Argo Group Reports 2016 Net Income of $146.7 Million or $4.75 per Diluted Share with Book Value per Share Up 10% for the Year
2016 Annual Recap
| Gross Written | Net Investment | Net Income | Adjusted Operating | Annualized Return | ||||||||||||
| Premiums | Income | Per Diluted Share | Income Per Diluted | on Average | ||||||||||||
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Share (1) |
Shareholders’ Equity (1) |
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8.5% | ||||||||||||
| ↑ 7.6% | ↑ 29.9% | ↓ 8.7% | ↑ 14.0% | ↓ 1.3 pts | ||||||||||||
| from 2015 | from 2015 | from 2015 | from 2015 | from 2015 | ||||||||||||
“Argo Group ended the year with book value of
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HIGHLIGHTS FOR THE THREE MONTHS ENDED 
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HIGHLIGHTS FOR THE YEAR ENDED |
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Notes
- All per share amounts, except for number of shares repurchased, are adjusted for the 10% stock dividend that was paid on
June 15, 2016 , to stockholders of record onJune 1, 2016 . - The following changes were made to the reporting structure effective
Jan. 1, 2016 :
(a) A reclassification of Argo Pro results and identifiable assets from Excess and Surplus lines to the Commercial Specialty segment which more appropriately matches segment distribution strategy.
(b) Alternative investment income was moved from realized gains and losses to net investment income.
- All references to catastrophe losses are pre-tax and net of reinsurance and estimated reinstatement premiums. Point impacts on the combined ratio are calculated as the difference between the reported combined ratio and the combined ratio excluding incurred catastrophe losses and associated reinstatement premiums.
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(1) Refer to Non-GAAP Financial Measures below. |
FINANCIAL HIGHLIGHTS BY SEGMENT
Excess and Surplus Lines
- Gross written premiums were up 6% in the fourth quarter and 4% in 2016 primarily driven by casualty lines and rate increases in certain specialty classes.
- For calendar 2016 the loss ratio excluding catastrophe losses and reserve development was 1.8 points better at 59.3% from 61.1% in 2015.
In the 2016 fourth quarter, the Excess and Surplus Lines segment reported gross written premiums of
For 2016 gross written premiums were
Commercial Specialty
- Gross written premiums were up 15.2% in the fourth quarter and 18.7% in 2016, driven by program, surety, and professional lines businesses.
- The loss ratio for 2016, excluding catastrophe losses and reserve development, was 55.2%, compared to 56.8% in 2015.
In the 2016 fourth quarter, the Commercial Specialty segment reported gross written premiums of
For 2016, gross written premiums were
Syndicate 1200
- Gross written premiums were up modestly in the fourth quarter. 2016 results reflected competitive market conditions and a reduced participation on the syndicate.
- The loss ratio for 2016, excluding catastrophe losses and reserve development, was 53.1%, compared to 53.0% in 2015.
The Syndicate 1200 segment reported gross written premiums of
For 2016, gross written premiums were
International Specialty
- Gross written premiums were up modestly in the fourth quarter but down for 2016. Growth in our
Bermuda insurance business was offset by declines in our reinsurance business in a more competitive rating environment. - The loss ratio for 2016, excluding catastrophe losses and reserve development, was 49.1%, compared to 50.3% in 2015.
