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8-K - FORM 8-K - NAVIGATORS GROUP INC | d923374d8k.htm |
Exhibit 99.1
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Consolidated and Segment Information (unaudited)
Three Months Ended
March 31, 2014
($ in thousands)
U.S. | Intl | |||||||||||||||||||
Insurance | Insurance | GlobalRe | Corporate (1) | Total | ||||||||||||||||
Gross written premiums |
$ | 198,348 | $ | 119,192 | $ | 105,250 | $ | | $ | 422,790 | ||||||||||
Ceded written premiums |
(65,066 | ) | (42,582 | ) | (3,292 | ) | | (110,940 | ) | |||||||||||
Net written premiums |
133,282 | 76,610 | 101,958 | | 311,850 | |||||||||||||||
Net earned premiums |
115,190 | 62,054 | 48,028 | | 225,272 | |||||||||||||||
Net losses and loss adjustment expenses |
(72,964 | ) | (31,220 | ) | (30,883 | ) | | (135,067 | ) | |||||||||||
Commission expenses |
(9,509 | ) | (8,855 | ) | (7,872 | ) | 509 | (25,727 | ) | |||||||||||
Other operating expenses |
(27,993 | ) | (15,059 | ) | (4,094 | ) | | (47,146 | ) | |||||||||||
Other underwriting income (expenses) |
513 | 6 | 145 | (509 | ) | 155 | ||||||||||||||
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Underwriting profit (loss) |
$ | 5,237 | $ | 6,926 | $ | 5,324 | $ | | $ | 17,487 | ||||||||||
Net investment income |
16,610 | 16,610 | ||||||||||||||||||
Net realized gains (losses) |
833 | 833 | ||||||||||||||||||
Interest expense |
(3,852 | ) | (3,852 | ) | ||||||||||||||||
Other income (expense) |
10,244 | 10,244 | ||||||||||||||||||
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Income before income taxes |
5,237 | 6,926 | 5,324 | 23,835 | 41,322 | |||||||||||||||
Income tax (expense) benefit |
(13,354 | ) | (13,354 | ) | ||||||||||||||||
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Net income (loss) |
$ | 27,968 | ||||||||||||||||||
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Losses and loss adjustment expenses ratio |
63.3 | % | 50.3 | % | 64.3 | % | 60.0 | % | ||||||||||||
Commission expense ratio |
8.3 | % | 14.3 | % | 16.4 | % | 11.4 | % | ||||||||||||
Other operating expense ratio (2) |
23.9 | % | 24.2 | % | 8.2 | % | 20.8 | % | ||||||||||||
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Combined ratio |
95.5 | % | 88.8 | % | 88.9 | % | 92.2 | % | ||||||||||||
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(1) | The Corporate segment includes intercompany eliminations. |
(2) | The Other operating expense ratio includes Other income (expense). |
U.S. Insurance | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
Professional | ||||||||||||||||
amounts in thousands |
Marine | P&C | Liability | Total | ||||||||||||
Gross written premiums |
$ | 43,025 | $ | 125,119 | $ | 30,204 | $ | 198,348 | ||||||||
Ceded written premiums |
(9,170 | ) | (46,156 | ) | (9,740 | ) | (65,066 | ) | ||||||||
Net written premiums |
33,855 | 78,963 | 20,464 | 133,282 | ||||||||||||
Net earned premiums |
27,986 | 64,931 | 22,273 | 115,190 | ||||||||||||
Net losses and LAE |
(14,683 | ) | (44,349 | ) | (13,932 | ) | (72,964 | ) | ||||||||
Commission expenses |
(2,547 | ) | (3,945 | ) | (3,017 | ) | (9,509 | ) | ||||||||
Other operating expenses |
(5,689 | ) | (17,313 | ) | (4,991 | ) | (27,993 | ) | ||||||||
Other underwriting income (expenses) |
201 | 266 | 46 | 513 | ||||||||||||
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Underwriting profit (loss) |
$ | 5,268 | $ | (410 | ) | $ | 379 | $ | 5,237 | |||||||
Losses and LAE ratio |
52.5 | % | 68.3 | % | 62.6 | % | 63.3 | % | ||||||||
Commission expense ratio |
9.1 | % | 6.1 | % | 13.5 | % | 8.3 | % | ||||||||
Other operating expense ratio (1) |
19.6 | % | 26.2 | % | 22.2 | % | 23.9 | % | ||||||||
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Combined ratio |
81.2 | % | 100.6 | % | 98.3 | % | 95.5 | % | ||||||||
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(1) The Other operating expense ratio includes Other income (expense). |
