8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  August 6, 2018.

Atlas Financial Holdings, Inc.

(Exact name of Registrant as specified in its charter)

Commission File Number
000-54627
CAYMAN ISLANDS	27-5466079
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
953 AMERICAN LANE, 3RD FLOOR	60173
Schaumburg, IL	(Zip Code)
(Address of principal executive offices)

 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:

oWritten communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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

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

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

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    þ

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.    þ

Section 2 – Financial Information

Item 2.02. Results of Operations and Financial Condition.

On August 6, 2018, Atlas Financial Holdings, Inc. (“Atlas”) reported its results for the quarter ended June 30, 2018. The press release and the investor supplement are furnished as Exhibits 99.1 and 99.2 to this report. The information contained in the press release and the investor supplement are furnished and not filed pursuant to instruction B.2 of Form 8-K.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit 99.1 - Earnings Press Release, dated August 6, 2018, issued by Atlas Financial Holdings, Inc.

Exhibit 99.2 - Investor Supplement, dated August 6, 2018, issued by Atlas Financial Holdings, Inc.

Exhibit Index

99.1	Earnings Press Release, dated August 6, 2018, issued by Atlas Financial Holdings, Inc.
99.2	Investor Supplement, dated August 6, 2018, issued by Atlas Financial Holdings, Inc.

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)

/s/ Paul A. Romano

By: Paul A. Romano

(Vice President and Chief Financial Officer)

August 6, 2018

EX-99.1

Exhibit 99.1

Atlas Financial Holdings Announces 2018Second Quarter Financial Results

Company to Hold Conference Call on Tuesday, August 7, 2018 at 8:30 a.m. ET

Second Quarter 2018 Financial Performance Summary (comparisons to Second Quarter 2017 unless noted):

• Gross premiums written in each of the three month periods ended June 30, 2018 and 2017 were $57.4 million

• In-force premium increased 2.4% to $270.9 million

• Total revenue increased by 1.8% to $56.7 million

• Underwriting income for the second quarter2018 was $6.2 million, compared to $7.5 million

• The combined ratio for the second quarter2018 was 88.9%, compared to 86.2%

• Net income for the second quarter 2018 was $5.6 million, or $0.47 earnings per common share diluted, compared to $5.5 million, or $0.45 earnings per common share diluted, representing an increase in earnings per common share diluted of $0.02

• Annualized return on equity was 23.8% in the second quarter2018 compared to 16.2%

Chicago, Illinois (August 6, 2018) - Atlas Financial Holdings, Inc. (NASDAQ: AFH) (“Atlas” or the “Company”) today reported its financial results for the second quarter ended June 30, 2018.

Management Comments

Scott D. Wollney, Atlas’ President and CEO, stated, “Atlas reported a strong underwriting quarter, as our focus continues to be on bottom line execution. We are very pleased to report a favorable combined ratio and continue to emphasize underwriting margin over top line growth. During the first half of this year, we’ve demonstrated price leadership in our specialized niche market with rate increases in most areas across the country. In addition, we continue to believe that the benefits of implementation of predictive analytics in both underwriting and claims will play an important role in margin expansion. Pricing levels are higher than have been seen in more than a decade with indications that the hard market condition will continue for some time. As has been the case in prior years where rate increases were accelerated, renewal retention and new business hit rates were lower than average. However, we expect competitors to follow suit which should enable us to continue to grow with expanding margins. In the meantime, a larger than proportionate percentage of the business we did write is indicated to generate above average profit.”

Financial and Operational Review

Premiums Written: In each of the three month periods endedJune 30, 2018 and 2017, gross premiums written were $57.4 million.

Geographic Distribution: The Company is licensed in 49 states and the District of Columbia. Atlas actively writes its core business in 42 of these states plus the District of Columbia. Compared to the three month period endedJune 30, 2017, Atlas experienced growth in gross premiums written in its core business in 18 states for the three month period endedJune 30, 2018. Based on the Company’s commitment to optimize return on deployed capital, the Company utilizes predictive analytics based pricing coupled with its strong value proposition to grow market share in environments that are favorable and is prepared to reduce exposure to those that are more challenging.

Combined Ratio: Atlas’ combined ratio increased for the three month period endedJune 30, 2018 to 88.9%, compared to 86.2% in the prior year period.

• Loss Ratio: The loss ratio relating to claims incurred for the three month period endedJune 30, 2018 was 61.1%, compared to 60.1% for the three month period endedJune 30, 2017. The loss ratio increased over the prior year period primarily as a result of the Company’s continued review of underwriting profitability by product and state and higher than expected claim cost associated with Atlas’ participation in non-voluntary assigned risk pools and run-off commercial auto. Excluding the impact of assigned risk business, the loss ratio

Exhibit 99.1

relating to the net claims incurred was 60.6% for the three month period endedJune 30, 2018, compared to 59.8% for the three month period endedJune 30, 2017.

• The Company expects its loss ratio to continue to generally trend in a positive direction based on prior year and potential future pricing, underwriting and claims activities. As previously announced, the Company is utilizing machine learning based predictive analytics in the claim area, in addition to using it as an underwriting tool, to further benefit from the data and experience within its organization. Atlas believes this approach amplifies the value of the assets accumulated over its operating subsidiaries’ many years spent focusing on niche target markets to model potential risk and deliver value for both customers and stakeholders. On a year over year basis, the Company expects its loss ratio to continue to generally trend in a positive direction based on prior year and potential future pricing, underwriting and claims activities.

