ProAssurance (PRA) Q4 Earnings & Revenues Miss Estimates
Zacks Investment Research | Feb 21, 2018 09:20PM ET
ProAssurance Corporation’s (NYSE:PRA) fourth-quarter 2017 operating earnings per share of 55 cents missed the Zacks Consensus Estimate by 11%. Also, the bottom line declined 33.7% year over year due to lower revenues.
ProAssurance’s fourth-quarter operating revenues decreased 3.6% to $212 million from the prior-year quarter on lower premiums. Moreover, the top line missed the Zacks Consensus Estimate by 1.4%.
Quarterly Operational Update
Gross premiums written grew 2.3% year over year to $191.7 million, primarily driven by higher premiums in Workers' Compensation segment. Net premiums earned, however, decreased 5.5% year over year.
Net investment income increased 5.4% year over year to $26.1 million.
Total expenses inched up 0.4% year over year to $175 million. This rise in costs mainly stemmed from higher underwriting, policy acquisition and operating expenses.
Full-Year Updates
For 2017, the company reported adjusted earnings of $2.02, deteriorating 17% year over year.
For 2017, ProAssurance’s operating revenues came in at $841.7 million, down 0.1% year over year.
Quarterly Segment Results
Specialty P&C Insurance Segment
Total revenues of $115.3 million fell 7.1% year over year.
Gross premiums written were $121.3 million, down 3.4% from the year-ago quarter.
Total expenses of $98.1 million climbed 9.4% year over year.
Workers' Compensation Segment
Total revenues of $57.8 million rose 1.4% year over year on the back of higher net premiums earned.
Gross premiums written were $60.1 million, up 12.4% over the prior-year period.
Total expenses of $52 million, declined 6.6% year over year.
Lloyd's Syndicate Segment
Total revenues of $12.5 million declined 15.2% year over year.
Gross premiums written were $13.2 million, down 7.4% from the year-earlier quarter.
Total expenses of $10.7 million lowered 25.3% year over year.
Corporate Segment
Total revenues of $23.6 million slumped 44% year over year.
Operating expenses of $8.2 million reduced 18.3% over the year-ago quarter. While interest expenses of $4.4 million jumped 18.5% year over year.
ProAssurance Corporation Price, Consensus and EPS Surprise
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