Bermuda | 1-33128 | 98-0503315 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
ONEBEACON INSURANCE GROUP, LTD. | ||
Date: May 2, 2017 | ||
By: | /s/ JOHN C. TREACY | |
John C. Treacy | ||
Chief Accounting Officer and Treasurer |
A.M. Best | S&P | Fitch | Moody’s | |||||
Ratings (1) | A | A- | A | A3 | ||||
Outlook | Stable | Stable | Stable | Stable |
(1) | Insurance entities include Atlantic Specialty Insurance Company, Homeland Insurance Company of New York, Homeland Insurance Company of Delaware, OBI National Insurance Company, and OBI America Insurance Company. |
Transfer Agent | Company Contact | |
Wells Fargo Shareowner Services | Paul McDonough | |
1110 Centre Point Curve | Chief Financial Officer | |
Suite 101 | 877-248-8765 | |
Mendota Heights, MN 55120-4100 | ||
1-800-468-9716 |
Basis of Presentation | i - ii |
Safe Harbor Statement | iii - iv |
Consolidated Results | |
Consolidated Financial Results | 1 |
Consolidated Statements of Operations and Comprehensive Income | 2 |
Comprehensive Income, Net Income and Non-GAAP Operating Income | 3 |
Computation of Return on Equity Measures | 4 |
Consolidated Balance Sheets and Book Value Per Share | 5 |
Consolidated Pre-Tax Results from Operations | 6 |
Consolidating Pre-Tax Results from Operations by Segment | |
For the Three Months Ended March 31, 2017 and 2016 | 7 - 8 |
Consolidated Loss and LAE Reserve Summaries | |
For the Three Months Ended March 31, 2017 and 2016 | 9 |
Insurance Operations | |
Specialty Products | |
Pre-Tax Results from Operations | 10 |
Specialty Industries | |
Pre-Tax Results from Operations | 11 |
Investing, Financing and Corporate | |
Pre-Tax Results from Operations | 12 |
Investment Results Pre-Tax | 13 |
Investment Returns | 14 |
Composition of Invested Assets | 15 |
Capital Structure and Interest Coverage | 16 |
• | OneBeacon's reportable segments are Specialty Products and Specialty Industries, representing insurance underwriting operations, and Investing, Financing and Corporate. |
• | Specialty Products is a collection of niche businesses focused on providing U.S. customers distinct specialty insurance products. Specialty Products includes Healthcare, Management Liability, Financial Services, A.W.G. Dewar, Specialty Property, Environmental, Surety, Programs, Financial Institutions, and Architects and Engineers. |
• | Specialty Industries is a collection of niche businesses providing distinct solutions to targeted industry sectors. Specialty Industries includes Entertainment, Inland Marine, Ocean Marine, Technology, Accident and Health, and Government Risks. |
• | Investing, Financing and Corporate includes the investing and financing activities for OneBeacon on a consolidated basis, and certain other corporate activities conducted through the top holding company, OneBeacon Insurance Group, Ltd., and its intermediate subsidiaries. |
• | The key measure of relative underwriting performance for an insurance company is the combined ratio. The combined ratio is calculated by adding the ratio of incurred loss and loss adjustment expenses ("LAE") to earned premiums (the “loss and LAE ratio”) and the ratio of policy acquisition and other underwriting expenses to earned premiums (the “expense ratio”). A combined ratio under 100% indicates that an insurance company is generating an underwriting profit. However, when considering investment income and investment gains or losses, insurance companies operating at a combined ratio of greater than 100% can be profitable. |
• | Net written premiums is an operating metric used by the Company to measure business volume. The metric is calculated by totaling all premium amounts, both direct and assumed, that customers are required to pay for policies that are written, or bound, during the relevant accounting period, less amounts ceded to reinsurance companies. |
• | This financial supplement includes non-GAAP financial measures that have been reconciled to their most comparable GAAP financial measures. Management believes these measures to be useful supplements to the comparable GAAP measures in evaluating the Company's financial performance. |
• | Non-GAAP operating income is a non-GAAP financial measure that excludes net realized and change in unrealized investment gains, and the related tax effects, from net income attributable to OneBeacon's common shareholders. OneBeacon believes that this non-GAAP financial measure provides a useful alternative picture of the underlying operating activities of the company to the GAAP measure of net income attributable to OneBeacon's common shareholders, as it removes variability in the timing of realized and unrealized investment gains which may be heavily influenced by investment market conditions. Although key to the company's overall financial performance, OneBeacon believes that net realized and unrealized investment gains are largely independent of the underwriting decision-making process. The reconciliation of net income attributable to OneBeacon's common shareholders to non-GAAP operating income is included on page 3. |