• Underwriting Expense Ratio: The underwriting expense ratio for the three month period endedJune 30, 2018 was 27.8% compared to 26.1% for the three month period endedJune 30, 2017. The ratio increased mainly because of higher other underwriting expenses in the quarter. The average was higher due to increases in bank charges, legal and professional fees, depreciation on new headquarters building and its furnishings and software costs offset by deferred policy acquisition costs (“DPAC”) amortization, bad debt and rent expenses. Acquisition costs were higher than average in the quarter as well. As previously indicated, due to seasonality and the timing of certain expenses, the Company believes the full year expense ratio is a more indicative measure of efficiency that the ratio in any given quarter. Atlas remains focused on continually enhancing its value proposition through re-investment into research and development to ensure that its organization is able to continue leading the industry in terms of existing and developing niche markets on which Atlas focuses.

The table below details the comparisons of each component of the Company’s combined ratio for the periods indicated (after accounting for the effect of quota share reinsurance):

	Three Month Periods Ended				Six Month Periods Ended
	June 30, 2018		June 30, 2017		June 30, 2018			June 30, 2017
Loss Ratio:
Current accident year	60.7	%	59.8	%	60.7		%	59.9	%
Prior accident years	0.4		0.3		1.2			0.4
Loss Ratio	61.1		60.1		61.9			60.3
Underwriting Expense Ratio:
Acquisition cost ratio	12.1		12.3		11.4			11.5
Other underwriting expense ratio	15.1		12.4		16.0			14.0
DPAC amortization ratio	0.1		0.9		(0.2	)		0.1
Underwriting expense ratio before expenses related to stock purchase agreements and share-based compensation expenses	27.3		25.6		27.2			25.6
Expenses recovered related to stock purchase agreement ratio	—		—		(0.5	)		—
Share-based compensation expense ratio	0.5		0.5		0.5			0.6
Underwriting expense ratio	27.8	%	26.1	%	27.2		%	26.2	%
Total combined ratio	88.9	%	86.2	%	89.1		%	86.5	%

Exhibit 99.1

As the Company continues the use of quota share reinsurance, and potentially changes the percentage of ceded premiums under its contract, the impact on the individual ratios of acquisition cost and other underwriting expense will vary. On a pro-forma basis, as if there was no quota share reinsurance in place, the components of the underwriting expense ratio for the periods indicated would have been as follows:

	Three Month Periods Ended				Six Month Periods Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Acquisition costs	19.1	%	14.9	%	16.2	%	14.3	%
Other insurance general and administrative expenses	13.3		11.0		14.2		12.5
DPAC amortization	0.1		0.8		(0.2	)	0.1
Expenses recovered related to stock purchase agreements	—		—		(0.4	)	—
Share-based compensation expense	0.5		0.5		0.5		0.5
Total underwriting expense ratio	33.0	%	27.2	%	30.3	%	27.4	%

Underwriting Results: Underwriting profit was $6.2 million for the three month period endedJune 30, 2018, compared to $7.5 million in the same period of the prior year.

Net Income before Income Taxes: Net income before income taxes was $7.1 million for the three month period endedJune 30, 2018, compared to $8.5 million in the same period of the prior year.

Income Taxes: Atlas recognized tax expense of $1.5 million for the three month period endedJune 30, 2018 compared to $3.0 million in the same period of the prior year.

Net Income: Atlas reported net income of $5.6 million for the three month period endedJune 30, 2018, compared to $5.5 million for the three month period endedJune 30, 2017.

Earnings per common share (“EPS”): Atlas generated $0.47 earnings per common share diluted for the three month period endedJune 30, 2018 compared to $0.45 for the three month period endedJune 30, 2017.

Share Count: The following chart illustrates Atlas’ potential dilutive common shares for the three month periods endedJune 30, 2018 and 2017:

	Three Month Periods Ended
	June 30, 2018	June 30, 2017
Weighted average common shares outstanding	11,936,970	12,045,519
Dilutive potential ordinary shares:
Dilutive stock options	15,296	136,361
Dilutive average common shares outstanding	11,952,266	12,181,880

The effects of convertible instruments are excluded from the computation of earnings per common share diluted in periods in which the effect would be anti-dilutive. For the three month periods endedJune 30, 2018 and June 30, 2017, all exercisable stock options were deemed to be dilutive.

Exhibit 99.1

Balance Sheet/Investment Overview

Book Value: Book value per common share was $8.06 based on 11,944,378 common shares outstanding as of June 30, 2018, compared to $7.42 based on 12,178,857 common shares outstanding as of December 31, 2017. Book value per common share of $8.06 increased by $0.64 relative to December 31, 2017 as follows:

$	0.90		increase related to net income after tax and before items indicated below;
(0.01		)	decrease related to the loss from change in fair value of equity securities;
0.03			increase related to the change in net realized investment gains after tax;
(0.23		)	decrease related to the change in unrealized gains/losses after tax;
(0.09		)	decrease related to share repurchases; and
0.04			increase related to share-based compensation.
$	0.64		total increase fromDecember 31, 2017book value per common share

Cash and Invested Assets: Cash and invested assets as of June 30, 2018 totaled $226.4 million as compared to $243.5 million as of December 31, 2017.

Investment Strategy: Atlas aligns its securities portfolio to support the liabilities and operating cash needs of its insurance subsidiaries, to preserve capital and to generate investment returns. Atlas invests predominantly in fixed income securities with overall maturities that correlate with the payout patterns of Atlas’ claims liabilities and other liquidity needs. Other than fixed income investments are limited to an appropriately small percentage of its portfolio and are generally opportunities identified through the Company’s specialty focus or by leveraging the resources of its business partners. As of June 30, 2018, the average life on the Company’s portfolio was 5.2 years with a duration of 4.2 years. The Company’s investment allocations will be regularly reviewed based on market conditions with a continued emphasis on capital preservation to support growth in its operating business. During the first half of the year, the Company took steps to reduce its exposure to other than fixed income investments. Based on redemption windows and other timing considerations, the result of this changes will be seen primarily in the second half of the year.