The International Specialty segment includes our property reinsurance business as well as our insurance business in
For 2016, gross written premiums were
CONFERENCE CALL
A webcast replay will be available shortly after the live conference call and can be accessed at http://services.choruscall.com/links/agii170214.html. A telephone replay of the conference call will be available through
ABOUT
FORWARD-LOOKING STATEMENTS
This press release may include forward-looking statements, both with respect to
In addition, any estimates relating to loss events involve the exercise of considerable judgment and reflect a combination of ground-up evaluations, information available to date from brokers and cedants, market intelligence, initial tentative loss reports and other sources. The actuarial range of reserves and management’s best estimate is based on our then current state of knowledge including explicit and implicit assumptions relating to the pattern of claim development, the expected ultimate settlement amount, inflation and dependencies between lines of business. Our internal capital model is used to consider the distribution for reserving risk around this best estimate and predict the potential range of outcomes. However, due to the complexity of factors contributing to the losses and the preliminary nature of the information used to prepare these estimates, there can be no assurance that Argo Group’s ultimate losses will remain within the stated amount.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the risk factors included in our most recent reports on Form 10-K and Form 10-Q and other documents of
NON-GAAP FINANCIAL MEASURES
In presenting the Company's results, management has included and discussed in this press release certain non-generally accepted accounting principles ("non-GAAP") financial measures within the meaning of Regulation G as promulgated by the
“Underwriting income” is an internal performance measure used in the management of the Company’s operations and represents net amount earned from underwriting activities (net premiums earned less underwriting expenses and claims incurred). Although this measure of profit (loss) does not replace net income (loss) computed in accordance with
"Adjusted operating income" is an internal performance measure used in the management of the Company's operations and represents after-tax (at an assumed effective tax rate of 20%) operational results excluding, as applicable, net realized investment gains or losses, net foreign exchange gain or loss, and other non-recurring items. The Company excludes net realized investment gains or losses, net foreign exchange gain or loss, and other non-recurring items from the calculation of adjusted operating income because these amounts are influenced by and fluctuate in part according to the availability of market opportunities. In addition to presenting net income determined in accordance with
"Annualized return on average shareholders’ equity" ("ROAE") is calculated using average shareholders' equity. In calculating ROAE, the net income available to shareholders for the period is multiplied by the number of periods in a calendar year to arrive at annualized net income available to shareholders. The Company presents ROAE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.
"Annualized adjusted operating return on average shareholders' equity" is calculated using adjusted operating income (as defined above and annualized in the manner described for net income (loss) available to shareholders under ROAE above) and average shareholders' equity. The assumed tax rate is 20%.
Reconciliations of these financial measures to their most directly comparable
