0001539894FALSE00015398942022-08-122022-08-12

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): August 12, 2022
Atlas Financial Holdings, Inc.
(Exact name of registrant as specified in its charter)

Cayman Islands000-5462727-5466079
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
     

953 American Lane, 3rd Floor
Schaumburg, IL
(Address of principal executive offices)
60173
(Zip Code)

Registrant's telephone number, including area code: (847) 472-6700

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company     

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act. o  










Item 2.02. Results of Operations and Financial Condition

On August 12, 2022, Atlas Financial Holdings, Inc. (“the Company”) reported its results for the quarter ended June 30, 2022. The press release and the investor presentation are furnished as Exhibits 99.1 and 99.2 to this report. The information contained in the press release and the investor presentation are furnished and not filed pursuant to instruction B.2 of Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1
99.2
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
     
  ATLAS FINANCIAL HOLDINGS, INC.
(Registrant)
Date: August 12, 2022By:/s/ Paul A. Romano
 Name:Paul A. Romano
Title:Vice President and Chief Financial Officer
  



Document
Exhibit 99.1
atlaslogonewa34.jpg

Atlas Financial Holdings Announces Unaudited Second Quarter 2022 Financial Results

Conference Call Scheduled for Friday, August 12, 2022 at 8:30 a.m. ET

Chicago, Illinois (August 12, 2022) - Atlas Financial Holdings, Inc. (OTC: AFHIF) (“we,” “us,” “our,” “Atlas” or the “Company”), a specialty insurance business with a niche market focus on the “light” commercial automobile sector, reported today its unaudited financial results for the second quarter ended June 30, 2022.

Scott D. Wollney, Atlas’ President and Chief Executive Officer, said, “Our second quarter 2022 results reflect continuing recovery seen in our target markets and ongoing cost control initiatives undertaken due to the impact of the COVID-19 pandemic on our business. Increased demand for rides and a related improvement in driver supply resulted in more vehicles being deployed in our target markets during the quarter. While these increases may have been tempered by continued high gas prices and availability of vehicles, we remain encouraged by a record number of monthly application counts since the COVID-19 pandemic impact. Commissions related to go-forward lines of business increased by more than 100% as compared to the same quarter last year.”

Second Quarter 2022 Financial Performance Summary (all comparisons to Q2 2021)
Commission income from go-forward taxi, livery and business auto production increased 101.6% to $635,000;
Including legacy business the Company no longer writes, commission income decreased 64.3% to $639,000.
Total revenue decreased 19.4% to $1.0 million for the three months ended June 30, 2022.
AGMI operating expenses, as a component of overall other underwriting expenses, decreased 25% to $2.5 million.
Loss from operating activities was $4.6 million compared to a loss from operating activities of $2.9 million.
Net loss from continuing operations was $5.0 million, or $0.29 per common share diluted, in second quarter 2022 compared to net income from continuing operations of $660,000, or $0.06 earnings per common share diluted, in the same period last year.
Net income from discontinued operations was $0, or $0.00 earnings per common share diluted, in second quarter 2022 compared to net loss from discontinued operations of $1,000, or $0.00 earnings per common share diluted, in the same period last year.

Mr. Wollney continued, “We expect our operating loss to return to profitability as we continue to work towards positive cash flow from our managing agency operations. During the quarter, salaries and benefits were 14% lower than the same quarter last year and other agency related expenses were 47% lower. We have diligently maintained our valuable infrastructure that the exceptional team at Atlas has cultivated over many years and continue to position our business for successful growth.”

Revenue
As an MGA, our commission and fee income is derived from policies and premium produced on behalf of insurance carrier partners. We earn commission for the sale of first year and renewal policies from our insurance carrier partners, which are presented in our condensed consolidated statements of operations as commission income.