Net Investment Income / Net Investment Realized Gains: Atlas generated net investment income of $1.2 million and $1.3 million for the quarters ended June 30, 2018 and 2017, respectively, as well as $154,000 and $284,000 of net realized gains, respectively. The decrease in net investment income resulted from lower returns on equity method investments offset by higher interest income on our fixed income securities portfolio and lower investment expenses. This higher interest income on fixed income securities resulted from increased yields on the fixed income securities portfolio. The gross annualized investment yield on the Company’s fixed income securities was 2.7% and 2.3% for the quarters ended June 30, 2018 and 2017, respectively. The increase in the gross annualized yield was due to management’s decision to use the proceeds from the maturity and sales of certain fixed income securities to purchase fixed income securities with higher yields. The gross annualized investment yield on the Company’s cash and cash equivalents was 0.7% and 0.3% for the quarters ended June 30, 2018 and 2017, respectively. The increase in gross yield on cash investments was due to higher interest rates on certain accounts and higher balances in accounts earning greater interest. Net realized gains for the quarter ended June 30, 2018 were primarily comprised of gains from the sale of equity securities and other investments, partially offset by losses from the sale of fixed income securities.

Beginning January 1, 2018, Atlas adopted Accounting Standards Update 2016-01, which requires changes in the unrealized market value of equities held at fair value to be recorded through net income. Atlas recorded a gain of $33,000 through net income for the quarter ended June 30, 2018 related to the changes in unrealized amounts on equities held at fair value.

Outlook for 2018

Throughout 2018, the Company has seen general market hardening throughout commercial auto and in its specific market niche, and continues to implement sizable rate increases. The Company has always emphasized that underwriting profit will take precedent over top line growth. As a result of the impact in this rate increase in the short-term, gross written premiums may not exceed the previously stated $300 million. If premium levels trend lower, the Company may reduce its use of quota share reinsurance.

Exhibit 99.1

Based on expected underwriting results and the subsequent profitability filtering through the Company’s lines of business as a result of these rate increases and other underwriting and claims activities, Atlas reiterates that it expects to earn net earnings per share exceeding $2.00 and achieve return-on-equity of at least 20%.

Mr. Wollney concluded, “We have been focused on implementing price leadership and underwriting discipline throughout 2018. Our light commercial auto market continues to grow and, based on their specific needs, public auto operators have continued to respond positively to Atlas as a specialty niche writer. Our strong value proposition resonates with traditional operators and we are building an increasing pipeline of opportunities created by transportation network companies (“TNCs”). We have seen no indicators of a new market entrant and expect that there would generally be an 18 month lead time, which should allow Atlas to optimize return on capital through underwriting margin and operating leverage. Going forward we expect premiums to reach historically higher levels as our competitors once again follow our price leadership. We have seen loss trends remain stable and for the year should trend in a positive direction, with pricing elasticity for those accounts with our highest level of scored accounts. We are committed to maintaining operating efficiency with a continued focus on increasing rate versus exposure.”

Conference Call Details

Date/Time:Tuesday, August 7, 2018 - 8:30 a.m. ET

Participant Dial-In Numbers:

(United States):877-423-9817

(International):201-493-6770

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 on the investor relations page of the Company’s website after issuance of the earnings release.

Webcast

The call will also be simultaneously webcast over the Internet via the “Investor Relations” section of Atlas’ website at www.atlas-fin.com/investorrelations or by clicking on the conference call link: http://atlas-fin.equisolvewebcast.com/q2-2018. Audio and a transcript of the call will be archived on the Company’s website.

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 para-transit, limousine/livery (including certain transportation network company drivers) and business auto. The business of Atlas is carried on through its subsidiaries American Country Insurance Company, American Service Insurance Company, Inc., Gateway Insurance Company, Global Liberty Insurance Company of New York, Anchor Group Management, Inc., Plainview Premium Finance Company, Inc., and Plainview Premium Finance Company of California, 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, American Service Insurance Company, Inc., Gateway Insurance Company, Global Liberty Insurance Company of New York, Anchor Holdings Group, Inc., Anchor Group Management, Inc., Plainview Premium Finance Company, Inc., Plainview Premium Finance Company of California, Inc., UBI Holdings Inc., and DriveOn Digital IP Inc. Additional information about Atlas, including a copy of Atlas’ 2017 Annual Report on Form 10-K financial statements and Management Discussion & Analysis, can be accessed via the U.S. Securities and Exchange Commission internet site at www.sec.gov or through Atlas’ website at http://www.atlas-fin.com/InvestorRelations/FinancialReports.aspx.

Exhibit 99.1

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 2017 Annual Report on Form 10-K. 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.

Contact Information:

At the Company                                Investor Relations

Atlas Financial Holdings, Inc.                         The Equity Group Inc.

Scott Wollney, CEO                            Adam Prior, Senior Vice President

Phone: 847-700-8600                                   212-836-9606

swollney@atlas-fin.com                            aprior@equityny.com

www.atlas-fin.com                            www.theequitygroup.com

###

Exhibit 99.1

ATLAS FINANCIAL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

($ in ‘000s, except for share and per share data)

