05/18/2022 | Press release | Distributed by Public on 05/18/2022 06:39
April | ||||||
(millions, except per share amounts and ratios; unaudited) | 2022 | 2021 | Change | |||
Net premiums written | $ | 4,820.7 | $ | 4,450.6 | 8 | % |
Net premiums earned | $ | 4,614.1 | $ | 4,133.6 | 12 | % |
Net income (loss) | $ | (198.3) | $ | 316.2 | (163) | % |
Per share available to common shareholders | $ | (0.34) | $ | 0.54 | (164) | % |
Total pretax net realized gains (losses) on securities | $ | (524.5) | $ | 191.3 | (374) | % |
Combined ratio | 95.5 | 96.0 | (0.5) pts. | |||
Average equivalent common shares | 584.3 | 586.8 | 0 | % |
April | |||
(thousands; unaudited) | 2022 | 2021 | Change |
Policies in Force | |||
Personal Lines | |||
Agency - auto | 7,702.3 | 7,951.8 | (3) % |
Direct - auto | 9,537.7 | 9,478.6 | 1 % |
Total personal auto | 17,240.0 | 17,430.4 | (1) % |
Total special lines | 5,392.0 | 5,106.7 | 6 % |
Total Personal Lines | 22,632.0 | 22,537.1 | 0 % |
Total Commercial Lines | 1,012.3 | 881.2 | 15 % |
Total Property business | 2,812.8 | 2,601.2 | 8 % |
Companywide Total | 26,457.1 | 26,019.5 | 2 % |
Current Month |
Comments on Monthly Results1
|
|
Net premiums written
|
$ | 4,820.7 |
Revenues:
|
||
Net premiums earned
|
$ | 4,614.1 |
Investment income
|
87.3 | |
Net realized gains (losses) on securities:
|
||
Net realized gains (losses) on security sales
|
(26.5) | |
Net holding period gains (losses) on securities
|
(497.3) | |
Net impairment losses recognized in earnings
|
(0.7) | |
Total net realized gains (losses) on securities
|
(524.5) | |
Fees and other revenues
|
67.6 | |
Service revenues
|
28.1 | |
Total revenues
|
4,272.6 | |
Expenses:
|
||
Losses and loss adjustment expenses
|
3,594.7 | |
Policy acquisition costs
|
373.5 | |
Other underwriting expenses
|
506.9 | |
Investment expenses
|
2.4 | |
Service expenses
|
25.3 | |
Interest expense
|
21.0 | |
Total expenses
|
4,523.8 | |
Income (loss) before income taxes
|
(251.2) | |
Provision (benefit) for income taxes
|
(52.9) | |
Net income (loss)
|
(198.3) | |
Other comprehensive income (loss)
|
||
Changes in:
|
||
Total net unrealized gains (losses) on fixed-maturity securities
|
(559.9) | |
Net unrealized losses on forecasted transactions
|
0 | |
Foreign currency translation adjustment
|
(0.3) | |
Other comprehensive income (loss)
|
(560.2) | |
Total comprehensive income (loss)
|
$ | (758.5) |
Year-to-Date | |||||
2022 | 2021 | % Change | |||
Net premiums written | $ | 18,001.7 | $ | 16,179.7 | 11 |
Revenues: | |||||
Net premiums earned | $ | 16,417.0 | $ | 14,553.8 | 13 |
Investment income | 329.5 | 285.0 | 16 | ||
Net realized gains (losses) on securities: | |||||
Net realized gains (losses) on security sales | (81.0) | 164.0 | (149) | ||
Net holding period gains (losses) on securities | (885.9) | 612.6 | (245) | ||
Net impairment losses recognized in earnings | (2.9) | 0 | NM | ||
Total net realized gains (losses) on securities | (969.8) | 776.6 | (225) | ||
Fees and other revenues | 241.6 | 236.8 | 2 | ||
