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Protective Insurance Corporation (PTVCB)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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23.10+0.01 (+0.02%)
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Previous Close23.09
Open23.19
Bid23.09 x 800
Ask23.11 x 1000
Day's Range23.06 - 23.19
52 Week Range11.69 - 23.19
Volume14,711
Avg. Volume83,155
Market Cap326.877M
Beta (5Y Monthly)0.67
PE Ratio (TTM)74.52
EPS (TTM)0.31
Earnings DateMar 11, 2021
Forward Dividend & Yield0.40 (1.74%)
Ex-Dividend DateMar 04, 2021
1y Target EstN/A
  • Protective Insurance Corporation Announces Results for the First Quarter 2021
    GlobeNewswire

    Protective Insurance Corporation Announces Results for the First Quarter 2021

    CARMEL, Ind., May 06, 2021 (GLOBE NEWSWIRE) -- Protective Insurance Corporation (NASDAQ: PTVCA, PTVCB) today reported first quarter net income of $12.9 million, or $0.90 per share, which compares to net loss of $22.2 million, or $1.56 per share, for the prior year’s first quarter. Highlights for the first quarter of 2021 include: Net premiums earned increased to $122.9 million in the first quarter of 2021 from $109.7 million in the first quarter of 2020, primarily as a result of rate increases achieved in most lines of business and existing business exposure growth in our commercial automobile products.Accident Year combined ratio was 97.4% for the first quarter of 2021, an improvement of 6.8 points over the comparative 2020 period.Realized and unrealized investment gains recognized through the statement of operations were $10.5 million (pre-tax) for the first quarter of 2021. Book value per share increased $0.20 during the first quarter as positive net income was partially offset by fixed income losses recorded in comprehensive income. Book value per share was $25.63 at March 31, 2021. Jeremy Johnson, Protective’s Chief Executive Officer, said: "I’m pleased and proud of the continued improvements in our operating results. We are now well down the path to sustainable profitability and are focused on margin expansion while investing in technology and data to support our customers’ needs. We look forward to finalizing our acquisition by The Progressive Corporation and fully anticipate creating further value and opportunity for our customers, distribution partners and employees. This is an exciting new era for Protective." Income from core business operations, before federal income tax, was $9.3 million for the first quarter of 2021 compared to income from core business operations, before federal income tax, of $2.6 million during the first quarter of 2020. Gross premiums written for the first quarter of 2021 increased 8.2% to $145.1 million compared to $134.0 million written during the prior year period. Net premiums earned for the first quarter of 2021 increased 12.0% to $122.9 million, compared to the prior year period. The higher premiums are primarily the result of increased premiums related to rate increases achieved in most lines of business and existing business exposure growth in our commercial automobile line of business. Underwriting operations produced an accident year combined ratio of 97.4% during the first quarter of 2021; an improvement when compared to an accident year combined ratio of 104.2% for the prior year period. Excluding prior period development, the first quarter of 2021 accident year loss ratio was 67.7% which was a 6.9 point reduction from the first quarter 2020 loss ratio. The reduction in the loss ratio and combined ratio reflects actions taken by the Company to improve underwriting results, including non-renewal of unprofitable business as well as significant rate increases in commercial automobile. Additionally, given ongoing profitability challenges, the company discontinued writing public transportation business in the fourth quarter of 2020. Prior period loss development was $0.8 million favorable for the quarter compared to flat development for the prior year quarter. For the first quarter of 2021, we experienced favorable development in our commercial automobile liability line of business for more recent accident years due to better than expected reported loss development. In our commercial automobile portfolio, the Company attained weighted average rate increases of 11.9% on premiums available for renewal during the first quarter of 2021. Including other lines of business, rate change for the quarter totaled 5.2%, which is well above our view of loss cost trend and is contributing to our underwriting results improvement. Commercial automobile products covered by our reinsurance treaties from July 3, 2013 through July 2, 2019 are subject to an unlimited aggregate stop-loss provision. Currently each of these treaty years is reserved at or above the attachment level of these treaties. For every $100 of additional loss, we are responsible only for our $25 retention. Commercial automobile products covered by our reinsurance treaty from July 3, 2019 through