	Three Month Periods Ended						Six Month Periods Ended
Condensed Consolidated Statements of Income	June 30, 2018 (unaudited)			June 30, 2017 (unaudited)			June 30, 2018 (unaudited)			June 30, 2017 (unaudited)
Net premiums earned	$	55,359		$	54,049		$	111,251		$	102,475
Net investment income	1,167			1,266			2,131			2,409
Income (loss) from change in fair value of equity securities	33			—			(95		)	—
Net realized gains	154			284			447			418
Other income	16			103			180			217
Total revenue	56,729			55,702			113,914			105,519
Net claims incurred	33,809			32,469			68,855			61,769
Acquisition costs	6,680			6,670			12,656			11,766
Other underwriting expenses	8,602			7,342			17,921			14,933
Amortization of intangible assets	98			98			195			195
Interest expense	461			644			916			912
Expenses recovered pursuant to stock purchase agreement	—			—			(520		)	—
Total expenses	49,650			47,223			100,023			89,575
Income from operations before income taxes	7,079			8,479			13,891			15,944
Income tax expense	1,503			2,969			2,786			5,582
Net income attributable to common shareholders	$	5,576		$	5,510		$	11,105		$	10,362
Basic weighted average common shares outstanding	11,936,970			12,045,519			12,046,855			12,045,519
Earnings per common share, basic	$	0.47		$	0.46		$	0.92		$	0.86
Diluted weighted average common shares outstanding	11,952,266			12,181,880			12,070,343			12,191,646
Earnings per common share, diluted	$	0.47		$	0.45		$	0.92		$	0.85
Condensed Consolidated Statements of Comprehensive Income
Net income	$	5,576		$	5,510		$	11,105		$	10,362
Other comprehensive (loss) income:
Changes in net unrealized investment (losses) gains	(933		)	733			(3,701		)	1,082
Reclassification to net income	52			(150		)	210			(239		)
Effect of income taxes	184			(204		)	733			(295		)
Other comprehensive (loss) income	(697		)	379			(2,758		)	548
Total comprehensive income	$	4,879		$	5,889		$	8,347		$	10,910

Exhibit 99.1

ATLAS FINANCIAL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

($ in ‘000s, except for share and per share data)

	June 30, 2018 (unaudited)			December 31, 2017
Assets
Investments
Fixed income securities, available for sale, at fair value (amortized cost $142,100 and $158,411)	$	138,182		$	157,984
Equity securities, at fair value (cost $6,081 and $7,969)	6,463			8,446
Other investments	29,063			31,438
Total Investments	173,708			197,868
Cash and cash equivalents	52,707			45,615
Accrued investment income	1,355			1,248
Premiums receivable (net of allowance of $3,766 and $3,418)	91,056			79,664
Reinsurance recoverables on amounts paid	10,663			7,982
Reinsurance recoverables on amounts unpaid	46,614			53,402
Prepaid reinsurance premiums	24,213			12,878
Deferred policy acquisition costs	13,956			14,797
Deferred tax asset, net	14,636			16,985
Goodwill	2,726			2,726
Intangible assets, net	3,950			4,145
Property and equipment, net	28,356			24,439
Other assets	19,191			20,754
Total Assets	$	483,131		$	482,503
Liabilities
Claims liabilities	$	187,170		$	211,648
Unearned premium reserves	145,078			128,043
Due to reinsurers	15,586			8,411
Notes payable, net	24,143			24,031
Other liabilities and accrued expenses	14,932			19,725
Total Liabilities	$	386,909		$	391,858
Shareholders’ Equity
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued: June 30, 2018 - 12,192,475 and December 31, 2017 - 12,164,041; shares outstanding: June 30, 2018 - 11,936,970 and December 31, 2017 - 12,164,041	$	36		$	36
Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: June 30, 2018 and December 31, 2017 - 0	—			—
Additional paid-in capital	201,668			201,105
Treasury stock, at cost: June 30, 2018 - 255,505 and December 31, 2017 - 0 shares of ordinary voting common shares	(3,000		)	—
Retained deficit	(99,386		)	(110,535		)
Accumulated other comprehensive (loss) income, net of tax	(3,096		)	39
Total Shareholders’ Equity	96,222			90,645
Total Liabilities and Shareholders’ Equity	$	483,131		$	482,503

Exhibit 99.1

Use of Non-U.S. GAAP Financial Measurements

Atlas uses these non-GAAP financial measures in order to present its financial condition and results of operations in the way it believes will be most meaningful and representative of its business results. The non-GAAP financial measures that Atlas presents may not be comparable to similarly-named measures reported by other companies.

Adjusted operating income, before income taxes includes both underwriting income and loss and net investment income, but excludes net realized gains and losses, legal and professional expense incurred related to business combinations, interest expense, net impairment charges recognized in earnings and other items. Underwriting income is derived by reducing net premiums earned by net claims incurred, policy acquisition costs and general operating expenses.

Reconciliation of U.S. GAAP Net Income to Adjusted Operating Income, Before Income Taxes ($ in ‘000s, except per share data)
	Three Month Periods Ended								Six Month Periods Ended
	June 30, 2018				June 30, 2017				June 30, 2018						June 30, 2017
Net income	$	5,576	$	0.47	$	5,510	$	0.45	$	11,105		$	0.92		$	10,362	$	0.85
Add: income tax expense	1,503		0.12		2,969		0.25		2,786			0.22			5,582		0.46
Add: expenses recovered pursuant to stock purchase agreement	—		—		—		—		(520		)	(0.04		)	—		—
Add: interest expense	461		0.04		644		0.05		916			0.08			912		0.07
Less: income (loss) from change in fair value of equity securities	33		—		—		—		(95		)	(0.01		)	—		—
Less: net realized investment gains	154		0.02		284		0.02		447			0.04			418		0.03
Less: other income	16		—		103		0.01		180			0.01			217		0.02
Adjusted operating income, before income taxes	$	7,337	$	0.61	$	8,736	$	0.72	$	13,755		$	1.14		$	16,221	$	1.33

After-tax return on average common equity is derived by subtracting preferred share dividends accrued from net income and dividing by average common equity. Common equity is total shareholders’ equity less preferred shares and cumulative preferred share dividends accrued. Average common equity is the average of common equity at the beginning and the ending of the reporting period.

