UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) August 3, 2017
THE NAVIGATORS GROUP, INC.
(Exact name of Registrant as Specified in Its Charter)
Delaware |
0-15886 |
13-3138397 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
|
|
|
400 Atlantic Street, 8th Floor, Stamford, Connecticut |
|
06901 |
(Address of Principal Executive Offices) |
|
(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (203) 905-6090
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02.Results of Operations and Financial Condition
The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition,” and Item 7.01, “Regulation FD Disclosure.” This information, including Exhibit 99.1 attached hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
On August 3, 2017, The Navigators Group, Inc. issued a press release announcing its earnings for the second quarter of 2017 and the declaration of a quarterly cash dividend. This press release is attached hereto as Exhibit 99.1.
Item 7.01.Regulation FD Disclosure
See Item 2.02, above.
Item 8.01.Other Events
On August 3, 2017, the Board of Directors of The Navigators Group, Inc. authorized and declared a quarterly cash dividend of $0.06 per share of common stock, payable on September 14, 2017, to stockholders of record at the close of business on August 24, 2017.
Item 9.01.Financial Statements and Exhibits
(d)Exhibits
99.1 |
Press Release dated August 3, 2017. |
2
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
THE NAVIGATORS GROUP, INC.
By: |
/s/ Emily B. Miner |
|
Name : Emily B. Miner |
|
Title: Senior Vice President and General Counsel |
Date: August 4, 2017
EXHIBIT INDEX
Exhibit No.Exhibit
99.1 |
Press Release dated August 3, 2017. |
Exhibit 99.1
The Navigators Group, Inc.
CORPORATE NEWS
Navigators Reports Second Quarter 2017 Earnings
Net Income up 26.6%; Book Value up 3.2%
Stamford, CT – August 3, 2017 -- The Navigators Group, Inc. (NASDAQ:NAVG) reported Net Income of $20.5 million, or $0.69 per diluted share, for the three months ended June 30, 2017 compared to $16.2 million, or $0.54 per diluted share, for the same period in 2016. Net Operating Earnings1 were $19.7 million, or $0.66 per diluted share, for the three months ended June 30, 2017 compared to $12.2 million, or $0.41 per diluted share, for the same period in 2016.
Gross Written Premiums and Net Written Premiums for the three months ended June 30, 2017 were $452.2 million and $333.3 million, respectively, increasing 9.6% and 8.7%, respectively, from the comparable period in 2016. Our Combined Ratio for the three months ended June 30, 2017 was 97.3%, compared to 99.6% for the same period in 2016.
Net Investment Income for the three months ended June 30, 2017 was $22.3 million, an increase of 12.0% as compared to the same period in 2016. Our annualized pre-tax investment yield, excluding Net Realized Gains and Losses and Other-Than-Temporary Impairment Losses Recognized in Earnings, was 2.8% for the three months ended June 30, 2017, compared to 2.6% for the same period in 2016.
Other Income (Loss) for the three months ended June 30, 2017 was $(0.4) million, compared to $4.4 million for the same period in 2016. Other Income (Loss) primarily consists of realized and unrealized foreign exchange gains and losses.
For the six months ended June 30, 2017, our Company reported Net Income of $41.6 million, or $1.39 per diluted share, compared to $39.1 million, or $1.31 per diluted share, for the same period in 2016. Net Operating Earnings were $40.1 million, or $1.34 per diluted share, for the six months ended June 30, 2017 compared to $32.4 million, or $1.08 per diluted share, for the same period in 2016.
Gross Written Premiums and Net Written Premiums for the six months ended June 30, 2017 were $902.5 million and $670.4 million, respectively, increasing 9.2% and 7.0%, respectively, from the comparable period in 2016. Our Combined Ratio for the six months ended June 30, 2017 was 96.9%, compared to 97.4% for the same period in 2016.
Net Investment Income for the six months ended June 30, 2017 was $43.7 million, an increase of 10.8% as compared to the same period in 2016. Our annualized pre-tax investment yield, excluding Net Realized Gains and Losses and Other-Than-Temporary Impairment Losses Recognized in Earnings, was 2.7% for the six months ended June 30, 2017, compared to 2.6% for the same period in 2016.
Other Income for the six months ended June 30, 2017 was $0.7 million, compared to $7.0 million for the same period in 2016.
Stan Galanski, President and Chief Executive Officer, commented, “We are pleased to report continued profitable underwriting results and good premium growth in the second quarter, led by strong performance from our US Insurance and Global Reinsurance segments and improvement in our International Insurance results. Second quarter Net Income was up 26.6% over the prior year as a result of improved Underwriting Profit and Investment Income, contributing to an increase in Book Value per Share of 3.1% during the quarter. We continue to invest in expanding our business, with a commitment to cost control as reflected in our year to date 2.1 point decrease in our Other Operating Expense Ratio.”
1 Net Operating Earnings is a “non-GAAP financial measure” as defined in Regulation G. A reconciliation of Net income (the nearest GAAP financial measure) to Net Operating Earnings is provided on page 4 of this release, as is a discussion of the rationale for the presentation of this item.
News Release
August 3, 2017
Page 2
Our Company’s investment portfolio mainly consists of fixed income securities with an average quality rating of “AA-/Aa3” as defined by S&P and Moody’s, respectively, with an average effective duration of 3.8 years as of June 30, 2017. As of June 30, 2017, Net Unrealized Gains within our investment portfolio were $74.3 million, an increase of $22.2 million compared to March 31, 2017 and an increase of $45.4 million compared to December 31, 2016. We recognized $1.7 million of Net Realized Gains for the three months ended June 30, 2017, compared to $1.8 million of Net Realized Gains for the same period in 2016 (inclusive of Net Other-Than-Temporary Impairment Losses Recognized in Earnings). For the six months ended June 30, 2017 we recognized $1.7 million of Net Realized Gains (inclusive of Net Other-Than-Temporary Impairment Losses Recognized in Earnings), compared to $3.4 million of Net Realized Gains (inclusive of Net Other-Than-Temporary Impairment Losses Recognized in Earnings) for the same period in 2016.
Stockholders’ Equity was $1.2 billion, or $42.21 per share, as of June 30, 2017 compared to $40.94 per share, as of March 31, 2017 and $40.45 per share, as of December 31, 2016.
During the three months ended June 30, 2017, our Company declared and paid a quarterly cash dividend of $0.06 per share of Common Stock.
On August 3, 2017 our Board of Directors declared a cash dividend on our Company’s Common Stock of $0.06 per share, payable on September 14, 2017 to stockholders of record on August 24, 2017.
Our Company will hold a conference call on Friday, August 4, 2017 starting at 8:30 a.m. (ET) to discuss the 2017 second quarter results. The call will be available via live webcast on Navigators’ website (www.navg.com).
To participate by telephone, the domestic dial-in number is 800-850-2903 and the international dial-in is 224-357-2399. Participants may also connect to the webcast at: http://edge.media-server.com/m/p/gvxmqq2j
On December 6, 2016, our Board of Directors declared a two-for-one stock split of The Navigators Group, Inc. Common Stock, to be effected in the form of a stock dividend. Stockholders of record at the close of business on December 30, 2016 received one additional share of Common Stock for every share of Common Stock held. All disclosures of shares and per share data in this earnings release have been retroactively adjusted to reflect the stock split for all periods presented. The additional shares of Common Stock were issued on January 20, 2017.
The Navigators Group, Inc. is an international specialty insurance holding company with operations in the United States, the United Kingdom, Continental Europe and Asia.
This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Whenever used in this release, the words “estimate,” “expect,” “believe” or similar expressions are intended to identify such forward-looking statements. Forward-looking statements are derived from information that we currently have and assumptions that we make. We cannot assure that results that we anticipate will be achieved, since results may differ materially because of known and unknown risks and uncertainties that we face. Please refer to Navigators’ most recent reports on Forms 10-K and 10-Q and its other filings with the Securities and Exchange Commission for a description of Navigators’ business and the important factors that may affect that business. Navigators’ undertakes no obligation to publicly update or revise any forward-looking statement.