• | Non-GAAP operating income per share is calculated by dividing non-GAAP operating income (a non-GAAP financial measure described above) by the weighted average number of common shares outstanding. Management believes that non-GAAP operating income per share is a useful alternative picture of the underlying operating activities of the company as it removes variability in the timing of investment gains and losses which may be heavily influenced by investment market conditions. Net income attributable to OneBeacon's common shareholders per share is the most directly comparable GAAP measure. As described above, the reconciliation of net income attributable to OneBeacon's common shareholders to non-GAAP operating income is included on page 3. The calculation of non-GAAP operating income per share is also included on page 3. |
• | Adjusted OneBeacon's common shareholders' equity excluding net unrealized gains and losses on investments and foreign currencies, after-tax, and accumulated other comprehensive loss (AOCL), the average of which is used in calculating operating returns, is derived by excluding net unrealized gains and losses on investments and foreign currencies, after tax, and AOCL, after tax, from OneBeacon's common shareholders' equity. For the reasons described above, OneBeacon believes that it is appropriate to remove the variability in net unrealized gains and losses on investments and foreign currencies and other comprehensive loss when analyzing certain performance measures. The reconciliation of OneBeacon's common shareholders' equity, the most closely comparable GAAP measure, to adjusted OneBeacon's common shareholders' equity excluding net unrealized gains and losses on investments and foreign currencies, after tax, and AOCL, after tax, is included on page 4. |
• | Pre-tax non-GAAP operating income before interest expense on debt is a non-GAAP financial measure that represents pre-tax income less net realized and change in unrealized investment gains as well as interest expense on debt from pre-tax income. Management believes that pre-tax non-GAAP operating income before interest expense on debt provides a useful alternative picture of the underlying operating activities of the Company to the GAAP measure of pre-tax income, as it removes variability in the timing of investment gains which may be heavily influenced by investment market conditions. Although key to the Company's overall financial performance, management believes that realized and unrealized investment gains are largely independent of the underwriting decision-making process. The reconciliation of pre-tax income to pre-tax non-GAAP operating income before interest expense on debt is included on page 16. |
• | Interest coverage is calculated by dividing pre-tax non-GAAP operating income before interest expense on debt (a non-GAAP financial measure described above) by interest expense on debt. Management believes that interest coverage is a useful supplement to understanding the Company's capital position. The reconciliation of the numerator to the most closely comparable GAAP measure is described above. The calculation of interest coverage is included on page 16. |
• | recorded loss and loss adjustment expense reserves subsequently providing to have been inadequate; |
• | changes in interest rates, debt or equity markets or other market volatility that negatively impact our investment portfolio; |
• | competitive forces and the cyclicality of the property and casualty insurance industry; |
• | claims arising from catastrophic events, such as hurricanes, windstorms, earthquakes, floods or terrorist attacks; |
• | the continued availability of capital and financing; |
• | the continued availability and cost of reinsurance coverage and our ability to collect reinsurance recoverables; |
• | the ability to maintain data and system security; |
• | the outcome of litigation and other legal or regulatory proceedings; |
• | our ability to continue meeting our debt and related service obligations or to pay dividends; |
• | our ability to successfully develop new specialty businesses; |
• | changes in laws or regulations, or their interpretations, which are applicable to us, our competitors, our agents or our customers; |
• | actions taken by rating agencies from time to time with respect to us, such as financial strength or credit rating downgrades or placing our ratings on negative watch; |
• | our ability to retain key personnel; |
• | participation in guaranty funds and mandatory market mechanisms; |
• | our ability to maintain effective operating procedures and manage operational risk; |
• | changes to current shareholder dividend practice and regulatory restrictions on dividends; |
• | credit risk exposure in certain of our business operations; |
• | Bermuda law may afford less protection to shareholders; |