Commission income for the three months ended June 30, 2022 totaled $639,000 compared to $1.8 million for the three months ended June 30, 2021. The decrease in commission income from the prior year period was largely


Exhibit 99.1
due to the liquidation of Global Liberty, the fact that the Company is no longer generating commission income on paratransit business following the sale of renewal rights in November 2021. This was partially offset by increased premium production in our ongoing programs. Commissions from our core taxi, livery/limo and full-time TNC segments grew 101.6% year over year. Our expectation is that growth related to our go-forward target markets will exceed the reductions related to non-strategic historic revenue reductions.

Atlas recorded other income of $360,000 and $925,000 for the three months ended June 30, 2022 and 2021, respectively, and $1.1 million and $1.6 million for the six months ended June 30, 2022 and 2021, respectively. The decrease is related primarily to a decrease in professional services revenue.

Underwriting Expenses
Acquisition costs for the three months ended June 30, 2022 were $335,000 compared to $955,000 for the three months ended June 30, 2021, respectively, and represent commissions paid to retail agents who sell insurance policies.

Other underwriting expenses for the three months ended June 30, 2022 and 2021 were $4.9 million and $3.6 million, respectively. Offsets related to COVID-19 related federal benefits reduced expenses by approximately $590,000 during second quarter 2021. Atypical legal and other expenses, primarily related to our previously announced senior note exchange and related activities represented approximately $1.1 million of the increased expenses in 2022. Salary and benefits and other normal course operating expenses, excluding costs related to financing and the Company’s headquarters building which is held for sale, were 25% lower year-over-year. We anticipate a sale of the headquarters building via auction later in 2022.

Results of Operations
Atlas had net loss of $5.0 million and $9.2 million during the three and six months ended June 30, 2022, respectively, compared to net income of $659,000 and net loss of $1.9 million during the three and six months ended June 30, 2021, respectively. Loss per common share diluted was $0.29 and $0.53 for the three and six months ended June 30, 2022, respectively, compared to net income per common share diluted of $0.06 and net loss per common share diluted of $0.17 for the three and six months ended June 30, 2021, respectively.

Mr. Wollney concluded, “Our team will continue to focus on efficiently managing our operations as we undertake proactive work toward growing our go-forward lines of business. Recent industry statistics, which serve as leading indicators of demand for our business, continue to be encouraging. We believe that Atlas is well positioned to build on the foundation we’ve established and will leverage our expertise and infrastructure developed over many years. We believe that both our ‘traditional’ managing agency infrastructure as well as our proprietary digital Insurtech platform, optOnTM, are valuable assets that can be scaled significantly over time to create value for our customers, partners, shareholders, and other stakeholders.”

Conference Call Details
Atlas will discuss these results in a conference call on Friday, August 12, 2022, at 8:30 a.m. ET.

Participant Dial-In Numbers
(United States): 877-407-9753
(International): 201-493-6739

To access the call, please dial-in approximately five minutes before the start time and, when asked, provide the operator with passcode "Atlas". An accompanying slide presentation will be available in .pdf format via the “Investor Relations” section of Atlas’ website at www.atlas-fin.com/investorrelations prior to the call.

Webcast
The call will also be simultaneously webcast over the Internet via the Investor Relations section of Atlas’ website or by clicking on the conference call link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=ITTqRFCU



Exhibit 99.1
A transcript of the call will be archived on the Company’s website.

Filings with the SEC
The Company’s filings, including its most recent Quarterly Report on Form 10-Q for the period ended June 30, 2022, can be accessed through the Securities and Exchange Commission (“SEC”) database. These filings are also available in the SEC Filings section of the Company’s website at www.atlas-fin.com.

About Atlas Financial Holdings, Inc.
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 and limousine/livery (including full-time transportation network company drivers) and business auto. Atlas’ specialized infrastructure is designed to leverage analytics, expertise and technology to efficiently and profitably provide insurance solutions for independent contractors, owner operators and other smaller accounts.