Contact: |
|
Ciro M. DeFalco |
|
|
Executive Vice President and Chief Financial Officer |
|
|
(203) 905-6343 |
|
|
cdefalco@navg.com |
|
|
www.navg.com |
News Release
August 3, 2017
Page 3
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
|
|
Three Months Ended |
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
||||||||||
amounts in thousands, except per share amounts |
|
June 30, |
|
|
|
|
|
|
June 30, |
|
|
|
|
|
||||||||||
Results of Operations |
|
2017 |
|
|
2016 |
|
|
Change |
|
|
2017 |
|
|
2016 |
|
|
Change |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Written Premiums |
|
$ |
452,179 |
|
|
$ |
412,565 |
|
|
|
9.6 |
% |
|
$ |
902,484 |
|
|
$ |
826,442 |
|
|
|
9.2 |
% |
Net Written Premiums |
|
|
333,282 |
|
|
|
306,535 |
|
|
|
8.7 |
% |
|
|
670,445 |
|
|
|
626,355 |
|
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earned Premiums |
|
$ |
293,835 |
|
|
$ |
267,992 |
|
|
|
9.6 |
% |
|
$ |
579,966 |
|
|
$ |
532,350 |
|
|
|
8.9 |
% |
Net Investment Income |
|
|
22,265 |
|
|
|
19,875 |
|
|
|
12.0 |
% |
|
|
43,713 |
|
|
|
39,469 |
|
|
|
10.8 |
% |
Net Realized Gains (Losses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other-Than-Temporary Impairment Losses |
|
|
29 |
|
|
|
(162 |
) |
|
NM |
|
|
|
(1,048 |
) |
|
|
(271 |
) |
|
NM |
|
||
Portion of Loss Recognized in Other Comprehensive Income (Before Tax) |
|
|
(29 |
) |
|
|
12 |
|
|
NM |
|
|
|
(45 |
) |
|
|
121 |
|
|
NM |
|
||
Net Other-Than-Temporary Impairment Losses Recognized In Earnings |
|
|
— |
|
|
|
(150 |
) |
|
NM |
|
|
|
(1,093 |
) |
|
|
(150 |
) |
|
NM |
|
||
Other Realized Gains |
|
|
1,694 |
|
|
|
1,960 |
|
|
|
(13.6 |
%) |
|
|
2,743 |
|
|
|
3,557 |
|
|
|
(22.9 |
%) |
Net Realized Gains |
|
|
1,694 |
|
|
|
1,810 |
|
|
|
(6.4 |
%) |
|
|
1,650 |
|
|
|
3,407 |
|
|
|
(51.6 |
%) |
Other Income (Loss) |
|
|
(411 |
) |
|
|
4,430 |
|
|
NM |
|
|
|
657 |
|
|
|
6,979 |
|
|
|
(90.6 |
%) |
|
Total Revenues |
|
$ |
317,383 |
|
|
$ |
294,107 |
|
|
|
7.9 |
% |
|
$ |
625,986 |
|
|
$ |
582,205 |
|
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Losses and Loss Adjustment Expenses |
|
$ |
177,110 |
|
|
$ |
167,206 |
|
|
|
5.9 |
% |
|
$ |
346,710 |
|
|
$ |
320,162 |
|
|
|
8.3 |
% |
Commission Expenses |
|
|
48,173 |
|
|
|
40,726 |
|
|
|
18.3 |
% |
|
|
96,017 |
|
|
|
78,280 |
|
|
|
22.7 |
% |
Other Operating Expenses |
|
|
60,766 |
|
|
|
59,074 |
|
|
|
2.9 |
% |
|
|
119,304 |
|
|
|
119,883 |
|
|
|
(0.5 |
%) |
Interest Expense |
|
|
3,861 |
|
|
|
3,858 |
|
|
|
0.1 |
% |
|
|
7,722 |
|
|
|
7,716 |
|
|
|
0.1 |
% |
Total Expenses |
|
$ |
289,910 |
|
|
$ |
270,864 |
|
|
|
7.0 |
% |
|
$ |
569,753 |
|
|
$ |
526,041 |
|
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes |
|
$ |
27,473 |
|
|
$ |
23,243 |
|
|
|
18.2 |
% |
|
$ |
56,233 |
|
|
$ |
56,164 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense |
|
|
6,971 |
|
|
|
7,053 |
|
|
|
(1.2 |
%) |
|
|
14,621 |
|
|
|
17,042 |
|
|
|
(14.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
20,502 |
|
|
$ |
16,190 |
|
|
|
26.6 |
% |
|
$ |
41,612 |
|
|
$ |
39,122 |
|
|
|
6.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.70 |
|
|
$ |
0.56 |
|
|
|
24.9 |
% |
|
$ |
1.42 |
|
|
$ |
1.35 |
|
|
|
5.1 |
% |
Diluted |
|
$ |
0.69 |
|
|
$ |
0.54 |
|
|
|
26.8 |
% |
|
$ |
1.39 |
|
|
$ |
1.31 |
|
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
29,470 |
|
|
|
29,074 |
|
|
|
|
|
|
|
29,377 |
|
|
|
29,029 |
|
|
|
|
|
Diluted |
|
|
29,918 |
|
|
|
29,953 |
|
|
|
|
|
|
|
29,897 |
|
|
|
29,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Ratio |
|
|
60.3 |
% |
|
|
62.4 |
% |
|
|
|
|
|
|
59.8 |
% |
|
|
60.1 |
% |
|
|
|
|
Expense Ratio |
|
|
37.0 |
% |
|
|
37.2 |
% |
|
|
|
|
|
|
37.1 |
% |
|
|
37.3 |
% |
|
|
|
|
Combined Ratio |
|
|
97.3 |
% |
|
|
99.6 |
% |
|
|
|
|
|
|
96.9 |
% |
|
|
97.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data |
|
June 30, |
|
|
March 31, |
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
|
|
|
||||
|
|
2017 |
|
|
2017 |
|
|
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
||||
Stockholders' Equity |
|
$ |
1,244,168 |
|
|
$ |
1,206,136 |
|
|
|
3.2 |
% |
|
$ |
1,244,168 |
|
|
$ |
1,178,188 |
|
|
|
5.6 |
% |
Book Value per Share (1) |
|
$ |
42.21 |
|
|
$ |
40.94 |
|
|
|
3.1 |
% |
|
$ |
42.21 |
|
|
$ |
40.45 |
|
|
|
4.3 |
% |
(1) - We completed a two-for-one stock split on January 20, 2017. All share and per share data prior to January 20, 2017 has been retroactively restated on a post-split basis.
NM - Percentage change not meaningful.
News Release
August 3, 2017
Page 4
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION OF NET INCOME TO NET OPERATING EARNINGS
(Unaudited)
In this release, we present Net Operating Earnings, which is a “non-GAAP financial measure” as defined in Regulation G.
Net Operating Earnings is comprised of Net Income excluding After-Tax Net Realized Gains (Losses), After-Tax Net Other-Than-Temporary Impairment Losses Recognized in Earnings, and After-Tax Foreign Exchange Gains and Losses resulting from foreign currency transactions (transactions denominated in a currency other than the entity’s functional currency) and translation adjustments (translation of foreign currency denominated assets and liabilities into the entity’s functional currency). We believe that showing Net Income exclusive of Realized Gains and Losses, Net Other-Than-Temporary Impairment Losses Recognized in Earnings, and Foreign Exchange Gains and Losses reflects the underlying fundamentals of our business.
We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our business and enables investors and other users of our financial information to analyze underlying business performance in a manner similar to management. We also believe this measure follows industry practice and, therefore facilitates comparison of our performance with our peer group.
