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):  November 5, 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 November 5, 2018, Atlas Financial Holdings, Inc. (“Atlas”) reported its results for the quarter ended September 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 November 5, 2018, issued by Atlas Financial Holdings, Inc.

Exhibit 99.2 - Investor Supplement, dated November 5, 2018, issued by Atlas Financial Holdings, Inc.

Exhibit Index

99.1	Earnings Press Release, dated November 5, 2018, issued by Atlas Financial Holdings, Inc.
99.2	Investor Supplement, dated November 5, 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)

November 5, 2018

EX-99.1

Exhibit 99.1

Atlas Financial Holdings Announces Third Quarter 2018 Financial Results

Company to Hold Conference Call on Tuesday, November 6, 2018 at 8:30 a.m. ET

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

• Gross premiums written was $75.9 million for the three months ended September 30, 2018 compared to $65.9 million

• In-force premium as of September 30, 2018 increased 7.7% to $286.7 million

• Total revenue for the three months ended September 30, 2018decreased by 2.9% to $55.8 million

• Underwriting income for the third quarter 2018 was $6.3 million compared to $6.8 million

• The combined ratio for the third quarter 2018 was 88.5% compared to 87.9%

• Net income for the third quarter 2018 was $5.6 million, or $0.47 earnings per common share diluted, compared to $5.1 million, or $0.42 earnings per common share diluted, representing an increase of $0.05 or 11.9%

• Book value per common share as of September 30, 2018 was $8.53, compared to $7.42 as of December 31, 2017

• Annualized return on equity was 22.6% in the third quarter 2018 compared to 14.5%

Chicago, Illinois (November 5, 2018) - Atlas Financial Holdings, Inc. (NASDAQ: AFH) (“Atlas” or the “Company”) today reported its financial results for the third quarter ended September 30, 2018.

Management Comments

Scott D. Wollney, Atlas’ President and CEO, stated, “This was a healthy quarter highlighted by favorable underwriting income and a solid combined ratio, with incremental data supporting our claims processes and trend analysis as shared in prior periods. We continued to position Atlas’ insurance companies as price leaders in our niche during this hard market environment. Continued growth in our livery business related primarily due to the expansion of business related to drivers under dispatch with transportation network companies (“TNCs”), including a new program launched with a leasing company in connection with a major TNC in the quarter. As a result of these factors, Atlas reported a 15.2% increase in gross written premiums. We utilize predictive analytics and technology in pricing our products, and will continue to leverage these capabilities to provide a substantial competitive and margin advantage over our peers, who historically price these products using more traditional commoditized approaches. Our persistency and hit ratios related to more profitable accounts are dramatically better than those with higher loss costs which should have a positive impact on future results. We are also optimistic about the impact that the significant focus and investment Atlas has made in the InsureTech aspects of our business are beginning to deliver.”

Financial and Operational Review

Premiums Written: Gross premiums written was $75.9 million for the three months ended September 30, 2018 compared to $65.9 millionfor the three months ended September 30, 2017.

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 months ended September 30, 2017, Atlas experienced growth in gross premiums written in its core business in 26 states for the three months ended September 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 will reduce exposure to those that are more challenging.

Combined Ratio: Atlas’ combined ratio increased for the three months ended September 30, 2018 to 88.5%, compared to 87.9% in the prior year period.

• Loss Ratio: The loss ratio relating to claims incurred for the three months ended September 30, 2018 was 61.6%, compared to 59.5% for the three months ended September 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

Exhibit 99.1

product. Excluding the impact of assigned risk business, the loss ratio relating to the net claims incurred was 61.2% for the three months ended September 30, 2018, compared to 59.0% for the three months ended September 30, 2017.

• While the Company’s year-to-date loss ratio for 2018 is carried higher than the prior year, incremental loss ratio improvement is expected 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.

