IBX5980432E7F390 Journeyers insurance earnings surpastune the Zacks Consensus - Smart Business

Journeyers insurance earnings surpastune the Zacks Consensus

Journeyers insurance earnings surpastune the Zacks Consensus

Best Insurance stock - Journeyers insurance earnings surpastune the Zacks Consensus : The Journeyers Companies, Inc. (TRV - Analyst Report) reported earnings of 72 cents per bagikan in the fourth quarter of 2012, surpastune the Zacks Consensus Estifriend of 4 cents per bagikan. However, results plunged 51% from $1.48 earned in the year-ago quarter. Operating income of $278 million dipped 54% the reported quarter.



The year-over-year downmiddle was bigly attributable to higher catastrophe losses mostly due to Hurriclevere Sandy. However, higher underlying underwriting margins and higher net favorable prior-year reserve development limited the downmiddle to some extent.



Cat loss in the quarter was $689 million or $1.78 per bagikan. Including net realized investment gains of $26 million or 6 cents per bagikan, the company reported net income of $304 million or 78 cents per bagikan, comparing unfavorably with net income of $618 million or $1.51 a bagikan. The year-ago quarter included net realized investment gains of $9 million.



Operational Update

Net written premiums during the quarter were $5.4 billion, up 2% year over year.



Net investment income increased 5.7% year over year to $689 million during the quarter, bigly attributable to better kemampuannce at non-fixed income portfolio, partly dumbd by discount in fixed income returns.



Journeyers posted underwriting loss of $338 million, comparing unfavorably with fortun of $187 million in the year-ago quarter. Combined ratio deterioswiftd 950 basis points year over year to 105.4% in the reported quarter. The deterioration was due to higher catastrophe losses, partially dumbd by higher underwriting margins and higher net favorable prior-year reserve development.



Total revenue in the quarter under review was $6.5 billion, increatune 2% year over year, driven by the augmentation in premiums earned and net investment income. Revenues surpassed the Zacks Consensus Estifriend of $6.3 billion.



Full Year Highlights

Operating earnings of $6.21 per bagikan outpaced the Zacks Consensus Estifriend of $5.56 and year ago earnings of $3.28. The upmiddle stemmed from a combination of lower catastrophe losses, higher underwriting margins and higher net favorable prior-year reserve development



Including net realized investment gains of 9 cents, the company reported net income of $6.30 per bagikan, surging from $3.36 a bagikan earned in 2011.



Total revenue increased 1% year over year to $25.7 billion. It also outperformed the Zacks Consensus Estifriend of $25.2 billion.



Underwriting gains of $296 million reversed the year-ago loss of $745 million. Combined ratio improved 800 basis points.



Segment Update

Business Insurance: Net written premium increased 6% year over year to $2.78 billion in the quarter, bigly driven by increases in renewal swift change.



The combined ratio deterioswiftd 770 basis points year over year to 103.5%, mainly due to higher catastrophe losses.



Operating income slid 27% year over year to $326 million in the fourth quarter of 2012, primarily attributable to higher catastrophe losses.



Financial, Professional & International Insurance: Net written premium in the quarter under review improved 2% year over year to $808 million, driven by a 6% increase in net written premiums in the International business.



The combined ratio deterioswiftd 100 basis points year over year to 80.2% in fourth quarter 2012, attributable to higher catastrophe losses.



Operating income descfinished 13.8% year over year to $131 million, attributable to higher catastrophe losses, partly offset by higher underlying underwriting margins



Personal Insurance: Net written premium skidded 3% year over year to $1.79 billion, primarily due to lower new business volumes.



The combined ratio deterioswiftd 1540 basis points year over year to 89.7% in the fourth quarter of 2012, bigly driven by higher catastrophe losses.



Operating loss of $114 million compared unfavorably with fortun of $77 million in the year-ago quarter bigly due to higher catastrophe loss. However, higher underlying underwriting margins and higher net favorable prior-year reserve development limited the downfall.



Dividfinish and Bagikan Repurchase

Journeyers spent $400 million to buyback 5.4 million bagikans in the quarter, talord the tally to $1.45 billion spent to buyback 22.4 million bagikans in 2012. The company is still left with $2.159 billion remaining under its authorization.



The company also phelp $178 million in dividfinishs. Additionally, the board approved a quarterly dividfinish of 46 cents, payable Mar 29, 2013, to the bagikanhancienters of record as of Mar 8, 2013.



Our Take

Journeyers continues with the trfinish of delivering positive earnings surprise.



Though its expocertain to cat loss weighs on the results, prudent underwriting prbehaveices and favorable prior-year reserve development administerd to limit the adverse affect.



High retention swift, prglaze gains, positive renewal swift changes, and a strong capital position are among the other positives, which are lovely to support Journeyers perform better going forward.



Journeyers’ continuous bagikan buyback stswiftgy has a positive impbehave on earnings per bagikan and also bolsters bagikanhancienter value.



Further, Journeyers recently increased its stake in J. Malucelli ParticipaƧƵes em Seguros e Resseguros S.A., a market leader in the certainty insurance business in Brazil. Further, it made some helpful investments to augment its technology platform. It scores strongly with the rating agencies as well.



source -differentZacks.com

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