Infinity Property and Casualty Corp
) have been gaining since the property and casualty insurer posted
solid second earnings results on Aug 7. Shares gained about 1.02%
over the last three trading sessions, eventually closing at $67.59
Infinity Property and Casualty reported second-quarter 2014
operating earnings of 82 cents a share, improving 39% year over
year. Results benefitted from improved underwriting profitability
and favorable development on prior accident year loss and loss
adjustment expense reserves. However, earnings missed the
Zacks Consensus Estimate by 5.8%.
Infinity Property And Casualty Corporation -
Earnings Surprise | FindTheBest
Including net realized investment gains, Infinity Property and
Casualty's net income came in at 92 cents a share, up 44% year over
Total revenue of Infinity Property and Casualty grossed $368
million, inching up 0.6% year over year. The upside resulted from
an increase in earned premium and net investment income. Also,
revenues surpassed the Zacks Consensus Estimate by 7.3%.
Gross written premium of $333.7 million increased 3.4% year over
year. The increase was accountable to improvements premium in
California, Florida and Texas personal auto and countrywide
Net investment income of Infinity Property and Casualty came in at
$9.1 million in the quarter, up 5.1% year over year.
Meanwhile, costs and expenses trimmed 0.8% year over year to $352.8
million owing to lower losses and loss adjustment expenses,
commissions and other underwriting costs.
While underwriting income surged 43%, combined ratio improved 90
basis points year over year.
Infinity Property and Casualty had cash and cash equivalents of
$59.1 million on Jun 30, 2014, down from $134.2 million as of Dec
Long-term debt of $275 million remained in line with the 2013-end
level. The debt-to-capital ratio improved 130 bps to 28.8% as on
Infinity Property and Casualty had $14.4 million of cash flow from
operations, down 62% year over year.
Share and Debt Repurchase Program
Infinity Property and Casualty bought back 0.022 million shares in
the quarter. The company has $40.6 million of capacity left
under its share and debt repurchase program, which is scheduled to
expire on Dec 31, 2014.
Infinity Property and Casualty reiterated its 2014 operating
earnings guidance of $3.55 to $4.35 per share. Gross written
premium is expected to increase between 2% and 4% over the prior
year. Accident year combined ratio (excluding development on
prior accident period loss and loss adjustment expense reserves) is
expected to lie in the range of 95.5-96.5%.
Infinity Property and Casualty presently carries a Zacks Rank #2
Performance of Other Property and Casualty
While ACE Limited (
) outperformed the Zacks Consensus Estimate on solid underwriting
performances coupled with improved investment results, RLI
) earnings were in line with the Zacks Consensus Estimate. However,
The Travelers Companies Inc.'s (
) earnings missed the Zacks Consensus Estimate on
higher-than-expected catastrophe losses.
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