• Underwriting Expense Ratio: The underwriting expense ratio for the three months ended September 30, 2018 was 26.9% compared to 28.4% for the three months ended September 30, 2017. The ratio decreased mainly because of lower acquisition costs during the quarter. 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 months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
Loss Ratio:
Current accident year	61.7	%	59.3	%	61.0	%	59.6	%
Prior accident years	(0.1	)	0.2		0.8		0.4
Loss Ratio	61.6		59.5		61.8		60.0
Underwriting Expense Ratio:
Acquisition cost ratio	10.5		14.0		11.1		12.4
Other underwriting expense ratio	16.0		13.3		16.0		13.7
Deferred policy acquisition cost (“DPAC”) amortization ratio	(0.1	)	0.6		(0.2	)	0.3
Underwriting expense ratio before expenses related to stock purchase agreements and share-based compensation expenses	26.4		27.9		26.9		26.4
Expenses recovered related to stock purchase agreement ratio	—		—		(0.3	)	—
Share-based compensation expense ratio	0.5		0.5		0.5		0.6
Underwriting expense ratio	26.9	%	28.4	%	27.1	%	27.0	%
Total combined ratio	88.5		87.9		88.9		87.0

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 months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
Acquisition costs	13.6	%	16.1	%	15.3	%	14.9	%
Other insurance general and administrative expenses	13.2		11.9		13.9		12.4
DPAC amortization	(0.1	)	0.6		(0.1	)	0.2
Expenses recovered related to stock purchase agreements	—		—		(0.3	)	—
Share-based compensation expense	0.4		0.5		0.4		0.5
Total underwriting expense ratio	27.1	%	29.1	%	29.2	%	28.0	%

Underwriting Results: Underwriting profit was $6.3 million for the three months ended September 30, 2018, compared to $6.8 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 months ended September 30, 2018, compared to $7.9 million in the same period of the prior year.

Income Taxes: Atlas recognized tax expense of $1.5 million for the three months ended September 30, 2018 compared to $2.8 million in the same period of the prior year.

Net Income: Atlas reported net income of $5.6 million for the three months ended September 30, 2018, compared to $5.1 million for the three months ended September 30, 2017.

Earnings per common share (“EPS”): Atlas generated $0.47 earnings per common share diluted for the three months ended September 30, 2018 compared to $0.42 for the three months ended September 30, 2017.

Share Count: The following chart illustrates Atlas’ potential dilutive common shares for the three months ended September 30, 2018 and 2017:

	Three months ended September 30,
	2018	2017
Weighted average common shares outstanding	11,936,970	12,014,817
Dilutive potential ordinary shares:
Dilutive stock options	14,247	16,921
Dilutive average common shares outstanding	11,951,217	12,031,738

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 months ended September 30, 2018 and 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 $8.53 based on 11,944,378 common shares outstanding as of September 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 $8.53increased by $1.11 relative to December 31, 2017 as follows:

$	1.37		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;
(0.25		)	decrease related to the change in unrealized gains/losses after tax;
(0.09		)	decrease related to share repurchases; and
0.06			increase related to share-based compensation.
$	1.11		total increase fromDecember 31, 2017book value per common share

Cash and Invested Assets: Cash and invested assets as of September 30, 2018 totaled $217.5 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 September 30, 2018, the average life on the Company’s portfolio was 5.1 years with a duration of 3.8 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 third quarter 2018, 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 $1.1 million and $902,000 for the quarters ended September 30, 2018 and 2017, respectively, as well as $54,000 and $582,000 of net realized gains, respectively. The increase in net investment income resulted from higher returns on equity method investments and lower investment expenses, partially offset by lower interest income on our fixed income securities and collateral loans. The gross annualized investment yield on the Company’s fixed income securities was 2.7% and 2.4% for the quarters ended September 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 0.4% for the quarters ended September 30, 2018 and 2017, respectively. The increase in the gross annualized yield on our 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 September 30, 2018 were primarily comprised of gains from the sale of equity securities and one equity method 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 loss of $2,000 through net income for the quarter ended September 30, 2018 related to the changes in unrealized amounts on equities held at fair value.

Outlook for 2018

Mr. Wollney concluded, “Our focus remains on bottom line execution and focusing on risk selection and underwriting profit. In the quarter, we continue to carry a loss ratio that we believe is conservative despite putting a significant amount of rate into the market. As always, we will conduct a full-year in-depth analysis of this ratio along with overall reserves for prior years. In the aggregate, we continue to close claims faster than in the past and for lower calendar year paid severity amounts. Ultimately, the goal of introducing analytics in our claims process was to accomplish this, and we are pleased to see data supporting this expectation. Over time, we expect our loss ratio will trend in a positive direction based on the approach we are taking to leverage current market conditions.”