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| CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (in millions, except per share amounts) | ||||||||||||
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| 2016 | 2015 | |||||||||||
| (unaudited) | ||||||||||||
| Assets | ||||||||||||
| Total investments | $ | 4,324.3 | $ | 4,115.7 | ||||||||
| Cash | 86.0 | 121.7 | ||||||||||
| Accrued investment income | 20.7 | 21.6 | ||||||||||
| Receivables | 1,849.4 | 1,525.6 | ||||||||||
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219.9 | 225.5 | ||||||||||
| Deferred acquisition costs, net | 139.1 | 132.4 | ||||||||||
| Ceded unearned premiums | 302.8 | 250.8 | ||||||||||
| Other assets | 262.8 | 232.3 | ||||||||||
| Total assets | $ | 7,205.0 | $ | 6,625.6 | ||||||||
| Liabilities and Shareholders' Equity | ||||||||||||
| Reserves for losses and loss adjustment expenses | $ | 3,350.8 | $ | 3,123.6 | ||||||||
| Unearned premiums | 970.0 | 886.7 | ||||||||||
| Ceded reinsurance payable, net | 466.6 | 312.4 | ||||||||||
| Senior unsecured fixed rate notes | 139.5 | 139.3 | ||||||||||
| Other indebtedness | 55.4 | 55.2 | ||||||||||
| Junior subordinated debentures | 172.7 | 172.7 | ||||||||||
| Other liabilities | 257.3 | 267.6 | ||||||||||
| Total liabilities | 5,412.3 | 4,957.5 | ||||||||||
| Total shareholders' equity | 1,792.7 | 1,668.1 | ||||||||||
| Total liabilities and shareholders' equity | $ | 7,205.0 | $ | 6,625.6 | ||||||||
| Book value per common share | $ | 59.73 | $ | 54.31 | ||||||||
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| FINANCIAL HIGHLIGHTS | |||||||||||||||||||||
| ALL SEGMENTS | |||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||||
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||||
| Gross written premiums | $ | 499.0 | $ | 446.2 | $ | 2,164.8 | $ | 2,012.1 | |||||||||||||
| Net written premiums | 333.5 | 308.3 | 1,440.2 | 1,402.1 | |||||||||||||||||
| Earned premiums | 362.3 | 345.3 | 1,410.8 | 1,371.9 | |||||||||||||||||
| Net investment income | 25.5 | 20.1 | 115.1 | 88.6 | |||||||||||||||||
| Fee and other income | 4.3 | 4.3 | 24.5 | 22.2 | |||||||||||||||||
| Net realized investment and other gains | 13.3 | 3.7 | 26.1 | 24.1 | |||||||||||||||||
| Total revenue | 405.4 | 373.4 | 1,576.5 | 1,506.8 | |||||||||||||||||
| Losses and loss adjustment expenses | 214.1 | 191.8 | 810.1 | 766.1 | |||||||||||||||||
| Underwriting, acquisition and insurance expenses | 144.0 | 134.8 | 547.0 | 536.7 | |||||||||||||||||
| Interest expense | 5.0 | 4.7 | 19.6 | 19.0 | |||||||||||||||||
| Fee and other expense, net | 4.3 | 7.8 | 22.4 | 25.8 | |||||||||||||||||
| Foreign currency exchange gain | (9.0 | ) | (9.9 | ) | (4.5 | ) | (18.3 | ) | |||||||||||||
| Total expenses | 358.4 | 329.2 | 1,394.6 | 1,329.3 | |||||||||||||||||
| Income before taxes | 47.0 | 44.2 | 181.9 | 177.5 | |||||||||||||||||
| Income tax provision | 14.1 | 3.0 | 35.2 | 14.3 | |||||||||||||||||
| Net income | $ | 32.9 | $ | 41.2 | $ | 146.7 | $ | 163.2 | |||||||||||||
| Net income per common share (basic) | $ | 1.10 | $ | 1.34 | $ | 4.86 | $ | 5.31 | |||||||||||||
| Net income per common share (diluted) | $ | 1.07 | $ | 1.31 | $ | 4.75 | $ | 5.20 | |||||||||||||
| Weighted average common shares: | |||||||||||||||||||||
| Basic | 30.0 | 30.7 | 30.2 | 30.8 | |||||||||||||||||
| Diluted | 30.7 | 31.4 | 30.8 | 31.4 | |||||||||||||||||
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| SEGMENT DATA | |||||||||||||||||||||
| (in millions) | |||||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||||
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||||
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Excess & Surplus Lines |
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| Gross written premiums | $ | 129.8 | $ | 122.5 | $ | 585.8 | $ | 562.5 | |||||||||||||
