AmTrust Financial's (NASDAQ:AFSI) Not Relevant to EPS Going Forward

While FBR continues to be high on the management team at AmTrust Financial (NASDAQ:AFSI), as well as their foray into Life Settlements. The lumpiness of the segment probably won't do much, if anything, to increase the EPS of the company though.

FBR says, "We believe that AmTrust and its founders (i.e., Karfunkel brothers and Barry Zyskind) arguably are some of the most opportunistic and most successful investors the insurance industry has ever seen. Naturally, we view AmTrust’s foray into the life settlement business in 3Q10 positively. This venture has been three years in the making, as the company brought in a team of experts several years ago.... Due to the lumpiness of revenues associated with life settlements, we do not include any potential benefit to operating EPS estimates going forward."

FBR Capital reiterates an "Outperform" rating on AmTrust Financial (AFSI), which closed Monday at $17.92, the same as their last close. FBR has a price target of $24 on AFSI.