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Intl Insurance | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
Professional | ||||||||||||||||
amounts in thousands |
Marine | P&C | Liability | Total | ||||||||||||
Gross written premiums |
$ | 61,982 | $ | 42,250 | $ | 14,960 | $ | 119,192 | ||||||||
Ceded written premiums |
(12,394 | ) | (24,464 | ) | (5,724 | ) | (42,582 | ) | ||||||||
Net written premiums |
49,588 | 17,786 | 9,236 | 76,610 | ||||||||||||
Net earned premiums |
38,044 | 16,441 | 7,569 | 62,054 | ||||||||||||
Net losses and LAE |
(19,697 | ) | (6,957 | ) | (4,566 | ) | (31,220 | ) | ||||||||
Commission expenses |
(9,987 | ) | 1,191 | (59 | ) | (8,855 | ) | |||||||||
Other operating expenses |
(6,415 | ) | (5,280 | ) | (3,364 | ) | (15,059 | ) | ||||||||
Other underwriting income (expenses) |
6 | | | 6 | ||||||||||||
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Underwriting profit (loss) |
$ | 1,951 | $ | 5,395 | $ | (420 | ) | $ | 6,926 | |||||||
Losses and LAE ratio |
51.8 | % | 42.3 | % | 60.3 | % | 50.3 | % | ||||||||
Commission expense ratio |
26.4 | % | -7.2 | % | 0.8 | % | 14.3 | % | ||||||||
Other operating expense ratio (1) |
16.8 | % | 32.1 | % | 44.5 | % | 24.2 | % | ||||||||
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Combined ratio |
95.0 | % | 67.2 | % | 105.6 | % | 88.8 | % | ||||||||
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(1) | The Other operating expense ratio includes Other income (expense). |
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Consolidated and Segment Information (unaudited)
Three Months Ended
June 30, 2014
($ in thousands)
U.S. | Intl | |||||||||||||||||||
Insurance | Insurance | GlobalRe | Corporate (1) | Total | ||||||||||||||||
Gross written premiums |
$ | 206,703 | $ | 120,732 | $ | 21,360 | $ | | $ | 348,795 | ||||||||||
Ceded written premiums |
(60,004 | ) | (56,345 | ) | (582 | ) | | (116,931 | ) | |||||||||||
Net written premiums |
146,699 | 64,387 | 20,778 | | 231,864 | |||||||||||||||
Net earned premiums |
125,254 | 59,661 | 46,169 | | 231,084 | |||||||||||||||
Net losses and loss adjustment expenses |
(73,131 | ) | (35,293 | ) | (31,796 | ) | | (140,220 | ) | |||||||||||
Commission expenses |
(13,219 | ) | (11,009 | ) | (8,468 | ) | 546 | (32,150 | ) | |||||||||||
Other operating expenses |
(28,840 | ) | (15,436 | ) | (3,716 | ) | | (47,992 | ) | |||||||||||
Other underwriting income (expenses) |
736 | 11 | 34 | (546 | ) | 235 | ||||||||||||||
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Underwriting profit (loss) |
$ | 10,800 | $ | (2,066 | ) | $ | 2,223 | $ | | $ | 10,957 | |||||||||
Net investment income |
15,648 | 15,648 | ||||||||||||||||||
Net realized gains (losses) |
4,473 | 4,473 | ||||||||||||||||||
Interest expense |
(4,319 | ) | (4,319 | ) | ||||||||||||||||
Other income (expense) |
(1,900 | ) | (1,900 | ) | ||||||||||||||||
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Income before income taxes |
$ | 10,800 | $ | (2,066 | ) | $ | 2,223 | $ | 13,902 | $ | 24,859 | |||||||||
Income tax (expense) benefit |
(7,998 | ) | (7,998 | ) | ||||||||||||||||
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Net income (loss) |
$ | 16,861 | ||||||||||||||||||
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Losses and loss adjustment expenses ratio |
58.4 | % | 59.2 | % | 68.9 | % | 60.7 | % | ||||||||||||
Commission expense ratio |
10.6 | % | 18.5 | % | 18.3 | % | 13.9 | % | ||||||||||||
Other operating expense ratio (2) |
22.4 | % | 25.8 | % | 8.0 | % | 20.7 | % | ||||||||||||
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Combined ratio |
91.4 | % | 103.5 | % | 95.2 | % | 95.3 | % | ||||||||||||
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(1) | The Corporate segment includes intercompany eliminations. |
(2) | The Other operating expense ratio includes Other income (expense). |
U.S. Insurance | ||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||
Professional | ||||||||||||||||
