ProSight Global Inc. (PROS) Misses Q4 EPS by 2c, Revenues Beat

ProSight Global Inc. (NYSE: PROS) reported Q4 EPS of $0.33, $0.02 worse than the analyst estimate of $0.35. Revenue for the quarter came in at $225.11 million versus the consensus estimate of $224.04 million.

Highlights for the three months ended December 31, 2019 include:

• Gross written premiums ("GWP") for customer segments (2) increased 19.1%, to $249.0 million for the fourth quarter of 2019, as compared to the fourth quarter of 2018, with growth in GWP across all customer segments. The growth in the fourth quarter of 2019 included $4.4 million of GWP from niches added during 2019.
• The combined ratio was 97.2% for the fourth quarter of 2019, compared to 95.1% for the fourth quarter of 2018.
• There were no catastrophe losses for the fourth quarter of 2019, compared to $3.6 million of catastrophe losses (1.8 percentage points) for the fourth quarter of 2018.
• The loss ratio was 61.9% for the fourth quarter of 2019, compared to 58.6% for the fourth quarter of 2018. The adjusted loss ratio (3) was 61.5% for the fourth quarter of 2019, compared to 58.6% for the fourth quarter of 2018.
• The expense ratio was 35.3% for the fourth quarter of 2019, compared to 36.5% for the fourth quarter of 2018. The adjusted expense ratio (3) was 35.7% for the fourth quarter of 2019, compared to 36.5% for the fourth quarter of 2018.
• Net investment income increased 37.1% to $17.4 million for the fourth quarter of 2019, compared to the fourth quarter of 2018.
• The annualized return on equity ("ROE") was 11.0% for the fourth quarter of 2019 and the annualized adjusted operating return on equity (4) ("adjusted operating ROE") was 11.9% for the fourth quarter of 2019.

From ProSight CEO Larry Hannon:

"I would like to thank all of our employees who contributed to our exceptional fourth quarter and full-year results. Coupled with the strong support of our distribution partners, the ProSight team delivered excellent financial results consistent with our high expectations, including strong net income from continuing operations, and record-level annual GWP and adjusted operating income. Our success in 2019 is further evidence that our focus on specific niches and ability to deliver differentiated offerings that are valuable to our customers position us to deliver double-digit top line growth, ROE, and increases in book value over the long term. As we enter 2020, I believe we are poised to build upon last year's achievements and success."

For earnings history and earnings-related data on ProSight Global Inc. (PROS) click here.

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