| Net written premiums | 110.0 | 107.0 | 489.4 | 485.6 | |||||||||||||||||
| Earned premiums | 121.9 | 119.4 | 485.3 | 471.2 | |||||||||||||||||
| Underwriting income | 10.8 | 11.0 | 49.0 | 54.8 | |||||||||||||||||
| Net investment income | 10.1 | 7.7 | 45.2 | 32.3 | |||||||||||||||||
| Interest expense | (1.5 | ) | (1.4 | ) | (5.8 | ) | (5.7 | ) | |||||||||||||
| Net income before taxes | $ | 19.4 | $ | 17.3 | $ | 88.4 | $ | 81.4 | |||||||||||||
| Loss ratio | 61.3 | 59.5 | 59.0 | 56.8 | |||||||||||||||||
| Expense ratio | 29.8 | 31.2 | 30.9 | 31.6 | |||||||||||||||||
| GAAP combined ratio | 91.1 | % | 90.7 | % | 89.9 | % | 88.4 | % | |||||||||||||
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Commercial Specialty |
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| Gross written premiums | $ | 177.7 | $ | 154.2 | $ | 691.9 | $ | 582.7 | |||||||||||||
| Net written premiums | 101.7 | 90.0 | 394.1 | 352.9 | |||||||||||||||||
| Earned premiums | 97.9 | 88.5 | 364.2 | 344.2 | |||||||||||||||||
| Underwriting income | 21.8 | 8.9 | 62.5 | 30.1 | |||||||||||||||||
| Net investment income | 6.0 | 4.8 | 26.7 | 19.9 | |||||||||||||||||
| Interest expense | (0.9 | ) | (0.9 | ) | (3.4 | ) | (3.5 | ) | |||||||||||||
| Fee income (expense), net | 1.9 | (1.5 | ) | 0.2 | (3.5 | ) | |||||||||||||||
| Net income before taxes | $ | 28.8 | $ | 11.3 | $ | 86.0 | $ | 43.0 | |||||||||||||
| Loss ratio | 45.6 | 58.7 | 49.7 | 59.1 | |||||||||||||||||
| Expense ratio | 32.2 | 31.3 | 33.1 | 32.2 | |||||||||||||||||
| GAAP combined ratio | 77.8 | % | 90.0 | % | 82.8 | % | 91.3 | % | |||||||||||||
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Syndicate 1200 |
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| Gross written premiums | $ | 145.3 | $ | 126.9 | $ | 625.5 | $ | 600.1 | |||||||||||||
| Net written premiums | 99.4 | 84.7 | 402.9 | 405.1 | |||||||||||||||||
| Earned premiums | 105.3 | 100.8 | 406.4 | 409.7 | |||||||||||||||||
| Underwriting (loss) income | (7.5 | ) | 7.8 | 1.6 | 28.7 | ||||||||||||||||
| Net investment income | 2.2 | 2.2 | 11.9 | 8.9 | |||||||||||||||||
| Interest expense | (0.6 | ) | (0.6 | ) | (2.5 | ) | (2.6 | ) | |||||||||||||
| Fee (expense) income, net | (1.4 | ) | (2.0 | ) | 2.4 | 0.4 | |||||||||||||||
| Net income (loss) before taxes | $ | (7.3 | ) | $ | 7.4 | $ | 13.4 | $ | 35.4 | ||||||||||||
| Loss ratio | 67.8 | 49.4 | 59.2 | 51.7 | % | ||||||||||||||||
| Expense ratio | 39.4 | 42.9 | 40.4 | 41.3 | |||||||||||||||||
| GAAP combined ratio | 107.2 | % | 92.3 | % | 99.6 | % | 93.0 | % | |||||||||||||
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International Specialty |
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| Gross written premiums | $ | 46.2 | $ | 42.5 | $ | 261.3 | $ | 266.3 | |||||||||||||
| Net written premiums | 22.4 | 26.6 | 153.5 | 158.1 | |||||||||||||||||
| Earned premiums | 37.1 | 36.6 | 154.5 | 146.4 | |||||||||||||||||
| Underwriting income | 2.7 | 6.0 | 24.2 | 20.6 | |||||||||||||||||
| Net investment income | 3.8 | 2.7 | 16.8 | 11.4 | |||||||||||||||||
| Interest expense | (0.7 | ) | (0.8 | ) | (2.8 | ) | (3.0 | ) | |||||||||||||
| Net income before taxes | $ | 5.8 | $ | 7.9 | $ | 38.2 | $ | 29.0 | |||||||||||||
| Loss ratio | 60.1 | 50.0 | 54.0 | 50.9 | |||||||||||||||||
| Expense ratio | 32.2 | 33.6 | 30.4 | 35.0 | |||||||||||||||||
| GAAP combined ratio | 92.3 | % | 83.6 | % | 84.4 | % | 85.9 | % | |||||||||||||
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| (in millions) | |||||||||||||||||||||
| Net Prior |
For the Three Months Ended | For the Years Ended | |||||||||||||||||||
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(Favorable)/Unfavorable |
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||||
