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ProAssurance's (PRA) Q1 Earnings Lag Estimates, Plunge Y/Y
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ProAssurance Corporation’s (PRA - Free Report) first-quarter 2019 operating earnings per share of 8 cents missed the Zacks Consensus Estimate of 31 cents by 74.2%. Moreover, the bottom line tumbled 80% year over year, mainly due to wide loss trends in healthcare professional liability.
Quarterly operating revenues of ProAssurancerose 10% to $233 million from the prior-year quarter’s level,owing to higher premiums. The top line also beat the Zacks Consensus Estimate by 2.2%.
Quarterly Operational Update
Gross premiums written were up15.1% year over year to $280 million, primarily banking on higher premiums across the Specialty P&C segment, Segregated Portfolio Cell Reinsurance segment and the Lloyd's Syndicates segments. Moreover, net premiums earned rose 11.2% year over year.
Net investment income increased 3.6% year over year to $22.8 million. Net realized investment income of the company was$36.6 million against the prior-year quarter’s loss of $12.5 million.
Total expenses escalated 19.6% year over year to $230 million. This rise in costs mainly stemmed from higher net loss and loss adjustment expenses.
ProAssurance Corporation Price, Consensus and EPS Surprise
Total revenues of $125 million increased 7.8% from the prior-year quarter’s figure.
Gross premiums written of $166.4 million rose 18.4% year over year.
Total expenses of $137 million mounted 23.1% year over year, primarily due to net loss and loss adjustment expenses.
Workers' Compensation Segment
Total revenues of $46.7 million rose 7.2% year over year, mainly owing to higher premiums earned.
Gross premiums written were $89.4 million, down 2.5% from the year-earlier period’s number, mainly due to decrease in audit premiums and a downfall in renewal pricing.
Total expenses of $44.6 million came in at an elevation of 9.3% year over year.
Lloyd's Syndicate Segment
Total revenues of $19.7 million surged 45.7% year over year.
Gross premiums written were $23.5 million, up 90.8% from the figure acquired in the comparable quarter last year.
Total expenses of $19.3 million rose23.2% year over year.
Corporate Segment
The company reported revenues of $55 million, skyrocketing 384.3% year over year.
Operating expenses of $4.5 million decreased 2.3% from the prior-year quarter’s level. Interest expense of $4.3 million increased 16.9% year over year.
Financial Position
As of Mar 31, 2019, ProAssurance’s total investments were $3.4 billion, up 2% from the number registered at year-end 2018.
At first-quarter end, the company’s total assets were $4.7 billion, up 2.5% from the count at 2018 end.
As of Mar 31, 2019, the insurer’s shareholder equity inched up 2.5% to $1.5 billion from the tally as of Dec 31, 2018.
Share Repurchase & Dividend Update
The company’s board of directors approved a regular dividend of 31 cents per share in March 2019,paid to its shareholders on Apr 22, 2019.
Zacks Rank
ProAssurance carries a Zacks Rank #5 (Strong Sell).
Among other players from the insurance industry having reported first-quarter earnings so far, the bottom-line results of The Travelers Companies, Inc. (TRV - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) and The Progressive Corporation PGR surpass the respective Zacks Consensus Estimate.
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ProAssurance's (PRA) Q1 Earnings Lag Estimates, Plunge Y/Y
ProAssurance Corporation’s (PRA - Free Report) first-quarter 2019 operating earnings per share of 8 cents missed the Zacks Consensus Estimate of 31 cents by 74.2%. Moreover, the bottom line tumbled 80% year over year, mainly due to wide loss trends in healthcare professional liability.
Quarterly operating revenues of ProAssurancerose 10% to $233 million from the prior-year quarter’s level,owing to higher premiums. The top line also beat the Zacks Consensus Estimate by 2.2%.
Quarterly Operational Update
Gross premiums written were up15.1% year over year to $280 million, primarily banking on higher premiums across the Specialty P&C segment, Segregated Portfolio Cell Reinsurance segment and the Lloyd's Syndicates segments. Moreover, net premiums earned rose 11.2% year over year.
Net investment income increased 3.6% year over year to $22.8 million.
Net realized investment income of the company was$36.6 million against the prior-year quarter’s loss of $12.5 million.
Total expenses escalated 19.6% year over year to $230 million. This rise in costs mainly stemmed from higher net loss and loss adjustment expenses.
ProAssurance Corporation Price, Consensus and EPS Surprise
ProAssurance Corporation Price, Consensus and EPS Surprise | ProAssurance Corporation Quote
Quarterly Segmental Results
Specialty P&C Insurance Segment
Total revenues of $125 million increased 7.8% from the prior-year quarter’s figure.
Gross premiums written of $166.4 million rose 18.4% year over year.
Total expenses of $137 million mounted 23.1% year over year, primarily due to net loss and loss adjustment expenses.
Workers' Compensation Segment
Total revenues of $46.7 million rose 7.2% year over year, mainly owing to higher premiums earned.
Gross premiums written were $89.4 million, down 2.5% from the year-earlier period’s number, mainly due to decrease in audit premiums and a downfall in renewal pricing.
Total expenses of $44.6 million came in at an elevation of 9.3% year over year.
Lloyd's Syndicate Segment
Total revenues of $19.7 million surged 45.7% year over year.
Gross premiums written were $23.5 million, up 90.8% from the figure acquired in the comparable quarter last year.
Total expenses of $19.3 million rose23.2% year over year.
Corporate Segment
The company reported revenues of $55 million, skyrocketing 384.3% year over year.
Operating expenses of $4.5 million decreased 2.3% from the prior-year quarter’s level. Interest expense of $4.3 million increased 16.9% year over year.
Financial Position
As of Mar 31, 2019, ProAssurance’s total investments were $3.4 billion, up 2% from the number registered at year-end 2018.
At first-quarter end, the company’s total assets were $4.7 billion, up 2.5% from the count at 2018 end.
As of Mar 31, 2019, the insurer’s shareholder equity inched up 2.5% to $1.5 billion from the tally as of Dec 31, 2018.
Share Repurchase & Dividend Update
The company’s board of directors approved a regular dividend of 31 cents per share in March 2019,paid to its shareholders on Apr 22, 2019.
Zacks Rank
ProAssurance carries a Zacks Rank #5 (Strong 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 reported first-quarter earnings so far, the bottom-line results of The Travelers Companies, Inc. (TRV - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) and The Progressive Corporation PGR surpass the respective Zacks Consensus Estimate.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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