• | our status as a subsidiary of White Mountains, including potential conflicts of interest, competition, and related-party transactions; |
• | changes in tax laws or tax treaties; |
• | the risk that the proposed merger with Intact Financial Corporation (“Intact”) may not be completed on the currently contemplated timeline or at all; |
• | the failure to receive, on a timely basis or otherwise, the required approval of the proposed merger with Intact by OneBeacon’s shareholders; |
• | the possibility that any or all of the various conditions to the consummation of the merger may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals); |
• | the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement with Intact, including in circumstances which would require OneBeacon to pay a termination fee or other expenses; |
• | risks related to diverting management’s attention from our ongoing business operations and other risks related to the announcement or pendency of the proposed merger with Intact, including on our ability to retain and hire key personnel, our ability to maintain relationships with our customers, policyholders, brokers, service providers and others with whom we do business and our operating results and business generally; |
• | the risk that shareholder litigation in connection with the transactions contemplated by the merger agreement with Intact may result in significant costs of defense, indemnification and liability; and |
• | other factors, most of which are beyond our control. |
Three Months Ended | |||||||||||||||||||||||||||||||
Mar 31, | June 30, | Sep 30, | Dec 31, | Mar 31, | |||||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2017 | |||||||||||||||||||||||||||
Highlights | |||||||||||||||||||||||||||||||
Comprehensive income | $ | 46.4 | $ | 24.7 | $ | 28.6 | $ | 8.7 | $ | 32.2 | |||||||||||||||||||||
Net income | 46.4 | 24.5 | 28.3 | 8.2 | 32.1 | ||||||||||||||||||||||||||
Non-GAAP operating income | 35.6 | 8.5 | 18.2 | 20.6 | 22.4 | ||||||||||||||||||||||||||
As of Mar 31, 2017 | As of Dec 31, 2016 | % Change | |||||||||||||||||||||||||||||
Per Share Amounts | |||||||||||||||||||||||||||||||
Book value per share [1] | $ | 10.91 | $ | 10.82 | 0.8% | ||||||||||||||||||||||||||
Change in book value per share, including dividends, in the quarter [2] | 2.8% | ||||||||||||||||||||||||||||||
Change in book value per share, including dividends, in the last twelve months on an IRR basis [3] | 9.3% | ||||||||||||||||||||||||||||||
Common shares outstanding | 94.7 | 94.3 | |||||||||||||||||||||||||||||
Non-GAAP operating income per share (basic & diluted) (see p.3) | $ | 0.38 | $ | 0.09 | $ | 0.19 | $ | 0.22 | $ | 0.24 | |||||||||||||||||||||
Weighted average number of common shares outstanding (basic & diluted) | 94.1 | 93.9 | 94.0 | 94.0 | 94.0 | ||||||||||||||||||||||||||
Financial Ratios | |||||||||||||||||||||||||||||||
Underwriting ratios: | |||||||||||||||||||||||||||||||
Loss and LAE ratio | 57.0 | % | 66.2 | % | 58.6 | % | 56.7 | % | 57.5 | % | |||||||||||||||||||||
Expense ratio | 38.2 | % | 36.7 | % | 37.6 | % | 38.3 | % | 37.0 | % | |||||||||||||||||||||
Combined ratio | 95.2 | % | 102.9 | % | 96.2 | % | 95.0 | % | 94.5 | % | |||||||||||||||||||||
As of Mar 31, 2017 | As of Dec 31, 2016 | Change | |||||||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||||
Total investment securities | $ | 2,594.1 | $ | 2,620.4 | (1.0)% | ||||||||||||||||||||||||||
Total OneBeacon's common shareholders' equity | $ | 1,033.4 | $ | 1,021.3 | 1.2% | ||||||||||||||||||||||||||
Ratio of debt to total capital | 20.9 | % | 21.0 | % | (0.1) pts |
[1] | Represents OneBeacon's common shareholders' equity divided by common shares outstanding. |
[2] | Includes a quarterly dividend paid of $0.21 per share. |
[3] | Internal rate of return (IRR) calculated based on beginning book value per share, quarterly dividends paid of $0.21 per share and ending book value per share. |
Three Months Ended | ||||||||||||||||||||
Mar 31, | Jun 30, | Sep 30, | Dec 31, | Mar 31, | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2017 | ||||||||||||||||
Earned premiums | $ | 278.6 | $ | 271.4 | $ | 277.9 | $ | 272.7 | $ | 261.8 | ||||||||||
Net investment income | 14.4 | 12.1 | 11.8 | 12.3 | 12.2 | |||||||||||||||
Net realized and change in unrealized investment gains | 16.6 | 24.7 | 15.5 | (19.1 | ) | 15.0 | ||||||||||||||
Net other revenues [1] | 0.9 | 0.8 | 1.8 | 2.0 | 3.4 | |||||||||||||||
Total revenues | 310.5 | 309.0 | 307.0 | 267.9 | 292.4 | |||||||||||||||
Loss and loss adjustment expenses | 158.8 | 179.7 | 162.8 | 154.7 | 150.6 | |||||||||||||||
Policy acquisition expenses | 51.0 | 48.7 | 55.1 | 51.2 | 45.3 | |||||||||||||||
Other underwriting expenses | 55.3 | 50.9 | 49.4 | 53.4 | 51.7 | |||||||||||||||
General and administrative expenses | 3.9 | 3.5 | 3.5 | 3.3 | 5.0 | |||||||||||||||
Interest expense | 3.3 | 3.2 | 3.3 | 3.3 | 3.3 | |||||||||||||||
Total expenses | 272.3 | 286.0 | 274.1 | 265.9 | 255.9 | |||||||||||||||
Pre-tax income | 38.2 | 23.0 | 32.9 | 2.0 | 36.5 | |||||||||||||||