The following tables provide a reconciliation of Net Income (the nearest GAAP financial measure) to Net Operating Earnings:
|
|
Three Months Ended June 30, 2017 |
|
|
Three Months Ended June 30, 2016 |
|
|
% Change |
|
|||||||||||||||||||
amounts in thousands, except per share amounts |
|
Pre-Tax |
|
|
Tax (1) |
|
|
After-Tax |
|
|
Pre-Tax |
|
|
Tax (1) |
|
|
After-Tax |
|
|
QTD |
|
|||||||
Net Income |
|
$ |
27,473 |
|
|
$ |
(6,971 |
) |
|
$ |
20,502 |
|
|
$ |
23,243 |
|
|
$ |
(7,053 |
) |
|
$ |
16,190 |
|
|
|
26.6 |
% |
Adjustments to Net Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized Losses (Gains) |
|
|
(1,694 |
) |
|
|
593 |
|
|
|
(1,101 |
) |
|
|
(1,810 |
) |
|
|
634 |
|
|
|
(1,176 |
) |
|
|
(6.4 |
%) |
FX Losses (Gains) |
|
|
463 |
|
|
|
(162 |
) |
|
|
301 |
|
|
|
(4,367 |
) |
|
|
1,529 |
|
|
|
(2,838 |
) |
|
NM |
|
|
Net Operating Earnings |
|
$ |
26,242 |
|
|
$ |
(6,540 |
) |
|
$ |
19,702 |
|
|
$ |
17,066 |
|
|
$ |
(4,890 |
) |
|
$ |
12,176 |
|
|
|
61.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
29,470 |
|
|
|
|
|
|
|
|
|
|
|
29,074 |
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
29,918 |
|
|
|
|
|
|
|
|
|
|
|
29,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Earnings per Common Share: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
$ |
0.67 |
|
|
|
|
|
|
|
|
|
|
$ |
0.42 |
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
$ |
0.66 |
|
|
|
|
|
|
|
|
|
|
$ |
0.41 |
|
|
|
|
|
|
|
Six Months Ended June 30, 2017 |
|
|
Six Months Ended June 30, 2016 |
|
|
% Change |
|
|||||||||||||||||||
amounts in thousands, except per share amounts |
|
Pre-Tax |
|
|
Tax (1) |
|
|
After-Tax |
|
|
Pre-Tax |
|
|
Tax (1) |
|
|
After-Tax |
|
|
YTD |
|
|||||||
Net Income |
|
$ |
56,233 |
|
|
$ |
(14,621 |
) |
|
$ |
41,612 |
|
|
$ |
56,164 |
|
|
$ |
(17,042 |
) |
|
$ |
39,122 |
|
|
|
6.4 |
% |
Adjustments to Net Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized Losses (Gains) |
|
|
(1,650 |
) |
|
|
578 |
|
|
|
(1,072 |
) |
|
|
(3,407 |
) |
|
|
1,193 |
|
|
|
(2,214 |
) |
|
|
(51.6 |
%) |
FX Losses (Gains) |
|
|
(660 |
) |
|
|
231 |
|
|
|
(429 |
) |
|
|
(6,907 |
) |
|
|
2,417 |
|
|
|
(4,490 |
) |
|
|
(90.4 |
%) |
Net Operating Earnings |
|
$ |
53,923 |
|
|
$ |
(13,812 |
) |
|
$ |
40,111 |
|
|
$ |
45,850 |
|
|
$ |
(13,432 |
) |
|
$ |
32,418 |
|
|
|
23.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
29,377 |
|
|
|
|
|
|
|
|
|
|
|
29,029 |
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
29,897 |
|
|
|
|
|
|
|
|
|
|
|
29,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Earnings per Common Share: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
|
$ |
1.12 |
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
|
$ |
1.08 |
|
|
|
|
|
(1) - Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of any other relevant factors.
(2) - We completed a two-for-one stock split on January 20, 2017. All share and per share data prior to January 20, 2017 has been retroactively restated on a post-split basis.
NM - Percentage change not meaningful.
News Release
August 3, 2017
Page 5
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2017 |
|
|
2016 |
|
||
amounts in thousands, except per share amounts |
|
(Unaudited) |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
Fixed Maturities, available-for-sale, at fair value (amortized cost: 2017: $2,715,910; 2016: $2,628,225) |
|
$ |
2,750,404 |
|
|
$ |
2,635,882 |
|
Equity Securities, available-for-sale, at fair value (cost: 2017: $312,511; 2016: $327,911) |
|
|
352,062 |
|
|
|
349,142 |
|
Other Invested Assets |
|
|
1,781 |
|
|
|
1,960 |
|
Short-Term Investments, at fair value (amortized cost: 2017: $130,598; 2016: $143,451) |
|
|
130,881 |
|
|
|
143,539 |
|
Total Investments |
|
$ |
3,235,128 |
|
|
$ |
3,130,523 |
|
Cash |
|
|
69,222 |
|
|
|
64,643 |
|
Premiums Receivable |
|
|
423,767 |
|
|
|
306,686 |
|
Prepaid Reinsurance Premiums |
|
|
238,359 |
|
|
|
213,377 |
|
Reinsurance Recoverable on Paid Losses |
|
|
67,567 |
|
|
|
82,582 |
|
Reinsurance Recoverable on Unpaid Losses and Loss Adjustment Expenses |
|
|
782,864 |
|
|
|
779,276 |
|
Deferred Policy Acquisition Costs |
|
|
132,796 |
|
|
|
119,660 |
|
Accrued Investment Income |
|
|
18,196 |
|
|
|
17,315 |
|
Goodwill and Other Intangible Assets |
|
|
6,499 |
|
|
|
6,451 |
|
Current Income Tax Receivable, Net |
|
|
16,113 |
|
|
|
20,556 |
|
Deferred Income Tax, Net |
|
|
15,430 |
|
|
|
20,938 |
|
Other Assets |
|
|
57,953 |
|
|
|
52,030 |
|
Total Assets |
|
$ |
5,063,894 |
|
|
$ |
4,814,037 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Reserves for Losses and Loss Adjustment Expenses |
|
$ |
2,346,327 |
|
|
$ |
2,289,727 |
|
Unearned Premiums |
|
|
1,002,855 |
|
|
|
887,344 |
|
Reinsurance Balances Payable |
|
|
125,357 |
|
|
|
108,980 |
|
Senior Notes |
|
|
263,806 |
|
|
|
263,728 |
|
Payable for Investments Purchased |
|
|
12,000 |
|
|
|
— |
|
Accounts Payable and Other Liabilities |
|
|
69,381 |
|
|
|
86,070 |
|
Total Liabilities |
|
$ |
3,819,726 |
|
|
$ |
3,635,849 |
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity: (1) |
|
|
|
|
|
|
|
|
Preferred Stock ($.10 par value per share, authorized 1,000 shares, none issued) |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Common Stock ($.10 par value per share, authorized 50,000 shares, issued 36,498 shares for 2017 and 36,147 shares for 2016) |
|
|
3,647 |
|
|
|
3,612 |
|
Additional Paid-In Capital |
|
|
371,410 |
|
|
|
373,983 |
|
Treasury Stock, at cost (7,023 shares for 2017 and 2016) |
|
|
(155,801 |
) |
|
|
(155,801 |
) |
Retained Earnings |
|
|
986,039 |
|
|
|
947,519 |
|
Accumulated Other Comprehensive Income |
|
|
38,873 |
|
|
|
8,875 |
|
Total Stockholders' Equity |
|
$ |
1,244,168 |
|
|
$ |
1,178,188 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
5,063,894 |
|
|
$ |
4,814,037 |
|
(1) - We completed a two-for-one stock split on January 20, 2017. All share data prior to January 20, 2017 has been retroactively restated on a post-split basis.
News Release
August 3, 2017
Page 6
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
(Unaudited)
|
|
Three Months Ended June 30, 2017 |
|
|||||||||||||||||
|
|
U.S. |
|
|
Int'l |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
amounts in thousands |
|
Insurance |
|
|
Insurance |
|
|
GlobalRe |
|
|
Corporate (1) |
|
|
Total |
|
|||||
Gross Written Premiums |
|
$ |
257,186 |
|
|
$ |
131,193 |
|
|
$ |
63,800 |
|
|
$ |
— |
|
|
$ |
452,179 |
|
Ceded Written Premiums |
|
|
(73,857 |
) |
|
|
(43,809 |
) |
|
|
(1,231 |
) |
|
|
— |
|
|
|
(118,897 |
) |
Net Written Premiums |
|
|
183,329 |
|
|
|
87,384 |
|
|
|
62,569 |
|
|
|
— |
|
|
|
333,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earned Premiums |
|
$ |
167,087 |
|
|
$ |
82,100 |
|
|
$ |
44,648 |
|
|
$ |
— |
|
|
$ |
293,835 |
|
Net Losses and LAE |
|
|
(105,270 |
) |
|
|
(44,095 |
) |
|
|
(27,745 |
) |
|
|
— |
|
|
|
(177,110 |
) |
Commission Expenses |
|
|
(20,460 |
) |
|
|
(19,001 |
) |
|
|
(8,970 |
) |
|
|
258 |
|
|
|
(48,173 |
) |
Other Operating Expenses |
|
|
(33,140 |
) |
|
|
(22,506 |
) |
|
|
(5,120 |
) |
|
|
— |
|
|
|
(60,766 |
) |
Other Underwriting Income (Expense) |
|
|
100 |
|
|
|
— |
|
|
|
169 |
|
|
|
(258 |
) |
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Profit (Loss) |
|
$ |
8,317 |
|
|
$ |
(3,502 |
) |
|
$ |
2,982 |
|
|
$ |
— |
|
|
$ |
7,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,265 |
|
|
|
22,265 |
|
Net Realized Gains |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,694 |
|
|
|
1,694 |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,861 |
) |
|
|
(3,861 |
) |
Other Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(422 |
) |
|
|
(422 |
) |
Income (Loss) Before Income Taxes |
|
$ |
8,317 |
|
|
$ |
(3,502 |
) |
|
$ |
2,982 |
|
|
$ |
19,676 |
|
|
$ |
27,473 |
|
Income Tax Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,971 |
) |
|
|
(6,971 |
) |
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
20,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and LAE Ratio |
|
|
63.0 |
% |
|
|
53.7 |
% |
|
|
62.1 |
% |
|
|
|
|
|
|
60.3 |
% |
Commission Expense Ratio |
|
|
12.2 |
% |
|
|
23.1 |
% |
|
|
20.1 |
% |
|
|
|
|
|
|
16.4 |
% |
Other Operating Expense Ratio (2) |
|
|
19.8 |
% |
|
|
27.5 |
% |
|
|
11.1 |
% |
|
|
|
|
|
|
20.6 |
% |
Combined Ratio |
|
|
95.0 |
% |
|
|
104.3 |
% |
|
|
93.3 |
% |
|
|
|
|
|
|
97.3 |
% |
(1) - Includes Corporate segment intercompany eliminations.