amounts in thousands |
Marine | P&C | Liability | Total | ||||||||||||
Gross written premiums |
$ | 42,548 | $ | 137,137 | $ | 27,018 | $ | 206,703 | ||||||||
Ceded written premiums |
(11,587 | ) | (40,452 | ) | (7,965 | ) | (60,004 | ) | ||||||||
Net written premiums |
30,961 | 96,685 | 19,053 | 146,699 | ||||||||||||
Net earned premiums |
26,727 | 76,585 | 21,942 | 125,254 | ||||||||||||
Net losses and LAE |
(10,609 | ) | (52,619 | ) | (9,903 | ) | (73,131 | ) | ||||||||
Commission expenses |
(4,101 | ) | (6,095 | ) | (3,023 | ) | (13,219 | ) | ||||||||
Other operating expenses |
(5,944 | ) | (17,675 | ) | (5,221 | ) | (28,840 | ) | ||||||||
Other underwriting income (expenses) |
320 | 374 | 42 | 736 | ||||||||||||
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Underwriting profit (loss) |
$ | 6,393 | $ | 570 | $ | 3,837 | $ | 10,800 | ||||||||
Losses and LAE ratio |
39.7 | % | 68.7 | % | 45.1 | % | 58.4 | % | ||||||||
Commission expense ratio |
15.3 | % | 8.0 | % | 13.8 | % | 10.6 | % | ||||||||
Other operating expense ratio (1) |
21.1 | % | 22.6 | % | 23.6 | % | 22.4 | % | ||||||||
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Combined ratio |
76.1 | % | 99.3 | % | 82.5 | % | 91.4 | % | ||||||||
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(1) The Other operating expense ratio includes Other income (expense). |
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Intl Insurance | ||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||
Professional | ||||||||||||||||
amounts in thousands |
Marine | P&C | Liability | Total | ||||||||||||
Gross written premiums |
$ | 47,532 | $ | 51,305 | $ | 21,895 | $ | 120,732 | ||||||||
Ceded written premiums |
(17,033 | ) | (31,284 | ) | (8,028 | ) | (56,345 | ) | ||||||||
Net written premiums |
30,499 | 20,021 | 13,867 | 64,387 | ||||||||||||
Net earned premiums |
34,177 | 16,466 | 9,018 | 59,661 | ||||||||||||
Net losses and LAE |
(22,963 | ) | (9,937 | ) | (2,393 | ) | (35,293 | ) | ||||||||
Commission expenses |
(10,020 | ) | (996 | ) | 7 | (11,009 | ) | |||||||||
Other operating expenses |
(6,468 | ) | (5,570 | ) | (3,398 | ) | (15,436 | ) | ||||||||
Other underwriting income (expenses) |
3 | 5 | 3 | 11 | ||||||||||||
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Underwriting profit (loss) |
$ | (5,271 | ) | $ | (32 | ) | $ | 3,237 | $ | (2,066 | ) | |||||
Losses and LAE ratio |
67.2 | % | 60.4 | % | 26.5 | % | 59.2 | % | ||||||||
Commission expense ratio |
29.4 | % | 6.0 | % | -0.1 | % | 18.5 | % | ||||||||
Other operating expense ratio (1) |
18.9 | % | 33.8 | % | 37.8 | % | 25.8 | % | ||||||||
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Combined ratio |
115.5 | % | 100.2 | % | 64.2 | % | 103.5 | % | ||||||||
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(1) | The Other operating expense ratio includes Other income (expense). |
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Consolidated and Segment Information (unaudited)
Three Months Ended
September 30, 2014
($ in thousands)
U.S. Insurance |
Intl Insurance |
GlobalRe | Corporate (1) | Total | ||||||||||||||||
Gross written premiums |
$ | 199,723 | $ | 94,161 | $ | 33,585 | $ | | $ | 327,469 | ||||||||||
Ceded written premiums |
(61,654 | ) | (36,607 | ) | (791 | ) | | (99,052 | ) | |||||||||||
Net written premiums |
138,069 | 57,554 | 32,794 | | 228,417 | |||||||||||||||
Net earned premiums |
130,420 | 66,278 | 48,669 | | 245,367 | |||||||||||||||
Net losses and loss adjustment expenses |
(80,722 | ) | (24,910 | ) | (29,652 | ) | | (135,284 | ) | |||||||||||
Commission expenses |
(12,870 | ) | (12,792 | ) | (8,831 | ) | 550 | (33,943 | ) | |||||||||||
Other operating expenses |
(29,160 | ) | (17,288 | ) | (3,940 | ) | | (50,388 | ) | |||||||||||
Other underwriting income (expenses) |
534 | 1 | 122 | (550 | ) | 107 | ||||||||||||||
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Underwriting profit (loss) |