Reconciliation of U.S. GAAP Shareholders’ Equity to Common Equity ($ in ‘000s)
As of:	June 30, 2018		March 31, 2018		December 31, 2017		June 30, 2017		March 31, 2017		December 31, 2016
Total shareholders’ equity	$	96,222	$	91,390	$	90,645	$	138,857	$	132,683	$	127,342
Less: accrued dividends on preferred shares	—		333		333		333		333		333
Total common equity	$	96,222	$	91,057	$	90,312	$	138,524	$	132,350	$	127,009

Reconciliation of U.S. GAAP Return on Equity to Return on Common Equity ($ in ‘000s)
	Three Month Periods Ended						Six Month Periods Ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Net income	$	5,576		$	5,510		$	11,105		$	10,362
Average equity	93,806			135,769			93,434			133,099
Return on equity	23.8		%	16.2		%	23.8		%	15.6		%
Net income attributable to common shareholders	$	5,576		$	5,510		$	11,105		$	10,362
Average common equity	93,640			135,437			93,267			132,767
Return on average common equity	23.8		%	16.3		%	23.8		%	15.6		%

EX-99.2

NASDAQ: AFH 2018 Second Quarter Conference Call August 7, 2018

Safe Harbor Statements in this presentation, including the information set forth as to the future financial or operating performance of Atlas Financial Holdings, Inc., American Country Insurance Company, American Service Corporate Schaumburg, IL Insurance Company, Inc., Gateway Insurance Company and/or Global Insurance Company of New York Headquarters (Chicago Suburb) (collectively, “Atlas”), that are not current or historical factual statements may constitute “forward looking” information within the meaning of securities laws. Such forward looking statements involve known and Core Target unknown risks, uncertainties and other factors which may cause the actual results, performance or Markets Taxi/Limo/Livery/Paratransit achievements of Atlas, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this presentation, such statements may include, among other terms, such words as “may,” “will,” “expect,” “believe,” “plan,” NASDAQ: AFH At 6/30/2018 At 12/31/2017 “anticipate,” “intend,” “estimate” and other similar terminology. These statements reflect current expectations, estimates and projections regarding future events and operating performance and speak only as to the date Cash and $226.4 million $243.5 million of this presentation. Readers should not place undue importance on forward looking statements and should Investments not rely upon this information as of any other date. These forward looking statements involve a number of risks and uncertainties. Some of the factors facing Atlas that could cause actual results to differ materially Total Assets $483.1 million $482.5 million from those expressed in or underlying such forward looking statements include: (i) market fluctuations, changes in interest rates or the need to generate liquidity; (ii) access to capital; (iii) recognition of future tax Total Atlas benefits on realized and unrealized investment losses; (iv) managing expansion effectively; (v) conditions Shareholders’ $96.2 million $90.6 million affecting the industries in which we operate; (vi) competition from industry participants; (vii) attracting and Equity retaining independent agents and brokers; (viii) comprehensive industry regulation; (ix) our holding company structure; (x) our ratings with A.M. Best; (xi) new claim and coverage issues; (xii) claims payments and related expenses; (xiii) reinsurance arrangements; (xiv) credit risk; (xv) our ability to retain key personnel; (xvi) our ability to replace or remove management or Directors; (xvii) future sales of common shares; (xviii) Common Shares public company challenges; and (xix) failure to effectively execute our business plan. The foregoing list of Outstanding factors is not exhaustive. See also “Risk Factors” listed in the Company’s most recent registration statement (includes Restricted 11,944,378 12,178,857 filed with the SEC. Many of these issues can affect Atlas’ actual results and could cause the actual results Share Units) to differ materially from those expressed or implied in any forward looking statements made by, or on behalf of, Atlas. Readers are cautioned that forward looking statements are not guarantees of future performance, and should not place undue reliance on them. In formulating the forward looking statements contained in this presentation, it has been assumed that business and economic conditions affecting Atlas will continue Book Value Per substantially in the ordinary course. These assumptions, although considered reasonable at the time of Common Share $8.06 $7.42 preparation, may prove to be incorrect. Outstanding When discussing our business operations, we may use certain terms of art which are not defined under U.S. GAAP. In the event of any unintentional difference between presentation materials and our GAAP results, investors should rely on the financial information in our public filings. August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 2

2018 Q2 Financial and Underwriting Results Premium Underwriting Book Value Results Results Gross premiums written were $57.4 million for both Combined ratio was 88.9% as compared to 86.2% Atlas’ book value increased to $8.06 at 6/30/2018 Q2 2018 and Q2 2017. Challenged taxi accounts for the prior year period. from $7.42 at 12/31/2017 less likely to absorb rate increases than other segments. 1.4 percentage points of yr/yr loss ratio change attributable to assigned risk business. Overall premium shifted toward limo / livery / para- transit during period Gross Premiums Written Net Income Earnings per Common Share Diluted Book Value per Common Share (in millions) (in millions) $0.50 $0.47 $8.06 $0.45 $70 $7 $8.00 $7.42 $57.4 $57.4 $0.40 $60 $6 $5.5 $5.6 $6.00 $50 $5 $0.30 $40 $4 $4.00 $30 $3 $0.20 $20 $2 $2.00 $0.10 $10 $1 $0 $0 $0.00 $0.00 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q4 2017 Q2 2018 August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 3

Atlas Business Mix 2016 Full Year 2017 Full Year YTD 2018 Taxi Limo/Livery Para-transit Taxi Limo/Livery Para-transit Taxi Limo/Livery Para-transit Average Vehicles Average Vehicles Average Vehicles Per Policy Per Policy Per Policy Taxi 2.0 Taxi 2.0 Taxi 2.4 Limo/Livery 1.7 Limo/Livery 2.1 Limo/Livery 1.7 Para-transit 3.1 Para-transit 3.3 Para-transit 3.2 August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 4

