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ProAssurance Corporation’s(PRA - Free Report) third-quarter 2016 operating earnings per share of 46 cents surpassed the Zacks Consensus Estimate of 45 cents by 2.2%. However, the bottom line declined 24.6% year over year due to higher expenses.
Operational Update
ProAssurance’s operating revenues inched up 0.1% year over year to $211.9 million on higher net premiums earned. The top line also surpassed the Zacks Consensus Estimate of $208 million.
Gross premiums written dipped 1.3% year over year to $232 million.
Net investment income was $25.3 million, down 6.2% year over year.
Total expense increased 10.4% year over year to $180.80 million. The rise in costs mainly stemmed from a 9.3% increase in net losses and loss adjustment expenses along with 4% higher underwriting, policy acquisition and operating expenses, both on a year-over-year basis.
Net loss ratio deteriorated 390 basis points (bps) to 63.7% from 59.8% in the prior-year quarter.
Expense ratio deteriorated 100 bps to 30.1% from 29.1% in the year-ago quarter.
Combined ratio deteriorated 490 bps to 93.8% from 88.9% in the prior-year quarter.
Operating ratio improved 330 bps to 80.2% from 74.1% in the year-earlier quarter
Return on equity displayed a significant improvement of 460 bps to 6.6% from 2% in the year-ago quarter.
Financial Position
As of Sep 30, 2016, ProAssurance’s total assets were $5 billion, up 2% from $4.9 billion as of Dec 31, 2015.
As of Sep 30, 2016, the insurer’s shareholder equity was $2 billion, up 5.3% from $1.9 billion as of Dec 31, 2015.
Book value per share increased approximately 5.5% to $38.38 as of Sep 30, 2016 from $36.88 as of Dec 31, 2015.
Share Repurchase Update
The company did not repurchase any share during the third quarter.
As of Oct 31, 2016 the company had repurchased a total of 44,500 shares worth $2.1 million with $110 million remaining under authorization.
Zacks Rank Performances of Other P&C Insurers
ProAssurance carries a Zacks Rank #4 (Sell).
Among the other insurers that have reported their third-quarter earnings so far, the bottom line at Progressive Corp. (PGR - Free Report) and The Travelers Companies Inc. (TRV - Free Report) beat their respective Zacks Consensus Estimate, while earnings of RLI Corp. (RLI - Free Report) missed the same.
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ProAssurance (PRA) Q3 Earnings, Revenues Beat Estimates
ProAssurance Corporation’s(PRA - Free Report) third-quarter 2016 operating earnings per share of 46 cents surpassed the Zacks Consensus Estimate of 45 cents by 2.2%. However, the bottom line declined 24.6% year over year due to higher expenses.
Operational Update
ProAssurance’s operating revenues inched up 0.1% year over year to $211.9 million on higher net premiums earned. The top line also surpassed the Zacks Consensus Estimate of $208 million.
Gross premiums written dipped 1.3% year over year to $232 million.
Net investment income was $25.3 million, down 6.2% year over year.
Total expense increased 10.4% year over year to $180.80 million. The rise in costs mainly stemmed from a 9.3% increase in net losses and loss adjustment expenses along with 4% higher underwriting, policy acquisition and operating expenses, both on a year-over-year basis.
PROASSURANCE CP Price, Consensus and EPS Surprise
PROASSURANCE CP Price, Consensus and EPS Surprise | PROASSURANCE CP Quote
Financial Ratios
Net loss ratio deteriorated 390 basis points (bps) to 63.7% from 59.8% in the prior-year quarter.
Expense ratio deteriorated 100 bps to 30.1% from 29.1% in the year-ago quarter.
Combined ratio deteriorated 490 bps to 93.8% from 88.9% in the prior-year quarter.
Operating ratio improved 330 bps to 80.2% from 74.1% in the year-earlier quarter
Return on equity displayed a significant improvement of 460 bps to 6.6% from 2% in the year-ago quarter.
Financial Position
As of Sep 30, 2016, ProAssurance’s total assets were $5 billion, up 2% from $4.9 billion as of Dec 31, 2015.
As of Sep 30, 2016, the insurer’s shareholder equity was $2 billion, up 5.3% from $1.9 billion as of Dec 31, 2015.
Book value per share increased approximately 5.5% to $38.38 as of Sep 30, 2016 from $36.88 as of Dec 31, 2015.
Share Repurchase Update
The company did not repurchase any share during the third quarter.
As of Oct 31, 2016 the company had repurchased a total of 44,500 shares worth $2.1 million with $110 million remaining under authorization.
Zacks Rank Performances of Other P&C Insurers
ProAssurance carries a Zacks Rank #4 (Sell).
Among the other insurers that have reported their third-quarter earnings so far, the bottom line at Progressive Corp. (PGR - Free Report) and The Travelers Companies Inc. (TRV - Free Report) beat their respective Zacks Consensus Estimate, while earnings of RLI Corp. (RLI - Free Report) missed the same.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Confidential from Zacks
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