$ | 8,202 | $ | 11,289 | $ | 6,368 | $ | | $ | 25,859 | ||||||||||
Net investment income |
15,839 | 15,839 | ||||||||||||||||||
Net realized gains (losses) |
6,718 | 6,718 | ||||||||||||||||||
Interest expense |
(3,388 | ) | (3,388 | ) | ||||||||||||||||
Other income (expense) |
1,229 | 1,229 | ||||||||||||||||||
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Income before income taxes |
$ | 8,202 | $ | 11,289 | $ | 6,368 | $ | 20,398 | $ | 46,257 | ||||||||||
Income tax (expense) benefit |
(15,032 | ) | (15,032 | ) | ||||||||||||||||
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Net income (loss) |
$ | 31,225 | ||||||||||||||||||
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Losses and loss adjustment expenses ratio |
61.9 | % | 37.6 | % | 60.9 | % | 55.1 | % | ||||||||||||
Commission expense ratio |
9.9 | % | 19.3 | % | 18.1 | % | 13.8 | % | ||||||||||||
Other operating expense ratio (2) |
21.9 | % | 26.1 | % | 7.9 | % | 20.6 | % | ||||||||||||
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Combined ratio |
93.7 | % | 83.0 | % | 86.9 | % | 89.5 | % | ||||||||||||
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(1) | The Corporate segment includes intercompany eliminations. |
(2) | The Other operating expense ratio includes Other income (expense). |
U.S. Insurance | ||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||
amounts in thousands |
Marine | P&C | Professional Liability |
Total | ||||||||||||
Gross written premiums |
$ | 34,576 | $ | 138,181 | $ | 26,966 | $ | 199,723 | ||||||||
Ceded written premiums |
(13,338 | ) | (41,180 | ) | (7,136 | ) | (61,654 | ) | ||||||||
Net written premiums |
21,238 | 97,001 | 19,830 | 138,069 | ||||||||||||
Net earned premiums |
27,207 | 82,635 | 20,578 | 130,420 | ||||||||||||
Net losses and LAE |
(13,581 | ) | (53,955 | ) | (13,186 | ) | (80,722 | ) | ||||||||
Commission expenses |
(3,486 | ) | (6,697 | ) | (2,687 | ) | (12,870 | ) | ||||||||
Other operating expenses |
(6,086 | ) | (17,935 | ) | (5,139 | ) | (29,160 | ) | ||||||||
Other underwriting income (expenses) |
168 | 331 | 35 | 534 | ||||||||||||
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Underwriting profit (loss) |
$ | 4,222 | $ | 4,379 | $ | (399 | ) | $ | 8,202 | |||||||
Losses and LAE ratio |
49.9 | % | 65.3 | % | 64.1 | % | 61.9 | % | ||||||||
Commission expense ratio |
12.8 | % | 8.1 | % | 13.1 | % | 9.9 | % | ||||||||
Other operating expense ratio (1) |
21.8 | % | 21.3 | % | 24.7 | % | 21.9 | % | ||||||||
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Combined ratio |
84.5 | % | 94.7 | % | 101.9 | % | 93.7 | % | ||||||||
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(1) The Other operating expense ratio includes Other income (expense). |
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Intl Insurance | ||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||
amounts in thousands |
Marine | P&C | Professional Liability |
Total | ||||||||||||
Gross written premiums |
$ | 41,593 | $ | 35,399 | $ | 17,169 | $ | 94,161 | ||||||||
Ceded written premiums |
(6,924 | ) | (24,267 | ) | (5,416 | ) | (36,607 | ) | ||||||||
Net written premiums |
34,669 | 11,132 | 11,753 | 57,554 | ||||||||||||
Net earned premiums |
40,207 | 14,300 | 11,771 | 66,278 | ||||||||||||
Net losses and LAE |
(14,657 | ) | (3,565 | ) | (6,688 | ) | (24,910 | ) | ||||||||
Commission expenses |
(9,755 | ) | (2,565 | ) | (472 | ) | (12,792 | ) | ||||||||
Other operating expenses |
(7,573 | ) | (5,675 | ) | (4,040 | ) | (17,288 | ) | ||||||||
Other underwriting income (expenses) |
1 | 0 | 0 | 1 | ||||||||||||
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Underwriting profit (loss) |
$ | 8,223 | $ | 2,495 | $ | 571 | $ | 11,289 | ||||||||
Losses and LAE ratio |
36.5 | % | 24.9 | % | 56.8 | % | 37.6 | % | ||||||||
Commission expense ratio |
24.4 | % | 17.9 | % | 4.0 | % | 19.3 | % | ||||||||
Other operating expense ratio (1) |
18.7 | % | 39.8 | % | 34.5 | % | 26.1 | % | ||||||||