Geographic Diversification Gross premiums written by state (in $000) Three Month Periods Ended June 30, 2018 June 30, 2017 Nationwide market share is estimated at approximately New York $ 16,406 28.6% $ 15,438 26.9% California 11,767 20.5% 9,589 16.7% 12% to 13%, with proportionate share forecast at 20% Virginia 2,720 4.7% 2,402 4.2% New Jersey 2,535 4.4% 3,142 5.5% Louisiana 2,216 3.9% 1,895 3.3% Texas 1,881 3.3% 2,137 3.7% Ohio 1,724 3.0% 1,948 3.4% Minnesota 1,623 2.8% 941 1.6% Illinois 1,616 2.8% 1,588 2.8% Georgia 1,395 2.4% 1,180 2.1% Other 13,476 23.6% 17,094 29.8% Total $ 57,359 100.0% $ 57,354 100.0% Other: 23.6% GA: 2.4% Other: 29.8% IL: 2.8% MN: 2.8% OH: 3.0% GA: 2.1% TX: 3.3% IL: 2.8% NY: 26.9% MN: 1.6% LA: 3.9% NY: 28.6% OH: 3.4% NJ: 4.4% TX: 3.7% VA: 4.7% LA: 3.3% NJ: 5.5% VA: 4.2% CA: 16.7% CA: 20.5% Limited volume of business in-force in FL to evaluate market conditions August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 5

Commercial Auto Insurance Competitive Landscape Continued demand and favorable market conditions Relatively flat trend in new business written, impacted by rate increases August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 6

Premiums Written: Rate Activity Pricing Relative to ISO 25 20 15 10 5 0 -5 -10 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Atlas Rate Change (Ave) Average ISO Recommendation (for period) Predictive Model Policy Counts 6/1/2016 - 6/30/2018 10,000 t 8,000 n u o 6,000 C y c i 4,000 l o P 2,000 0 0 - 100 101 - 200 201 - 300 301 - 400 401 - 500 501 - 600 601 - 700 701 - 800 801 - 900 901+ Score Group Policy Quote August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 7

Written Premium: In-force At June 30, 2018, in-force premium was $270.9 million and the Company’s gross unearned premium reserves were $145.1 million. Premium In-force & Unearned Premium Reserves $300 $250 $200 s n o i l $150 l i M $100 $50 $0 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q ASI Pool Global - 2015 Atlas Combined Unearned Premium Reserves August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 8

Financial Highlights

2018 Second Quarter Financial Highlights 2018 Second Quarter Financial and Operating Information Quarterly Premiums Affected by Rate Underwriting Book Value / Return on Equity Decisions / Shift in Market Dynamics Performance • Gross premiums written generated by • Underwriting income for the second • Book value per common share of the Company for both quarters ended quarter of 2018 was $6.2 million, $8.06 (increased $0.64 compared to June 30, 2018 and June 30, 2017 compared to underwriting income of prior year end) were $57.4 million $7.5 million in the prior year period • Return on equity was 23.8% in the • In-force premium at June 30, 2018 • Atlas’ underwriting expense ratio(1)(2) second quarter 2018 compared to increased 2.4% to $270.9 million, for the quarter ended June 30, 2018 16.2% in the prior year period compared to $268.5 million at was 27.3% December 31, 2017 • Combined Ratio(1) (“CR”) was 88.9% • Underwriting profit always takes • Net income was $5.6 million or $0.47 2018 Financial Expectations precedent over top line growth earnings per common share diluted ü • Expected continued market hardening Relative stability regarding target market (1) Ratios are computed as a percentage of net premiums earned with continued growth (2) Excluding the impact of share-based compensation expenses ü Emphasis remains on underwriting profit as priority ü Expense ratio at or below current levels ü Exceed P&C industry Return on Equity (“ROE”) by 500 - 1,000 bps No indicators of new market entry and Company continues to expect price leadership to optimize return on deployed capital via underwriting August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 10

Operating Leverage (Actual through Q2 2018) Controlling leverage through the use of quota share: Statutory $300 3.13 3.50 2.79 2.83 $250 3.00 2.20 2.50 $200 2.15 2.08 2.62 s 1.90 1.86 1.96 n 1.66 1.75 1.78 1.68 2.30 2.00 o 1.62 2.22 i l 1.51 l $150 i 1.76 1.83 1.82 1.50 M $227 $2219.75 $230 $100 1.51 1.46 1.58 $215 $209 $198 1.32 1.35 $1619.42 $178 $1717.37 $1717.33 $180 1.00 $137 $151 $111 $122 $112 $118 $122 $129 $133 $114 $118 $125 $131 $50 $104 $88 $91 $89 $63 $81 0.50 $0 0.00 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Net Premiums Written Surplus Net Premiums Written Core-Surplus Gross Premiums Written Core-Surplus GAAP $260 3.50 3.03 $240 2.77 2.63 3.00 $220 2.50 $200 s 1.95 1.93 1.89 2.54 n 1.70 1.76 1.68 1.76 2.29 2.00 o $180 i 1.53 1.57 l l 1.39 2.05 i $160 1.21 $227 $229 $230 1.50 M 1.11 $2115.62 1.63 1.59 $209 $140 1.41 $198 1.28 1.38 $1718.38 $1717.30 $1717.24 $180 1.00 $120 1.10 1.21 $169 1.03 $151 $143 $144 $137 $129 $136 $127 $133 $139 0.50 $100 $111 $122 $111 $114 $119 $122 $107 $96 $80 $91 $91 0.00 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Net Premiums Written GAAP Common Equity Net Premiums Written Core-GAAP Common Equity Gross Premiums Written Core-GAAP Common Equity August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 11

