Navigators Group Earnings: Swings to a Profit, Topping Analysts’ Estimates

The Navigators Group Inc. (NASDAQ:NAVG) reported its results for the first quarter. Navigators Group is an international insurance holding company focusing on specialty products within the overall property/casualty insurance market.

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The Navigators Group Earnings Cheat Sheet for the First Quarter

Results: Reported a profit of $7.9 million (56 cents per diluted share) in the quarter. The Navigators Group Inc. had a net loss of $7.9 million or a loss 50 cents per share in the year-earlier quarter.

Revenue: Rose 16.4% to $197 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Navigators Group Inc. beat the mean analyst estimate of 41 cents per share. It beat the average revenue estimate of $191.1 million.

Quoting Management: Stan Galanski, President and Chief Executive Officer, commented, “We are pleased to have generated profitable underwriting results in a quarter that was impacted by one of the largest ocean marine losses in history, which is now projected to be over $1 billion to the industry. Despite the magnitude of the loss, Navigators’ net impact was well within our corporate risk appetite. Absent Costa Concordia, our combined ratio would have been 96.4%. This loss highlights the magnitude of economic value at risk in the operation of a modern cruise ship, encompassing loss of life, personal injury, damage to the vessel and the cost to remove the wreck. More broadly, we continue to achieve meaningful premium growth from the investments made in expanding our underwriting team and products over the past three years and experienced positive renewal price change across most of our specialty niches. Loss emergence was favorable during the quarter and operating expenses were in line with our expectations.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 41 cents versus a mean estimate of net income of 69 cents per share.

The company’s revenue has now risen for two straight quarters. In the fourth quarter of the last fiscal year, revenue increased 2.7% to $211.3 million from the year-earlier quarter.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the second quarter is now 69 cents per share, down from 70 cents. At $2.52 per share, the average estimate for the fiscal year has fallen from $2.77 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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