Income tax (expense) benefit | 8.7 | 2.0 | (4.6 | ) | 6.4 | (3.9 | ) | |||||||||||||
Net income including noncontrolling interests | 46.9 | 25.0 | 28.3 | 8.4 | 32.6 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | (0.5 | ) | (0.5 | ) | — | (0.2 | ) | (0.5 | ) | |||||||||||
Net income attributable to OneBeacon’s common shareholders | 46.4 | 24.5 | 28.3 | 8.2 | 32.1 | |||||||||||||||
Other comprehensive income, net of tax | — | 0.2 | 0.3 | 0.5 | 0.1 | |||||||||||||||
Comprehensive income attributable to OneBeacon’s common shareholders | $ | 46.4 | $ | 24.7 | $ | 28.6 | $ | 8.7 | $ | 32.2 |
[1] | The three months ended September 30, 2016 includes a $0.5 million positive adjustment on the gain on sale of Essentia resulting from recoveries upon the resolution of a matter relating to the Michigan Catastrophic Claims Association. |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
Mar 31, | Jun 30, | Sep 30, | Dec 31, | Mar 31, | Mar 31, | |||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2017 | 2017 | |||||||||||||||||||
Comprehensive income attributable to OneBeacon’s common shareholders | $ | 46.4 | $ | 24.7 | $ | 28.6 | $ | 8.7 | $ | 32.2 | $ | 94.2 | ||||||||||||
Net income attributable to OneBeacon’s common shareholders | $ | 46.4 | $ | 24.5 | $ | 28.3 | $ | 8.2 | $ | 32.1 | $ | 93.1 | ||||||||||||
Weighted average number of common shares outstanding | 94.1 | 93.9 | 94.0 | 94.0 | 94.0 | 94.0 | ||||||||||||||||||
Net income attributable to OneBeacon’s common shareholders per share | $ | 0.49 | $ | 0.26 | $ | 0.30 | $ | 0.09 | $ | 0.34 | $ | 0.98 | ||||||||||||
Net income attributable to OneBeacon’s common shareholders | $ | 46.4 | $ | 24.5 | $ | 28.3 | $ | 8.2 | $ | 32.1 | $ | 93.1 | ||||||||||||
Less: | ||||||||||||||||||||||||
Net realized and change in unrealized investment gains | (16.6 | ) | (24.7 | ) | (15.5 | ) | 19.1 | (15.0 | ) | (36.1 | ) | |||||||||||||
Tax effect on net realized and change in unrealized investment gains | 5.8 | 8.7 | 5.4 | (6.7 | ) | 5.3 | 12.7 | |||||||||||||||||
Non-GAAP operating income [1] | $ | 35.6 | $ | 8.5 | $ | 18.2 | $ | 20.6 | $ | 22.4 | $ | 69.7 | ||||||||||||
Weighted average number of common shares outstanding | 94.1 | 93.9 | 94.0 | 94.0 | 94.0 | 94.0 | ||||||||||||||||||
Non-GAAP operating income per share [1] | $ | 0.38 | $ | 0.09 | $ | 0.19 | $ | 0.22 | $ | 0.24 | $ | 0.74 |
[1] | Represents a non-GAAP financial measure. |
Twelve Months Ended Mar 31, 2017 | ||||||||||||||
Numerator: | ||||||||||||||
[A] | Comprehensive income attributable to OneBeacon’s common shareholders | $ | 94.2 | |||||||||||
[B] | Non-GAAP operating income [1] | $ | 69.7 | |||||||||||
As of | As of | |||||||||||||
Mar 31, 2017 | Mar 31, 2016 | Average | ||||||||||||
Denominator: | ||||||||||||||
[C] | OneBeacon’s common shareholders’ equity | $ | 1,033.4 | $ | 1,016.6 | $ | 1,025.0 | |||||||
Less: | ||||||||||||||
Net unrealized gains and losses on investments and foreign currencies | (55.3 | ) | (35.8 | ) | ||||||||||
Tax effect on net unrealized gains and losses on investments and foreign currencies | 19.4 | 12.5 | ||||||||||||
Accumulated other comprehensive loss (AOCL) | 4.1 | 5.2 | ||||||||||||
[D] | Adjusted OneBeacon’s common shareholders’ equity excluding cumulative net unrealized gains and losses on investments and foreign currencies and AOCL[1] | $ | 1,001.6 | $ | 998.5 | $ | 1,000.1 | |||||||
Returns: | ||||||||||||||
Comprehensive return on average OneBeacon's common shareholders' equity [ A / C ] | 9.2 | % | ||||||||||||
Non-GAAP operating return on average adjusted OneBeacon's common shareholders' equity excluding net unrealized gains and losses on investments and foreign currencies and AOCL [ B / D ] | 7.0 | % |
[1] | Represents a non-GAAP financial measure. |
As of | ||||||||
Assets | Mar 31, 2017 | Dec 31, 2016 | ||||||
Investment securities | ||||||||
Fixed maturity investments | $ | 2,166.7 | $ | 2,169.1 | ||||
Short-term investments | 92.7 | 112.1 | ||||||
Common equity securities | 198.9 | 188.7 | ||||||
Other investments | 135.8 | 150.5 | ||||||
Total investment securities | 2,594.1 | 2,620.4 | ||||||
Cash | 79.6 | 69.6 | ||||||
Reinsurance recoverables | 178.1 | 179.5 | ||||||
Premiums receivable | 225.9 | 228.3 | ||||||
Deferred acquisition costs | 98.5 | 96.3 | ||||||
Ceded unearned premiums | 52.4 | 44.2 | ||||||
Net deferred tax asset | 125.5 | 126.7 | ||||||
Investment income accrued | 12.4 | 11.3 | ||||||
Accounts receivable on unsettled investment sales | 9.1 | 1.4 | ||||||
Other assets | 196.4 | 212.2 | ||||||
Total assets | $ | 3,572.0 | $ | 3,589.9 | ||||
Liabilities | ||||||||
Unpaid loss and loss adjustment expense reserves | $ | 1,368.8 | $ | 1,365.6 | ||||
Unearned premiums | 578.4 | 575.1 | ||||||
Funds held under insurance contracts | 148.7 | 153.0 | ||||||
Debt | 273.2 | 273.2 | ||||||
Accounts payable on unsettled investment purchases | 3.6 | — | ||||||
Other liabilities | 162.5 | 197.8 | ||||||
Total liabilities | 2,535.2 | 2,564.7 | ||||||
