ProAssurance Corporation’s (PRA - Free Report) first-quarter 2017 operating earnings per share (EPS) of 62 cents surpassed the Zacks Consensus Estimate by 13%. The bottom line also improved 32% year over year.
Quarterly Operational Update
ProAssurance’s first-quarter operating revenues grew 1.3% to $207.9 million from $205.3 million generated in the prior-year quarter. Higher net premiums earned drove the upside. The top line, however, missed the Zacks Consensus Estimate by 1.4%.
Gross premiums written grew 5% year over year to $231.3 million, primarily driven by new business written in Lloyd's and Workers' Compensation segments, which increased 84.4% and 7.9%, respectively.
Net premiums earned increased 3% over the prior-year quarter to $183 million due to gains in all three operating segments, Specialty P&C and Lloyd's segments in particular.
Net investment income, however, decreased 8.9% year over year to $23.2 million.
Total expense increased 5.8% year over year to $182.8 million. The rise in costs mainly stemmed from a year-over-year increase of 7.4% in net losses and loss adjustment expenses.
Financial Ratios for the Quarter
Net loss ratio deteriorated 260 basis points (bps) from the prior-year quarter to 65.1%, primarily due to weak performance of the Lloyd's segment
Expense ratio improved 80 bps year over year to 31.2% due to the effect of a change the consideration and allocation of management fee for losses and loss adjustment expenses in the second quarter of 2016.
Combined ratio deteriorated 180 bps from the year-ago quarter to 96.3%.
Operating ratio also deteriorated 340 bps to 83.6% from the year-earlier quarter
Return on equity improved 520 bps to 9.1% from the year-ago quarter.
ProAssurance Corporation Price, Consensus and EPS Surprise
Financial Position
As of Mar 31, 2017, ProAssurance’s total investments were $3.7 billion, down 4.5% from year-end 2016.
As of Mar 31, 2017, the company’s total assets were $4.9 billion, down 3.8% from year-end 2016.
As of Dec 31, 2016, the insurer’s shareholder equity was $1.8 billion, up 1.5% from Dec 31, 2016.
Book value per share increased 1.2% to $34.19 as of Mar 31, 2017 from $33.78 as of Dec 31, 2016.
Share Repurchase & Dividend Update
The company did not repurchase any share during the first quarter and it presently has approximately $110 million available in its board-authorized stock repurchase program
Since 2007, the company has returned $1.7 billion to investors through share repurchase and dividends, including $265.7 million in regular and special dividends declared in the first quarter and paid in Jan 2017.
The company declared a regular dividend of $16.5 million in Mar 2017, which was paid in April 2017.
Zacks Rank Performances of Other P&C Insurers
ProAssurance carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Performance of Other Insurers
Among other players from the same space that have reported first-quarter earnings so far, the bottom line at The Progressive Corporation (PGR - Free Report) , The Travelers Companies, Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) missed their respective Zacks Consensus Estimate.
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ProAssurance Corporation’s (PRA - Free Report) first-quarter 2017 operating earnings per share (EPS) of 62 cents surpassed the Zacks Consensus Estimate by 13%. The bottom line also improved 32% year over year.
Quarterly Operational Update
ProAssurance’s first-quarter operating revenues grew 1.3% to $207.9 million from $205.3 million generated in the prior-year quarter. Higher net premiums earned drove the upside. The top line, however, missed the Zacks Consensus Estimate by 1.4%.
Gross premiums written grew 5% year over year to $231.3 million, primarily driven by new business written in Lloyd's and Workers' Compensation segments, which increased 84.4% and 7.9%, respectively.
Net premiums earned increased 3% over the prior-year quarter to $183 million due to gains in all three operating segments, Specialty P&C and Lloyd's segments in particular.
Net investment income, however, decreased 8.9% year over year to $23.2 million.
Total expense increased 5.8% year over year to $182.8 million. The rise in costs mainly stemmed from a year-over-year increase of 7.4% in net losses and loss adjustment expenses.
Financial Ratios for the Quarter
Net loss ratio deteriorated 260 basis points (bps) from the prior-year quarter to 65.1%, primarily due to weak performance of the Lloyd's segment
Expense ratio improved 80 bps year over year to 31.2% due to the effect of a change the consideration and allocation of management fee for losses and loss adjustment expenses in the second quarter of 2016.
Combined ratio deteriorated 180 bps from the year-ago quarter to 96.3%.
Operating ratio also deteriorated 340 bps to 83.6% from the year-earlier quarter
Return on equity improved 520 bps to 9.1% from the year-ago quarter.
ProAssurance Corporation Price, Consensus and EPS Surprise
Financial Position
As of Mar 31, 2017, ProAssurance’s total investments were $3.7 billion, down 4.5% from year-end 2016.
As of Mar 31, 2017, the company’s total assets were $4.9 billion, down 3.8% from year-end 2016.
As of Dec 31, 2016, the insurer’s shareholder equity was $1.8 billion, up 1.5% from Dec 31, 2016.
Book value per share increased 1.2% to $34.19 as of Mar 31, 2017 from $33.78 as of Dec 31, 2016.
Share Repurchase & Dividend Update
The company did not repurchase any share during the first quarter and it presently has approximately $110 million available in its board-authorized stock repurchase program
Since 2007, the company has returned $1.7 billion to investors through share repurchase and dividends, including $265.7 million in regular and special dividends declared in the first quarter and paid in Jan 2017.
The company declared a regular dividend of $16.5 million in Mar 2017, which was paid in April 2017.
Zacks Rank Performances of Other P&C Insurers
ProAssurance carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Performance of Other Insurers
Among other players from the same space that have reported first-quarter earnings so far, the bottom line at The Progressive Corporation (PGR - Free Report) , The Travelers Companies, Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) missed their respective Zacks Consensus Estimate.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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