Atlas Financial Holdings, Inc. AFH reported first-quarter 2016 operating income of 34 cents per share, which missed the Zacks Consensus Estimate of 37 cents. However, earnings improved 26% year over year on higher revenues.Atlas Financial Holdings Inc. (AFH) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany Including non-recurring items, net income came in at 38 cents per share, more than double year over year. Behind the HeadlinesAtlas Financial’s revenues surged 52.3% year over year to $43 million on higher net premiums earned (up 38.4%), net investment income (up 25.6%) and a significant rise in other income (up 219%). However, revenues missed the Zacks Consensus Estimate of $47 million.Gross premiums written soared 42.4% year over year to $64 million. Core commercial auto business premiums increased 42.9% and in-force premiums as of Mar 31, 2016 were $220.6 million.The company’s total expenses increased 31% year over year to $35.5 million due to a rise in net claims incurred, acquisition costs, interest costs and other underwriting expenses.Atlas Financial’s underwriting income was $6.5 million, reflecting an over twofold increase from the year-ago quarter. Combined ratio improved 540 basis points (bps) year over year to 84.4% driven by a 900 bps improvement in underwriting ratio.Financial UpdateAtlas Financial exited the quarter with cash and cash equivalents of $17.3 million, down 22.8% from the 2015-end level.Total assets of Atlas Financial increased 2.9% from year-end 2015 to $423.3 million as of Mar 31, 2016.Total shareholders’ equity increased 5.2% from year-end 2015 to $136.6 million.Book value was $10.73 per share as of Mar 31, 2016, up 16.3% year over year.Atlas Financial’s return on average common equity was 15% in the quarter, higher than 7.7% in the year-ago quarter.2016 GuidanceAtlas Financial expects a favorable pricing environment in the specialty light commercial auto market.Zacks Rank and Performance of Other InsurersCurrently, Atlas Financial carries a Zacks Rank #3 (Hold). The bottom line at RLI Corp RLI, The Allstate Corporation ALL and Aflac Inc. AFL outperformed their Zacks Consensus Estimate in the first quarter.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AFLAC INC (AFL): Free Stock Analysis Report RLI CORP (RLI): Free Stock Analysis Report ALLSTATE CORP (ALL): Free Stock Analysis Report ATLAS FINL HLDG (AFH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research