Exhibit 99.1

Conference Call Details

Date/Time:Tuesday, November 6, 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/q3-2018. 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., and optOn Insurance Agency 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., DriveOn Digital IP Inc. and optOn Insurance Agency 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.

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.

Exhibit 99.1

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 months ended September 30,						Nine months ended September 30,
Condensed Consolidated Statements of Income	2018			2017			2018			2017
	(unaudited)						(unaudited)
Net premiums earned	$	54,461		$	55,865		$	165,712		$	158,340
Net investment income	1,070			902			3,201			3,311
Loss from change in fair value of equity securities	(2		)	—			(97		)	—
Net realized gains	54			582			501			1,000
Other income	186			115			366			332
Total revenue	55,769			57,464			169,683			162,983
Net claims incurred	33,542			33,258			102,397			95,027
Acquisition costs	5,701			7,820			18,357			19,586
Other underwriting expenses	8,841			7,937			26,762			22,870
Amortization of intangible assets	97			97			292			292
Interest expense	465			467			1,381			1,379
Expenses recovered pursuant to stock purchase agreement	—			—			(520		)	—
Total expenses	48,646			49,579			148,669			139,154
Income from operations before income taxes	7,123			7,885			21,014			23,829
Income tax expense	1,518			2,760			4,304			8,342
Net income attributable to common shareholders	$	5,605		$	5,125		$	16,710		$	15,487
Basic weighted average common shares outstanding	11,936,970			12,045,519			12,014,817			12,045,519
Earnings per common share, basic	$	0.47		$	0.43		$	1.39		$	1.29
Diluted weighted average common shares outstanding	11,951,217			12,207,537			12,031,738			12,197,365
Earnings per common share, diluted	$	0.47		$	0.42		$	1.39		$	1.27
Condensed Consolidated Statements of Comprehensive Income
Net income	$	5,605		$	5,125		$	16,710		$	15,487
Other comprehensive (loss) income:
Changes in net unrealized investment (losses) gains	(307		)	144			(4,008		)	1,226
Reclassification to net income	(19		)	56			191			(183		)
Effect of income taxes	69			(70		)	802			(365		)
Other comprehensive (loss) income	(257		)	130			(3,015		)	678
Total comprehensive income	$	5,348		$	5,255		$	13,695		$	16,165

Exhibit 99.1

ATLAS FINANCIAL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

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

	September 30, 2018			December 31, 2017
Assets	(unaudited)
Investments
Fixed income securities, available for sale, at fair value (amortized cost $132,181 and $158,411)	$	127,937		$	157,984
Equity securities, at fair value (cost $5,650 and $7,969)	6,030			8,446
Short-term investments	4,620			—
Other investments	29,665			31,438
Total Investments	168,252			197,868
Cash and cash equivalents	49,251			45,615
Accrued investment income	1,105			1,248
Premiums receivable (net of allowance of $4,401 and $3,418)	101,361			79,664
Reinsurance recoverables on amounts paid	9,661			7,982
Reinsurance recoverables on amounts unpaid	55,085			53,402
Prepaid reinsurance premiums	34,798			12,878
Deferred policy acquisition costs	10,394			14,797
Deferred tax asset, net	13,042			16,985
Goodwill	2,726			2,726
Intangible assets, net	3,853			4,145
Property and equipment, net	30,328			24,439
Other assets	21,311			20,754
Total Assets	$	501,167		$	482,503
Liabilities
Claims liabilities	$	186,981		$	211,648
Unearned premium reserves	149,363			128,043
Due to reinsurers	19,153			8,411
Notes payable, net	24,199			24,031
Other liabilities and accrued expenses	19,616			19,725
Total Liabilities	$	399,312		$	391,858
Shareholders’ Equity
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued: September 30, 2018 - 12,192,475 and December 31, 2017 - 12,164,041; shares outstanding: September 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: September 30, 2018 and December 31, 2017 - 0	—			—
Additional paid-in capital	201,953			201,105
Treasury stock, at cost: September 30, 2018 - 255,505 and December 31, 2017 - 0 shares of ordinary voting common shares	(3,000		)	—
Retained deficit	(93,781		)	(110,535		)
Accumulated other comprehensive (loss) income, net of tax	(3,353		)	39
Total Shareholders’ Equity	101,855			90,645
Total Liabilities and Shareholders’ Equity	$	501,167		$	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 months ended September 30,									Nine months ended September 30,
	2018					2017				2018						2017
Net income	$	5,605		$	0.47	$	5,125	$	0.42	$	16,710		$	1.39		$	15,487	$	1.27
Add: income tax expense	1,518			0.13		2,760		0.23		4,304			0.36			8,342		0.69
Add: expenses recovered pursuant to stock purchase agreement	—			—		—		—		(520		)	(0.04		)	—		—
Add: interest expense	465			0.04		467		0.04		1,381			0.11			1,379		0.11
Less: loss from change in fair value of equity securities	(2		)	—		—		—		(97		)	(0.01		)	—		—
Less: net realized investment gains	54			—		582		0.05		501			0.04			1,000		0.08
Less: other income	186			0.02		115		0.01		366			0.03			332		0.03
Adjusted operating income, before income taxes	$	7,350		$	0.62	$	7,655	$	0.63	$	21,105		$	1.76		$	23,876	$	1.96