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Combined ratio |
79.6 | % | 82.6 | % | 95.3 | % | 83.0 | % | ||||||||
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(1) | The Other operating expense ratio includes Other income (expense). |
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Consolidated and Segment Information (unaudited)
Three Months Ended
December 31, 2014
($ in thousands)
U.S. Insurance |
Intl Insurance |
GlobalRe | Corporate (1) | Total | ||||||||||||||||
Gross written premiums |
$ | 202,334 | $ | 90,819 | $ | 40,146 | $ | | $ | 333,299 | ||||||||||
Ceded written premiums |
(68,259 | ) | (36,387 | ) | (646 | ) | | (105,292 | ) | |||||||||||
Net written premiums |
134,075 | 54,432 | 39,500 | | 228,007 | |||||||||||||||
Net earned premiums |
133,425 | 55,492 | 45,255 | | 234,172 | |||||||||||||||
Net losses and loss adjustment expenses |
(85,022 | ) | (23,656 | ) | (25,980 | ) | | (134,658 | ) | |||||||||||
Commission expenses |
(14,242 | ) | (11,770 | ) | (8,258 | ) | 562 | (33,708 | ) | |||||||||||
Other operating expenses |
(29,824 | ) | (17,492 | ) | (3,983 | ) | | (51,299 | ) | |||||||||||
Other underwriting income (expenses) |
458 | 14 | 188 | (562 | ) | 98 | ||||||||||||||
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Underwriting profit (loss) |
$ | 4,795 | $ | 2,588 | $ | 7,222 | $ | | $ | 14,605 | ||||||||||
Net investment income |
16,071 | 16,071 | ||||||||||||||||||
Net realized gains (losses) |
788 | 788 | ||||||||||||||||||
Interest expense |
(3,854 | ) | (3,854 | ) | ||||||||||||||||
Other income (expense) |
488 | 488 | ||||||||||||||||||
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Income before income taxes |
$ | 4,795 | $ | 2,588 | $ | 7,222 | $ | 13,493 | $ | 28,098 | ||||||||||
Income tax (expense) benefit |
(8,823 | ) | (8,823 | ) | ||||||||||||||||
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Net income (loss) |
$ | 19,275 | ||||||||||||||||||
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Losses and loss adjustment expenses ratio |
63.7 | % | 42.6 | % | 57.4 | % | 57.5 | % | ||||||||||||
Commission expense ratio |
10.7 | % | 21.2 | % | 18.2 | % | 14.4 | % | ||||||||||||
Other operating expense ratio (2) |
22.0 | % | 31.5 | % | 8.4 | % | 21.9 | % | ||||||||||||
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Combined ratio |
96.4 | % | 95.3 | % | 84.0 | % | 93.8 | % | ||||||||||||
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(1) | The Corporate segment includes intercompany eliminations. |
(2) | The Other operating expense ratio includes Other income (expense). |
U.S. Insurance | ||||||||||||||||
Three Months Ended December 31, 2014 | ||||||||||||||||
amounts in thousands |
Marine | P&C | Professional Liability |
Total | ||||||||||||
Gross written premiums |
$ | 37,058 | $ | 139,634 | $ | 25,642 | $ | 202,334 | ||||||||
Ceded written premiums |
(13,463 | ) | (41,292 | ) | (13,504 | ) | (68,259 | ) | ||||||||
Net written premiums |
23,595 | 98,342 | 12,138 | 134,075 | ||||||||||||
Net earned premiums |
26,001 | 88,411 | 19,013 | 133,425 | ||||||||||||
Net losses and LAE |
(4,196 | ) | (68,328 | ) | (12,498 | ) | (85,022 | ) | ||||||||
Commission expenses |
(2,959 | ) | (8,692 | ) | (2,591 | ) | (14,242 | ) | ||||||||
Other operating expenses |
(6,486 | ) | (17,980 | ) | (5,358 | ) | (29,824 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Other underwriting income (expenses) |
150 | 292 | 16 | 458 | ||||||||||||
Underwriting profit (loss) |
$ | 12,510 | $ | (6,297 | ) | $ | (1,418 | ) | $ | 4,795 | ||||||
Losses and LAE ratio |
16.1 | % | 77.3 | % | 65.7 | % | 63.7 | % | ||||||||
Commission expense ratio |
11.4 | % | 9.8 | % | 13.6 | % | 10.7 | % | ||||||||
Other operating expense ratio (1) |
24.4 | % | 20.0 | % | 28.2 | % | 22.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Combined ratio |
51.9 | % | 107.1 | % | 107.5 | % | 96.4 | % | ||||||||
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|
|
|
|
|
|
|||||||||
