08/17/2022 | Press release | Distributed by Public on 08/17/2022 07:47
July | ||||||
(millions, except per share amounts and ratios; unaudited) | 2022 | 2021 | Change | |||
Net premiums written | $ | 4,929.4 | $ | 4,551.6 | 8 | % |
Net premiums earned | $ | 4,694.0 | $ | 4,313.5 | 9 | % |
Net income | $ | 688.8 | $ | 255.4 | 170 | % |
Per share available to common shareholders | $ | 1.17 | $ | 0.43 | 171 | % |
Total pretax net realized gains (losses) on securities | $ | 310.0 | $ | 122.7 | 153 | % |
Combined ratio | 89.8 | 96.7 | (6.9) pts. | |||
Average diluted equivalent common shares | 587.2 | 587.2 | 0 | % |
July | |||
(thousands; unaudited) | 2022 | 2021 | Change |
Policies in Force | |||
Personal Lines | |||
Agency - auto | 7,599.7 | 8,014.2 | (5) % |
Direct - auto | 9,633.2 | 9,614.9 | 0 % |
Total personal auto | 17,232.9 | 17,629.1 | (2) % |
Total special lines | 5,525.0 | 5,249.9 | 5 % |
Total Personal Lines | 22,757.9 | 22,879.0 | (1) % |
Total Commercial Lines | 1,030.0 | 930.1 | 11 % |
Total Property business | 2,827.5 | 2,683.1 | 5 % |
Companywide Total | 26,615.4 | 26,492.2 | 0 % |
Current Month |
Comments on Monthly Results1
|
|
Net premiums written
|
$ | 4,929.4 |
Revenues:
|
||
Net premiums earned
|
$ | 4,694.0 |
Investment income
|
98.2 | |
Net realized gains (losses) on securities:
|
||
Net realized gains (losses) on security sales
|
(29.2) | |
Net holding period gains (losses) on securities
|
339.9 | |
Net impairment losses recognized in earnings
|
(0.7) | |
Total net realized gains (losses) on securities
|
310.0 | |
Fees and other revenues
|
68.5 | |
Service revenues
|
30.8 | |
Total revenues
|
5,201.5 | |
Expenses:
|
||
Losses and loss adjustment expenses
|
3,399.8 | |
Policy acquisition costs
|
340.8 | |
Other underwriting expenses
|
544.9 | |
Investment expenses
|
2.1 | |
Service expenses
|
29.7 | |
Interest expense
|
21.0 | |
Total expenses
|
4,338.3 | |
Income before income taxes
|
863.2 | |
Provision for income taxes
|
174.4 | |
Net income
|
688.8 | |
Other comprehensive income (loss)
|
||
Changes in:
|
||
Total net unrealized gains (losses) on fixed-maturity securities
|
427.0 | |
Net unrealized losses on forecasted transactions
|
0.1 | |
Foreign currency translation adjustment
|
0.1 | |
Other comprehensive income (loss)
|
427.2 | |
Total comprehensive income (loss)
|
$ | 1,116.0 |
Year-to-Date | |||||
2022 | 2021 | % Change | |||
Net premiums written | $ | 30,532.5 | $ | 27,761.0 | 10 |
Revenues: | |||||
Net premiums earned | $ | 28,644.8 | $ | 25,716.0 | 11 |
Investment income | 632.8 | 498.8 | 27 | ||
Net realized gains (losses) on securities: | |||||
Net realized gains (losses) on security sales | 462.9 | 584.9 | (21) | ||
Net holding period gains (losses) on securities | (1,770.9) | 587.8 | (401) | ||
Net impairment losses recognized in earnings | (5.0) | (2.9) | 72 | ||
Total net realized gains (losses) on securities | (1,313.0) | 1,169.8 | (212) | ||
Fees and other revenues | 419.0 | 408.2 | 3 | ||
Service revenues | 178.6 | 156.0 | 14 | ||
Total revenues | 28,562.2 | 27,948.8 | 2 | ||
Expenses: | |||||
Losses and loss adjustment expenses | 21,679.3 | 18,863.8 | 15 | ||