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:	September 30, 2018		June 30, 2018		December 31, 2017			September 30, 2017			June 30, 2017			December 31, 2016
Total shareholders’ equity	$	101,855	$	96,222	$	90,645		$	144,397		$	138,857		$	127,342
Accrued dividends on preferred shares	—		—		(333		)	(333		)	(333		)	(333		)
Total common equity	$	101,855	$	96,222	$	90,312		$	144,064		$	138,524		$	127,009

Reconciliation of U.S. GAAP Return on Equity to Return on Common Equity ($ in ‘000s)
	Three months ended September 30,						Nine months ended September 30,
	2018			2017			2018			2017
Net income	$	5,605		$	5,125		$	16,710		$	15,487
Average equity	99,039			141,627			96,250			135,869
Return on average equity (annualized)	22.6		%	14.5		%	23.1		%	15.2		%
Net income attributable to common shareholders	$	5,605		$	5,125		$	16,710		$	15,487
Average common equity	99,039			141,294			96,084			135,537
Return on average common equity (annualized)	22.6		%	14.5		%	23.2		%	15.2		%

EX-99.2

NASDAQ: AFH Third Quarter 2018 Conference Call November 6, 2018

Safe Harbor: Atlas by the Numbers 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 Limo/Livery/Paratransit/Taxi 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 9/30/2018 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 $217.5 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 $501.2 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’ $101.9 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 $8.53 $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. November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 2

Q3 2018 Financial and Underwriting Results Premium Underwriting Book Value Results Results Gross premiums written were $75.9 million in Q3 Combined ratio was 88.5% as compared to 87.9% Atlas’ book value increased to $8.53 at September 2018 compared to $65.9 million in Q3 2017. for the prior year period. 30, 2018 from $7.42 at December 31, 2017 Challenged taxi accounts less likely to absorb rate increases than other segments. 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) $8.53 $0.50 $0.47 $100 $7 $8.00 $7.42 $0.42 $6 $5.6 $0.40 $80 $75.9 $5.1 $6.00 $65.9 $5 $0.30 $60 $4 $4.00 $3 $0.20 $40 $2 $2.00 $20 $0.10 $1 $0 $0 $0.00 $0.00 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q4 2017 Q3 2018 November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 3

Atlas Business Mix 2016 Full Year 2017 Full Year YTD Q3 2018 Taxi Limo/Livery/TNC Taxi Limo/Livery/TNC Taxi Limo/Livery Para-transit Para-transit 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 November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 4

