ProAssurance (PRA) Incurs Q4 Loss on High Costs & Low Premium
PRA incurred a
fourth-quarter 2023 adjusted operating loss of
against the Zacks Consensus Estimate of earnings of
share. The company reported earnings of
period.
Operating revenues rose 0.6% year
over year to
beat the consensus mark by 2%.
The weak fourth-quarter earnings
were caused by competitive market conditions and weakening
litigation trends. A decline in net premiums earned across its
segments, as well as an elevated expense level, also hurt its
performance. Nevertheless, the downside was partly offset by strong
investment returns resulting from higher interest rates.
Visa Inc. Price, Consensus and EPS
Surprise
Quarterly Operational Update
Gross premiums written declined 7%
year over year to
million
year but outpaced the Zacks Consensus Estimate of
as well as our estimate of
climbed 16.9% year over year to
quarter. The reported figure beat the consensus mark of
million
Total expenses of
escalated 2.6% year over year and came higher than our estimate of
losses and loss adjustment expenses, interest expense and
underwriting, policy acquisition and operating expenses.
of
prior-year quarter's
780 basis points (bps) year over year to 112%.
Segmental Update
Specialty P&C Segment
The segment's revenues declined
2.8% year over year to
came higher than the Zacks Consensus Estimate of
our estimate of
million
consensus mark of
million
prevailed during the preceding twelve months and lower retention,
partially offset by price increases in all product lines and
improved new business writing.
Total expenses declined 2.3% year
over year to
in the quarter under review, 10.8% wider than the prior-year
quarter's loss. The combined ratio of 104.9% deteriorated 90 bps
year over year.
Workers' Compensation Insurance
Segment
In the fourth quarter, revenues in
the unit declined 8.8% year over year to
the consensus estimate of
million
over year due to persistent competitive market conditions and lower
audit premiums. The figure lagged the Zacks Consensus Estimate of
Total expenses were
which escalated 22.9% year over year. The unit incurred a loss of
million
over year.
Segregated Portfolio Cell
Reinsurance Segment
The segment recorded gross premiums
written of
reduced workers' compensation renewal and audit premiums. Net
premiums earned dropped 6.5% year over year to
quarter under review and met our estimate.
Underwriting, policy acquisition
and operating expenses totaled
over year but came lower than our estimate of
unit recorded a profit of
year. The combined ratio deteriorated 1,870 bps year over year to
93.2% in the fourth quarter.
Corporate Segment
Net investment income advanced
16.2% year over year to
million
year-over-year increase stemmed from improved average book yields
from PRA's fixed maturity investments. The segment's profit of
review. Operating expenses increased 14% year over year to
million
Interest expenses of
Financial Position (as of Dec 31,
2023)
quarter with cash and cash equivalents of
increased from the 2022-end figure of
investments of
2022 end. Total assets of
the
Debt-less unamortized debt issuance
costs were
million
Total shareholders' equity of
billion
Net cash used in operating
activities amounted to
million
Book value per share was
which improved 7% year over year. Non-GAAP operating return on
equity was negative 1% in the quarter under review.
Share Repurchase Update
common shares in the fourth quarter and continued its suspension of
dividend payments. A leftover capacity of
place to be utilized for common share repurchases or retirement of
outstanding debt as of
Full Year Results
revenues of
Total expenses jumped 5.7% year over year to
the 2023 adjusted operating loss was at
earnings of
Zacks Rank & Other Stocks to
Consider
Rank #2 (Buy). Some other top-ranked stocks in the broader
Finance space are
RYAN,
Chubb
Limited
CB and
BRO, each
carrying a Zacks Rank #2 at present. You can see
the complete list of today's Zacks #1 Rank (Strong Buy)
stocks here
.
The Zacks Consensus Estimate for
year-over-year increase. It beat earnings estimates in two of the
past four quarters and met twice, with an average surprise of 5.1%.
Also, the consensus mark for RYAN's 2024 full-year revenues
suggests 19.1% year-over-year growth.
The consensus mark for Chubb's 2024
full-year earnings is pegged at
seven upward estimates in the past month against no movement in the
opposite direction. It beat earnings estimates in each of the past
four quarters, with an average surprise of 23.4%. Furthermore, the
consensus estimate for CB's 2024 full-year revenues suggests 7.4%
year-over-year growth.
The Zacks Consensus Estimate for
Brown & Brown's 2024 full-year earnings is pegged at
share, which indicates 13.9% year-over-year growth. The estimate
remained stable over the past week. BRO beat earnings estimates in
each of the past four quarters, with an average surprise of
11.2%.
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