Atlas Financial Holdings Files 2020 Annual Report on Form 10-K

Atlas Financial Holdings, Inc. (OTC: AFHIF) ("Atlas” or the "Company”) today announced that the Company has filed with the Securities and Exchange Commission ("SEC”) its Annual Report on Form 10-K for the year ended December 31, 2020 (the "Annual Report”). With the filing of the most recent Annual Report, Atlas is now current with its quarterly and annual reporting requirements. The most recent filing can be reviewed in full in the SEC Filings section of the Company’s website at www.atlas-fin.com.

The Company is working with the objective of filing its quarterly report for the period ended March 31, 2021 by the required filing date.

2021 Focus: Delivering on Managing General Agency "MGA” Strategy

In 2020, Atlas continued to expand its MGA platform through partnerships with external risk taking partners. Despite incremental challenges related to the COVID-19 pandemic, the Company continued building a strong specialty brand based on its innovative strategic focus coupled with its long heritage as an insurer of public auto operators. According to data compiled by S&P Global, the total addressable market size for commercial auto in total was approximately $45 billion in direct written premiums in 2020 in the U.S. Historically, Atlas concentrated on public auto which is a smaller subset of that total market (estimated at $2 - $3 billion), and feels that its MGA operation can achieve meaningful scale through the re-capturing of business from its previous underwriting operations as well as new growth opportunities.

The Company reduced the size of its business volume and staffing during 2020. This was a measured approach to both ‘right-size’ the business as part of the transition to its MGA strategy, as well as to manage through COVID-19 pandemic conditions. As detailed in our Annual Report, the Company’s ability to realize opportunities for growth and value creation coming out of a broader post-pandemic economic recovery will be dependent on its ability to refinance or otherwise satisfy the Company’s senior debt obligation maturing in April 2022 as well as other financial liabilities including obligations related to real estate and the anticipated forgiveness of PPP loans. Resolving these issues has been hindered by the current COVID-19 pandemic, and other factors, and remain important steps necessary to create value over time.

Recently in 2021, there appears to be a notable increase in demand in the ride-sharing market, which has exceeded previous rider totals as passengers are seeking individual rides in lieu of mass transit. A more measured increase in ridership has also been seen in many jurisdictions in connection with ‘traditional’ taxi, livery, limousine, and paratransit operators. The Company intends to leverage its core competencies in the light commercial auto market, including strong distribution relationships, data driven analytics, underwriting expertise and technology to recapture business and expand market presence to capitalize on anticipated incremental recovery in these important transportation sectors.

Management Commentary

Scott D. Wollney, Atlas’ President & CEO, said, "We are very pleased to file our Annual Report and become current in our financial reporting obligations, which has been a long and challenging endeavor. I want to thank our Team for their commitment and resolve as we’ve worked through the many challenges of the past year in particular. We feel strongly that the Company has been reorganized to take advantage of our specialized expertise, infrastructure, technology, and relationships in light commercial auto. We continue to maintain solid partnerships with Buckle and National Interstate that allow our MGA to scale as we recapture revenue generating business. Earlier this year, we launched a complementary wholesale motor truck cargo and physical damage program with ITMA and are pursuing other incremental opportunities to expand the scope of our product offerings as well. We have been encouraged by the recent surge in ride-sharing activities as the restrictions related to pandemic conditions appear to be starting to abate. This should be a leading indicator of overall demand in the specialty segments on which Atlas focuses as an MGA and we believe that people are more likely to select individualized riding options compared to utilizing broader mass transit as recovery continues.”

Mr. Wollney concluded, "As an organization, we are focused on shifting from survival to success and are committed to reporting financial and operating results reflecting our strategic transition to an MGA focused business model in a more ‘normalized’ operating environment. While we believe it is premature to provide specific guidance, we are cautiously optimistic and excited to see movement in the right direction. We believe that both our ‘traditional’ managing agency infrastructure as well as our proprietary digital insuretech platform, optOn^TM are valuable assets that can be scaled significantly over time to create value for our customers, partners, shareholders, and other stakeholders.”

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, nonemergency para-transit, limousine/livery (including full-time transportation network company drivers) and business auto. Atlas’ specialized infrastructure is designed to leverage analytics, expertise and technology to efficiently and profitably provide insurance solutions for independent contractors, owner operators and other smaller accounts. The Company focuses on underserved and evolving niche markets where its differentiated approach is expected to create value for its stakeholders and shareholders.

The Company’s strategy is focused on leveraging its managing general agency operation ("AGMI”) and its insuretech digital platform ("optOn”). For more information about Atlas, please visit www.atlas-fin.com, www.agmiinsurance.com , and www.getopton.com.

Forward-Looking Statements

This release includes forward-looking statements regarding Atlas and its insurance subsidiaries and businesses. Such statements are based on the current expectations of the management of each entity. The words "anticipate,” "expect,” "believe,” "may,” "should,” "estimate,” "project,” "outlook,” "forecast” or similar words are used to identify such forward looking information. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Companies, including risks regarding the insurance industry, economic factors and the equity markets generally and the risk factors discussed in the "Risk Factors” section of the Company’s 2020 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.

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