The Company’s strategy is focused on leveraging its MGA operation, AGMI, and its insurtech digital platform, optOn. For more information about Atlas, please visit www.atlas-fin.com, www.agmiinsurance.com, and www.getopton.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 most recent Annual Report on Form 10-K. No forward-looking statement can be guaranteed, including, without limitation, statements regarding the Company’s anticipated ability to recapture its prior volume of business and to expand. 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.

Company Contact:
Investor Relations Contact:
Atlas Financial Holdings, Inc.
The Equity Group Inc.
Scott Wollney, CEO
Karin Daly, Vice President
847-700-8600
212-836-9623
swollney@atlas-fin.com
kdaly@equityny.com


Exhibit 99.1
Atlas Financial Holdings, Inc.
Condensed Consolidated Statements of Financial Position
($ in ‘000s, except for share and per share data)June 30, 2022December 31, 2021
Assets(unaudited)
Cash and cash equivalents$1,857 $2,274 
Restricted cash1,395 3,637 
Premiums receivable (net of allowance of $225 and $225)
9,193 11,397 
Intangible assets, net923 983 
Property and equipment, net1,801 2,503 
Right-of-use asset24 237 
Notes receivable18,017 18,017 
Credit facility fee, net19 584 
Other assets1,030 1,053 
Assets held for sale7,500 7,500 
Total assets$41,759 $48,185 
Liabilities
Premiums payable$10,277 $13,593 
Lease liability24 224 
Due to deconsolidated affiliates19,091 19,957 
Notes payable, net36,682 33,102 
Other liabilities and accrued expenses6,563 6,811 
Total liabilities$72,637 $73,687 
Commitments and contingencies (see Note 7)
Shareholders' Deficit
Ordinary voting common shares, $0.003 par value, 800,000,001 shares authorized, shares issued: June 30, 2022 - 17,652,839 and December 31, 2021 - 15,052,839; shares outstanding: June 30, 2022 - 17,652,839 and December 31, 2021 - 14,797,334
$53 $45 
Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: June 30, 2022 and December 31, 2021 - 0
— — 
Additional paid-in capital83,883 83,086 
Treasury stock, at cost: 0 and 255,505 shares of ordinary voting common shares at June 30, 2022 and December 31, 2021, respectively
— (3,000)
Retained deficit(114,814)(105,633)
Accumulated other comprehensive income, net of tax— — 
Total shareholders' deficit$(30,878)$(25,502)
Total liabilities and shareholders' deficit$41,759 $48,185 
See accompanying Notes to Condensed Consolidated Financial Statements.


Exhibit 99.1
Atlas Financial Holdings, Inc.
Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations
($ in ‘000s, except for share and per share data) Three months ended June 30,Six months ended June 30,
2022202120222021
(unaudited)(unaudited)
Commission income$639 $1,791 $1,472 $3,484 
Net realized gains (losses)— (1,477)(1,465)
Other income360 925 1,112 1,561 
Total revenue999 1,239 2,585 3,580 
Acquisition costs335 955 914 1,849 
Other underwriting expenses4,892 3,614 9,419 7,096 
Amortization of intangible assets30 97 60 195 
Forgiveness of Paycheck Protection Program loan— (4,601)— (4,601)
Interest expense, net772 514 1,373 1,083 
Total expenses6,029 579 11,766 5,622 
(Loss) income from operations before income taxes(5,030)660 (9,181)(2,042)
Income tax benefit— — — — 
(Loss) income from continuing operations(5,030)660 (9,181)(2,042)
Income (loss) from discontinued operations, net of tax— (1)— 151 
Net (loss) income$(5,030)$659 $(9,181)$(1,891)
Basic net (loss) income per share attributable to common shareholders
Continuing operations$(0.29)$0.06 $(0.53)$(0.17)
Discontinued operations— — — 0.01 
Net (loss) income$(0.29)$0.06 $(0.53)$(0.16)
Diluted net (loss) income per share attributable to common shareholders
Continuing operations$(0.29)$0.06 $(0.53)$(0.17)
Discontinued operations— — — 0.01 
Net (loss) income$(0.29)$0.06 $(0.53)$(0.16)
Basic weighted average common shares outstanding17,499,492 12,047,334 17,233,225 12,035,560 
Diluted weighted average common shares outstanding17,499,492 12,047,334 17,233,225 12,035,560 
Condensed Consolidated Statements of Comprehensive (Loss) Income
Net (loss) income$(5,030)$659 $(9,181)$(1,891)
Other comprehensive loss:
Changes in net unrealized investment losses— (9)— (22)
Reclassification to net loss— (1)— (159)
Other comprehensive loss (10) (181)
Total comprehensive (loss) income$(5,030)$649 $(9,181)$(2,072)
See accompanying Notes to Condensed Consolidated Financial Statements..