July 2, 2020 are also subject to an unlimited aggregate stop-loss provision. Once the aggregate stop-loss level is reached, for every $100 of additional loss, we are responsible for our $65 retention. This increase in our retention compared to recent years reflects the combination of (1) a decreased need for stop-loss reinsurance protection resulting from a significant decrease in our commercial automobile subject limits profile, (2) a higher cost for this coverage and (3) our confidence in profitability improvements given the limit reductions and rate increases on our commercial automobile products. Due to continued rate achievement in commercial automobile, improvements in mix of business and reductions to our limits profile we decided to non-renew this treaty for policies written after July 3, 2020. Net investment income for the first quarter of 2021 decreased 26.7% to $5.3 million compared to $7.2 million in the prior year period. The decrease reflected lower interest rates on cash and cash equivalent balances and lower interest rates on reinvestment partially offset by an increase in average funds invested compared to the first quarter of 2020. Credit quality remains high with a weighted average rating of AA-, including cash. Book value per share as of March 31, 2021 was $25.63, an increase of $0.20 per share during the first three months of 2021, after the payment of cash dividends to shareholders totaling $0.10 per share. During the first quarter of 2021, total realized and unrealized investment losses (pre-tax) were $1.0 million. The following table provides details related to our unrealized and realized investment gains (losses) during the three months ended March 31, 2021: Three Months Ended March 31, 2021Net realized gains on investment, including impairments, within statements of operations$2,257 Net unrealized gains on equity securities and limited partnership investments within statements of operations 8,252 Net unrealized losses on fixed income securities recorded within other comprehensive loss (11,495)Total realized and unrealized investment losses (pre-tax)$(986) Our net income (loss), determined in accordance with U.S. generally accepted accounting principles (GAAP), includes items that may not be indicative of ongoing operations. The following table reconciles income (loss) before federal income tax expense (benefit) to underwriting loss, a non-GAAP financial measure that is a useful tool for investors and analysts in analyzing ongoing operating trends. Three Months EndedMarch 31 2021 2020 Income (loss) before federal income tax expense (benefit)$16,353 $(25,139)Less: Net realized gains (losses) on investments 2,257 (4,827)Less: Net unrealized gains (losses) - equity securities and limited partnerships 8,252 (22,929)Less: Corporate charges included in Other operating expense (3,474) – Income (loss) from core business operations$9,318 $2,617 Less: Net investment income 5,306 7,236 Underwriting income (loss)$4,012 $(4,619) The Company uses the term income (loss) from core business operations, a non-GAAP financial measure, which is defined as income (loss) before federal income tax expense (benefit) excluding pre-tax realized and unrealized investment gains and losses. This financial measure is used to evaluate the Company’s operating performance. It separates out the recognition of realized investment gains and losses, and occurrence of unrealized gains and losses, that are often driven by market changes in security valuations versus operating decisions. The combined ratios and the components, as presented herein, are commonly used in the property/casualty insurance industry and are applied to the Company’s GAAP underwriting results. The accompanying unaudited condensed financial statements have been prepared in accordance with the instructions to Form 10-Q but do not include all of the information and footnotes as disclosed in the Company’s annual audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Forward-looking statements in this report are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve inherent risks and uncertainties. Readers are encouraged to review the Company's annual report for its full statement regarding forward-looking information. Protective Insurance Corporation and SubsidiariesUnaudited Condensed Consolidated Balance Sheets(in thousands, except per share data) March 31 December 31 2021 2020Assets Investments 1: Fixed income securities (2021: $901,009; 2020: $894,468)$914,949 $919,692Equity securities 67,015 58,169Limited partnerships, at equity 7,476 7,214Commercial mortgage loans 10,866 10,602Short-term 2 1,000 1,000 1,001,306 996,677Cash and cash equivalents 95,566 58,301Restricted cash and cash equivalents 11,538 12,128Accounts receivable 96,200 100,921Reinsurance recoverable 455,462 455,564Other assets 91,839 90,256Deferred federal income taxes 10,764 8,980 $1,762,675 $1,722,827 Liabilities and shareholders' equity Reserves for losses and loss expenses$1,108,132 $1,089,669Reserves for unearned premiums 59,049 