Geographic Diversification Gross premiums written by state (in $000) Three months ended September 30, 2018 2017 Nationwide market share is estimated at approximately New York $ 36,082 47.5% $ 23,136 35.1% California 10,805 14.2% 9,446 14.3% 12% to 13%, with proportionate share forecast at 20% New Jersey 2,572 3.4% 2,327 3.5% Virginia 2,473 3.3% 2,265 3.4% Missouri 1,933 2.5% 2,296 3.5% Ohio 1,799 2.4% 2,028 3.1% Georgia 1,567 2.1% 1,360 2.1% Louisiana 1,483 2.0% 1,211 1.8% Texas 1,448 1.9% 2,271 3.4% Illinois 1,248 1.6% 1,476 2.2% Other 14,507 19.1% 18,082 27.6% Total $ 75,917 100.0% $ 65,898 100.0% IL: 1.6% TX: 1.9% Other: 19.1% Other: 27.6% LA: 2.0% GA: 2.1% OH: 2.4% MO: 2.5% IL: 2.2% VA: 3.3% TX: 3.4% NJ: 3.4% LA: 1.8% GA: 2.1% NY: 35.1% OH: 3.1% MO: 3.5% CA: 14.2% VA: 3.4% NY: 47.5% NJ: 3.5% CA: 14.3% Limited volume of business in-force in FL to evaluate market conditions November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 5

Premiums Written: Rate Activity Pricing Relative to ISO 40 30 20 10 0 -10 -20 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 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 Q3 Atlas Rate Change (Ave) Average ISO Recommendation (for period) Predictive Model Policy Counts 6/1/2016 - 9/30/2018 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 November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 6

Market Conditions Price Elasticity November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 7

Written Premium: In-force At September 30, 2018, in-force premium was $286.7 million and the Company’s gross unearned premium reserves were $149.4 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 18 20 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 3 Q 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 November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 8

Financial Highlights

Third Quarter 2018 Financial Highlights Third Quarter 2018 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 third • Book value per common share of the Company were $75.9 million at quarter of 2018 was $6.3 million, $8.53 (increased $1.11 compared to September 30, 2018 compared to compared to underwriting income of prior year end) $65.9 million at September 30, 2017 $6.8 million in the prior year period • Return on equity was 22.6% in the • In-force premium at September 30, • Atlas’ underwriting expense ratio(1)(2) third quarter of 2018 compared to 2018 increased 6.8% to $286.7 for the quarter ended September 30, 14.5% in the prior year period million, compared to $268.5 million at 2018 was 26.4% December 31, 2017 (1) 2018 Financial Expectations • Combined Ratio (“CR”) was 88.5% ü • Underwriting profit always takes Relative stability regarding target market with continued growth precedent over top line growth • Net income was $5.6 million or $0.47 ü Emphasis remains on underwriting profit as earnings per common share diluted priority • Expected continued market hardening ü Expense ratio at or below current levels (1) Ratios are computed as a percentage of net premiums earned ü (2) Excluding the impact of share-based compensation expenses 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 November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 10

Operating Leverage (Actual through Q3 2018) Controlling leverage through the use of quota share: Statutory 3.91 $250 4.00 3.13 $200 3.03 3.26 2.67 3.00 2.40 s $150 2.20 2.15 2.08 n 1.90 1.96 2.62 1.97 o 1.86 i 1.78 l 1.75 l 1.66 1.68 2.00 i 1.62 1.51 $215 $227 $229 $230 $226 $214 M $207 $100 1.83 1.82 1.76 $169 1.42 $178 1.46 $177 1.37 $177 $180 1.75 1.51 1.32 $151 1.35 1.33 1.58 $122 $137 $122 $129 $133 $125 $131 1.00 $111 $104 $112 $118 $114 $118 $105 $50 $81 $88 $89 $63 $69 $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 Q3 2018 Net Premiums Written Surplus Net Premiums Written Core-Surplus Gross Premiums Written Core-Surplus GAAP $250 3.04 2.98 2.81 2.75 3.00 $200 s 1.95 1.93 1.89 2.55 2.48 n $150 1.70 1.76 1.68 1.76 2.00 o 2.22 i 1.53 1.57 l l 1.39 2.03 i $227 $229 $230 1.21 $215 $226 $214 $207 M 1.11 1.41 $100 1.28 1.38 $178 1.38 $177 1.30 $177 $180 1.62 1.63 1.59 1.10 1.21 $169 1.24 1.03 $137 $151 $136 $143 $133 $139 $144 1.00 $111 $122 $111 $114 $119 $122 $129 $127 $50 $107 $90 $91 $96 $102 $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 Q3 2018 Net Premiums Written GAAP Common Equity Net Premiums Written Core-GAAP Common Equity Gross Premiums Written Core-GAAP Common Equity November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 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 months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Loss Ratio: Current accident year 61.7 % 59.3% 61.0 % 59.6% Prior accident years (0.1)% 0.2% 0.8 % 0.4% Loss Ratio 61.6 % 59.5% 61.8 % 60.0% Underwriting Expense Ratio: Acquisition cost ratio 10.5 % 14.0% 11.1 % 12.4% Other underwriting expense ratio 16.0 % 13.3% 16.0 % 13.7% Deferred policy acquisition costs amortization ratio (0.1)% 0.6% (0.2)% 0.3% Underwriting expense ratio before expenses related to stock purchase agreements and share-based compensation expenses 26.4 % 27.9% 26.9 % 26.4% Expenses recovered related to stock purchase agreement ratio — % —% (0.3)% —% Share-based compensation expense ratio 0.5 % 0.5% 0.5 % 0.6% Underwriting expense ratio 26.9 % 28.4% 27.1 % 27.0% Total combined ratio 88.5 % 87.9% 88.9 % 87.0% November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 12