(1) The Other operating expense ratio includes Other income (expense). |
||||||||||||||||
Intl Insurance | ||||||||||||||||
Three Months Ended December 31, 2014 | ||||||||||||||||
amounts in thousands |
Marine | P&C | Professional Liability |
Total | ||||||||||||
Gross written premiums |
$ | 39,680 | $ | 29,185 | $ | 21,954 | $ | 90,819 | ||||||||
Ceded written premiums |
(11,454 | ) | (18,072 | ) | (6,861 | ) | (36,387 | ) | ||||||||
Net written premiums |
28,226 | 11,113 | 15,093 | 54,432 | ||||||||||||
Net earned premiums |
28,669 | 15,313 | 11,510 | 55,492 | ||||||||||||
Net losses and LAE |
(14,669 | ) | (2,858 | ) | (6,129 | ) | (23,656 | ) | ||||||||
Commission expenses |
(7,898 | ) | (2,925 | ) | (947 | ) | (11,770 | ) | ||||||||
Other operating expenses |
(7,766 | ) | (5,631 | ) | (4,095 | ) | (17,492 | ) | ||||||||
Other underwriting income (expenses) |
6 | 4 | 4 | 14 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Underwriting profit (loss) |
$ | (1,658 | ) | $ | 3,903 | $ | 343 | $ | 2,588 | |||||||
Losses and LAE ratio |
51.2 | % | 18.7 | % | 53.2 | % | 42.6 | % | ||||||||
Commission expense ratio |
27.6 | % | 19.1 | % | 8.2 | % | 21.2 | % | ||||||||
Other operating expense ratio (1) |
27.1 | % | 36.7 | % | 35.7 | % | 31.5 | % | ||||||||
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|
|
|
|
|
|
|
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Combined ratio |
105.9 | % | 74.5 | % | 97.1 | % | 95.3 | % | ||||||||
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|
|
|
|
(1) | The Other operating expense ratio includes Other income (expense). |
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Consolidated and Segment Information (unaudited)
Year Ended
December 31, 2014
($ in thousands)
U.S. Insurance |
Intl Insurance |
GlobalRe | Corporate (1) | Total | ||||||||||||||||
Gross written premiums |
$ | 807,108 | $ | 424,904 | $ | 200,341 | $ | | $ | 1,432,353 | ||||||||||
Ceded written premiums |
(254,983 | ) | (171,921 | ) | (5,311 | ) | | (432,215 | ) | |||||||||||
Net written premiums |
552,125 | 252,983 | 195,030 | | 1,000,138 | |||||||||||||||
Net earned premiums |
504,289 | 243,485 | 188,121 | | 935,895 | |||||||||||||||
Net losses and loss adjustment expenses |
(311,839 | ) | (115,079 | ) | (118,311 | ) | | (545,229 | ) | |||||||||||
Commission expenses |
(49,840 | ) | (44,426 | ) | (33,429 | ) | 2,167 | (125,528 | ) | |||||||||||
Other operating expenses |
(115,817 | ) | (65,275 | ) | (15,733 | ) | | (196,825 | ) | |||||||||||
Other underwriting income (expenses) |
2,241 | 32 | 489 | (2,167 | ) | 595 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Underwriting profit (loss) |
$ | 29,034 | $ | 18,737 | $ | 21,137 | $ | 0 | $ | 68,908 | ||||||||||
Net investment income |
64,168 | 64,168 | ||||||||||||||||||
Net realized gains (losses) |
12,812 | 12,812 | ||||||||||||||||||
Interest expense |
(15,413 | ) | (15,413 | ) | ||||||||||||||||
Other income (expense) |
10,061 | 10,061 | ||||||||||||||||||
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|
|
|
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|
|
|
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Income before income taxes |
$ | 29,034 | $ | 18,737 | $ | 21,137 | $ | 71,628 | $ | 140,536 | ||||||||||
Income tax (expense) benefit |
(45,207 | ) | (45,207 | ) | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Net income (loss) |
$ | 95,329 | ||||||||||||||||||
|
|
|||||||||||||||||||
Losses and loss adjustment expenses ratio |
61.8 | % | 47.3 | % | 62.9 | % | 58.3 | % | ||||||||||||
Commission expense ratio |
9.9 | % | 18.2 | % | 17.8 | % | 13.4 | % | ||||||||||||
Other operating expense ratio (2) |
22.5 | % | 26.8 | % | 8.1 | % | 20.9 | % | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Combined ratio |
94.2 | % | 92.3 | % | 88.8 | % | 92.6 | % | ||||||||||||
|
|
|
|
|
|
|
|
(1) | The Corporate segment includes intercompany eliminations. |
(2) | The Other operating expense ratio includes Other income (expense). |