Service revenues | 95.8 | 79.6 | 20 | ||
Total revenues | 16,114.1 | 15,931.8 | 1 | ||
Expenses: | |||||
Losses and loss adjustment expenses | 12,453.1 | 10,258.9 | 21 | ||
Policy acquisition costs | 1,336.9 | 1,224.8 | 9 | ||
Other underwriting expenses | 2,013.2 | 2,020.3 | 0 | ||
Investment expenses | 8.1 | 7.7 | 5 | ||
Service expenses | 88.5 | 73.4 | 21 | ||
Interest expense | 75.3 | 75.2 | 0 | ||
Total expenses | 15,975.1 | 13,660.3 | 17 | ||
Income before income taxes | 139.0 | 2,271.5 | (94) | ||
Provision for income taxes | 23.4 | 475.3 | (95) | ||
Net income | 115.6 | 1,796.2 | (94) | ||
Other comprehensive income (loss) | |||||
Changes in:
|
|||||
Total net unrealized gains (losses) on fixed-maturity securities | (1,986.8) | (454.6) | 337 | ||
Net unrealized losses on forecasted transactions | 0.2 | 0.3 | (33) | ||
Foreign currency translation adjustment | (0.1) | 0 | NM | ||
Other comprehensive income (loss) | (1,986.7) | (454.3) | 337 | ||
Total comprehensive income (loss) | $ | (1,871.1) | $ | 1,341.9 | (239) |
NM = Not Meaningful |
The following table sets forth the computation of per share results: | ||||||
Current | Year-to-Date | |||||
Month | 2022 | 2021 | ||||
Net income (loss)
|
$ | (198.3) | $ | 115.6 | $ | 1,796.2 |
Less: Preferred share dividends
|
2.2 | 8.9 | 8.9 | |||
Net income (loss) available to common shareholders
|
$ | (200.5) | $ | 106.7 | $ | 1,787.3 |
Per common share:
|
||||||
Basic
|
$ | (0.34) | $ | 0.18 | $ | 3.06 |
Diluted1
|
$ | (0.34) | $ | 0.18 | $ | 3.05 |
Comprehensive income (loss)
|
$ | (758.5) | $ | (1,871.1) | $ | 1,341.9 |
Less: Preferred share dividends
|
2.2 | 8.9 | 8.9 | |||
Comprehensive income (loss) attributable to common shareholders
|
$ | (760.7) | $ | (1,880.0) | $ | 1,333.0 |
Per common share:
|
||||||
Diluted1
|
$ | (1.30) | $ | (3.22) | $ | 2.27 |
Average common shares outstanding - Basic
|
584.3 | 584.3 | 584.8 | |||
Net effect of dilutive stock-based compensation
|
2.1 | 2.0 | 2.0 | |||
Total average equivalent common shares - Diluted
|
586.4 | 586.3 | 586.8 | |||
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
|
(1.5)% | (5.1)% | (0.4)% |
Common stocks
|
(8.8)% | (13.3)% | 16.3% |
Total portfolio
|
(2.2)% | (5.8)% | 1.0% |
Pretax annualized investment income book yield
|
2.1% | 2.0% | 2.0% |
Current Month | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business | Total | |||||||
Net Premiums Written | $ | 1,775.2 | $ | 1,952.4 | $ | 3,727.6 | $ | 885.2 | $ | 206.8 | $ | 4,820.7 |
% Growth in NPW | 3% | 8% | 5% | 21% | 13% | 8% | ||||||
Net Premiums Earned | $ | 1,674.7 | $ | 1,873.5 | $ | 3,548.2 | $ | 874.2 | $ | 191.5 | $ | 4,614.1 |
% Growth in NPE | 4% | 6% | 5% | 48% | 19% | 12% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 76.7 | 77.2 | 77.0 | 73.3 |
111.2 .
|
77.7 | ||||||
Expense ratio | 17.1 | 17.1 | 17.1 | 18.5 |
26.21
|
17.8 | ||||||
Combined ratio | 93.8 | 94.3 | 94.1 | 91.8 |
137.41
|
95.5 | ||||||
Net catastrophe loss ratio2
|
2.7 | 0.3 |
52.7 .
