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Navigators Group Inc. Reports Operating Results (10-Q)

May 07, 2010 | About:
10qk

10qk

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Navigators Group Inc. (NAVG) filed Quarterly Report for the period ended 2010-03-31.

Navigators Group Inc. has a market cap of $630.5 million; its shares were traded at around $37.36 with a P/E ratio of 9.8 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.

Highlight of Business Operations:

We have significant natural catastrophe exposures throughout the world. We estimate that our largest exposure to loss from a single natural catastrophe event comes from an earthquake on the west coast of the United States. As of March 31, 2010, we estimate that our probable maximum pre-tax gross and net loss exposure for an earthquake event centered at San Francisco, California would be approximately $131 million and $27 million, respectively, including the cost of reinsurance reinstatement premiums.

Net income for the three months ended March 31, 2010 was $17.0 million or $1.00 per diluted share compared to $12.0 million or $0.71 per diluted share for the three months ended March 31, 2009. Included in these results were net realized gains of $3.9 million after-tax and net realized losses of $1.2 million after-tax for the three months ended March 31, 2010 and 2009, respectively. In addition, our net income included net other-than-temporary impairment losses recognized in earnings of $0.01 million and $7.0 million after-tax for the three months ended March 31, 2010 and 2009, respectively.

The combined ratio for the three months ended March 31, 2010 was 99.1% compared to 92.8% for the comparable period in 2009. The combined ratio for the three months ended March 31, 2010 was reduced by 0.8 loss ratio points for net loss reserve redundancies of $1.2 million relating to prior years. The combined ratio for the three months ended March 31, 2009 was reduced by 3.5 loss ratio points for net loss reserve redundancies of $5.8 million relating to prior years. The net paid loss and LAE ratio for the three months ended March 30, 2010 was 60.3% compared to 43.6% for the comparable period in 2009.

Cash flow from operations was $4.1 million for the first three months of 2010 compared to $42.9 million for the comparable period in 2009. This decrease was primarily due to a $27.0 million negative variance in our cash flows related to an increase in paid losses in the first three months of 2010 compared with the same period in 2009 as well as a decline in the overall operating results.

Consolidated stockholders equity increased 1.1% to $810.0 million or $49.47 per share at March 31, 2010 compared to $801.5 million or $47.58 per share at December 31, 2009. The increase was due to net income and unrealized investment portfolio gains.

Gross written premiums decreased to $270.1 million in the three months ended March 31, 2010 compared to $275.3 million in the 2009 comparable period. The 1.9% decrease in the 2010 first quarter gross written premiums compared to 2009 was due to a $9.6 million decrease in our Marine gross written premiums, primarily due to a decline in our protection and indemnity (P&I) business line. The decrease in the 2010 first quarter gross written premium was partially offset by a $3.0 million and $1.5 million increase in our Professional Liability and Property Casualty divisions, respectively.

Read the The complete Report

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