(2) - Includes Other Operating Expenses and Other Underwriting Income (Expense).
News Release
August 3, 2017
Page 7
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
(Unaudited)
|
|
Three Months Ended June 30, 2016 |
|
|||||||||||||||||
|
|
U.S. |
|
|
Int'l |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
amounts in thousands |
|
Insurance |
|
|
Insurance |
|
|
GlobalRe |
|
|
Corporate (1) |
|
|
Total |
|
|||||
Gross Written Premiums |
|
$ |
243,924 |
|
|
$ |
135,740 |
|
|
$ |
32,901 |
|
|
$ |
— |
|
|
$ |
412,565 |
|
Ceded Written Premiums |
|
|
(62,618 |
) |
|
|
(41,910 |
) |
|
|
(1,502 |
) |
|
|
— |
|
|
|
(106,030 |
) |
Net Written Premiums |
|
|
181,306 |
|
|
|
93,830 |
|
|
|
31,399 |
|
|
|
— |
|
|
|
306,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earned Premiums |
|
$ |
152,384 |
|
|
$ |
77,833 |
|
|
$ |
37,775 |
|
|
$ |
— |
|
|
$ |
267,992 |
|
Net Losses and LAE |
|
|
(93,428 |
) |
|
|
(48,066 |
) |
|
|
(25,712 |
) |
|
|
— |
|
|
|
(167,206 |
) |
Commission Expenses |
|
|
(16,894 |
) |
|
|
(16,821 |
) |
|
|
(7,492 |
) |
|
|
481 |
|
|
|
(40,726 |
) |
Other Operating Expenses |
|
|
(31,570 |
) |
|
|
(23,043 |
) |
|
|
(4,461 |
) |
|
|
— |
|
|
|
(59,074 |
) |
Other Underwriting Income (Expense) |
|
|
342 |
|
|
|
— |
|
|
|
203 |
|
|
|
(481 |
) |
|
|
64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Profit (Loss) |
|
$ |
10,834 |
|
|
$ |
(10,097 |
) |
|
$ |
313 |
|
|
$ |
— |
|
|
$ |
1,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,875 |
|
|
|
19,875 |
|
Net Realized Gains |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,810 |
|
|
|
1,810 |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,858 |
) |
|
|
(3,858 |
) |
Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,366 |
|
|
|
4,366 |
|
Income (Loss) Before Income Taxes |
|
$ |
10,834 |
|
|
$ |
(10,097 |
) |
|
$ |
313 |
|
|
$ |
22,193 |
|
|
$ |
23,243 |
|
Income Tax Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,053 |
) |
|
|
(7,053 |
) |
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
16,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and LAE Ratio |
|
|
61.3 |
% |
|
|
61.8 |
% |
|
|
68.1 |
% |
|
|
|
|
|
|
62.4 |
% |
Commission Expense Ratio |
|
|
11.1 |
% |
|
|
21.6 |
% |
|
|
19.8 |
% |
|
|
|
|
|
|
15.2 |
% |
Other Operating Expense Ratio (2) |
|
|
20.5 |
% |
|
|
29.6 |
% |
|
|
11.3 |
% |
|
|
|
|
|
|
22.0 |
% |
Combined Ratio |
|
|
92.9 |
% |
|
|
113.0 |
% |
|
|
99.2 |
% |
|
|
|
|
|
|
99.6 |
% |
(1) - Includes Corporate segment intercompany eliminations.
(2) - Includes Other Operating Expenses and Other Underwriting Income (Expense).
News Release
August 3, 2017
Page 8
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
(Unaudited)
|
|
Six Months Ended June 30, 2017 |
|
|||||||||||||||||
|
|
U.S. |
|
|
Int'l |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
amounts in thousands |
|
Insurance |
|
|
Insurance |
|
|
GlobalRe |
|
|
Corporate (1) |
|
|
Total |
|
|||||
Gross Written Premiums |
|
$ |
494,791 |
|
|
$ |
273,053 |
|
|
$ |
134,640 |
|
|
$ |
— |
|
|
$ |
902,484 |
|
Ceded Written Premiums |
|
|
(135,344 |
) |
|
|
(90,402 |
) |
|
|
(6,293 |
) |
|
|
— |
|
|
|
(232,039 |
) |
Net Written Premiums |
|
|
359,447 |
|
|
|
182,651 |
|
|
|
128,347 |
|
|
|
— |
|
|
|
670,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earned Premiums |
|
$ |
331,091 |
|
|
$ |
166,186 |
|
|
$ |
82,689 |
|
|
$ |
— |
|
|
$ |
579,966 |
|
Net Losses and LAE |
|
|
(204,096 |
) |
|
|
(94,800 |
) |
|
|
(47,814 |
) |
|
|
— |
|
|
|
(346,710 |
) |
Commission Expenses |
|
|
(40,844 |
) |
|
|
(38,234 |
) |
|
|
(17,462 |
) |
|
|
523 |
|
|
|
(96,017 |
) |
Other Operating Expenses |
|
|
(66,612 |
) |
|
|
(42,299 |
) |
|
|
(10,393 |
) |
|
|
— |
|
|
|
(119,304 |
) |
Other Underwriting Income (Expense) |
|
|
210 |
|
|
|
— |
|
|
|
345 |
|
|
|
(523 |
) |
|
|
32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Profit (Loss) |
|
$ |
19,749 |
|
|
$ |
(9,147 |
) |
|
$ |
7,365 |
|
|
$ |
— |
|
|
$ |
17,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,713 |
|
|
|
43,713 |
|
Net Realized Gains |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,650 |
|
|
|
1,650 |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,722 |
) |
|
|
(7,722 |
) |
Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
625 |
|
|
|
625 |
|
Income (Loss) Before Income Taxes |
|
$ |
19,749 |
|
|
$ |
(9,147 |
) |
|
$ |
7,365 |
|
|
$ |
38,266 |
|
|
$ |
56,233 |
|
Income Tax Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14,621 |
) |
|
|
(14,621 |
) |
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
41,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and LAE Ratio |
|
|
61.6 |
% |
|
|
57.0 |
% |
|
|
57.8 |
% |
|
|
|
|
|
|
59.8 |
% |
Commission Expense Ratio |
|
|
12.3 |
% |
|
|
23.0 |
% |
|
|
21.1 |
% |
|
|
|
|
|
|
16.6 |
% |
Other Operating Expense Ratio (2) |
|
|
20.1 |
% |
|
|
25.5 |
% |
|
|
12.2 |
% |
|
|
|
|
|
|
20.5 |
% |
Combined Ratio |
|
|
94.0 |
% |
|
|
105.5 |
% |
|
|
91.1 |
% |
|
|
|
|
|
|
96.9 |
% |
(1) - Includes Corporate segment intercompany eliminations.
(2) - Includes Other Operating Expenses and Other Underwriting Income (Expense).
