quarter 2011 was $1.9 million,  representing a 32.8% reduction from the third quarter of 2010 and a  4.4% reduction from the second quarter 2011.  These expense levels  reflect the strategic activities and contract renegotiations undertaken  to align Atlas' infrastructure with its business plans. 

 Atlas' combined ratio, which measures underwriting performance, was  120.0% for the third quarter 2011 as compared with 123.4% in the third  quarter 2010 and 114.4% in the second quarter 2011.  As net earned  premium begins to grow following increased premiums written in core  lines, Atlas' expense ratios will move towards scale levels, improving  the Company's combined ratio. 

 In the third quarter 2011 Atlas achieved net income of $0.05 per common  share (fully diluted), compared to a loss of $0.04 per common share  (fully diluted) in the third quarter 2010 and earnings of $0.01 per  common share (fully diluted) in the second quarter 2011. 

 Atlas assumed substantial loss carryforwards upon becoming the owner of  its insurance subsidiaries. The $0.64 per common share (fully diluted)  provision carried by the Company is against both capital loss and net  operating loss carryforwards at September 30, 2011 and may be utilized  over the next twenty-year period based on profitability. 

 "The continued improvement in our earnings per share in the third  quarter is consistent with business plans," said Scott D. Wollney,  Atlas President & CEO.  "Although we did not generate an underwriting  profit in the third quarter 2011, on a year to date basis we did make  substantial improvement over the results from 2010.  Our current  infrastructure is appropriately scaled for expected volume in the  coming year.  The continued execution of our strategic plans is  expected to deliver increasingly positive results in 2012." 

 Atlas expanded into five additional states subsequent to the end of the  second quarter and is currently writing business in twenty four  states.  Atlas' active states can be found on the Company's website.   Continued expansion where Atlas' research supports a strong comparative  value proposition utilizing existing licenses will continue into 2012. 

 Financial Information 

 Additional information about Atlas, including a copy of Atlas' third  quarter 2011 condensed interim consolidated financial statements and  Management Discussion & Analysis, can be accessed on the Canadian  Securities Administrators' website at www.sedar.com or through Atlas' website at www.atlas-fin.com. 

 Conference Call 

 Atlas will hold a conference call at 8:30 a.m. (Eastern Time) on  November 28, 2011 to review third quarter 2011 results. To access the  call, approximately five minutes before the start time please dial  800-593-0693 and, when asked, provide the operator with passcode  "Atlas". Questions will be taken at the end of the call. 

 Following the call, an audio webcast will be available and can be  accessed at www.atlas-fin.com/atlas_investor_relations.html. 

 Continuation Accounting 

 Atlas was formed on December 31, 2010 through a reverse triangular  merger and the consolidated financial statements for 2010 are those of  Atlas and its two 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 consolidated results  including prior periods based on historical financial statements of  Atlas' 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. Atlas 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 which created Atlas. 

 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.                        Notice regarding 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 Management Discussion & 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 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.  

Atlas Financial Holdings, Inc.


CONTACT:  Scott Wollney, Chief Executive Officer of Atlas FinancialHoldings,Inc. at 847-700-8600. 


    

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