The Navigators Group, Inc. reported record quarterly net income of $6,423,000 or $0.73 per diluted share for the three months ended Sept. 30, up 22 percent from $5,271,000 or $0.61 per diluted share reported for the same period in 2002.
Included in these results were net realized capital gains of $0.03 per share and $0.11 per share for the three months ended Sept. 30, 2003 and 2002, respectively. The combined loss and expense ratio for the third quarter of 2003 was 92.9 percent, compared to 99.2 percent for the same period in 2002.
Gross written premium for the third quarter of 2003 was $139,632,000, an increase of 10 percent from the third quarter of 2002. Net written premium decreased to $70,631,000, down 11 percent. Total revenue increased 11 percent to $79,682,000 for the third quarter of 2003, compared to $71,725,000 for the same period of 2002. Net investment income for the third quarter increased to $4,634,000, up 6 percent.
Net income for the nine month period ended Sept. 30, 2003 was $17,531,000 or $2.01 per diluted share, compared to $12,495,000 or $1.45 per diluted share for the nine months ended Sept. 30, 2002. Included in these results were net realized capital gains of $0.12 per share and $0.10 per share for the nine months ended Sept. 30, 2003 and 2002, respectively. The combined loss and expense ratio for the first nine months of 2003 was 94.8 percent compared to 98.5 percent for the same period in 2002.
Gross written premium for the first nine months of 2003 was $455,526,000, an increase of 34 percent from the comparable period in 2002. Net written premium increased to $223,295,000, up 8 percent. Total revenue increased 29 percent to $224,673,000 for the nine months ended Sept. 30, 2003 compared to $174,454,000 for the same period in 2002. Net investment income increased to $13,847,000, up 3 percent.
Navigators’ Chief Executive Officer, Stan Galanski, commented, “Navigators is known for emphasizing underwriting profit over market share, and we are pleased that each of our four main operating divisions generated an underwriting profit in the third quarter. Market conditions in general remain favorable, although we have scaled back our hull account and our Gulf of Mexico business due to pricing concerns. Our U.K. operations continue to perform very satisfactorily and in the fourth quarter we plan to add a new marine product providing Protection & Indemnity coverage. Navigators Pro continues to achieve significant growth and profitable underwriting results, and recently announced a new product, LPL Magistrate (SM), targeting the small law firm professional liability market. Navigators Specialty continues to achieve significant renewal rate increases on its California contractor liability business. Specialty’s newer initiatives, particularly personal umbrella and the Midwest regional office are developing according to plan.”
Galanski continued, “The third quarter was a significant quarter for Navigators, not only in terms of achieving our highest quarterly net income, but also for the successful efforts to raise additional capital to support the company’s continued growth. As a result of the recent secondary offering, the statutory surplus of Navigators Insurance Company now exceeds $200 million and the company’s balance sheet is stronger than ever. Our third quarter net written premium reflects an increase in ceded reinsurance to better manage statutory capital prior to our recent public equity offering. We intend to re-evaluate the amount of reinsurance ceded going forward.”
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