OneBeacon’s common shareholders’ equity and noncontrolling interests | ||||||||
OneBeacon’s common shareholders’ equity: | ||||||||
Common shares and paid-in surplus | 1,013.0 | 1,013.2 | ||||||
Retained earnings | 24.5 | 12.3 | ||||||
Accumulated other comprehensive loss | (4.1 | ) | (4.2 | ) | ||||
Total OneBeacon’s common shareholders’ equity | 1,033.4 | 1,021.3 | ||||||
Total noncontrolling interests | 3.4 | 3.9 | ||||||
Total OneBeacon’s common shareholders’ equity and noncontrolling interests | 1,036.8 | 1,025.2 | ||||||
Total liabilities, OneBeacon’s common shareholders’ equity and noncontrolling interests | $ | 3,572.0 | $ | 3,589.9 | ||||
Total OneBeacon’s common shareholders’ equity | $ | 1,033.4 | $ | 1,021.3 | ||||
Common shares outstanding | 94.7 | 94.3 | ||||||
Book value per share | $ | 10.91 | $ | 10.82 |
Three Months Ended | ||||||||||||||||||||
Mar 31, | Jun 30, | Sep 30, | Dec 31, | Mar 31, | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2017 | ||||||||||||||||
Net written premiums | $ | 280.1 | $ | 261.0 | $ | 324.1 | $ | 235.5 | $ | 256.9 | ||||||||||
Earned premiums | 278.6 | 271.4 | 277.9 | 272.7 | 261.8 | |||||||||||||||
Loss and loss adjustment expenses | (158.8 | ) | (179.7 | ) | (162.8 | ) | (154.7 | ) | (150.6 | ) | ||||||||||
Policy acquisition expenses | (51.0 | ) | (48.7 | ) | (55.1 | ) | (51.2 | ) | (45.3 | ) | ||||||||||
Other underwriting expenses | (55.3 | ) | (50.9 | ) | (49.4 | ) | (53.4 | ) | (51.7 | ) | ||||||||||
Underwriting income (loss) | 13.5 | (7.9 | ) | 10.6 | 13.4 | 14.2 | ||||||||||||||
Net investment income | 14.4 | 12.1 | 11.8 | 12.3 | 12.2 | |||||||||||||||
Net realized and change in unrealized investment gains | 16.6 | 24.7 | 15.5 | (19.1 | ) | 15.0 | ||||||||||||||
Net other revenues | 0.9 | 0.8 | 1.8 | 2.0 | 3.4 | |||||||||||||||
General and administrative expenses | (3.9 | ) | (3.5 | ) | (3.5 | ) | (3.3 | ) | (5.0 | ) | ||||||||||
Interest expense | (3.3 | ) | (3.2 | ) | (3.3 | ) | (3.3 | ) | (3.3 | ) | ||||||||||
Pre-tax income | $ | 38.2 | $ | 23.0 | $ | 32.9 | $ | 2.0 | $ | 36.5 | ||||||||||
Underwriting ratios | ||||||||||||||||||||
Loss and LAE ratio | ||||||||||||||||||||
Current year: | ||||||||||||||||||||
Non-cat loss and LAE | 56.1 | % | 58.6 | % | 57.5 | % | 56.1 | % | 56.9 | % | ||||||||||
Catastrophe loss and LAE | 0.9 | % | 1.9 | % | 1.1 | % | 0.6 | % | 0.6 | % | ||||||||||
Total loss and LAE | 57.0 | % | 60.5 | % | 58.6 | % | 56.7 | % | 57.5 | % | ||||||||||
Prior year: | ||||||||||||||||||||
Total loss and LAE (fav) unfav | — | % | 5.7 | % | — | % | — | % | — | % | ||||||||||
Total loss and LAE ratio | 57.0 | % | 66.2 | % | 58.6 | % | 56.7 | % | 57.5 | % | ||||||||||
Policy acquisition expenses | 18.3 | % | 18.0 | % | 19.8 | % | 18.8 | % | 17.3 | % | ||||||||||
Other underwriting expenses | 19.9 | % | 18.7 | % | 17.8 | % | 19.5 | % | 19.7 | % | ||||||||||
Total expense ratio | 38.2 | % | 36.7 | % | 37.6 | % | 38.3 | % | 37.0 | % | ||||||||||
Total combined ratio | 95.2 | % | 102.9 | % | 96.2 | % | 95.0 | % | 94.5 | % |
Specialty Products | Specialty Industries | Investing, Financing and Corporate | Consolidated | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||
Gross written premiums | $ | 134.9 | $ | 137.8 | $ | 162.4 | $ | 172.7 | $ | — | $ | — | $ | 297.3 | $ | 310.5 | ||||||||||||||||
Net written premiums | 105.1 | 118.4 | 151.8 | 161.7 | — | — | 256.9 | 280.1 | ||||||||||||||||||||||||
Earned premiums | $ | 119.2 | $ | 123.2 | $ | 142.6 | $ | 155.4 | $ | — | $ | — | $ | 261.8 | $ | 278.6 | ||||||||||||||||
Loss and loss adjustment expenses | (82.9 | ) | (86.4 | ) | (67.7 | ) | (72.4 | ) | — | — | (150.6 | ) | (158.8 | ) | ||||||||||||||||||
Policy acquisition expenses | (19.6 | ) | (23.2 | ) | (25.7 | ) | (27.8 | ) | — | — | (45.3 | ) | (51.0 | ) | ||||||||||||||||||
Other underwriting expenses | (20.7 | ) | (21.3 | ) | (31.0 | ) | (34.0 | ) | — | — | (51.7 | ) | (55.3 | ) | ||||||||||||||||||
Underwriting income (loss) | (4.0 | ) | (7.7 | ) | 18.2 | 21.2 | — | — | 14.2 | 13.5 | ||||||||||||||||||||||
Net investment income | — | — | — | — | 12.2 | 14.4 | 12.2 | 14.4 | ||||||||||||||||||||||||
Net realized and change in unrealized investment gains | — | — | — | — | 15.0 | 16.6 | 15.0 | 16.6 | ||||||||||||||||||||||||
Net other revenues (expenses) | (0.1 | ) | (0.1 | ) | 0.2 | 0.3 | 3.3 | 0.7 | 3.4 | 0.9 | ||||||||||||||||||||||
General and administrative expenses | — | — | (0.5 | ) | (0.5 | ) | (4.5 | ) | (3.4 | ) | (5.0 | ) | (3.9 | ) | ||||||||||||||||||
Interest expense | — | — | — | — | (3.3 | ) | (3.3 | ) | (3.3 | ) | (3.3 | ) | ||||||||||||||||||||
Pre-tax income (loss) | $ | (4.1 | ) | $ | (7.8 | ) | $ | 17.9 | $ | 21.0 | $ | 22.7 | $ | 25.0 | $ | 36.5 | $ | 38.2 | ||||||||||||||
Underwriting Ratios | ||||||||||||||||||||||||||||||||
Loss and LAE ratio | 69.5 | % | 70.1 | % | 47.5 | % | 46.6 | % | 57.5 | % | 57.0 | % | ||||||||||||||||||||
Expense ratio | 33.9 | % | 36.1 | % | 39.7 | % | 39.8 | % | 37.0 | % | 38.2 | % | ||||||||||||||||||||