63,731Borrowings under line of credit 20,000 20,000Accounts payable and other liabilities 205,265 185,579Current federal income taxes 3,551 766 1,395,997 1,359,745Shareholders' equity: Common stock-no par value 610 609Additional paid-in capital 55,645 54,571Accumulated other comprehensive income 12,766 21,759Retained earnings 297,657 286,143 366,678 363,082 $1,762,675 $1,722,827 Number of common and common equivalent shares outstanding 14,308 14,278Book value per outstanding share$25.63 $25.43 2021 & 2020 cost in parenthesesApproximates cost Protective Insurance Corporation and SubsidiariesUnaudited Condensed Consolidated Statements of Operations(in thousands, except per share data) Three Months EndedMarch 31 2021 2020 Revenues Net premiums earned$122,853 $109,659 Net investment income 5,306 7,236 Commissions and other income 1,858 1,663 Net realized gains (losses) on investments, excluding impairment losses 2,339 (4,787)Impairment losses on investments (82) (40)Net unrealized gains (losses) on equity securities and limited partnership investments 8,252 (22,929)Net realized and unrealized gains (losses) on investments 10,509 (27,756) 140,526 90,802 Expenses Losses and loss expenses incurred 82,318 81,831 Other operating expenses 41,855 34,110 124,173 115,941 Income (loss) before federal income tax expense (benefit) 16,353 (25,139)Federal income tax expense (benefit) 3,415 (2,983)Net income (loss)$12,938 $(22,156) Net income (loss) per share: Basic$.91 $(1.56)Diluted .90 (1.56) Weighted average number of shares outstanding: Basic 14,153 14,169 Dilutive effect of share equivalents 154 – Diluted 14,307 14,169 Protective Insurance Corporation and SubsidiariesUnaudited Condensed Consolidated Statements of Cash Flows(in thousands) Three Months Ended March 31 2021 2020 Net cash provided by (used in) operating activities $20,911 $(1,312)Investing activities: Purchases of fixed income and equity securities (92,719) (82,641)Proceeds from sales or maturities of fixed income securities 108,880 79,640 Proceeds from sales of equity securities 2,064 5,480 Purchase of commercial mortgage loans (319) (368)Proceeds from commercial mortgage loans 54 72 Distributions from limited partnerships 186 14,636 Other investing activities (1,046) (369)Net cash provided by investing activities 17,100 16,450 Financing activities: Dividends paid to shareholders (1,424) (1,426)Repurchase of common shares – (1,782)Net cash used in financing activities (1,424) (3,208) Effect of foreign exchange rates on cash and cash equivalents 88 (687) Increase in cash, cash equivalents and restricted cash and cash equivalents 36,675 11,243 Cash, cash equivalents and restricted cash and cash equivalents at beginning of period 70,429 88,888 Cash, cash equivalents and restricted cash and cash equivalents at end of period $107,104 $100,131 Financial Highlights (unaudited)Protective Insurance Corporation and Subsidiaries(In thousands, except share and per share data) Three Months Ended March 31 2021 2020 Book value per share beginning of period$25.43 $25.51 Book value per share end of period 25.63 21.53 Change in book value per share$0.20 $(3.98)Dividends paid 0.10 0.10 Change in book value per share plus dividends paid$0.30 $(3.88)Total value creation 1 1.2% NM Return on average shareholders' equity: Average shareholders' equity 364,880 334,850 Net income (loss) 12,938 (22,156)Less: Tax valuation allowance recognized in net income (loss) – (2,306)Less: Net realized and unrealized gains (losses) on investments, net of tax 8,302 (21,927)Less: Corporate charges included in Other operating expenses, net of tax 3 (2,744) – Income from core business operations, net of tax 7,380 2,077 Return on net income (loss) 3.5% NM Return on income from core business operations, net of tax 2.0% 0.6% Loss and LAE expenses incurred$82,318 $81,831 Less: Prior period loss development (825) (8)Loss and LAE expenses incurred, less prior period loss development$83,143 $81,839 Net premiums earned 122,853 109,659 Accident year loss and LAE ratio 67.7% 74.6% Other operating expenses$41,855 $34,110 Less: Commissions and other income 1,858 1,663 Less: Corporate charges 2 3,474 – Other operating expenses, excluding corporate charges, less commissions and other income$36,523 $32,447 Net premiums earned 122,853 109,659 Expense ratio 29.7% 29.6% Accident year combined ratio 3 97.4% 104.2% Gross premiums written$145,056 $134,006 Net premiums written 118,827 109,234 Total Value Creation equals change in book value plus dividends paid, divided by beginning book value.Represents the corporate charges incurred in conjunction with the activities of the special committee of the Board of Directors related to the merger with Progressive.The accident year combined ratio is calculated as ratio of losses and loss expenses incurred, excluding prior period development, plus other operating expenses excluding corporate charges, less commission and other income to net premiums earned. Investor Contact: John R. Barnett investors@protectiveinsurance.com (317) 429-2554