atlasinvestorpresentatio
Investor Presentation August 2022  Atlas Financial Holdings, Inc.


 
      This presentation includes forward‐looking statements regarding the Company, 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 on this call may not occur and could  differ materially as a result of known and unknown risk factors and uncertainties affecting the  companies. These factors can be found in their filings with the Securities and Exchange  Commission, in the  “Risk Factors” section of its most recent Form 10K or subsequent quarterly  filings on Form 10‐Q. As such, 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.  Forward‐Looking Statements


 
      F o c u s e d   o n   “ l i g h t ”   c o mm e r c i a l   a u t o   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,  nonemergency para‐transit, limousine/livery (including full‐time transportation network company drivers)  and business auto. Atlas’ specialized infrastructure is designed to leverage analytics, expertise and  technology to efficiently and profitably provide insurance solutions for independent contractors, owner  operators and other smaller accounts. The Company focuses on underserved and evolving niche markets  where its differentiated approach is expected to create value for its stakeholders and shareholders. The Company’s strategy is focused on leveraging its managing general agency operation (“AGMI”) and its  insurtech digital platform (“optOn”). For more information about Atlas, please visit www.atlas‐ fin.com, www.agmiinsurance.com, and www.getopton.com. About Atlas


 
      Atlas Strategic Focus Strategic Realignment Vision To always be a preferred specialty transportation related insurance business that delivers benefit to all stakeholders by  leveraging technology, analytics, expertise, partnerships and capital resources. • Deliver sustainable value to our risk‐taking partners and consumers of our products by cultivating and  maintaining a unique position in the markets on which we focus. • As a nimble, innovative specialist, deploy our expertise, analytics and technology to disrupt underserved  segments of commercial auto. Mission To develop and deliver superior specialty insurance products and services to meet our customers’ needs with a focus on  innovation and the effective use of technology and analytics to deliver consistent operating profit for the insurance  businesses we own. A strategic shift focusing on technology‐driven commercial automobile  managing general agency (“MGA”) as its primary business


 
      Explaining the MGA Model Knowledge: Managing General Agent Insureds seeking coverage  for commercial auto needs  (typically individuals and  smaller fleets of drivers) Insureds Agents / Brokers MGA Carriers Independent agents seeking  options for insureds in order  to fit their needs Insurance carriers seek programs to  access insureds in niche markets  which may not be practical to  develop on their own either due to  scale, speciality, etc. An MGA is an individual or company  that provides operational functions for  insurance carriers who, in turn, takes  the financial risk for policies issued by  the MGA Strategic Partnership


 
      Strategic Focus • Leverage heritage in specialty market • Utilize Atlas’ systems and MGA resources (“AGMI”) • Existing distribution channel cultivated over decade (430+  independent producers) • Re‐capture legacy $200+ million book of business in public auto  sectors (at today’s rates >$300 million) • Combine traditional insurance company structure with  legitimate insuretech • Expand into other areas of “light” commercial automobile Key “Atlas” Assets  • Decades of data in niche market • More than $10 million in technology and analytics development  invested prior to challenges in recent years • Expert staff that embraces innovation • Systems and workflows designed around highly transactional  business • Ability to capitalize on hard commercial auto market • Unique insights based on industry and affiliate insurance  company results  MGA Approach Business Model Update