News Release
August 3, 2017
Page 9
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
(Unaudited)
|
|
Six Months Ended June 30, 2016 |
|
|||||||||||||||||
|
|
U.S. |
|
|
Int'l |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
amounts in thousands |
|
Insurance |
|
|
Insurance |
|
|
GlobalRe |
|
|
Corporate (1) |
|
|
Total |
|
|||||
Gross Written Premiums |
|
$ |
454,571 |
|
|
$ |
279,883 |
|
|
$ |
91,988 |
|
|
$ |
— |
|
|
$ |
826,442 |
|
Ceded Written Premiums |
|
|
(117,115 |
) |
|
|
(76,881 |
) |
|
|
(6,091 |
) |
|
|
— |
|
|
|
(200,087 |
) |
Net Written Premiums |
|
|
337,456 |
|
|
|
203,002 |
|
|
|
85,897 |
|
|
|
— |
|
|
|
626,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earned Premiums |
|
$ |
300,724 |
|
|
$ |
155,841 |
|
|
$ |
75,785 |
|
|
$ |
— |
|
|
$ |
532,350 |
|
Net Losses and LAE |
|
|
(184,940 |
) |
|
|
(88,476 |
) |
|
|
(46,746 |
) |
|
|
— |
|
|
|
(320,162 |
) |
Commission Expenses |
|
|
(31,749 |
) |
|
|
(32,176 |
) |
|
|
(15,237 |
) |
|
|
882 |
|
|
|
(78,280 |
) |
Other Operating Expenses |
|
|
(65,331 |
) |
|
|
(44,814 |
) |
|
|
(9,738 |
) |
|
|
— |
|
|
|
(119,883 |
) |
Other Underwriting Income (Expense) |
|
|
703 |
|
|
|
— |
|
|
|
252 |
|
|
|
(882 |
) |
|
|
73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Profit (Loss) |
|
$ |
19,407 |
|
|
$ |
(9,625 |
) |
|
$ |
4,316 |
|
|
$ |
— |
|
|
$ |
14,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39,469 |
|
|
|
39,469 |
|
Net Realized Gains |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,407 |
|
|
|
3,407 |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,716 |
) |
|
|
(7,716 |
) |
Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,906 |
|
|
|
6,906 |
|
Income (Loss) Before Income Taxes |
|
$ |
19,407 |
|
|
$ |
(9,625 |
) |
|
$ |
4,316 |
|
|
$ |
42,066 |
|
|
$ |
56,164 |
|
Income Tax Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17,042 |
) |
|
|
(17,042 |
) |
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
39,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and LAE Ratio |
|
|
61.5 |
% |
|
|
56.8 |
% |
|
|
61.7 |
% |
|
|
|
|
|
|
60.1 |
% |
Commission Expense Ratio |
|
|
10.6 |
% |
|
|
20.6 |
% |
|
|
20.1 |
% |
|
|
|
|
|
|
14.7 |
% |
Other Operating Expense Ratio (2) |
|
|
21.4 |
% |
|
|
28.8 |
% |
|
|
12.5 |
% |
|
|
|
|
|
|
22.6 |
% |
Combined Ratio |
|
|
93.5 |
% |
|
|
106.2 |
% |
|
|
94.3 |
% |
|
|
|
|
|
|
97.4 |
% |
(1) - Includes Corporate segment intercompany eliminations.
(2) - Includes Other Operating Expenses and Other Underwriting Income (Expense).
News Release
August 3, 2017
Page 10
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Reportable Segment Results
(Unaudited)
|
|
U.S. Insurance |
|
|||||||||||||||||||||||||||||||||
|
|
Three Months Ended June 30, 2017 |
|
|
Three Months Ended June 30, 2016 |
|
|
|
|
|
||||||||||||||||||||||||||
amounts in thousands |
|
Marine |
|
|
P&C |
|
|
Professional Liability |
|
|
Total |
|
|
Marine |
|
|
P&C |
|
|
Professional Liability |
|
|
Total |
|
|
% Change Total |
|
|||||||||
Gross Written Premiums |
|
$ |
41,687 |
|
|
$ |
187,492 |
|
|
$ |
28,007 |
|
|
$ |
257,186 |
|
|
$ |
46,187 |
|
|
$ |
168,654 |
|
|
$ |
29,083 |
|
|
$ |
243,924 |
|
|
|
5.4 |
% |
Ceded Written Premiums |
|
|
(19,451 |
) |
|
|
(51,147 |
) |
|
|
(3,259 |
) |
|
|
(73,857 |
) |
|
|
(18,540 |
) |
|
|
(36,768 |
) |
|
|
(7,310 |
) |
|
|
(62,618 |
) |
|
|
17.9 |
% |
Net Written Premiums |
|
|
22,236 |
|
|
|
136,345 |
|
|
|
24,748 |
|
|
|
183,329 |
|
|
|
27,647 |
|
|
|
131,886 |
|
|
|
21,773 |
|
|
|
181,306 |
|
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earned Premiums |
|
$ |
21,812 |
|
|
$ |
121,226 |
|
|
$ |
24,049 |
|
|
$ |
167,087 |
|
|
$ |
24,921 |
|
|
$ |
110,212 |
|
|
$ |
17,251 |
|
|
$ |
152,384 |
|
|
|
9.6 |
% |
Net Losses and LAE |
|
|
(12,767 |
) |
|
|
(77,858 |
) |
|
|
(14,645 |
) |
|
|
(105,270 |
) |
|
|
(10,699 |
) |
|
|
(72,172 |
) |
|
|
(10,557 |
) |
|
|
(93,428 |
) |
|
|
12.7 |
% |
Commission Expenses |
|
|
(1,575 |
) |
|
|
(15,232 |
) |
|
|
(3,653 |
) |
|
|
(20,460 |
) |
|
|
(2,176 |
) |
|
|
(12,821 |
) |
|
|
(1,897 |
) |
|
|
(16,894 |
) |
|
|
21.1 |
% |
Other Operating Expenses |
|
|
(6,798 |
) |
|
|
(21,645 |
) |
|
|
(4,697 |
) |
|
|
(33,140 |
) |
|
|
(6,817 |
) |
|
|
(20,049 |
) |
|
|
(4,704 |
) |
|
|
(31,570 |
) |
|
|
5.0 |
% |
Other Underwriting Income |
|
|
82 |
|
|
|
9 |
|
|
|
9 |
|
|
|
100 |
|
|
|
152 |
|
|
|
178 |
|
|
|
12 |
|
|
|
342 |
|
|
|
(70.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Profit |
|
$ |
754 |
|
|
$ |
6,500 |
|
|
$ |
1,063 |
|
|
$ |
8,317 |
|
|
$ |
5,381 |
|
|
$ |
5,348 |
|
|
$ |
105 |
|
|
$ |
10,834 |
|
|
|
(23.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and LAE Ratio |
|
|
58.5 |
% |
|
|
64.2 |
% |
|
|
60.9 |
% |
|
|
63.0 |
% |
|
|
42.9 |
% |
|
|
65.5 |
% |
|
|
61.2 |
% |
|
|
61.3 |
% |
|
|
|
|
Commission Expense Ratio |
|
|
7.2 |
% |
|
|
12.6 |
% |
|
|
15.2 |
% |
|
|
12.2 |
% |
|
|
8.7 |
% |
|
|
11.6 |
% |
|
|
11.0 |
% |
|
|
11.1 |
% |
|
|
|
|
Other Operating Expense Ratio (1) |
|
|
30.8 |
% |
|
|
17.8 |
% |
|
|
19.5 |
% |
|
|
19.8 |
% |
|
|
26.8 |
% |
|
|
18.0 |
% |
|
|
27.2 |
% |
|
|
20.5 |
% |
|
|
|
|
Combined Ratio |
|
|
96.5 |
% |
|
|
94.6 |
% |
|
|
95.6 |
% |
|
|
95.0 |
% |
|
|
78.4 |
% |
|
|
95.1 |
% |
|
|
99.4 |
% |
|
|
92.9 |
% |
|
|
|
|
(1) - Includes Other Operating Expenses and Other Underwriting Income.