  • Protective Insurance Shareholders Approve Proposed Transaction with Progressive
    GlobeNewswire

    Protective Insurance Shareholders Approve Proposed Transaction with Progressive

    CARMEL, Ind., May 06, 2021 (GLOBE NEWSWIRE) -- Protective Insurance Corporation (NASDAQ: PTVCA and PTVCB) (“Protective” or the “Company”) today announced that at a special meeting of shareholders held yesterday, the Company’s class A shareholders approved a proposal to adopt the merger agreement, dated as of February 14, 2021 (the “Merger Agreement”), by and among the Company, The Progressive Corporation (NYSE: PGR) (“Progressive”) and Carnation Merger Sub Inc. an indirect, wholly owned subsidiary of Progressive, under which Progressive will acquire all of the outstanding Class A shares (“Class A Shares”) and Class B shares of Protective’s common stock for $23.30 per share in cash, for a total transaction value of approximately $338 million. Approximately 97% of the Class A Shares that voted were voted in favor of the Merger Agreement, which constitutes approximately 71% of the outstanding Class A Shares entitled to vote. The final vote results, as certified by the independent Inspector of Election, will be filed on a Form 8-K with the U.S. Securities and Exchange Commission. “We thank Protective shareholders for their strong support of our value enhancing transaction with Progressive, which we believe is in the best interest of Protective and all of our stakeholders,” said Jeremy Johnson, Protective’s Chief Executive Officer. “This shareholder approval is an important milestone as we work to join the Progressive family and deliver innovative offerings and superior customer service to even more customers across the country.” The Company also announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to the Company's proposed acquisition by Progressive has expired. The proposed transaction remains subject to the satisfaction of certain closing conditions, including approval of the proposed transaction by the Indiana Department of Insurance. The Company currently anticipates that the proposed transaction will be completed in June or July 2021. About Protective InsuranceBased in Carmel, Indiana, Protective Insurance Corporation serves as the publicly-traded holding company for several property-casualty insurance subsidiaries including Protective Insurance Company, Sagamore Insurance Company and Protective Specialty Insurance Company. Through its subsidiaries, Protective provides liabilities and workers’ compensation coverage for trucking and public transportation fleets, along with trucking industry independent contractors. For more information, visit www.protectiveinsurance.com. This reference to additional information about Protective has been provided as a convenience, and the information contained on our website is not incorporated by reference into this press release. Forward-Looking Statements Statements in this press release which are not historic facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the impact of the proposed transaction; regulatory approvals; and the timing of the proposed transaction. All statements in this material not dealing with historical results are forward-looking and are based on estimates, assumptions and projections, and Protective and Progressive may make related oral forward-looking statements on or following the date hereof. These statements may also include assumptions about Progressive’s proposed acquisition of Protective (including its benefits, results, effects and timing). Some of these forward-looking statements are identified with words like "believe," "may," "will," "should," "expect," "intend," "plan," "project," "predict," "anticipate," "estimate" or "continue" and other words and terms of similar meaning. All forward-looking statements involve risks and uncertainties which could affect Progressive’s and Protective’s actual results and could cause their actual results or the benefits of the proposed transaction to differ materially from those expressed in any forward-looking statements made by, or on behalf of Progressive or Protective. The proposed transaction is subject to risks and uncertainties, including: (A) that Protective and Progressive may be unable to complete the proposed transaction because, among other reasons, conditions to the closing of the proposed transaction may not be satisfied or waived; (B) uncertainty as to the timing of completion of the proposed transaction; (C) the inability to complete the proposed transaction due to the failure to satisfy conditions to completion of the proposed transaction, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; (D) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (E) risks related to disruption of management’s attention from Protective’s ongoing business operations due to the proposed transaction; (F) the effect of the announcement of the proposed transaction on Protective’s relationships with its clients, operating results and business generally; (G) the outcome of any legal proceedings to the extent initiated against Protective, Progressive or others following the announcement of the proposed transaction and (H) the effects of the COVID-19 pandemic and associated government actions on Protective’s operations and financial performance, as well as Protective’s and Progressive’s management’s response to any of the aforementioned factors. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the risk factors included in Protective’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents of Protective on file with the SEC. Any forward-looking statements made in this material are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Protective and/or Progressive will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Protective or its business or operations. Except as required by law, the parties undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Protective Investor Contact:John Barnett(317) 429-2554investors@protectiveinsurance.com Protective Media Contact:Steve Frankel or Joseph SalaJoele Frank, Wilkinson Brimmer Katcher(212) 355-4449

  • Protective Insurance Corporation Announces Quarterly Dividend
    GlobeNewswire

    Protective Insurance Corporation Announces Quarterly Dividend

    CARMEL, Ind., May 04, 2021 (GLOBE NEWSWIRE) -- Protective Insurance Corporation (Nasdaq: PTVCA, PTVCB) announces the Board of Directors of Protective Insurance Corporation declared a quarterly dividend of $0.10 per share on the Company’s Class A and Class B Common Stock. The dividend per share will be payable June 1, 2021 to shareholders of record on May 18, 2021. Investor Contact: John Barnett(317) 429-2554 investors@protectiveinsurance.com