| E&S | $ | (1.2 | ) | $ | (7.1 | ) | $ | (13.2 | ) | $ | (25.5 | ) | |||||||||
| Commercial Specialty | (9.1 | ) | (1.2 | ) | (22.7 | ) | 2.5 | ||||||||||||||
| Syndicate 1200 | (2.5 | ) | (7.5 | ) | (5.0 | ) | (10.3 | ) | |||||||||||||
| International Specialty | (2.7 | ) | (1.9 | ) | (11.0 | ) | (7.7 | ) | |||||||||||||
| Run-off | 1.0 | 0.6 | 18.6 | 8.6 | |||||||||||||||||
| Total | $ | (14.5 | ) | $ | (17.1 | ) | $ | (33.3 | ) | $ | (32.4 | ) | |||||||||
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| RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) TO NET INCOME (LOSS) | |||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||||
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| Net income, as reported | $ | 32.9 | $ | 41.2 | $ | 146.7 | $ | 163.2 | |||||||||||||
| Provision for income taxes | 14.1 | 3.0 | 35.2 | 14.3 | |||||||||||||||||
| Net income, before taxes | 47.0 | 44.2 | 181.9 | 177.5 | |||||||||||||||||
| Add (deduct): | |||||||||||||||||||||
| Net realized investment and other gains | (13.3 | ) | (3.7 | ) | (26.1 | ) | (24.1 | ) | |||||||||||||
| Foreign currency exchange gains | (9.0 | ) | (9.9 | ) | (4.5 | ) | (18.3 | ) | |||||||||||||
| Adjusted operating income before taxes | 24.7 | 30.6 | 151.3 | 135.1 | |||||||||||||||||
| Provision for income taxes, at assumed rate (a) | 4.9 | 6.1 | 30.3 | 27.0 | |||||||||||||||||
| Adjusted operating income | $ | 19.8 | $ | 24.5 | $ | 121.0 | $ | 108.1 | |||||||||||||
| Adjusted operating income per common share (diluted) | $ | 0.65 | $ | 0.78 | $ | 3.92 | $ | 3.44 | |||||||||||||
| Weighted average common shares, diluted | 30.7 | 31.4 | 30.8 | 31.4 | |||||||||||||||||
| (a) At assumed tax rate of 20%. | |||||||||||||||||||||
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| RECONCILIATION OF UNDERWRITING INCOME TO NET INCOME | |||||||||||||||||||
| (in millions) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Net Income | $ | 32.9 | $ | 41.2 | $ | 146.7 | $ | 163.2 | |||||||||||
| Add (deduct): | |||||||||||||||||||
| Income tax provision | 14.1 | 3.0 | 35.2 | 14.3 | |||||||||||||||
| Net investment income | (25.5 | ) | (20.1 | ) | (115.1 | ) | (88.6 | ) | |||||||||||
| Net realized investment and other gains | (13.3 | ) | (3.7 | ) | (26.1 | ) | (24.1 | ) | |||||||||||
| Fee and other income | (4.3 | ) | (4.3 | ) | (24.5 | ) | (22.2 | ) | |||||||||||
| Interest expense | 5.0 | 4.7 | 19.6 | 19.0 | |||||||||||||||
| Fee and other expense | 4.3 | 7.8 | 22.4 | 25.8 | |||||||||||||||
| Foreign currency exchange gains | (9.0 | ) | (9.9 | ) | (4.5 | ) | (18.3 | ) | |||||||||||
| Underwriting income | $ | 4.2 | $ | 18.7 | $ | 53.7 | $ | 69.1 | |||||||||||
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| RECONCILIATION OF SEGMENT INCOME TO NET INCOME | |||||||||||||||||||||
| (in millions) | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| For the Three Months Ended | For the Years Ended | ||||||||||||||||||||
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| Segment income (loss) before income taxes | |||||||||||||||||||||
| Excess and Surplus Lines | $ | 19.4 | $ | 17.3 | $ | 88.4 | $ | 81.4 | |||||||||||||
| Commercial Specialty | 28.8 | 11.3 | 86.0 | 43.0 | |||||||||||||||||
| Syndicate 1200 | (7.3 | ) | 7.4 | 13.4 | 35.4 | ||||||||||||||||
| International Specialty | 5.8 | 7.9 | 38.2 | 29.0 | |||||||||||||||||
| Run-off Lines | (0.6 | ) | (0.8 | ) | (15.2 | ) | (7.4 | ) | |||||||||||||
| Corporate and Other | (21.4 | ) | (12.5 | ) | (59.5 | ) | (46.3 | ) | |||||||||||||
| Realized investment and other gains | 13.3 | 3.7 | 26.1 | 24.1 | |||||||||||||||||
| Foreign currency exchange gains | 9.0 | 9.9 | 4.5 | 18.3 | |||||||||||||||||
| Net income before income taxes | 47.0 | 44.2 | 181.9 | 177.5 | |||||||||||||||||