News Release
August 3, 2017
Page 11
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Reportable Segment Results
(Unaudited)
|
|
Int'l Insurance |
|
|||||||||||||||||||||||||||||||||
|
|
Three Months Ended June 30, 2017 |
|
|
Three Months Ended June 30, 2016 |
|
|
|
|
|
||||||||||||||||||||||||||
amounts in thousands |
|
Marine |
|
|
P&C |
|
|
Professional Liability |
|
|
Total |
|
|
Marine |
|
|
P&C |
|
|
Professional Liability |
|
|
Total |
|
|
% Change Total |
|
|||||||||
Gross Written Premiums |
|
$ |
49,597 |
|
|
$ |
46,663 |
|
|
$ |
34,933 |
|
|
$ |
131,193 |
|
|
$ |
41,147 |
|
|
$ |
63,002 |
|
|
$ |
31,591 |
|
|
$ |
135,740 |
|
|
|
(3.3 |
%) |
Ceded Written Premiums |
|
|
(12,536 |
) |
|
|
(20,362 |
) |
|
|
(10,911 |
) |
|
|
(43,809 |
) |
|
|
(9,554 |
) |
|
|
(24,465 |
) |
|
|
(7,891 |
) |
|
|
(41,910 |
) |
|
|
4.5 |
% |
Net Written Premiums |
|
|
37,061 |
|
|
|
26,301 |
|
|
|
24,022 |
|
|
|
87,384 |
|
|
|
31,593 |
|
|
|
38,537 |
|
|
|
23,700 |
|
|
|
93,830 |
|
|
|
(6.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earned Premiums |
|
$ |
39,525 |
|
|
$ |
23,337 |
|
|
$ |
19,238 |
|
|
$ |
82,100 |
|
|
$ |
36,096 |
|
|
$ |
23,815 |
|
|
$ |
17,922 |
|
|
$ |
77,833 |
|
|
|
5.5 |
% |
Net Losses and LAE |
|
|
(23,848 |
) |
|
|
(8,867 |
) |
|
|
(11,380 |
) |
|
|
(44,095 |
) |
|
|
(17,021 |
) |
|
|
(21,878 |
) |
|
|
(9,167 |
) |
|
|
(48,066 |
) |
|
|
(8.3 |
%) |
Commission Expenses |
|
|
(9,517 |
) |
|
|
(4,577 |
) |
|
|
(4,907 |
) |
|
|
(19,001 |
) |
|
|
(8,361 |
) |
|
|
(5,150 |
) |
|
|
(3,310 |
) |
|
|
(16,821 |
) |
|
|
13.0 |
% |
Other Operating Expenses |
|
|
(9,226 |
) |
|
|
(7,946 |
) |
|
|
(5,334 |
) |
|
|
(22,506 |
) |
|
|
(8,698 |
) |
|
|
(9,065 |
) |
|
|
(5,280 |
) |
|
|
(23,043 |
) |
|
|
(2.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Profit (Loss) |
|
$ |
(3,066 |
) |
|
$ |
1,947 |
|
|
$ |
(2,383 |
) |
|
$ |
(3,502 |
) |
|
$ |
2,016 |
|
|
$ |
(12,278 |
) |
|
$ |
165 |
|
|
$ |
(10,097 |
) |
|
|
(65.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and LAE Ratio |
|
|
60.3 |
% |
|
|
38.0 |
% |
|
|
59.2 |
% |
|
|
53.7 |
% |
|
|
47.2 |
% |
|
|
91.9 |
% |
|
|
51.2 |
% |
|
|
61.8 |
% |
|
|
|
|
Commission Expense Ratio |
|
|
24.1 |
% |
|
|
19.6 |
% |
|
|
25.5 |
% |
|
|
23.1 |
% |
|
|
23.2 |
% |
|
|
21.6 |
% |
|
|
18.5 |
% |
|
|
21.6 |
% |
|
|
|
|
Other Operating Expense Ratio (1) |
|
|
23.4 |
% |
|
|
34.1 |
% |
|
|
27.7 |
% |
|
|
27.5 |
% |
|
|
24.0 |
% |
|
|
38.1 |
% |
|
|
29.4 |
% |
|
|
29.6 |
% |
|
|
|
|
Combined Ratio |
|
|
107.8 |
% |
|
|
91.7 |
% |
|
|
112.4 |
% |
|
|
104.3 |
% |
|
|
94.4 |
% |
|
|
151.6 |
% |
|
|
99.1 |
% |
|
|
113.0 |
% |
|
|
|
|
(1) - Includes Other Operating Expenses and Other Underwriting Income (Expense).
News Release
August 3, 2017
Page 12
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Reportable Segment Results
(Unaudited)
|
|
U.S. Insurance |
|
|||||||||||||||||||||||||||||||||
|
|
Six Months Ended June 30, 2017 |
|
|
Six Months Ended June 30, 2016 |
|
|
|
|
|
||||||||||||||||||||||||||
amounts in thousands |
|
Marine |
|
|
P&C |
|
|
Professional Liability |
|
|
Total |
|
|
Marine |
|
|
P&C |
|
|
Professional Liability |
|
|
Total |
|
|
% Change Total |
|
|||||||||
Gross Written Premiums |
|
$ |
82,637 |
|
|
$ |
358,126 |
|
|
$ |
54,028 |
|
|
$ |
494,791 |
|
|
$ |
89,350 |
|
|
$ |
309,932 |
|
|
$ |
55,289 |
|
|
$ |
454,571 |
|
|
|
8.8 |
% |
Ceded Written Premiums |
|
|
(36,971 |
) |
|
|
(89,345 |
) |
|
|
(9,028 |
) |
|
|
(135,344 |
) |
|
|
(36,187 |
) |
|
|
(67,275 |
) |
|
|
(13,653 |
) |
|
|
(117,115 |
) |
|
|
15.6 |
% |
Net Written Premiums |
|
|
45,666 |
|
|
|
268,781 |
|
|
|
45,000 |
|
|
|
359,447 |
|
|
|
53,163 |
|
|
|
242,657 |
|
|
|
41,636 |
|
|
|
337,456 |
|
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earned Premiums |
|
$ |
44,506 |
|
|
$ |
240,349 |
|
|
$ |
46,236 |
|
|
$ |
331,091 |
|
|
$ |
48,171 |
|
|
$ |
219,371 |
|
|
$ |
33,182 |
|
|
$ |
300,724 |
|
|
|
10.1 |
% |
Net Losses and LAE |
|
|
(26,542 |
) |
|
|
(149,607 |
) |
|
|
(27,947 |
) |
|
|
(204,096 |
) |
|
|
(20,474 |
) |
|
|
(143,769 |
) |
|
|
(20,697 |
) |
|
|
(184,940 |
) |
|
|
10.4 |
% |
Commission Expenses |
|
|
(3,047 |
) |
|
|
(30,598 |
) |
|
|
(7,199 |
) |
|
|
(40,844 |
) |
|
|
(3,658 |
) |
|
|
(24,673 |
) |
|
|
(3,418 |
) |
|
|
(31,749 |
) |
|
|
28.6 |
% |
Other Operating Expenses |
|
|
(13,619 |
) |
|
|
(43,459 |
) |
|
|
(9,534 |
) |
|
|
(66,612 |
) |
|
|
(14,189 |
) |
|
|
(41,571 |
) |
|
|
(9,571 |
) |
|
|
(65,331 |
) |
|
|
2.0 |
% |
Other Underwriting Income |
|
|
165 |
|
|
|
27 |
|
|
|
18 |
|
|
|
210 |
|
|
|
231 |
|
|
|
446 |
|
|
|
26 |
|
|
|
703 |
|
|
|
(70.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Profit (Loss) |
|
$ |
1,463 |
|
|
$ |
16,712 |
|
|
$ |
1,574 |
|
|
$ |
19,749 |
|
|
$ |
10,081 |
|
|
$ |
9,804 |
|
|
$ |
(478 |
) |
|
$ |
19,407 |
|
|
|
1.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and LAE Ratio |
|
|
59.6 |
% |
|
|
62.2 |
% |
|
|
60.4 |
% |
|
|
61.6 |
% |
|
|
42.5 |
% |
|
|
65.5 |
% |
|
|
62.4 |
% |
|
|
61.5 |
% |
|
|
|
|
Commission Expense Ratio |
|
|
6.8 |
% |
|
|
12.7 |
% |
|
|
15.6 |
% |
|
|
12.3 |
% |
|
|
7.6 |
% |
|
|
11.2 |
% |
|
|
10.3 |
% |
|
|
10.6 |
% |
|
|
|
|
Other Operating Expense Ratio (1) |
|
|
30.3 |
% |
|
|
18.1 |
% |
|
|
20.6 |
% |
|
|
20.1 |
% |
|
|
29.0 |
% |
|
|
18.8 |
% |
|
|
28.7 |
% |
|
|
21.4 |
% |
|
|
|
|
Combined Ratio |
|
|
96.7 |
% |
|
|
93.0 |
% |
|
|
96.6 |
% |
|
|
94.0 |
% |
|
|
79.1 |
% |
|
|
95.5 |
% |
|
|
101.4 |
% |
|
|
93.5 |
% |
|
|
|
|
(1) - Includes Other Operating Expenses and Other Underwriting Income (Expense).
