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ProAssurance (PRA) Q1 Earnings Miss Estimates, Down Y/Y

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ProAssurance Corporation’s PRA first-quarter 2018 operating earnings per share of 40 cents missed the Zacks Consensus Estimate by 6.9%. Also, the bottom line declined 35.5% year over year.

ProAssurance Corporation Price, Consensus and EPS Surprise

 

ProAssurance Corporation Price, Consensus and EPS Surprise | ProAssurance Corporation Quote

 

ProAssurance’s quarterly operating revenues grew 1.9% to $211.9 million from the prior-year quarter on the back of higher premiums as well as other income. However, the top line lagged the Zacks Consensus Estimate by 2.8%.

Quarterly Operational Update

Gross premiums written grew 5% year over year to $243 million, primarily driven by higher premiums in Specialty P&C Insurance and Workers' Compensation segments. Also, net premiums earned rose 2.3% year over year.

Net investment income declined nearly 5% year over year to $22 million.

Total expenses increased 5.4% year over year to $192.6 million. This rise in costs mainly stemmed from higher net loss and loss adjustment expenses as well as underwriting, policy acquisition and operating expenses.

Quarterly Segment Results

Specialty P&C Insurance Segment

Total revenues of $117.5 million rose 2.9% year over year.

Gross premiums written were $140.5 million, up 2.7% from the year-ago quarter.

Total expenses of $112.8 million increased 11.8% year over year.

Workers' Compensation Segment

Total revenues of $58.8 million rose 6% year over year on the back of higher net premiums earned.

Gross premiums written were $91.3 million, up 8.5% over the prior-year period.

Total expenses of $55.9 million, increased 6.5% year over year.

Lloyd's Syndicate Segment

Total revenues of $13.5 million declined 12% year over year.

Gross premiums written were $12.4 million, down 2.8% from the year-earlier quarter.

Total expenses of $15.7 million inched up 0.1% year over year.

Corporate Segment

Total revenues of $11.4 million plunged 70% year over year.

Operating expenses of $4.7 million decreased 43.7% over the year-ago quarter. Interest expense of $3.7 million declined 10.4% year over year.

Financial Position

As of Mar 31, 2018, ProAssurance’s total investments were $3.5 billion, down 5.1% from the number registered at year-end 2017.

As of Mar 31, 2018, the company’s total assets were $4.7 billion, down 5.1% from the level at year-end 2017.

As of Mar 31, 2018, the insurer’s shareholder equity was $1.6 billion, down 1.6% from Dec 31, 2017.

Share Repurchase & Dividend Update

The company did not buy back any shares in the reported quarter. As of Apr 30, 2018, it had approximately $110 million of shares available under its board-authorized stock repurchase program.

In March 2018, the company’s board approved a regular dividend of 31 cents, paid in April.

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 first-quarter earnings, the bottom line of The Progressive Corporation PGR, MGIC Investment Corporation MTG and RLI Corp. RLI surpassed the respective Zacks Consensus Estimate.

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