We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ProAssurance Corporation’s (PRA - Free Report) fourth-quarter 2016 operating earnings per share (EPS) of 83 cents surpassed the Zacks Consensus Estimate by 5%. The bottom line also improved 13.6% year over year.
However, full-year 2016 operating EPS came in at $2.43, down 6.2% year over year.
ProAssurance’s operating revenues for the fourth quarter grew 14.6% year over year to $222 million on higher net premiums earned and other income. The top line also surpassed the Zacks Consensus Estimate by 6.7%.
For 2016, operating revenues of $841 million increased 3.8% year over year on higher net premiums earned.
QuarterlyOperational Update
Gross premiums written grew 16.1% year over year to $187.4 million.
Net investment income, however, decreased 6.5% year over year to $24.7 million.
Total expense increased 12.2% year over year to $174.2 million. The rise in costs mainly stemmed from a year-over-year increase of 15% in net losses and loss adjustment expenses. Also, 3.4% higher underwriting, policy acquisition and operating expenses resulted in the increase in costs.
Financial Ratios for the Quarter
Net loss ratio improved 90 basis points (bps) from the prior-year quarter to 55.4%.
Expense ratio also improved 450 bps year over year to 31.4%.
Combined ratio improved 540 bps from the year-ago quarter to 86.8%.
However, operating ratio deteriorated 220 bps to 74% from the year-earlier quarter
Return on equity displayed an improvement of 430 bps to 11.4% from the year-ago quarter. For 2016, the metric improved 240 basis points year over year to 8%.
ProAssurance Corporation Price, Consensus and EPS Surprise
As of Dec 31, 2016, ProAssurance’s total assets were $5 billion, up 2% from $4.9 billion as of Dec 31, 2015.
As of Dec 31, 2016, the insurer’s shareholder equity was $1.8 billion, down 8.2% from $1.9 billion as of Dec 31, 2015.
Book value per share declined approximately 8.4% to $33.78 as of Dec 31, 2016 from $36.88 as of Dec 31, 2015.
Share Repurchase Update
The company did not repurchase any share during the fourth quarter.
In 2016, the company had repurchased a total of 44,500 shares worth $2.1 million with $110 million remaining under authorization.
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 fourth quarter and paid in Jan 2017.
Among the other players from the same space that have reported their fourth-quarter earnings so far, the bottom line at Progressive Corp. (PGR - Free Report) , The Travelers Companies, Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) beat their respective Zacks Consensus Estimate.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ProAssurance (PRA) Beats Q4 Earnings & Revenue Estimates
ProAssurance Corporation’s (PRA - Free Report) fourth-quarter 2016 operating earnings per share (EPS) of 83 cents surpassed the Zacks Consensus Estimate by 5%. The bottom line also improved 13.6% year over year.
However, full-year 2016 operating EPS came in at $2.43, down 6.2% year over year.
ProAssurance’s operating revenues for the fourth quarter grew 14.6% year over year to $222 million on higher net premiums earned and other income. The top line also surpassed the Zacks Consensus Estimate by 6.7%.
For 2016, operating revenues of $841 million increased 3.8% year over year on higher net premiums earned.
Quarterly Operational Update
Gross premiums written grew 16.1% year over year to $187.4 million.
Net investment income, however, decreased 6.5% year over year to $24.7 million.
Total expense increased 12.2% year over year to $174.2 million. The rise in costs mainly stemmed from a year-over-year increase of 15% in net losses and loss adjustment expenses. Also, 3.4% higher underwriting, policy acquisition and operating expenses resulted in the increase in costs.
Financial Ratios for the Quarter
Net loss ratio improved 90 basis points (bps) from the prior-year quarter to 55.4%.
Expense ratio also improved 450 bps year over year to 31.4%.
Combined ratio improved 540 bps from the year-ago quarter to 86.8%.
However, operating ratio deteriorated 220 bps to 74% from the year-earlier quarter
Return on equity displayed an improvement of 430 bps to 11.4% from the year-ago quarter. For 2016, the metric improved 240 basis points year over year to 8%.
ProAssurance Corporation Price, Consensus and EPS Surprise
ProAssurance Corporation Price, Consensus and EPS Surprise | ProAssurance Corporation Quote
Financial Position
As of Dec 31, 2016, ProAssurance’s total assets were $5 billion, up 2% from $4.9 billion as of Dec 31, 2015.
As of Dec 31, 2016, the insurer’s shareholder equity was $1.8 billion, down 8.2% from $1.9 billion as of Dec 31, 2015.
Book value per share declined approximately 8.4% to $33.78 as of Dec 31, 2016 from $36.88 as of Dec 31, 2015.
Share Repurchase Update
The company did not repurchase any share during the fourth quarter.
In 2016, the company had repurchased a total of 44,500 shares worth $2.1 million with $110 million remaining under authorization.
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 fourth quarter and paid in Jan 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
Among the other players from the same space that have reported their fourth-quarter earnings so far, the bottom line at Progressive Corp. (PGR - Free Report) , The Travelers Companies, Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) beat their respective Zacks Consensus Estimate.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>