Combined Ratio Analysis The table below details the comparisons of each component of the Company’s combined ratio for the periods indicated (after accounting for the effect of quota share reinsurance): Three Month Periods Ended Six Month Periods Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Loss Ratio: Current accident year 60.7% 59.8% 60.7 % 59.9% Prior accident years 0.4% 0.3% 1.2 % 0.4% Loss Ratio 61.1% 60.1% 61.9 % 60.3% Underwriting Expense Ratio: Acquisition cost ratio 12.1% 12.3% 11.4 % 11.5% Other underwriting expense ratio 15.1% 12.4% 16.0 % 14.0% Deferred policy acquisition costs amortization ratio 0.1% 0.9% (0.2)% 0.1% Underwriting expense ratio before expenses related to stock purchase agreements and share-based compensation expenses 27.3% 25.6% 27.2 % 25.6% Expenses recovered related to stock purchase agreement ratio —% —% (0.5)% —% Share-based compensation expense ratio 0.5% 0.5% 0.5 % 0.6% Underwriting expense ratio 27.8% 26.1% 27.2 % 26.2% Total combined ratio 88.9% 86.2% 89.1 % 86.5% Note: 1.4% of yr/yr change in loss ratio attributable to assigned risk business August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 12

Combined Ratio Combined Ratio by Quarter Combined Ratio 250% 140% 200% * 130.3% and 72.9% impact in 120% Q4 2017 & 2016, respectively, 28.0% 150% related to claims 100% reserve strengthening on 24.1% prior accident 100% 80% years 30.3% 29.1% 29.0% 27.2% 50% 60% 94.5% 0% 40% 78.8% Q1 Q2 Q3 Q4* 63.9% 62.3% 59.2% 61.9% 20% 2013 2014 2015 2016 2017 2018 0% Three Month Periods Ended 2013 2014 2015 2016(1) 2017 (2) 2018 YTD June 30, 2018 June 30, 2017 Loss ratio 61.1% 60.1% Loss & LAE Ratio Underwriting Expense Ratio Underwriting expense ratio 27.8% 26.1% (1) 2016 includes 19.1% impact for the full year related to claims reserves strengthening related to Combined Ratio 88.9% 86.2% prior accident years (2) 2017 includes 35.0% impact for the full year related to claims reserves strengthening related to prior accident years August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 13

Healthy Balance Sheet with Availability of Capital & Reinsurance to Support Growth • Attractive investment leverage, Company has $25 million outstanding of Senior Unsecured Notes at June 30, 2018 ($ in millions) June 30, 2018 December 31, 2017 Cash and Investments $226.4 $243.5 Total Assets $483.1 $482.5 Claims Liabilities (gross of Reinsurance Recoverable) $187.2 $211.6 Unearned Premium Reserves $145.1 $128.0 Atlas Shareholders’ Equity $96.2 $90.6 August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 14

Investment Portfolio Conservative Investment Approach • Emphasize preservation of capital, market liquidity to support Investment Portfolio (6/30/2018) payment of liabilities and diversification of risk • Investment duration re-positioned to match core commercial auto reserve liabilities (4.2 years) Other Investments: Investment Portfolio Government: 17% 17% • As of June 30, 2018, total cash and invested assets were $226.4 million, of which fixed income consisted of 61.0% • Predominantly corporate and government bonds Equity Securities: 4% • Average S&P rating of AA Other Asset Backed: • 27.8% AAA 6% • 82.4% A or better Corporate: 29% June 30, 2018 December 31, 2017 Amount % of Total Amount % of Total Mortgage Backed: AAA/Aaa $ 38,443 27.8% $ 42,978 27.2% 27% AA/Aa 50,907 36.8% 58,173 36.8% A/A 24,598 17.8% 27,384 17.3% BBB/Baa 23,587 17.1% 28,348 18.0% BB 417 0.3% 875 0.6% Other than fixed income securities will be reduced as B 230 0.2% 226 0.1% a percentage of overall investments during 2018 Total Fixed Income Securities $ 138,182 100.0% $ 157,984 100.0% August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 15

Detailed Impact of Changes to Book Value per Common Share Book value per common share of $8.06 increased by $0.64 relative to December 31, 2017 as follows: 8.5 $0.03 $(0.01) $(0.23) $0.04 $8.06 $(0.09) 8.0 $0.90 ) s n o i l l i 7.5 $7.42 M ( $ 7.0 6.5 12/31/17 Net Income* Fair Value of Equity Securities* Net Realized Investment Gains* Unrealized Gains/Losses* Stock Repurchases* Share-Based Compensation* 06/30/18 August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call *after-tax 16

Operating Conclusions

Incremental Benefit of Predictive Analytics Claim Activity - ASI POOL Reserves Accident Year 2017 and Prior Claim Count • Overall claim pending reduced by more than 58% since year end – Includes new claims presented in Q2 ‘18 as well as re-opens • Scored reserves represent majority of open count Michigan • Pending claim count of 351 as of June 30, 2018 (includes new reported for 2018) Accident Year 2017 and Prior Loss Reserves • Gross Loss reserves (case plus IBNR) for the ASI Pool decreased 33.2% since year end • File review expectation plus modeled case plus physical damage reserves total $64.9 million • Additional IBNR of $42.4 million August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 18

Reserve Analysis Remaining IBNR (expect approximately 750 new claims that will ultimately be paid) Michigan Claims (running off) Non-Modeled Claims (will be reduced to zero) Predictive Model Based Case Reserves (2016 forward) Gross Loss & ALAE reserves (AY ‘17 and prior) decreased by 33.2%, while claim counts decrease by 58.8%. August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 19

Reserve Analysis Predictive Model Based Case Since launching modeling in claims, 7,331 scored claims have been closed • Aggregate case reserve of $62.7 million • Amount paid on closure (including CWOP) totaled $55.2 million • Predictive model based case reserves represent the majority of pending third party liability claims (AY 2017 & prior) • Average case reserve is $8,955 August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 20

Reserve Analysis Older Non-Modelled Claims YTD 2018, 420 older claims which were not scored by predictive model were closed • Aggregate paid was $12.7 million compared to the expected range of $7.8 - $18.3 million • Remaining count of non-scored claims is 638 • Average allocated case/IBNR per feature of approximately $35.5 thousand August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 21

