Navigators Group Inc.
) reported third-quarter 2013 operating net income of $1.60 per
share, substantially outpacing the Zacks Consensus Estimate of 76
cents. The results also surged from the prior-year quarter number
of 69 cents per share.
Bottom-line growth reflects improved combined ratio and was
fueled by strong underwriting performances in Navigators Group's
global energy, global marine and U.S. excess and surplus lines
units. Strong premium growth as well as lower expenses during the
reported quarter aided the solid quarterly earnings.
Including $2.8 million of net realized losses, Navigators Group
reported net income of $1.48 per share for the third quarter,
scaling up 64.4% year over year.
Quarterly Operational Update
Total revenues of Navigators Group increased 2.1% year over year
to nearly $225 million in the third quarter of 2013. This was
driven by improvement in higher net earned premiums (up 6.3% year
over year) as well as net investment income (up 3.7% year over
year). Total revenues however, missed the Zacks Consensus
Estimate by 5.1%.
Net written premiums of Navigators Group increased 4.5% year over
year to $196.5 million.
Navigators Group's continued focus on controlling operating
expenses helped it trim total expenses by 4.1% during the third
quarter. Total expenses slid to nearly $193.9 million in the
In the reported quarter, underwriting profit for Navigators Group
surged to $21.8 million compared to $1.8 million in the
prior-year period. The combined ratio improved 930 basis points
(bps) year over year to 89.8%.
generated net written premiums of $149.3 million, up 5% year over
Underwriting profit came in at nearly $20 million, rebounding
from an underwriting loss of $13.2 million in the prior-year
period. Combined ratio significantly improved 2120 bps year over
year to 87.7%.
net written premiums in the segment were $47.3 million, up
approximately 3% year over year.
Underwriting profit of $1.8 million plunged 87.9% year over year.
The decline primarily came on the back of higher net losses and
loss adjustment expenses. Combined ratio deteriorated 2530 bps to
Navigators Group exited the reported quarter with cash and
investments of $2.42 billion, almost in line with the 2012-end
Net cash flows from operating activities stood at $81.5 million,
surging 50.6% from the prior-year quarter results.
As of Sep 30, 2013, total assets of Navigators Group were $4.07
billion, up 1.7% from the end of 2012.
Total stockholders' equity of $899.9 million as of Sep 30, 2013
increased 2.3% from $879.5 million at 2012 end.
Performances of Other Property and Casualty
Allied World Assurance Company Holdings, AG
) reported its third-quarter 2013 operating net income of $2.93
per share, surpassing the Zacks Consensus Estimate by 37.5% and
the prior-year figure by 35.6%.
Platinum Underwriters Holdings Ltd.
) reported its third-quarter 2013 net earnings of $1.32 per
share, which beat the Zacks Consensus Estimate of $1.00. However,
the results declined a whopping 48% from the year-ago quarter
Aspen Insurance Holdings Ltd.
) reported third-quarter 2013 operating net income of $1.05 per
share, which substantially surpassed the Zacks Consensus Estimate
by 31.2%. However, the results lagged the year-ago quarter number
Navigators Group presently carries a Zacks Rank #1 (Strong Buy).
ASPEN INS HLDGS (AHL): Free Stock Analysis
ALLIED WORLD AS (AWH): Free Stock Analysis
NAVIGATORS GRP (NAVG): Free Stock Analysis
PLATINUM UNDRWT (PTP): Free Stock Analysis
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