Navigators Group Inc. has a market cap of $719.7 million; its shares were traded at around $43.95 with a P/E ratio of 13 and P/S ratio of 0.9. Navigators Group Inc. had an annual average earning growth of 27.1% over the past 10 years.NAVG is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of NAVG over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of NAVG.
Highlight of Business Operations:Net income for the three months ended June 30, 2010 was $19.0 million or $1.16 per diluted share compared to $23.7 million or $1.39 per diluted share for the three months ended June 30, 2009. Included in these results were net realized gains of $7.2 million and $1.7 million after-tax for the three months ended June 30, 2010 and 2009, respectively. Our net realized gains in the second quarter resulted from the sale of the majority of our general obligation municipal obligations, the proceeds of which were reinvested in corporate bonds and agency mortgage-backed securities. In addition, our net income included net other-than-temporary impairment losses recognized in earnings of $0.1 million and $0.3 million after-tax for the three months ended June 30, 2010 and 2009, respectively.
Net income for the three and six months ended June 30, 2009 included a gain related to the repurchase of $10 million aggregate principal amount of our 7.0% Senior notes from an unaffiliated note-holder on the open market for $7 million, which net of amortized costs resulted in a pre-tax gain of $2.9 million and added $0.11 to earnings per share.
The combined ratio for the three months ended June 30, 2010 was 99.7% compared to 92.9% for the comparable period in 2009. The increase in the loss ratios for the 2010 periods was partially due to the impact of reinstatement premiums on net earned premiums related to the Deepwater Horizon and West Atlas oil drilling rig losses. See Net Losses and Loss Adjustment Expenses section below. In addition, there was favorable prior year reserve development of $5.3 million and $6.5 million for the three and six months ended June 30, 2010 compared to prior year favorable development of $9.5 million and $15.2 million for the comparable periods in 2009. The net paid loss and LAE ratio for the three months ended June 30, 2010 was 61.1% compared to 36.4% for the comparable period in 2009.
Cash flow from operations was $64.4 million for the first six months of 2010 compared to $69.5 million for the comparable period in 2009. This decrease was primarily due to a $64.0 million increase in paid losses as well as an overall decline in the operating results in the first six months of 2010 compared with the same period in 2009. Partially offsetting these declines was an increase in the cash flow due to improved collections on reinsurance recoverables in the first six months of 2010 compared with the same period in 2009.
Consolidated stockholders equity increased 1.6% to $814.7 million or $51.48 per share at June 30, 2010 compared to $801.5 million or $47.58 per share at December 31, 2009. The increase in stockholders equity was primarily due to net income and unrealized investment portfolio gains.
Gross written premiums decreased to $253.6 million and $523.7 million in the three months and six months ended June 30, 2010, respectively compared to $272.7 million and $548.0 million in the 2009 comparable periods. The decrease in the 2010 second quarter and six month gross written premiums compared to 2009 was primarily due to the run-off of our personal umbrella lines as well as a continued decline in our construction liability lines in the Property Casualty business.
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