Total combined ratio | 103.4 | % | 106.2 | % | 87.2 | % | 86.4 | % | 94.5 | % | 95.2 | % |
Three months ended March 31, | ||||||||
2017 | 2016 | |||||||
Gross beginning loss and LAE reserves | $ | 1,365.6 | $ | 1,389.8 | ||||
Less beginning reinsurance recoverable on unpaid losses | (172.9 | ) | (186.0 | ) | ||||
Net beginning loss and LAE reserves | 1,192.7 | 1,203.8 | ||||||
Loss and LAE incurred relating to: | ||||||||
Current year losses | 150.6 | 158.8 | ||||||
Prior year losses | — | — | ||||||
Total incurred loss and LAE | 150.6 | 158.8 | ||||||
Loss and LAE paid relating to: | ||||||||
Current year losses | (21.3 | ) | (22.0 | ) | ||||
Prior year losses | (127.9 | ) | (147.2 | ) | ||||
Total loss and LAE payments | (149.2 | ) | (169.2 | ) | ||||
Net ending loss and LAE reserves | 1,194.1 | 1,193.4 | ||||||
Plus ending reinsurance recoverable on unpaid losses | 174.7 | 150.4 | ||||||
Gross ending loss and LAE reserves | $ | 1,368.8 | $ | 1,343.8 | ||||
Earned premiums | $ | 261.8 | $ | 278.6 | ||||
Ratios: | ||||||||
Calendar year loss and LAE paid | 57.0 | % | 60.7 | % | ||||
Calendar year loss and LAE incurred | 57.5 | % | 57.0 | % | ||||
Unfavorable (favorable) prior accident year development | — | % | — | % | ||||
Current accident year loss and LAE paid to incurred | 14.1 | % | 13.9 | % |
Three Months Ended | ||||||||||||||||||||
Mar 31, | Jun 30, | Sep 30, | Dec 31, | Mar 31, | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2017 | ||||||||||||||||
Net written premiums | $ | 118.4 | $ | 104.9 | $ | 172.3 | $ | 108.4 | $ | 105.1 | ||||||||||
Earned premiums | 123.2 | 123.1 | 122.6 | 120.0 | 119.2 | |||||||||||||||
Loss and loss adjustment expenses | (86.4 | ) | (99.4 | ) | (77.0 | ) | (89.6 | ) | (82.9 | ) | ||||||||||
Policy acquisition expenses | (23.2 | ) | (21.6 | ) | (26.2 | ) | (24.3 | ) | (19.6 | ) | ||||||||||
Other underwriting expenses | (21.3 | ) | (22.3 | ) | (18.5 | ) | (20.3 | ) | (20.7 | ) | ||||||||||
Underwriting income (loss) | (7.7 | ) | (20.2 | ) | 0.9 | (14.2 | ) | (4.0 | ) | |||||||||||
Net other expenses | (0.1 | ) | — | — | — | (0.1 | ) | |||||||||||||
Pre-tax income (loss) | $ | (7.8 | ) | $ | (20.2 | ) | $ | 0.9 | $ | (14.2 | ) | $ | (4.1 | ) | ||||||
Underwriting ratios | ||||||||||||||||||||
Loss and LAE ratio | ||||||||||||||||||||
Current year: | ||||||||||||||||||||
Non-cat loss and LAE | 57.6 | % | 65.7 | % | 60.6 | % | 63.2 | % | 60.3 | % | ||||||||||
Catastrophe loss and LAE | 0.4 | % | 1.3 | % | 0.2 | % | 0.3 | % | 0.4 | % | ||||||||||
Total loss and LAE | 58.0 | % | 67.0 | % | 60.8 | % | 63.5 | % | 60.7 | % | ||||||||||
Prior year: | ||||||||||||||||||||
Total loss and LAE (fav) unfav | 12.1 | % | 13.8 | % | 2.1 | % | 11.2 | % | 8.8 | % | ||||||||||
Total loss and LAE ratio | 70.1 | % | 80.8 | % | 62.9 | % | 74.7 | % | 69.5 | % | ||||||||||
Policy acquisition expenses | 18.8 | % | 17.6 | % | 21.4 | % | 20.2 | % | 16.5 | % | ||||||||||
Other underwriting expenses | 17.3 | % | 18.0 | % | 15.1 | % | 16.9 | % | 17.4 | % | ||||||||||
Total expense ratio | 36.1 | % | 35.6 | % | 36.5 | % | 37.1 | % | 33.9 | % | ||||||||||
Total combined ratio | 106.2 | % | 116.4 | % | 99.4 | % | 111.8 | % | 103.4 | % |
Three Months Ended | ||||||||||||||||||||
Mar 31, | Jun 30, | Sep 30, | Dec 31, | Mar 31, | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2017 | ||||||||||||||||
Net written premiums | $ | 161.7 | $ | 156.1 | $ | 151.8 | $ | 127.1 | $ | 151.8 | ||||||||||
Earned premiums | 155.4 | 148.3 | 155.3 | 152.7 | 142.6 | |||||||||||||||
Loss and loss adjustment expenses | (72.4 | ) | (80.3 | ) | (85.8 | ) | (65.1 | ) | (67.7 | ) | ||||||||||
Policy acquisition expenses | (27.8 | ) | (27.1 | ) | (28.9 | ) | (26.9 | ) | (25.7 | ) | ||||||||||
Other underwriting expenses | (34.0 | ) | (28.6 | ) | (30.9 | ) | (33.1 | ) | (31.0 | ) | ||||||||||
Underwriting income | 21.2 | 12.3 | 9.7 | 27.6 | 18.2 | |||||||||||||||
Net other revenues | 0.3 | 0.2 | 0.8 | 0.2 | 0.2 | |||||||||||||||
General and administrative expenses | (0.5 | ) | (0.5 | ) | (0.9 | ) | (0.5 | ) | (0.5 | ) | ||||||||||
Pre-tax income | $ | 21.0 | $ | 12.0 | $ | 9.6 | $ | 27.3 | $ | 17.9 | ||||||||||
Underwriting ratios | ||||||||||||||||||||
Loss and LAE ratio | ||||||||||||||||||||
Current year: | ||||||||||||||||||||
Non-cat loss and LAE | 54.8 | % | 52.8 | % | 55.1 | % | 50.6 | % | 54.0 | % | ||||||||||
Catastrophe loss and LAE | 1.3 | % | 2.5 | % | 1.8 | % | 0.8 | % | 0.9 | % | ||||||||||
Total loss and LAE | 56.1 | % | 55.3 | % | 56.9 | % | 51.4 | % | 54.9 | % | ||||||||||
Prior year: | ||||||||||||||||||||
Total loss and LAE (fav) unfav | (9.5 | )% | (1.0 | )% | (1.6 | )% | (8.8 | )% | (7.4 | )% | ||||||||||
Total loss and LAE ratio | 46.6 | % | 54.3 | % | 55.3 | % | 42.6 | % | 47.5 | % | ||||||||||
Policy acquisition expenses | 17.9 | % | 18.2 | % | 18.6 | % | 17.6 | % | 18.0 | % | ||||||||||
Other underwriting expenses | 21.9 | % | 19.3 | % | 19.8 | % | 21.6 | % | 21.7 | % | ||||||||||