Combined Ratio Combined Ratio by Quarter Combined Ratio 250% 140% 200% * 130.3% and 120% 72.9% impact in Q4 2017 & 2016, 28.0% respectively, 100% 150% related to claims reserve 24.1% strengthening on 80% 100% prior accident 30.3% 29.1% years 29.0% 27.1% 50% 60% 94.5% 0% 40% 78.8% Q1 Q2 Q3 Q4* 63.9% 62.3% 59.2% 61.8% 20% 2013 2014 2015 2016 2017 2018 0% (1) (2) Three months ended September 30, 2013 2014 2015 2016 2017 2018 Q3 YTD 2018 2017 Loss & LAE Ratio Underwriting Expense Ratio Loss ratio 61.6% 59.5% Underwriting expense ratio 26.9% 28.4% (1) 2016 includes 19.1% impact for the full year related to claims reserves strengthening related to Combined Ratio 88.5% 87.9% prior accident years (2) 2017 includes 35.0% impact for the full year related to claims reserves strengthening related to prior accident years November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 13

Healthy Balance Sheet with Availability of Capital & Reinsurance to Support Growth • Attractive investment leverage, Company has $25 million outstanding of Senior Unsecured Notes at September 30, 2018 ($ in millions) September 30, 2018 December 31, 2017 Cash and Investments $217.5 $243.5 Total Assets $501.2 $482.5 Claims Liabilities (gross of Reinsurance Recoverable) $187.0 $211.6 Unearned Premium Reserves $149.4 $128.0 Atlas Shareholders’ Equity $101.9 $90.6 November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 14

Investment Portfolio Conservative Investment Approach • Emphasize preservation of capital, market liquidity to support Investment Portfolio (9/30/2018) payment of liabilities and diversification of risk • Investment duration re-positioned to match core commercial auto reserve liabilities (3.8 years) Investment Portfolio Other Investments: Government: 17% 18% • As of September 30, 2018, total cash and invested assets were $217.5 million, of which fixed income consisted of 58.8% • Predominantly corporate and government bonds Short-term Investments: 3% • Average S&P rating of AA Equity Securities: 4% • 27.6% AAA Other Asset Backed: • 83.3% A or better 5% Corporate: 26% September 30, 2018 December 31, 2017 Amount % of Total Amount % of Total AAA/Aaa $ 35,286 27.6% $ 42,978 27.2% Mortgage Backed: AA/Aa 49,278 38.5 58,173 36.8 27% A/A 21,994 17.2 27,384 17.3 BBB/Baa 20,591 16.1 28,348 18.0 BB 569 0.4 875 0.6 Other than fixed income securities will be reduced as B 219 0.2 226 0.1 a percentage of overall investments during 2018 Total Fixed Income Securities $ 127,937 100.0% $ 157,984 100.0% November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 15