Reserve Analysis Michigan Claims Continued progress winding down business • In force below 1% • 68.7% of open Michigan claims have been scored • Average case reserve is $63 thousand August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 22

Reserve Analysis Remaining IBNR • Approximately 750 additional claims are expected to be received and paid for AY 2017 and prior • Average IBNR per expected new claim is approximately $57 thousand Potential redundancy in modeled case if payments continue to be lower than modeled severity August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 23

Incremental Benefit of Predictive Analytics Claim Activity August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 24

Commercial Auto Insurance Competitive Landscape August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 25

Operating Activities: Underwriting (commercial business only: excludes Global Liberty) New and Renewal Business Submissions Vehicles In-Force (Monthly Vehicles Submitted) 50,000 10,000 9,000 45,000 8,000 7,000 40,000 6,000 5,000 35,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Number of Vehicles (incls Expiring) Prior Year Actual Prior Year August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 26

Incremental Benefit of Predictive Analytics Claim Activity New Claims Presented versus Vehicles In Force 30,000 70,000 60,000 25,000 50,000 20,000 40,000 6 7 8 6 6 7 7 8 8 6 7 6 7 8 6 6 6 6 7 7 7 7 8 6 7 8 15,000 6 6 7 7 30,000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - l l t t r r r r r r y y y v c v c b b b n n n n n n g p g p c c u u p p p a a a o e o e a a a a u a u a u e e e u e u e J J O O A A A J J J J J J M M M F F F N D N D A S A S M M M Vehicles In-force (right axis) Rolling Twelve Claims Presented August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 27

Atlas Business Mix % increase Hit ratio drops as price increases get larger August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 28

Expectations Premium Growth • Priority on margin over top line growth • Expect local competitors to follow price leadership exhibited in first half of year • Do not expect A.M. Best rating to have material impact on quality or quantity of business • Significant opportunities in TNC related space Operating Margin • Continued focus on increasing rate versus exposure • Maintain operating efficiency • Leverage value of core assets through partnership • Expand utilization of in-vehicle technologies • Ongoing commitment to analytics across enterprise Earning Power • Reiterate EPS guidance of $2.00 per share or better • ROAE > 20% August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 29

For Additional Information At the Company: Scott Wollney Chief Executive Officer swollney@atlas-fin.com 847-700-8600 NASDAQ: AFH Investor Relations: The Equity Group Inc. Adam Prior Senior Vice President APrior@equityny.com A reconciliation of Non-GAAP financial measures can be found on the next slide 212-836-9606

Reconciliation of Non-U.S. GAAP Financial Measurements We use these non-GAAP financial measures in order to present our financial condition and results of operations in the way we believe will be most meaningful and representative of our business results. The non-GAAP financial measures that we present may not be comparable to similarly-named measures reported by other companies. Adjusted operating income, before income taxes includes both underwriting income and loss and net investment income, but excludes net realized gains and losses, legal and professional expense incurred related to business combinations, interest expense, net impairment charges recognized in earnings and other items. Underwriting income is derived by reducing net premiums earned by net claims incurred, policy acquisition costs and general operating expenses. Reconciliation of U.S. GAAP Net Income to Adjusted Operating Income, Three Month Periods Ended Six Month Periods Ended Before Income Taxes ($ in ‘000s, except per share data) June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Net income $ 5,576 $ 0.47 $ 5,510 $ 0.45 $ 11,105 $ 0.92 $ 10,362 $ 0.85 Add: income tax expense 1,503 0.12 2,969 0.25 2,786 0.22 5,582 0.46 Add: expenses recovered pursuant to stock purchase agreement — — — — (520) (0.04) — — Add: interest expense 461 0.04 644 0.05 916 0.08 912 0.07 Less: loss from change in fair value of equity securities 33 — — — (95) (0.01) — — Less: net realized investment gains 154 0.02 284 0.02 447 0.04 418 0.03 Less: other income 16 — 103 0.01 180 0.01 217 0.02 Adjusted operating income, before tax $ 7,337 $ 0.61 $ 8,736 $ 0.72 $ 13,755 $ 1.14 $ 16,221 $ 1.33 After-tax return on average common equity is derived by subtracting preferred share dividends accrued from net income and dividing by average common equity. Common equity is total shareholders’ equity less preferred shares and cumulative preferred share dividends accrued. Average common equity is the average of common equity at the beginning and the ending of the reporting period. Reconciliation of U.S. GAAP Shareholders’ Equity to Common Equity ($ in ‘000s) As of: June 30, 2018 March 31, 2018 December 31, 2017 June 30, 2017 March 31, 2017 December 31, 2016 Total shareholders’ equity $ 96,222 $ 91,390 $ 90,645 $ 138,857 $ 132,682 $ 127,342 Less: accrued dividends on preferred shares — (333) (333) (333) (333) (333) Total common equity $ 96,222 $ 91,057 $ 90,312 $ 138,524 $ 132,349 $ 127,009 Reconciliation of U.S. GAAP Return on Equity to Return on Common Equity ($ in ‘000s) Three Month Periods Ended Six Month Periods Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Net income $ 5,576 $ 5,510 $ 11,105 $ 10,362 Average equity 93,806 135,769 93,434 133,099 Return on equity 23.8% 16.2% 23.8% 15.6% Net income $ 5,576 $ 5,510 $ 11,105 $ 10,362 Preferred share dividends accrued — — — — Net income attributable to common shareholders $ 5,576 $ 5,510 $ 11,105 $ 10,362 Average common equity 93,640 135,436 93,267 132,765.5 Return on average common equity 23.8% 16.3% 23.8% 15.6% August 7, 2018 Atlas Financial Holdings, Inc. 2018 Second Quarter Conference Call 31