U.S. Insurance | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||
amounts in thousands |
Marine | P&C | Professional Liability |
Total | ||||||||||||
Gross written premiums |
$ | 157,207 | $ | 540,071 | $ | 109,830 | $ | 807,108 | ||||||||
Ceded written premiums |
(47,558 | ) | (169,080 | ) | (38,345 | ) | (254,983 | ) | ||||||||
Net written premiums |
109,649 | 370,991 | 71,485 | 552,125 | ||||||||||||
Net earned premiums |
107,921 | 312,562 | 83,806 | 504,289 | ||||||||||||
Net losses and LAE |
(43,069 | ) | (219,251 | ) | (49,519 | ) | (311,839 | ) | ||||||||
Commission expenses |
(13,093 | ) | (25,429 | ) | (11,318 | ) | (49,840 | ) | ||||||||
Other operating expenses |
(24,205 | ) | (70,903 | ) | (20,709 | ) | (115,817 | ) | ||||||||
Other underwriting income (expenses) |
839 | 1,263 | 139 | 2,241 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Underwriting profit (loss) |
$ | 28,393 | $ | (1,758 | ) | $ | 2,399 | $ | 29,034 | |||||||
Losses and LAE ratio |
39.9 | % | 70.1 | % | 59.1 | % | 61.8 | % | ||||||||
Commission expense ratio |
12.1 | % | 8.1 | % | 13.5 | % | 9.9 | % | ||||||||
Other operating expense ratio (1) |
21.7 | % | 22.4 | % | 24.5 | % | 22.5 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Combined ratio |
73.7 | % | 100.6 | % | 97.1 | % | 94.2 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Intl Insurance | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||
amounts in thousands |
Marine | P&C | Professional Liability |
Total | ||||||||||||
Gross written premiums |
$ | 190,787 | $ | 158,139 | $ | 75,978 | $ | 424,904 | ||||||||
Ceded written premiums |
(47,805 | ) | (98,087 | ) | (26,029 | ) | (171,921 | ) | ||||||||
Net written premiums |
142,982 | 60,052 | 49,949 | 252,983 | ||||||||||||
Net earned premiums |
141,097 | 62,520 | 39,868 | 243,485 | ||||||||||||
Net losses and LAE |
(71,986 | ) | (23,317 | ) | (19,776 | ) | (115,079 | ) | ||||||||
Commission expenses |
(37,660 | ) | (5,295 | ) | (1,471 | ) | (44,426 | ) | ||||||||
Other operating expenses |
(28,222 | ) | (22,156 | ) | (14,897 | ) | (65,275 | ) | ||||||||
Other underwriting income (expenses) |
16 | 9 | 7 | 32 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
Underwriting profit (loss) |
$ | 3,245 | $ | 11,761 | $ | 3,731 | $ | 18,737 | ||||||||
Losses and LAE ratio |
51.0 | % | 37.3 | % | 49.6 | % | 47.3 | % | ||||||||
Commission expense ratio |
26.8 | % | 8.5 | % | 3.7 | % | 18.2 | % | ||||||||
Other operating expense ratio (1) |
20.0 | % | 35.4 | % | 37.4 | % | 26.8 | % | ||||||||
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|
|
|
|
|
|
|
|||||||||
Combined ratio |
97.8 | % | 81.2 | % | 90.7 | % | 92.3 | % | ||||||||
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|
|
|
|
|
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Consolidated and Segment Information (unaudited)
Year Ended
December 31, 2013
($ in thousands)
U.S. Insurance |
Intl Insurance |
GlobalRe | Corporate (1) | Total | ||||||||||||||||
Gross written premiums |
$ | 745,995 | $ | 446,816 | $ | 177,706 | $ | | $ | 1,370,517 | ||||||||||
Ceded written premiums |
(279,769 | ) | (200,027 | ) | (2,799 | ) | | (482,595 | ) | |||||||||||
Net written premiums |
466,226 | 246,789 | 174,907 | | 887,922 | |||||||||||||||
Net earned premiums |
437,737 | 246,258 | 157,944 | | 841,939 | |||||||||||||||
Net losses and loss adjustment expenses |
(283,694 | ) | (114,395 | ) | (120,872 | ) | | (518,961 | ) | |||||||||||
Commission expenses |
(43,409 | ) | (44,940 | ) | (27,493 | ) | 2,348 | (113,494 | ) | |||||||||||
Other operating expenses |
(99,013 | ) | (55,947 | ) | (9,474 | ) | | (164,434 | ) | |||||||||||
Other underwriting income (expenses) |
2,924 | (1,867 | ) | 119 | (2,348 | ) | (1,172 | ) | ||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
Underwriting profit (loss) |
$ | 14,545 | $ | 29,109 | $ | 224 | $ | 0 | $ | 43,878 | ||||||||||
Net investment income |