 
      Industry Activity Update – Chicago & Nevada Current Market Recovery Public Auto COVID Impact/Recovery • Part‐time TNC relatively flat while Taxi/Livery continues to show recovery − Chicago TNC:  5,722k trips in June 2022, a 1% decrease from last month but still about 40% down from June 2019 (9,518k trips)  • Taxi/Livery continuing from prior months at increasing marginal rate − Chicago Taxi:  558k trips in June 2022, about a 7% increase from last month but still about 56% down from June 2019 (1,275k trips) − Las Vegas Taxi:  July 2022 shows a 1% decrease from prior month and a 9% decrease from July 2019 • Driver return continues to gain momentum which may be tempered due to high gas prices • Platforms offering near‐term incentives to attract owner operators • All segments experiencing significantly more demand for rides vs. driver supply Data Source: Nevada Taxicab Authority https://taxi.nv.gov/About_Us/ALL/Statistics/ Data Source: City of Chicago https://data.cityofchicago.org/Transportation/Transportation- Network-Providers-Trips/m6dm-c72p Data Source: City of Chicago https://data.cityofchicago.org/Transportation/Taxi-Trips/wrvz-psew


 
      Industry Activity Update – Chicago Price per Mile Current Market Recovery Cost per mile for TNC rides remains higher than pre COVID‐19, resulting in a more attractive  competitive position for taxis   Data Source: City of Chicago https://data.cityofchicago.org/Transportation/Transportation-Network-Providers-Trips/m6dm-c72p Axis set so Unique Taxis and Monthly Trips cross in December 2019


 
      Industry Activity Update – New York & San Francisco Current Market Recovery Certain jurisdictions show a reduction in trips which may be slowing the deployment of new vehicles, but does not appear to  be resulting in vehicles being taken out of service Broker feedback indicates that recent downturn relates primarily to seasonality and does  not appear to suggest a longer term trend Data Source: NYC TLC https://www1.nyc.gov/site/tlc/about/aggregated-reports.page Data Source: San Francisco Municipal Transportation Agency https://www.sfmta.com/reports/average-weekday-taxi-trips


 
      Industry Activity Update – Chicago Current Market Recovery Taxis are being put into service at a rate similar to demand for both Taxi and TNC rides Data Source: City of Chicago https://data.cityofchicago.org/Transportation/Transportation-Network-Providers-Trips/m6dm-c72p Axis set so Unique Taxis and Monthly Trips cross on December 2019


 
      Business Activity Update Market Recovery Nationwide submissions and policy issuance generally follows Chicago taxi trip  trend. OMNICRON SURGE Taxi and Livery business is continuing to  show an improved hit ratio.   We ultimately expect this to settle in a  range of 40% ‐ 50%. Hit Ratio


 
      Initial Indications of Recovery Market Recovery +167%  vs. 2021 Data as of August 11, 2022 Data as of August 11, 2022 +279%  vs. 2021


 
      Industry Activity Update – Vision Current Market Recovery Delivery (Full- and Part-Time) TNC (Full- and Part-Time) FuturePresentPast Limo/ Livery (Full-Time) Delivery (Full-Time) TNC (Part-Time) Limo/ Livery (Full-Time) Taxi (Full-Time) Taxi (Full-Time) Part-Time Full-Time Delivery Limo/ Livery TNC Taxi Historically, the Taxi, TNC, Limo/Livery, and Delivery markets have been addressed by drivers and vehicles that remained within narrow verticals; there was sharply defined competition between modalities for the targeted customers The lines have begun to blur for TNC, Delivery and Limo/Livery drivers and vehicles, e.g., UberEats, Limo services equipped to serve TNC customers, and part-time fulfillment delivery drivers that also drive for TNC and Limo services. There is also increasing flexibility for drivers choosing to drive on a full- or part-time basis. Market structures rapidly adjusting to a reality in which all networks access vehicles that perform multiple roles in a single day; this has already begun with the NYC and CA announcements that taxis will be accessible on TNC platforms. Expect creation of a specialty market for “Last Mile” people transport and product delivery as autonomous driving market develops