News Release
August 3, 2017
Page 13
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Reportable Segment Results
(Unaudited)
|
|
Int'l Insurance |
|
|||||||||||||||||||||||||||||||||
|
|
Six Months Ended June 30, 2017 |
|
|
Six Months Ended June 30, 2016 |
|
|
|
|
|
||||||||||||||||||||||||||
amounts in thousands |
|
Marine |
|
|
P&C |
|
|
Professional Liability |
|
|
Total |
|
|
Marine |
|
|
P&C |
|
|
Professional Liability |
|
|
Total |
|
|
% Change Total |
|
|||||||||
Gross Written Premiums |
|
$ |
118,430 |
|
|
$ |
87,031 |
|
|
$ |
67,592 |
|
|
$ |
273,053 |
|
|
$ |
113,095 |
|
|
$ |
107,048 |
|
|
$ |
59,740 |
|
|
$ |
279,883 |
|
|
|
(2.4 |
%) |
Ceded Written Premiums |
|
|
(23,462 |
) |
|
|
(50,008 |
) |
|
|
(16,932 |
) |
|
|
(90,402 |
) |
|
|
(20,643 |
) |
|
|
(41,694 |
) |
|
|
(14,544 |
) |
|
|
(76,881 |
) |
|
|
17.6 |
% |
Net Written Premiums |
|
|
94,968 |
|
|
|
37,023 |
|
|
|
50,660 |
|
|
|
182,651 |
|
|
|
92,452 |
|
|
|
65,354 |
|
|
|
45,196 |
|
|
|
203,002 |
|
|
|
(10.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earned Premiums |
|
$ |
77,020 |
|
|
$ |
45,517 |
|
|
$ |
43,649 |
|
|
$ |
166,186 |
|
|
$ |
74,952 |
|
|
$ |
45,024 |
|
|
$ |
35,865 |
|
|
$ |
155,841 |
|
|
|
6.6 |
% |
Net Losses and LAE |
|
|
(44,449 |
) |
|
|
(24,736 |
) |
|
|
(25,615 |
) |
|
|
(94,800 |
) |
|
|
(37,109 |
) |
|
|
(33,094 |
) |
|
|
(18,273 |
) |
|
|
(88,476 |
) |
|
|
7.1 |
% |
Commission Expenses |
|
|
(19,058 |
) |
|
|
(8,319 |
) |
|
|
(10,857 |
) |
|
|
(38,234 |
) |
|
|
(17,766 |
) |
|
|
(7,925 |
) |
|
|
(6,485 |
) |
|
|
(32,176 |
) |
|
|
18.8 |
% |
Other Operating Expenses |
|
|
(17,666 |
) |
|
|
(14,369 |
) |
|
|
(10,264 |
) |
|
|
(42,299 |
) |
|
|
(17,140 |
) |
|
|
(17,773 |
) |
|
|
(9,901 |
) |
|
|
(44,814 |
) |
|
|
(5.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Profit (Loss) |
|
$ |
(4,153 |
) |
|
$ |
(1,907 |
) |
|
$ |
(3,087 |
) |
|
$ |
(9,147 |
) |
|
$ |
2,937 |
|
|
$ |
(13,768 |
) |
|
$ |
1,206 |
|
|
$ |
(9,625 |
) |
|
|
(5.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and LAE Ratio |
|
|
57.7 |
% |
|
|
54.3 |
% |
|
|
58.7 |
% |
|
|
57.0 |
% |
|
|
49.5 |
% |
|
|
73.5 |
% |
|
|
50.9 |
% |
|
|
56.8 |
% |
|
|
|
|
Commission Expense Ratio |
|
|
24.7 |
% |
|
|
18.3 |
% |
|
|
24.9 |
% |
|
|
23.0 |
% |
|
|
23.7 |
% |
|
|
17.6 |
% |
|
|
18.1 |
% |
|
|
20.6 |
% |
|
|
|
|
Other Operating Expense Ratio (1) |
|
|
23.0 |
% |
|
|
31.6 |
% |
|
|
23.5 |
% |
|
|
25.5 |
% |
|
|
22.9 |
% |
|
|
39.5 |
% |
|
|
27.6 |
% |
|
|
28.8 |
% |
|
|
|
|
Combined Ratio |
|
|
105.4 |
% |
|
|
104.2 |
% |
|
|
107.1 |
% |
|
|
105.5 |
% |
|
|
96.1 |
% |
|
|
130.6 |
% |
|
|
96.6 |
% |
|
|
106.2 |
% |
|
|
|
|
(1) - Includes Other Operating Expenses and Other Underwriting Income (Expense).
News Release
August 3, 2017
Page 14
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Incurred Loss Activity
(Unaudited)
|
|
For the Three Months Ended June 30, |
|
|||||||||||||
amounts in thousands |
|
Amounts |
|
|
Loss Ratio |
|
||||||||||
Net Incurred Loss Activity |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
||||
U.S. Insurance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and LAE Payments |
|
$ |
86,792 |
|
|
$ |
72,246 |
|
|
|
51.9 |
% |
|
|
47.4 |
% |
Change in Reserves |
|
|
18,478 |
|
|
|
21,182 |
|
|
|
11.1 |
% |
|
|
13.9 |
% |
Net Incurred Loss and LAE |
|
$ |
105,270 |
|
|
$ |
93,428 |
|
|
|
63.0 |
% |
|
|
61.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Int'l Insurance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and LAE Payments |
|
$ |
46,050 |
|
|
$ |
32,996 |
|
|
|
56.1 |
% |
|
|
42.4 |
% |
Change in Reserves |
|
|
(1,955 |
) |
|
|
15,070 |
|
|
|
(2.4 |
%) |
|
|
19.4 |
% |
Net Incurred Loss and LAE |
|
$ |
44,095 |
|
|
$ |
48,066 |
|
|
|
53.7 |
% |
|
|
61.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GlobalRe: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and LAE Payments |
|
$ |
21,279 |
|
|
$ |
17,928 |
|
|
|
47.6 |
% |
|
|
47.5 |
% |
Change in Reserves |
|
|
6,466 |
|
|
|
7,784 |
|
|
|
14.5 |
% |
|
|
20.6 |
% |
Net Incurred Loss and LAE |
|
$ |
27,745 |
|
|
$ |
25,712 |
|
|
|
62.1 |
% |
|
|
68.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and LAE Payments |
|
$ |
154,121 |
|
|
$ |
123,170 |
|
|
|
52.5 |
% |
|
|
46.0 |
% |
Change in Reserves |
|
|
22,989 |
|
|
|
44,036 |
|
|
|
7.8 |
% |
|
|
16.4 |
% |
Net Incurred Loss and LAE |
|
$ |
177,110 |
|
|
$ |
167,206 |
|
|
|
60.3 |
% |
|
|
62.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, |
|
|||||||||||||
Impact of Prior Years Reserves |
|
Amounts |
|
|
Loss Ratio Impact |
|
||||||||||
Favorable / (Unfavorable) Development |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
||||
U.S. Insurance |
|
$ |
(295 |
) |
|
$ |
4,002 |
|
|
|
(0.1 |
%) |
|
|
1.5 |
% |
Int'l Insurance |
|
|
(4,743 |
) |
|
|
3,354 |
|
|
|
(1.6 |
%) |
|
|
1.3 |
% |
GlobalRe |
|
|
(2,992 |
) |
|
|
1,423 |
|
|
|
(1.0 |
%) |
|
|
0.5 |
% |
Total |
|
$ |
(8,030 |
) |
|
$ |
8,779 |
|
|
|
(2.7 |
%) |
|
|
3.3 |
% |
News Release
August 3, 2017
Page 15
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Incurred Loss Activity
(Unaudited)
|
|
For the Six Months Ended June 30, |
|
|||||||||||||
amounts in thousands |
|
Amounts |
|
|
Loss Ratio |
|
||||||||||
Net Incurred Loss Activity |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
||||
U.S. Insurance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and LAE Payments |
|
$ |
156,563 |
|
|
$ |
145,281 |
|
|
|
47.2 |
% |
|
|
48.3 |
% |
Change in Reserves |
|
|
47,533 |
|
|
|
39,659 |
|
|
|
14.4 |
% |
|
|
13.2 |
% |
Net Incurred Loss and LAE |
|
$ |
204,096 |
|
|
$ |
184,940 |
|
|
|
61.6 |
% |
|
|
61.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Int'l Insurance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and LAE Payments |
|
$ |
90,958 |