Detailed Impact of Changes to Book Value per Common Share Book value per common share of $8.53 increased by $1.11 relative to December 31, 2017 as follows: 9.0 $0.03 $(0.01) $(0.25) $0.06 $8.53 8.5 $(0.09) $1.37 8.0 ) s n o i l l i M ( $ 7.5 $7.42 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* 09/30/18 *after-tax November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 16

Operating Conclusions

Reserve Analysis November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 18

Incremental Benefit of Predictive Analytics Claim Activity - ASI POOL Reserves November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 19

Reserve Analysis Predictive Model Based Case November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 20

Reserve Analysis Older Non-Modelled Claims November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 21

Reserve Analysis Michigan Claims November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 22

Reserve Analysis Remaining IBNR November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 23

Closures by Settle Year Displays November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 24

Market Conditions Pricing Trend November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 25

Market Conditions Pricing Trend November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 26

Operating Activities: Underwriting (ASI Pool Companies, commercial business) New and Renewal Business Submissions Vehicles In-Force (Monthly Vehicles Submitted) 52,000 10,000 50,000 9,000 48,000 8,000 46,000 44,000 7,000 42,000 6,000 40,000 5,000 38,000 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 November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 27

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 8 6 7 8 15,000 6 6 7 7 8 38 0,000 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 1 1 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - l 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 g p c c u 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 u e J 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 A S M M M Vehicles In-force Rolling Twelve Claims Presented November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 28

Usage Based Insurance Innovative Fintech Initiative focusing on “Part Time” TNC drivers https://www.getopton.com/ November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 29

Outlook for 2018 Premium Growth • Priority on margin over top line growth • Expect local competitors to follow price leadership exhibited in first half of year • Modest impact of A.M. Best rating on quality or quantity of business • Significant opportunities in TNC related space • Building on partnership opportunities that may accelerate expansion in the TNC space Operating Margin • Continued focus on increasing rate relative to 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 • Company has been conservatively carrying a loss ratio above prior years despite putting a significant amount of rate into the market • Previously announced $2.00 net earnings per share target predicated on full year 2018 loss ratio similar to or better than 2017 as determined at year end 2018 • ROAE > 20% November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 30

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 months ended September 30, Nine months ended September 30, Before Income Taxes ($ in ‘000s, except per share data) 2018 2017 2018 2017 Net income $ 5,605 $ 0.47 $ 5,125 $ 0.42 $ 16,710 $ 1.39 $ 15,487 $ 1.27 Add: income tax expense 1,518 0.13 2,760 0.23 4,304 0.36 8,342 0.69 Add: expenses recovered pursuant to stock purchase agreement — — — — (520) (0.04) — — Add: interest expense 465 0.04 467 0.04 1,381 0.11 1,379 0.11 Less: loss from change in fair value of equity securities (2) — — — (97) (0.01) — — Less: net realized investment gains 54 — 582 0.05 501 0.04 1,000 0.08 Less: other income 186 0.02 115 0.01 366 0.03 332 0.03 Adjusted operating income, before tax $ 7,350 $ 0.62 $ 7,655 $ 0.63 $ 21,105 $ 1.76 $ 23,876 $ 1.96 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: September 30, 2018 June 30, 2018 December 31, 2017 September 30, 2017 June 30, 2017 December 31, 2016 Total shareholders’ equity $ 101,855 $ 96,222 $ 90,645 $ 144,397 $ 138,857 $ 127,342 Accrued dividends on preferred shares — — (333) (333) (333) (333) Total common equity $ 101,855 $ 96,222 $ 90,312 $ 144,064 $ 138,524 $ 127,009 Reconciliation of U.S. GAAP Return on Equity to Return on Common Equity ($ in ‘000s) Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Net income $ 5,605 $ 5,125 $ 16,710 $ 15,487 Average equity 99,039 141,627 96,250 135,869 Return on average equity (annualized) 22.6% 14.5% 23.1% 15.2% Net income attributable to common shareholders $ 5,605 $ 5,125 $ 16,710 $ 15,487 Average common equity 99,039 141,294 96,084 135,537 Return on average common equity (annualized) 22.6% 14.5% 23.2% 15.2% November 6, 2018 Atlas Financial Holdings, Inc. Third Quarter 2018 Conference Call 32