56,251 | 56,251 | ||||||||||||||||||
Net realized gains (losses) |
20,546 | 20,546 | ||||||||||||||||||
Call Premium on Senior Note |
(17,895 | ) | (17,895 | ) | ||||||||||||||||
Interest expense |
(10,507 | ) | (10,507 | ) | ||||||||||||||||
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|
|
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Income before income taxes |
$ | 14,545 | $ | 29,109 | $ | 224 | $ | 48,395 | $ | 92,273 | ||||||||||
Income tax (expense) benefit |
(28,807 | ) | (28,807 | ) | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Net income (loss) |
$ | 63,466 | ||||||||||||||||||
|
|
|||||||||||||||||||
Losses and loss adjustment expenses ratio |
64.8 | % | 46.5 | % | 76.5 | % | 61.6 | % | ||||||||||||
Commission expense ratio |
9.9 | % | 18.2 | % | 17.4 | % | 13.5 | % | ||||||||||||
Other operating expense ratio (2) |
22.0 | % | 23.5 | % | 6.0 | % | 19.7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Combined ratio |
96.7 | % | 88.2 | % | 99.9 | % | 94.8 | % | ||||||||||||
|
|
|
|
|
|
|
|
(1) | The Corporate segment includes intercompany eliminations. |
U.S. Insurance | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
amounts in thousands |
Marine | P&C | Professional Liability |
Total | ||||||||||||
Gross written premiums |
$ | 145,301 | $ | 470,615 | $ | 130,079 | $ | 745,995 | ||||||||
Ceded written premiums |
(45,349 | ) | (201,440 | ) | (32,980 | ) | (279,769 | ) | ||||||||
Net written premiums |
99,952 | 269,175 | 97,099 | 466,226 | ||||||||||||
Net earned premiums |
106,670 | 230,666 | 100,401 | 437,737 | ||||||||||||
Net losses and LAE |
(52,184 | ) | (158,996 | ) | (72,514 | ) | (283,694 | ) | ||||||||
Commission expenses |
(14,639 | ) | (12,963 | ) | (15,807 | ) | (43,409 | ) | ||||||||
Other operating expenses |
(23,010 | ) | (58,544 | ) | (17,459 | ) | (99,013 | ) | ||||||||
Other underwriting income (expenses) |
771 | 1,933 | 220 | 2,924 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Underwriting profit (loss) |
$ | 17,608 | $ | 2,096 | $ | (5,159 | ) | $ | 14,545 | |||||||
Losses and LAE ratio |
48.9 | % | 68.9 | % | 72.2 | % | 64.8 | % | ||||||||
Commission expense ratio |
13.7 | % | 5.6 | % | 15.7 | % | 9.9 | % | ||||||||
Other operating expense ratio (1) |
20.9 | % | 24.6 | % | 17.2 | % | 22.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Combined ratio |
83.5 | % | 99.1 | % | 105.1 | % | 96.7 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(1) The Other operating expense ratio includes Other income (expense). |
|
|||||||||||||||
Intl Insurance | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
amounts in thousands |
Marine | P&C | Professional Liability |
Total | ||||||||||||
Gross written premiums |
$ | 208,198 | $ | 180,657 | $ | 57,961 | $ | 446,816 | ||||||||
Ceded written premiums |
(53,082 | ) | (120,068 | ) | (26,877 | ) | (200,027 | ) | ||||||||
Net written premiums |
155,116 | 60,589 | 31,084 | 246,789 | ||||||||||||
Net earned premiums |
164,080 | 55,809 | 26,369 | 246,258 | ||||||||||||
Net losses and LAE |
(88,539 | ) | (12,862 | ) | (12,994 | ) | (114,395 | ) | ||||||||
Commission expenses |
(42,605 | ) | (3,332 | ) | 997 | (44,940 | ) | |||||||||
Other operating expenses |
(25,873 | ) | (20,332 | ) | (9,742 | ) | (55,947 | ) | ||||||||
Other underwriting income (expenses) |
(1,867 | ) | | | (1,867 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Underwriting profit (loss) |
$ | 5,196 | $ | 19,283 | $ | 4,630 | $ | 29,109 | ||||||||
Losses and LAE ratio |
54.0 | % | 23.0 | % | 49.3 | % | 46.5 | % | ||||||||
Commission expense ratio |
26.1 | % | 6.0 | % | -3.8 | % | 18.2 | % | ||||||||
Other operating expense ratio (1) |
16.8 | % | 36.4 | % | 37.0 | % | 23.5 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Combined ratio |
96.9 | % | 65.4 | % | 82.5 | % | 88.2 | % | ||||||||
|
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|
|
|
|
|
(1) | The Other operating expense ratio includes Other income (expense). |