|
4.3 | ||||||||
Actuarial Adjustments3
|
||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | (53.3) | ||||||||||
Current accident year | (14.2) | |||||||||||
Calendar year actuarial adjustment | $ | (15.7) | $ | (12.8) | $ | (28.5) | $ | (34.3) | $ | (4.7) | $ | (67.5) |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | (53.3) | ||||||||||
All other development | 14.8 | |||||||||||
Total development | $ | (38.5) | ||||||||||
Calendar year loss/LAE ratio | 77.7 | |||||||||||
Accident year loss/LAE ratio | 76.9 | |||||||||||
Year-to-Date | ||||||||||||
Commercial | ||||||||||||
Personal Lines Business | Lines | Property | Companywide | |||||||||
Agency | Direct | Total | Business | Business | Total | |||||||
Net Premiums Written | $ | 6,291.6 | $ | 7,154.9 | $ | 13,446.5 | $ | 3,810.9 | $ | 742.9 | $ | 18,001.7 |
% Growth in NPW | 2% | 5% | 3% | 51% | 13% | 11% | ||||||
Net Premiums Earned | $ | 5,998.0 | $ | 6,667.1 | $ | 12,665.1 | $ | 3,001.4 | $ | 749.6 | $ | 16,417.0 |
% Growth in NPE | 5% | 8% | 6% | 49% | 18% | 13% | ||||||
GAAP Ratios | ||||||||||||
Loss/LAE ratio | 75.7 | 77.1 | 76.5 | 71.7 |
80.9 .
|
75.8 | ||||||
Expense ratio | 17.8 | 19.0 | 18.4 | 19.2 |
27.51
|
19.0 | ||||||
Combined ratio | 93.5 | 96.1 | 94.9 | 90.9 |
108.41
|
94.8 | ||||||
Net catastrophe loss ratio2
|
1.1 | 0.2 |
26.7 .
|
2.1 | ||||||||
Actuarial Adjustments3
|
||||||||||||
Reserve Decrease/(Increase) | ||||||||||||
Prior accident years | $ | (38.2) | ||||||||||
Current accident year | (53.0) | |||||||||||
Calendar year actuarial adjustment | $ | (17.8) | $ | (11.2) | $ | (29.0) | $ | (43.9) | $ | (18.3) | $ | (91.2) |
Prior Accident Years Development | ||||||||||||
Favorable/(Unfavorable) | ||||||||||||
Actuarial adjustment | $ | (38.2) | ||||||||||
All other development | (191.0) | |||||||||||
Total development | $ | (229.2) | ||||||||||
Calendar year loss/LAE ratio | 75.8 | |||||||||||
Accident year loss/LAE ratio | 74.4 | |||||||||||
April 2022 | ||
CONDENSED GAAP BALANCE SHEET: | ||
Investments, at fair value: | ||
Available-for-sale securities: | ||
Fixed maturities1 (amortized cost: $48,156.1)
|
$ | 45,662.8 |
Short-term investments (amortized cost: $301.7) | 301.7 | |
Total available-for-sale securities | 45,964.5 | |
Equity securities: | ||
Nonredeemable preferred stocks(cost: $1,524.0)
|
1,454.4 | |
Common equities (cost: $1,279.4) | 4,382.8 | |
Total equity securities | 5,837.2 | |
Total investments2
|
51,801.7 | |
Net premiums receivable | 10,526.9 | |
Reinsurance recoverables (including $4,751.4 on unpaid loss and LAE reserves) | 5,059.7 | |
Deferred acquisition costs | 1,432.9 | |
Goodwill and intangible assets | 553.6 | |
Other assets | 3,437.4 | |
Total assets | $ | 72,812.2 |
Unearned premiums | $ | 17,170.9 |
Loss and loss adjustment expense reserves | 27,222.5 | |
Other liabilities2
|
5,732.1 | |
Debt | 6,385.9 | |
Total liabilities | 56,511.4 | |
Shareholders' equity
|
16,300.8 | |
Total liabilities and shareholders' equity
|
$ | 72,812.2 |
Common shares outstanding | 584.9 | |
Common shares repurchased - April | 0 | |
Average cost per common share | $ | 0 |
Book value per common share | $ | 27.02 |
Trailing 12-month return on average common shareholders' equity
|
||
Net income | 9.2 | % |
Comprehensive income | (4.4) | % |
Net unrealized pretax gains (losses) on fixed-maturity securities | $ | (2,443.6) |
Increase (decrease) from March 2022 | $ | (708.8) |
Increase (decrease) from December 2021 | $ | (2,515.0) |
Debt-to-total capital ratio | 28.1 | % |
Fixed-income portfolio duration | 3.1 | |
Weighted average credit quality | AA- |