| Provision for taxes | 14.1 | 3.0 | 35.2 | 14.3 | |||||||||||||||||
| Net income | $ | 32.9 | $ | 41.2 | $ | 146.7 | $ | 163.2 | |||||||||||||
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| RECONCILIATION OF LOSS RATIOS | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Excess and Surplus lines | |||||||||||||||||
| Loss ratio | 61.3 | % | 59.5 | % | 59.0 | % | 56.8 | % | |||||||||
| Prior accident year loss development | 1.0 | % | 5.9 | % | 2.7 | % | 5.4 | % | |||||||||
| Catastrophe losses | -1.8 | % | -0.6 | % | -2.4 | % | -1.1 | % | |||||||||
| Current accident year ex-cats loss ratio | 60.5 | % | 64.8 | % | 59.3 | % | 61.1 | % | |||||||||
| Commercial Specialty | |||||||||||||||||
| Loss ratio | 45.6 | % | 58.7 | % | 49.7 | % | 59.1 | % | |||||||||
| Prior accident year loss development | 9.2 | % | 1.4 | % | 6.2 | % | -0.7 | % | |||||||||
| Catastrophe losses | -0.5 | % | -3.9 | % | -0.7 | % | -1.6 | % | |||||||||
| Current accident year ex-cats loss ratio | 54.3 | % | 56.2 | % | 55.2 | % | 56.8 | % | |||||||||
| Syndicate 1200 | |||||||||||||||||
| Loss ratio | 67.8 | % | 49.4 | % | 59.2 | % | 51.7 | % | |||||||||
| Prior accident year loss development | 2.3 | % | 7.4 | % | 1.3 | % | 2.5 | % | |||||||||
| Catastrophe losses | -15.2 | % | 0.0 | % | -7.4 | % | -1.2 | % | |||||||||
| Current accident year ex-cats loss ratio | 54.9 | % | 56.8 | % | 53.1 | % | 53.0 | % | |||||||||
| International Specialty | |||||||||||||||||
| Loss ratio | 60.1 | % | 50.0 | % | 54.0 | % | 50.9 | % | |||||||||
| Prior accident year loss development | 7.4 | % | 5.2 | % | 7.2 | % | 5.3 | % | |||||||||
| Catastrophe losses | -11.7 | % | -2.9 | % | -12.1 | % | -5.9 | % | |||||||||
| Current accident year ex-cats loss ratio | 55.8 | % | 52.3 | % | 49.1 | % | 50.3 | % | |||||||||
| Consolidated | |||||||||||||||||
| Loss ratio | 59.1 | % | 55.5 | % | 57.4 | % | 55.8 | % | |||||||||
| Prior accident year loss development | 4.0 | % | 5.0 | % | 2.4 | % | 2.4 | % | |||||||||
| Catastrophe losses | -6.4 | % | -1.5 | % | -4.4 | % | -1.8 | % | |||||||||
| Current accident year ex-cats loss ratio | 56.7 | % | 59.0 | % | 55.4 | % | 56.4 | % | |||||||||
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| COMPONENTS OF INVESTMENT INCOME | ||||||||||||||||
| ALL SEGMENTS | ||||||||||||||||
| (in millions) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
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| 2015 | 2016 | 2016 | 2016 | 2016 | ||||||||||||
| Net Investment Income | |
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| Alternative Investments | (1.6) | (1.5) | 12.5 | 9.8 |
3.1 |
|||||||||||
| Total | |
|
|
|
|
|||||||||||
| |
|||||||||||||||||||
| SHAREHOLDER RETURN ANALYSIS | |||||||||||||||||||
| (in millions) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| For the Years Ended |
|||||||||||||||||||
| 2016 | 2015 | % Change | |||||||||||||||||
| Net income | $ | 146.7 | $ | 163.2 | (10.1 | %) | |||||||||||||
| Adjusted operating income (a) | 121.0 | 108.1 | 12.0 | % | |||||||||||||||
| Shareholders' Equity - Beginning of the period | $ | 1,668.1 | $ | 1,646.7 | 1.3 | % | |||||||||||||
| Shareholders' Equity - End of current period | 1,792.7 | 1,668.1 | 7.5 | % | |||||||||||||||
| Average Shareholders' Equity | $ | 1,730.4 | $ | 1,657.4 | 4.4 | % | |||||||||||||
| Annualized return on average shareholders' equity | 8.5 | % | 9.8 | % | |||||||||||||||
| Annualized adjusted operating return on average shareholders' equity | 7.0 | % | 6.5 | % | |||||||||||||||
| (a) at assumed 20% tax rate | |||||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170213006132/en/
Senior Vice President, Investor Relations
Source:
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