 
      Financial  Statements Please refer to  Form 10‐Q filed in August 2022  for additional detail Consolidated Statements of Financial Position See accompanying Notes to Consolidated Financial  Statements on the latest Form 10‐Q. Atlas Financial Holdings, Inc. Condensed Consolidated Statements of Financial Position ($ in ‘000s, except for share and per share data) June 30, 2022 December 31, 2021 Assets (unaudited) Cash and cash equivalents $ 1,857 $ 2,274 Restricted cash 1,395 3,637 Premiums receivable (net of allowance of $225 and $225) 9,193 11,397 Intangible assets, net 923 983 Property and equipment, net 1,801 2,503 Right-of-use asset 24 237 Notes receivable 18,017 18,017 Credit facility fee, net 19 584 Other assets 1,030 1,053 Assets held for sale 7,500 7,500 Total assets $ 41,759 $ 48,185 Liabilities Premiums payable $ 10,277 $ 13,593 Lease liability 24 224 Due to deconsolidated affiliates 19,091 19,957 Notes payable, net 36,682 33,102 Other liabilities and accrued expenses 6,563 6,811 Total liabilities $ 72,637 $ 73,687 Commitments and contingencies (see Note 7) Shareholders' Deficit Ordinary voting common shares, $0.003 par value, 800,000,001 shares authorized, shares issued: June 30, 2022 - 17,652,839 and December 31, 2021 - 15,052,839; shares outstanding: June 30, 2022 - 17,652,839 and December 31, 2021 - 14,797,334 $ 53 $ 45 Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: June 30, 2022 and December 31, 2021 - 0 — — Additional paid-in capital 83,883 83,086 Treasury stock, at cost: 0 and 255,505 shares of ordinary voting common shares at June 30, 2022 and December 31, 2021, respectively — (3,000) Retained deficit (114,814) (105,633) Accumulated other comprehensive income, net of tax — — Total shareholders' deficit $ (30,878) $ (25,502) Total liabilities and shareholders' deficit $ 41,759 $ 48,185


 
      Financial  Statements Please refer to  Form 10‐Q filed in August 2022  for additional detail Consolidated Statements of Operations See accompanying Notes to Consolidated Financial  Statements on the latest Form 10‐Q. Atlas Financial Holdings, Inc. Condensed Consolidated Statements of Operations Condensed Consolidated Statements of Operations ($ in ‘000s, except for share and per share data) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (unaudited) (unaudited) Commission income $ 639 $ 1,791 $ 1,472 $ 3,484 Net realized gains (losses) — (1,477) 1 (1,465) Other income 360 925 1,112 1,561 Total revenue 999 1,239 2,585 3,580 Acquisition costs 335 955 914 1,849 Other underwriting expenses 4,892 3,614 9,419 7,096 Amortization of intangible assets 30 97 60 195 Forgiveness of Paycheck Protection Program loan — (4,601) — (4,601) Interest expense, net 772 514 1,373 1,083 Total expenses 6,029 579 11,766 5,622 (Loss) income from operations before income taxes (5,030) 660 (9,181) (2,042) Income tax benefit — — — — (Loss) income from continuing operations (5,030) 660 (9,181) (2,042) Income (loss) from discontinued operations, net of tax — (1) — 151 Net (loss) income $ (5,030) $ 659 $ (9,181) $ (1,891) Basic net (loss) income per share attributable to common shareholders Continuing operations $ (0.29) $ 0.06 $ (0.53) $ (0.17) Discontinued operations — — — 0.01 Net (loss) income $ (0.29) $ 0.06 $ (0.53) $ (0.16) Diluted net (loss) income per share attributable to common shareholders Continuing operations $ (0.29) $ 0.06 $ (0.53) $ (0.17) Discontinued operations — — — 0.01 Net (loss) income $ (0.29) $ 0.06 $ (0.53) $ (0.16) Basic weighted average common shares outstanding 17,499,492 12,047,334 17,233,225 12,035,560 Diluted weighted average common shares outstanding 17,499,492 12,047,334 17,233,225 12,035,560 Condensed Consolidated Statements of Comprehensive (Loss) Income Net (loss) income $ (5,030) $ 659 $ (9,181) $ (1,891) Other comprehensive loss: Changes in net unrealized investment losses — (9) — (22) Reclassification to net loss — (1) — (159) Other comprehensive loss — (10) — (181) Total comprehensive (loss) income $ (5,030) $ 649 $ (9,181) $ (2,072)