Total expense ratio | 39.8 | % | 37.5 | % | 38.4 | % | 39.2 | % | 39.7 | % | ||||||||||
Total combined ratio | 86.4 | % | 91.8 | % | 93.7 | % | 81.8 | % | 87.2 | % |
Three Months Ended | ||||||||||||||||||||
Mar 31, | Jun 30, | Sep 30, | Dec 31, | Mar 31, | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2017 | ||||||||||||||||
Net investment income | $ | 14.4 | $ | 12.1 | $ | 11.8 | $ | 12.3 | $ | 12.2 | ||||||||||
Net realized and change in unrealized investment gains | 16.6 | 24.7 | 15.5 | (19.1 | ) | 15.0 | ||||||||||||||
Net other revenues | 0.7 | 0.6 | 1.0 | 1.8 | 3.3 | |||||||||||||||
General and administrative expenses | (3.4 | ) | (3.0 | ) | (2.6 | ) | (2.8 | ) | (4.5 | ) | ||||||||||
Interest expense | (3.3 | ) | (3.2 | ) | (3.3 | ) | (3.3 | ) | (3.3 | ) | ||||||||||
Pre-tax income (loss) | $ | 25.0 | $ | 31.2 | $ | 22.4 | $ | (11.1 | ) | $ | 22.7 |
Three Months Ended | ||||||||||||||||||||
Mar 31, | Jun 30, | Sep 30, | Dec 31, | Mar 31, | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2017 | ||||||||||||||||
Net investment income | ||||||||||||||||||||
Fixed maturity investments | $ | 12.1 | $ | 12.2 | $ | 12.0 | $ | 12.4 | $ | 12.6 | ||||||||||
Short-term investments | — | 0.1 | 0.1 | — | 0.1 | |||||||||||||||
Common equity securities | 1.0 | 0.5 | 0.9 | 1.1 | 0.8 | |||||||||||||||
Other investments | 2.5 | 0.5 | 0.1 | (0.1 | ) | — | ||||||||||||||
Total investment income | 15.6 | 13.3 | 13.1 | 13.4 | 13.5 | |||||||||||||||
Less investment expenses | 1.2 | 1.2 | 1.3 | 1.1 | 1.3 | |||||||||||||||
Net investment income | $ | 14.4 | $ | 12.1 | $ | 11.8 | $ | 12.3 | $ | 12.2 | ||||||||||
Net realized investment gains (losses) | ||||||||||||||||||||
Fixed maturity investments | $ | (1.4 | ) | $ | 0.4 | $ | 2.5 | $ | (1.6 | ) | $ | (1.1 | ) | |||||||
Short-term investments | — | — | — | — | — | |||||||||||||||
Common equity securities | (4.7 | ) | 3.7 | 6.3 | 6.9 | 0.3 | ||||||||||||||
Other investments | 0.2 | (3.0 | ) | (1.4 | ) | 2.4 | 1.2 | |||||||||||||
Net realized investment gains (losses) | $ | (5.9 | ) | $ | 1.1 | $ | 7.4 | $ | 7.7 | $ | 0.4 | |||||||||
Change in net unrealized investment gains (losses) | ||||||||||||||||||||
Fixed maturity investments | $ | 15.0 | $ | 12.0 | $ | (2.3 | ) | $ | (22.2 | ) | $ | 7.3 | ||||||||
Short-term investments | — | — | — | — | — | |||||||||||||||
Common equity securities | 9.7 | (5.4 | ) | 3.8 | (5.4 | ) | 10.1 | |||||||||||||
Other investments | (2.2 | ) | 17.0 | 6.6 | 0.8 | (2.9 | ) | |||||||||||||
Change in net unrealized investment gains (losses) | $ | 22.5 | $ | 23.6 | $ | 8.1 | $ | (26.8 | ) | $ | 14.5 | |||||||||
Change in net unrealized foreign currency translation | ||||||||||||||||||||
Fixed maturity investments | $ | — | $ | — | $ | — | $ | — | $ | 0.1 | ||||||||||
Short-term investments | — | — | — | — | — | |||||||||||||||
Common equity securities | — | — | — | — | — | |||||||||||||||
Other investments | — | — | — | — | — | |||||||||||||||
Change in net unrealized foreign currency translation | $ | — | $ | — | $ | — | $ | — | $ | 0.1 | ||||||||||
Total investment return | ||||||||||||||||||||
Fixed maturity investments | $ | 25.7 | $ | 24.6 | $ | 12.2 | $ | (11.4 | ) | $ | 18.9 | |||||||||
Short-term investments | — | 0.1 | 0.1 | — | 0.1 | |||||||||||||||
Common equity securities | 6.0 | (1.2 | ) | 11.0 | 2.6 | 11.2 | ||||||||||||||
Other investments | 0.5 | 14.5 | 5.3 | 3.1 | (1.7 | ) | ||||||||||||||
Total investment return (before expenses) | $ | 32.2 | $ | 38.0 | $ | 28.6 | $ | (5.7 | ) | $ | 28.5 |
Three Months Ended | ||||||||||||||||||||
Mar 31, | Jun 30, | Sep 30, | Dec 31, | Mar 31, | ||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2017 | ||||||||||||||||
Average fair value of investments | ||||||||||||||||||||
Fixed maturity investments | $ | 2,054.6 | $ | 2,074.2 | $ | 2,145.4 | $ | 2,170.0 | $ | 2,167.9 | ||||||||||
Short-term investments | 94.4 | 117.1 | 95.0 | 93.8 | 102.4 | |||||||||||||||
Common equity securities | 287.3 | 256.5 | 213.0 | 188.8 | 193.8 | |||||||||||||||
Other investments | 140.4 | 142.5 | 148.4 | 150.1 | 143.1 | |||||||||||||||
Total average fair value | $ | 2,576.7 | $ | 2,590.3 | $ | 2,601.8 | $ | 2,602.7 | $ | 2,607.2 | ||||||||||
Investment returns | ||||||||||||||||||||
Fixed maturity investments | 1.3 | % | 1.2 | % | 0.6 | % | (0.5 | )% | 0.9 | % | ||||||||||
Short-term investments | — | % | 0.1 | % | 0.1 | % | — | % | 0.1 | % | ||||||||||
Total fixed income | 1.2 | % | 1.1 | % | 0.5 | % | (0.5 | )% | 0.8 | % | ||||||||||
Common equity securities | 2.1 | % | (0.5 | )% | 5.2 | % | 1.4 | % | 5.8 | % | ||||||||||
Other investments | 0.4 | % | 10.2 | % | 3.6 | % | 2.1 | % | (1.2 | )% | ||||||||||
Total common equity securities and other investments | 1.5 | % | 3.3 | % | 4.5 | % | 1.7 | % | 2.8 | % | ||||||||||
Total return | 1.2 | % | 1.5 | % | 1.1 | % | (0.2 | )% | 1.1 | % | ||||||||||
Average amortized cost of investments | ||||||||||||||||||||
Fixed maturity investments | $ | 2,044.8 | $ | 2,051.0 | $ | 2,117.3 | $ | 2,154.2 | $ | 2,159.5 | ||||||||||
