Infinity Property and Casualty Corp.
) reported fourth-quarter 2013 operating earnings of 70 cents a
share, missing the Zacks Consensus Estimate of 75 cents by 6.7%.
However, the number escalated substantially from 31 cents of net
operating loss reported in the year-ago quarter.
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The year-over-year improvement was attributable to better
underwriting results and reduced costs and expenses.
Including net realized investment gains, Infinity Property and
Casualty's net income came in at 81 cents a share in the
fourth-quarter, up 20.9% year over year.
Total revenue of Infinity Property and Casualty grossed $338.3
million, down 1.2% year over year. The decline resulted from
significantly lower net realized investment gains in the quarter.
However, revenues surpassed the Zacks Consensus Estimate of $330
million by 2.5%.
Gross written premium amounted to $313.2 million during the
quarter, increasing 6.6% year over year. The increase was
accountable to improvements in California personal auto (up 5%
year over year), countrywide Commercial Vehicle (up14.5%) and
Florida personal auto (up 26.4%).
Net investment income of Infinity Property and Casualty was $10.4
million in the quarter, up 13% year over year.
Costs and expenses of Infinity Property and Casualty trimmed 4.9%
year over year to $325.1 million. This can be attributable to
zero loss on redemption of long-term debt as against $13.6
million of loss incurred in the year-ago quarter, and lower
losses and loss adjustment expenses.
Full-Year 2013 Highlights
Infinity Property and Casualty reported full-year 2013 operating
net income of $2.45 per share, climbing sharply from 78 cents
reported in 2012. The surge was driven by profitable business
growth in the Florida and California personal auto segments and
in countrywide Commercial Vehicle. Moreover, improving combined
ratio resulting from rising rates and various underwriting
actions also drove the earnings upside. However, the number
missed the Zacks Consensus Estimate of $2.51 per share.
Including one-time items, net income of Infinity Property and
Casualty for 2013 came in at $2.80 a share, jumping 37.3% year
Revenues totaled $1.34 billion in 2013, up 7.6% year over year
primarily due to higher net earnings.
Infinity Property and Casualty had cash and cash equivalents of
$134.2 million as of 2013 end, improving from $87.3 million as of
Sep 30, 2013.
Long-term debt of $275 million as of 2013-end remained in line
with the third-quarter end level.
Infinity Property and Casualty had $143.3 million of cash flow
from operations during 2013, up 3.5% year over year.
Infinity Property and Casualty presently carries a Zacks Rank #3
(Hold). Some better-raked stocks in the property and casualty
insurance space are
AmTrust Financial Services, Inc.
American Financial Group Inc.
Greenlight Capital Re, Ltd.
). All these stocks sport a Zacks Rank #1 (Strong Buy).