Policy acquisition costs | 2,237.8 | 2,166.7 | 3 | ||
Other underwriting expenses | 3,482.4 | 3,448.3 | 1 | ||
Investment expenses | 13.7 | 14.5 | (6) | ||
Service expenses | 168.4 | 142.7 | 18 | ||
Interest expense | 138.3 | 131.6 | 5 | ||
Goodwill impairment | 224.8 | 0 | NM | ||
Total expenses | 27,944.7 | 24,767.6 | 13 | ||
Income before income taxes | 617.5 | 3,181.2 | (81) | ||
Provision for income taxes | 157.7 | 655.7 | (76) | ||
Net income | 459.8 | 2,525.5 | (82) | ||
Other comprehensive income (loss) | |||||
Changes in:
|
|||||
Total net unrealized gains (losses) on fixed-maturity securities | (1,822.7) | (313.7) | 481 | ||
Net unrealized losses on forecasted transactions | 0.3 | 0.5 | (40) | ||
Foreign currency translation adjustment | (0.1) | (0.4) | (75) | ||
Other comprehensive income (loss) | (1,822.5) | (313.6) | 481 | ||
Total comprehensive income (loss) | $ | (1,362.7) | $ | 2,211.9 | (162) |
NM = Not Meaningful |
The following table sets forth the computation of per share results: | ||||||
Current | Year-to-Date | |||||
Month | 2022 | 2021 | ||||
Net income
|
$ | 688.8 | $ | 459.8 | $ | 2,525.5 |
Less: Preferred share dividends
|
2.3 | 15.7 | 15.7 | |||
Net income available to common shareholders
|
$ | 686.5 | $ | 444.1 | $ | 2,509.8 |
Per common share:
|
||||||
Basic
|
$ | 1.17 | $ | 0.76 | $ | 4.29 |
Diluted
|
$ | 1.17 | $ | 0.76 | $ | 4.27 |
Comprehensive income (loss)
|
$ | 1,116.0 | $ | (1,362.7) | $ | 2,211.9 |
Less: Preferred share dividends
|
2.3 | 15.7 | 15.7 | |||
Comprehensive income (loss) attributable to common shareholders
|
$ | 1,113.7 | $ | (1,378.4) | $ | 2,196.2 |
Per common share:
|
||||||
Diluted1
|
$ | 1.90 | $ | (2.36) | $ | 3.74 |
Average common shares outstanding - Basic
|
584.4 | 584.3 | 584.7 | |||
Net effect of dilutive stock-based compensation
|
2.8 | 2.7 | 2.7 | |||
Total average equivalent common shares - Diluted
|
587.2 | 587.0 | 587.4 | |||
The following table sets forth the investment results for the period:
|
|||
Current
|
Year-to-Date
|
||
Month
|
2022 | 2021 | |
Fully taxable equivalent (FTE) total return:
|
|||
Fixed-income securities
|
1.4% | (4.6)% | 0.8% |
Common stocks
|
9.3% | (12.9)% | 23.1% |
Total portfolio
|
1.8% | (5.5)% | 2.7% |
Pretax annualized investment income book yield
|
2.2% | 2.1% | 1.9% |
Current Month | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business | Total | |||||||
Net Premiums Written | $ | 1,815.1 | $ | 2,152.3 | $ | 3,967.4 | $ | 755.4 | $ | 206.4 | $ | 4,929.4 |
% Growth in NPW | 7% | 12% | 10% | 3% | 4% | 8% | ||||||
Net Premiums Earned | $ | 1,695.7 | $ | 1,925.6 | $ | 3,621.3 | $ | 881.5 | $ | 191.0 | $ | 4,694.0 |
% Growth in NPE | 3% | 7% | 5% | 27% | 9% | 9% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 73.5 | 75.5 | 74.5 | 64.2 | 66.1 | 72.2 | ||||||
Expense ratio | 17.3 | 16.9 | 17.1 | 17.1 | 28.0 | 17.6 | ||||||
Combined ratio | 90.8 | 92.4 | 91.6 | 81.3 | 94.1 | 89.8 | ||||||
Net catastrophe loss ratio1
|
1.2 | 0.3 | 9.6 | 1.4 | ||||||||
Actuarial Adjustments2
|
||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | 4.7 | ||||||||||
Current accident year | (7.6) | |||||||||||