|
|
$ |
62,239 |
|
|
|
54.7 |
% |
|
|
39.9 |
% |
Change in Reserves |
|
|
3,842 |
|
|
|
26,237 |
|
|
|
2.3 |
% |
|
|
16.9 |
% |
Net Incurred Loss and LAE |
|
$ |
94,800 |
|
|
$ |
88,476 |
|
|
|
57.0 |
% |
|
|
56.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GlobalRe: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and LAE Payments |
|
$ |
49,609 |
|
|
$ |
43,059 |
|
|
|
60.0 |
% |
|
|
56.8 |
% |
Change in Reserves |
|
|
(1,795 |
) |
|
|
3,687 |
|
|
|
(2.2 |
%) |
|
|
4.9 |
% |
Net Incurred Loss and LAE |
|
$ |
47,814 |
|
|
$ |
46,746 |
|
|
|
57.8 |
% |
|
|
61.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and LAE Payments |
|
$ |
297,130 |
|
|
$ |
250,579 |
|
|
|
51.3 |
% |
|
|
47.1 |
% |
Change in Reserves |
|
|
49,580 |
|
|
|
69,583 |
|
|
|
8.5 |
% |
|
|
13.0 |
% |
Net Incurred Loss and LAE |
|
$ |
346,710 |
|
|
$ |
320,162 |
|
|
|
59.8 |
% |
|
|
60.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, |
|
|||||||||||||
Impact of Prior Years Reserves |
|
Amounts |
|
|
Loss Ratio Impact |
|
||||||||||
Favorable / (Unfavorable) Development |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
||||
U.S. Insurance |
|
$ |
177 |
|
|
$ |
6,671 |
|
|
|
0.0 |
% |
|
|
1.3 |
% |
Int'l Insurance |
|
|
(11,359 |
) |
|
|
2,499 |
|
|
|
(2.0 |
%) |
|
|
0.5 |
% |
GlobalRe |
|
|
(3,933 |
) |
|
|
1,443 |
|
|
|
(0.7 |
%) |
|
|
0.3 |
% |
Total |
|
$ |
(15,115 |
) |
|
$ |
10,613 |
|
|
|
(2.7 |
%) |
|
|
2.1 |
% |
News Release
August 3, 2017
Page 16
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Loss Data
(Unaudited)
|
|
As of June 30, 2017 |
|
|||||||||
amounts in thousands |
|
Case |
|
|
IBNR |
|
|
|
|
|
||
Net Loss Reserves: |
|
Reserves |
|
|
Reserves |
|
|
Total |
|
|||
U.S. Insurance: |
|
|
|
|
|
|
|
|
|
|
|
|
Marine |
|
$ |
56,618 |
|
|
$ |
48,212 |
|
|
$ |
104,830 |
|
P&C |
|
|
185,454 |
|
|
|
644,771 |
|
|
|
830,225 |
|
Professional Liability |
|
|
28,417 |
|
|
|
74,481 |
|
|
|
102,898 |
|
Total U.S. Insurance |
|
$ |
270,489 |
|
|
$ |
767,464 |
|
|
$ |
1,037,953 |
|
Int'l Insurance: |
|
|
|
|
|
|
|
|
|
|
|
|
Marine |
|
$ |
168,472 |
|
|
$ |
33,258 |
|
|
$ |
201,730 |
|
P&C |
|
|
74,719 |
|
|
|
23,213 |
|
|
|
97,932 |
|
Professional Liability |
|
|
40,838 |
|
|
|
71,095 |
|
|
|
111,933 |
|
Total Int'l Insurance |
|
$ |
284,029 |
|
|
$ |
127,566 |
|
|
$ |
411,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GlobalRe |
|
$ |
42,542 |
|
|
$ |
71,373 |
|
|
$ |
113,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Loss Reserves |
|
$ |
597,060 |
|
|
$ |
966,403 |
|
|
$ |
1,563,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016 |
|
|||||||||
|
|
Case |
|
|
IBNR |
|
|
|
|
|
||
Net Loss Reserves: |
|
Reserves |
|
|
Reserves |
|
|
Total |
|
|||
U.S. Insurance: |
|
|
|
|
|
|
|
|
|
|
|
|
Marine |
|
$ |
56,701 |
|
|
$ |
54,259 |
|
|
$ |
110,960 |
|
P&C |
|
|
201,368 |
|
|
|
603,509 |
|
|
|
804,877 |
|
Professional Liability |
|
|
24,555 |
|
|
|
70,559 |
|
|
|
95,114 |
|
Total U.S. Insurance |
|
$ |
282,624 |
|
|
$ |
728,327 |
|
|
$ |
1,010,951 |
|
Int'l Insurance: |
|
|
|
|
|
|
|
|
|
|
|
|
Marine |
|
$ |
163,124 |
|
|
$ |
36,118 |
|
|
$ |
199,242 |
|
P&C |
|
|
66,496 |
|
|
|
18,192 |
|
|
|
84,688 |
|
Professional Liability |
|
|
30,106 |
|
|
|
70,103 |
|
|
|
100,209 |
|
Total Int'l Insurance |
|
$ |
259,726 |
|
|
$ |
124,413 |
|
|
$ |
384,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GlobalRe |
|
$ |
47,505 |
|
|
$ |
67,856 |
|
|
$ |
115,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Loss Reserves |
|
$ |
589,855 |
|
|
$ |
920,596 |
|
|
$ |
1,510,451 |
|
News Release
August 3, 2017
Page 17
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Investment Data
(Unaudited)
As of June 30, 2017, the average quality of the investment portfolio as rated by S&P and Moody’s was “AA-/Aa3”, respectively, with an average duration of 3.8 years. Our Company does not own any collateralized debt obligations or asset backed commercial paper.
The following table sets forth our investments as of June 30, 2017:
|
|
As of June 30, 2017 |
|
|||||||||||||
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
Cost or |
|
|||
|
|
Fair |
|
|
Unrealized |
|
|
Unrealized |
|
|
Amortized |
|
||||
amounts in thousands |
|
Value |
|
|
Gains |
|
|
(Losses) |
|
|
Cost |
|
||||
Fixed Maturities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Bonds, Agency Bonds and Foreign Government Bonds |
|
$ |
264,511 |
|
|
$ |
2,888 |
|
|
$ |
(2,660 |
) |
|
$ |
264,283 |
|
States, Municipalities and Political Subdivisions |
|
|
655,064 |
|
|
|
19,306 |
|
|
|
(2,004 |
) |
|
|
637,762 |
|
Mortgage-Backed and Asset-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency Mortgage-Backed Securities |
|
|
455,133 |
|
|
|
3,849 |
|
|
|
(5,389 |
) |
|
|
456,673 |
|
Residential Mortgage Obligations |
|
|
18,037 |
|
|
|
506 |
|
|
|
(25 |
) |
|
|
17,556 |
|
Asset-Backed Securities |
|
|
315,945 |
|
|
|
1,915 |
|
|
|
(478 |
) |
|
|
314,508 |
|
Commercial Mortgage-Backed Securities |
|
|
145,573 |
|
|
|
2,883 |
|
|
|
(1,432 |
) |
|
|
144,122 |
|
Subtotal |
|
$ |
934,688 |
|
|
$ |
9,153 |
|
|
$ |
(7,324 |
) |
|
$ |
932,859 |
|
Corporate Exposures |
|
|
896,141 |
|
|
|
17,490 |
|
|
|
(2,355 |
) |
|
|
881,006 |
|
Total Fixed Maturities |
|
$ |
2,750,404 |
|
|
$ |
48,837 |
|
|
$ |
(14,343 |
) |
|
$ |
2,715,910 |
|
Equity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks |
|
$ |
172,456 |
|
|
$ |
30,985 |
|
|
$ |
(1,023 |
) |
|
$ |
142,494 |
|
Preferred Stocks |
|
|
179,606 |
|
|
|
10,088 |
|
|
|
(499 |
) |
|
|
170,017 |
|
Total Equity Securities |
|
$ |
352,062 |
|
|
$ |
41,073 |
|
|
$ |
(1,522 |
) |
|
$ |
312,511 |
|
Short-Term Investments |
|
|
130,881 |
|
|
|
283 |
|
|
|
— |
|
|
|
130,598 |
|
Total Investments |
|
$ |
3,233,347 |
|
|
$ |
90,193 |
|
|
$ |
(15,865 |
) |
|
$ |
3,159,019 |
|