ProAssurance Corporation’s (PRA - Free Report) third-quarter 2018 operating earnings per share of 42 cents beat the Zacks Consensus Estimate by 5%, primarily driven by higher premiums in all the segments. However, the bottom line declined 6.7% year over year.
Quarterly operating revenues of ProAssurance grew 5.5% to $229 million from the prior-year quarter’s level on the back of higher premiums. Also, the top line surpassed the Zacks Consensus Estimate by 7%.
Quarterly Operational Update
Gross premiums written increased 5.8% year over year to $259 million, primarily banking on higher premiums across Specialty P&C Insurance, Lloyd's Syndicates and Workers' Compensation segments. Moreover, net premiums earned rose 5.8% year over year.
Net investment income dipped nearly 2% year over year to $23 million.
Total expenses escalated 12.8% year over year to $218 million. This rise in costs mainly stemmed from higher net loss and loss adjustment expenses as well as underwriting, policy acquisition and operating costs.
Quarterly Segment ResultsSpecialty P&C Insurance Segment
Total revenues of $122 million improved 3.1% year over year.
Gross premiums written were $167 million, up 0.8% from the year-ago quarter’s figure.
Total expenses of $126 million mounted 26.6% year over year, primarily due to net loss and loss adjustment expenses.
Workers' Compensation Segment
Total revenues of $47 million rose 13.3% year over year, courtesy of higher premiums.
Gross premiums written were $65 million, up 9.8% over the year-earlier period’s number.
Total expenses of $46 million increased 12.4% year over year.
Lloyd's Syndicate Segment
Total revenues of $20 million surged 34.8% year over year.
Gross premiums written were $26 million, up 25.8% from the figure acquired in comparable quarter last year.
Total expenses of $18 million reduced 32% year over year.
Corporate Segment
Total revenues of $39 million grew 11.8% year over year.
Operating expenses of $5 million inched up 1.3% over the prior-year quarter’s level. Interest expense of $3.6 million declined 11.6% year over year.
Financial Position
As of Sep 30, 2018, ProAssurance’s total investments were $3.3 billion, down 8.2% from the number registered at year-end 2017.
At third-quarter end, the company’s total assets were $4.7 billion, down 5.6% from the count at 2017 end.
As of Sep 30, 2018, the insurer’s shareholder equity slipped 0.5% to $1.6 billion from the tally as of Dec 31, 2017.
Share Repurchase & Dividend Update
The company did not buy back any shares in the reported quarter. As of Oct 31, 2018, it has approximately $110 million of shares available under its board-authorized stock repurchase program.
In September 2018, the company’s board members approved a regular dividend of 31 cents, paid in October.
Notably, within a span of almost 11 years, the company has been able to return more than $2 billion to its shareholders through regular and special dividends.
Zacks Rank
ProAssurance carries a Zacks Rank #4 (Sell).
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 insurance industry having already reported second-quarter earnings, the bottom line of The Progressive Corporation (PGR - Free Report) and MGIC Investment Corporation (MTG - Free Report) surpassed the respective Zacks Consensus Estimate while RLI Corp.’s (RLI - Free Report) metric missed the same.
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ProAssurance Corporation’s (PRA - Free Report) third-quarter 2018 operating earnings per share of 42 cents beat the Zacks Consensus Estimate by 5%, primarily driven by higher premiums in all the segments. However, the bottom line declined 6.7% year over year.
Quarterly operating revenues of ProAssurance grew 5.5% to $229 million from the prior-year quarter’s level on the back of higher premiums. Also, the top line surpassed the Zacks Consensus Estimate by 7%.
Quarterly Operational Update
Gross premiums written increased 5.8% year over year to $259 million, primarily banking on higher premiums across Specialty P&C Insurance, Lloyd's Syndicates and Workers' Compensation segments. Moreover, net premiums earned rose 5.8% year over year.
Net investment income dipped nearly 2% year over year to $23 million.
Total expenses escalated 12.8% year over year to $218 million. This rise in costs mainly stemmed from higher net loss and loss adjustment expenses as well as underwriting, policy acquisition and operating costs.
Quarterly Segment Results
Specialty P&C Insurance Segment
Total revenues of $122 million improved 3.1% year over year.
Gross premiums written were $167 million, up 0.8% from the year-ago quarter’s figure.
Total expenses of $126 million mounted 26.6% year over year, primarily due to net loss and loss adjustment expenses.
Workers' Compensation Segment
Total revenues of $47 million rose 13.3% year over year, courtesy of higher premiums.
Gross premiums written were $65 million, up 9.8% over the year-earlier period’s number.
Total expenses of $46 million increased 12.4% year over year.
Lloyd's Syndicate Segment
Total revenues of $20 million surged 34.8% year over year.
Gross premiums written were $26 million, up 25.8% from the figure acquired in comparable quarter last year.
Total expenses of $18 million reduced 32% year over year.
Corporate Segment
Total revenues of $39 million grew 11.8% year over year.
Operating expenses of $5 million inched up 1.3% over the prior-year quarter’s level. Interest expense of $3.6 million declined 11.6% year over year.
Financial Position
As of Sep 30, 2018, ProAssurance’s total investments were $3.3 billion, down 8.2% from the number registered at year-end 2017.
At third-quarter end, the company’s total assets were $4.7 billion, down 5.6% from the count at 2017 end.
As of Sep 30, 2018, the insurer’s shareholder equity slipped 0.5% to $1.6 billion from the tally as of Dec 31, 2017.
Share Repurchase & Dividend Update
The company did not buy back any shares in the reported quarter. As of Oct 31, 2018, it has approximately $110 million of shares available under its board-authorized stock repurchase program.
In September 2018, the company’s board members approved a regular dividend of 31 cents, paid in October.
Notably, within a span of almost 11 years, the company has been able to return more than $2 billion to its shareholders through regular and special dividends.
Zacks Rank
ProAssurance carries a Zacks Rank #4 (Sell).
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 insurance industry having already reported second-quarter earnings, the bottom line of The Progressive Corporation (PGR - Free Report) and MGIC Investment Corporation (MTG - Free Report) surpassed the respective Zacks Consensus Estimate while RLI Corp.’s (RLI - Free Report) metric missed the same.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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