Calendar year actuarial adjustment | $ | (3.7) | $ | (3.8) | $ | (7.5) | $ | (1.0) | $ | 5.6 | $ | (2.9) |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | 4.7 | ||||||||||
All other development | 68.3 | |||||||||||
Total development | $ | 73.0 | ||||||||||
Calendar year loss/LAE ratio | 72.2 | |||||||||||
Accident year loss/LAE ratio | 73.8 | |||||||||||
Year-to-Date | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business | Total | |||||||
Net Premiums Written | $ | 10,825.1 | $ | 12,333.7 | $ | 23,158.8 | $ | 5,989.9 | $ | 1,382.1 | $ | 30,532.5 |
% Growth in NPW | 3% | 7% | 5% | 33% | 9% | 10% | ||||||
Net Premiums Earned | $ | 10,385.5 | $ | 11,625.1 | $ | 22,010.6 | $ | 5,313.1 | $ | 1,319.6 | $ | 28,644.8 |
% Growth in NPE | 4% | 7% | 6% | 42% | 15% | 11% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 75.8 | 77.1 | 76.5 | 69.6 | 83.4 | 75.6 | ||||||
Expense ratio | 17.4 | 18.6 | 18.0 | 18.9 | 27.0 | 18.6 | ||||||
Combined ratio | 93.2 | 95.7 | 94.5 | 88.5 | 110.4 | 94.2 | ||||||
Net catastrophe loss ratio1
|
1.7 | 0.3 | 26.6 | 2.6 | ||||||||
Actuarial Adjustments2
|
||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | (45.7) | ||||||||||
Current accident year | (60.8) | |||||||||||
Calendar year actuarial adjustment | $ | (20.2) | $ | 2.8 | $ | (17.4) | $ | (61.8) | $ | (27.3) | $ | (106.5) |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | (45.7) | ||||||||||
All other development | (26.2) | |||||||||||
Total development | $ | (71.9) | ||||||||||
Calendar year loss/LAE ratio | 75.6 | |||||||||||
Accident year loss/LAE ratio | 75.3 | |||||||||||
July 2022 | ||
CONDENSED GAAP BALANCE SHEET: | ||
Investments, at fair value: | ||
Available-for-sale securities: | ||
Fixed maturities1 (amortized cost: $46,497.5)
|
$ | 44,202.7 |
Short-term investments (amortized cost: $4,687.4) | 4,687.4 | |
Total available-for-sale securities | 48,890.1 | |
Equity securities: | ||
Nonredeemable preferred stocks(cost: $1,487.0)
|
1,389.5 | |
Common equities (cost: $795.3) | 3,050.8 | |
Total equity securities | 4,440.3 | |
Total investments2
|
53,330.4 | |
Net premiums receivable | 10,601.3 | |
Reinsurance recoverables (including $4,652.6 on unpaid loss and LAE reserves) | 4,933.4 | |
Deferred acquisition costs | 1,546.7 | |
Goodwill and intangible assets | 323.3 | |
Other assets2
|
3,563.5 | |
Total assets | $ | 74,298.6 |
Unearned premiums | $ | 17,476.4 |
Loss and loss adjustment expense reserves | 27,985.3 | |
Other liabilities
|
5,676.1 | |
Debt | 6,386.8 | |
Total liabilities | 57,524.6 | |
Shareholders' equity
|
16,774.0 | |
Total liabilities and shareholders' equity
|
$ | 74,298.6 |
Common shares outstanding | 584.8 | |
Common shares repurchased - July | 0.17 | |
Average cost per common share | $ | 111.66 |
Book value per common share | $ | 27.84 |
Trailing 12-month return on average common shareholders' equity
|
||
Net income | 7.3 | % |
Comprehensive income | (6.6) | % |
Net unrealized pretax gains (losses) on fixed-maturity securities | $ | (2,235.9) |
Increase (decrease) from June 2022 | $ | 540.5 |
Increase (decrease) from December 2021 | $ | (2,307.3) |
Debt-to-total capital ratio | 27.6 | % |
Fixed-income portfolio duration | 2.8 | |
Weighted average credit quality | AA- |