Short-term investments | 94.4 | 117.1 | 95.0 | 93.8 | 102.4 | |||||||||||||||
Common equity securities | 278.8 | 245.9 | 203.1 | 179.6 | 182.4 | |||||||||||||||
Other investments | 134.1 | 128.8 | 122.9 | 120.9 | 115.0 | |||||||||||||||
Total average amortized cost | $ | 2,552.1 | $ | 2,542.8 | $ | 2,538.3 | $ | 2,548.5 | $ | 2,559.3 | ||||||||||
Investment yield | ||||||||||||||||||||
Fixed maturity investments | 0.6 | % | 0.6 | % | 0.6 | % | 0.6 | % | 0.6 | % | ||||||||||
Short-term investments | — | % | 0.1 | % | 0.1 | % | — | % | 0.1 | % | ||||||||||
Common equity securities | 0.4 | % | 0.2 | % | 0.4 | % | 0.6 | % | 0.4 | % | ||||||||||
Other investments | 1.9 | % | 0.4 | % | 0.1 | % | (0.1 | )% | — | % | ||||||||||
Total investment yield | 0.6 | % | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % |
Mar 31, 2016 | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | Mar 31, 2017 | |||||||||||||||||||||||||||||||
Amount | Mix | Amount | Mix | Amount | Mix | Amount | Mix | Amount | Mix | ||||||||||||||||||||||||||
Fixed maturity investments | $ | 2,028.7 | 79.1 | % | $ | 2,119.8 | 80.9 | % | $ | 2,170.9 | 84.0 | % | $ | 2,169.1 | 82.8 | % | $ | 2,166.7 | 83.5 | % | |||||||||||||||
Short-term investments | 119.7 | 4.7 | % | 114.5 | 4.4 | % | 75.5 | 2.9 | % | 112.1 | 4.3 | % | 92.7 | 3.6 | % | ||||||||||||||||||||
Common equity securities | 275.9 | 10.8 | % | 237.1 | 9.1 | % | 188.9 | 7.3 | % | 188.7 | 7.2 | % | 198.9 | 7.7 | % | ||||||||||||||||||||
Other investments[1] | 137.8 | 5.4 | % | 147.2 | 5.6 | % | 149.6 | 5.8 | % | 150.5 | 5.7 | % | 135.8 | 5.2 | % | ||||||||||||||||||||
Total investments, fair value | $ | 2,562.1 | 100.0 | % | $ | 2,618.6 | 100.0 | % | $ | 2,584.9 | 100.0 | % | $ | 2,620.4 | 100.0 | % | $ | 2,594.1 | 100.0 | % | |||||||||||||||
U.S. government obligations | 53.6 | 2.6 | % | 53.8 | 2.5 | % | 54.2 | 2.5 | % | 167.3 | 7.7 | % | 55.8 | 2.6 | % | ||||||||||||||||||||
Debt securities issued by corporations | 743.6 | 36.7 | % | 714.6 | 33.7 | % | 738.1 | 34.0 | % | 763.1 | 35.2 | % | 908.6 | 41.9 | % | ||||||||||||||||||||
Municipal obligations | 69.3 | 3.4 | % | 70.1 | 3.3 | % | 71.5 | 3.3 | % | 70.5 | 3.2 | % | 70.5 | 3.3 | % | ||||||||||||||||||||
Mortgage and asset-backed securities | 1,077.8 | 53.1 | % | 1,195.4 | 56.4 | % | 1,220.5 | 56.2 | % | 1,153.1 | 53.2 | % | 1,113.1 | 51.4 | % | ||||||||||||||||||||
Foreign government obligations | 1.2 | 0.1 | % | 1.2 | 0.1 | % | 1.2 | 0.1 | % | 1.2 | 0.1 | % | 5.0 | 0.2 | % | ||||||||||||||||||||
Preferred stocks | 83.2 | 4.1 | % | 84.7 | 4.0 | % | 85.4 | 3.9 | % | 13.9 | 0.6 | % | 13.7 | 0.6 | % | ||||||||||||||||||||
Total fixed maturity investments, fair value | $ | 2,028.7 | 100.0 | % | $ | 2,119.8 | 100.0 | % | $ | 2,170.9 | 100.0 | % | $ | 2,169.1 | 100.0 | % | $ | 2,166.7 | 100.0 | % | |||||||||||||||
Government bonds | $ | 54.5 | 2.7 | % | $ | 54.5 | 2.6 | % | $ | 55.1 | 2.6 | % | $ | 170.6 | 7.9 | % | $ | 60.9 | 2.8 | % | |||||||||||||||
AAA/Aaa | 464.0 | 23.1 | % | 550.9 | 26.3 | % | 609.2 | 28.4 | % | 502.2 | 23.2 | % | 537.6 | 24.9 | % | ||||||||||||||||||||
AA/Aa | 492.7 | 24.5 | % | 535.8 | 25.6 | % | 529.7 | 24.7 | % | 621.7 | 28.7 | % | 555.7 | 25.8 | % | ||||||||||||||||||||
A/A | 385.1 | 19.1 | % | 365.3 | 17.5 | % | 328.5 | 15.3 | % | 256.4 | 11.8 | % | 344.6 | 16.0 | % | ||||||||||||||||||||
BBB/Baa | 478.8 | 23.8 | % | 454.8 | 21.8 | % | 443.4 | 20.7 | % | 484.7 | 22.4 | % | 525.3 | 24.4 | % | ||||||||||||||||||||
Other/not rated | 136.3 | 6.8 | % | 129.3 | 6.2 | % | 178.1 | 8.3 | % | 128.8 | 6.0 | % | 130.5 | 6.1 | % | ||||||||||||||||||||
Total fixed maturity investments, amortized cost[2] | $ | 2,011.4 | 100.0 | % | $ | 2,090.6 | 100.0 | % | $ | 2,144.0 | 100.0 | % | $ | 2,164.4 | 100.0 | % | $ | 2,154.6 | 100.0 | % |
[1] | Other investments as of March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016 include the $69.6, $71.9, $71.5, $62.8, and $51.8 million, respectively. |
[2] | Credit ratings are assigned based on the following hierarchy: 1) Standard & Poor's and 2) Moody's Investor Service, Inc. |
Capital Structure: | As of | |||||||
Mar 31, 2017 | Dec 31, 2016 | |||||||
Total capitalization | ||||||||
Senior notes | $ | 273.2 | $ | 273.2 | ||||
Non-controlling interest | 3.4 | 3.9 | ||||||
OneBeacon’s common shareholders’ equity | 1,033.4 | 1,021.3 | ||||||
Total capitalization | $ | 1,310.0 | $ | 1,298.4 | ||||
Ratio of debt to total capital | 20.9 | % | 21.0 | % |
Interest Coverage: | Twelve Months Ended | ||||||||
Mar 31, 2017 | Dec 31, 2016 | ||||||||
Pre-tax income | $ | 94.4 | $ | 96.1 | |||||
Less: | |||||||||
Net realized and change in unrealized investment (gains) losses | (36.1 | ) | (37.7 | ) | |||||
[B] | Interest expense on debt | 13.1 | 13.1 | ||||||
[A] | Pre-tax non-GAAP operating income before interest expense on debt [1] | $ | 71.4 | $ | 71.5 | ||||
Interest coverage [A/B] [1] | 5.5 | x | 5.5 | x |
[1] | Represents a non-GAAP financial measure. |