 
      Financial  Statements Please refer to  Form 10‐Q filed in August 2022  for additional detail Key Operating Metrics See accompanying Notes to Consolidated Financial Statements on the latest Form 10‐ Q. AGMI Operating Expenses reduced by 25% Anticipated sale via auction in 2022 Non-Recurring debt restructuring costs


 
      Significant Near‐Term Opportunity Recapturing Historic Business Policy Comparison (as of Q2 2022) • Overall Submissions/Quotes are at only 10% of 2018 • Policies Issued in active states with limits equal to or under $1 million in 2021/22 vs 2018 • 22% of policy count • 28% of vehicles • Average premium per vehicle up 51%, from 49% last quarter • $5,049 in 2021/22 • $3,333 in 2018 Significant opportunity for recapture/growth in hard market


 
      Market Conditions Changing Market Dynamics Multiple quarters of significant rate increases  in commercial auto Source: CIAB Q4‘ 21 Market Survey $53 Billion Addressable Market Poised for  Disruption


 
      Recovering from COVID‐19 and Beyond Market Evolution Manage through the Pandemic Public Automobile and Ride- sharing companies were impacted as mandated lock- down restrictions were in place and rides fell >90% New Normal Ride-sharing has continued to return in greater numbers than before in lieu of mass transit. Public auto (e.g. taxi, livery, etc.) beginning to follow suit. New “Last Mile” Delivery and Autonomous Driving Consistent market for “Last- Mile” product delivery as well as a natural end-application for autonomous driving as market develops. 2020 2021 Future


 
      Focused Approach to Disrupt Large Market Strategic Realignment $53 Billion Addressable Market Poised for Disruption in U.S. Immediate Focus $2.5 - $3 billion “traditional” public auto niche • Atlas’ market share was approximately 12% - 15% in 2018 • $285 million gross written premium • Leverage strong relationships with 420+ retail distribution agents • Re-capture historic business • Grow market share to proportionate 20% Next Steps Build on prior experience in “gig” economy • Technology enabled platform built to support Lyft/Flexdrive program in 2018 • optOnTM app based UBI concept • Potential segments − Package delivery − TNC leasing fleets − Other • Establish position in incremental addressable markets Longer-Term Vision Disrupt larger segments within commercial auto • True usage based products as alternative to industry reliance on proxies for risk • Differentiated product offerings relevant to new economy • Optimized expense structure • Digital ecosystem with increased engagement, improved persistency, and strong brand


 
Atlas Financial Holdings, Inc. 953 American Lane, 3rd Floor Schaumburg, IL 60173 Corporate Headquarters Scott D. Wollney President & Chief Executive Officer Paul A. Romano Vice President and Chief Financial Officer Executive Officers Karin Daly Vice President, The Equity Group Inc. (212) 836‐9623 kdaly@equityny.com Investor Relations


 

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