Protective Insurance Corporation (PTVCA) Reports Q4 EPS of $0.26 on Revenues of $124.44M

Protective Insurance Corporation (NASDAQ: PTVCA) reported Q4 EPS of $0.26, versus ($1.65) reported last year. Revenue for the quarter came in at $124.44 million, versus $107.06 million reported last year.

• Net income was $3.8 million for the fourth quarter of 2019 and $7.3 million for full year 2019.
• Book value per share was $25.51, up $1.56 per share or 6.5% from December 31, 2018.
• Total value creation for 2019 was 8.2% including dividends of $0.40 per share paid to shareholders.
• The reported combined ratio was 105.8% for the fourth quarter of 2019 which was an improvement over the 112.2% combined ratio for the prior year period. The combined ratio improved 5.5% from 110.3% to 104.8% excluding unfavorable prior period loss development of $1.0 million in the quarter and $2.2 million in the prior year quarter.
• Combined ratio was 106.8% for full year 2019. The improving quarterly combined ratio trend reflects rate actions and non-renewals of certain risks.
• As a result of actions to improve underwriting profitability, gross premiums written went from $582.5 million in 2018 to $574.9 million in 2019.
• Net investment income increased to $6.8 million for the fourth quarter of 2019 and $26.2 million for full year 2019 driven by an asset allocation shift to fixed income and higher investment balances.
• Repurchased $11.5 million (677,088 shares) during 2019. These purchases are immediately accretive to book value per share, given an average repurchase price of 67% of December 31, 2019 book value.

Jeremy Johnson, Protective’s Chief Executive Officer, said: “I’m pleased with the continued and sustainable progress we’re making towards underwriting profitability. During 2019 we achieved significant rate increases across our commercial automobile portfolio, non-renewed unprofitable risks and reduced exposure to certain segments to accelerate loss ratio improvement. We reduced our exposure to higher limits through the use of facultative reinsurance and refocused our distribution strategy on fewer, more valuable relationships. These actions are partially reflected in the improving reported accident quarter loss ratios and will more fully impact results in 2020. The industry continued to report unfavorable commercial automobile loss development during 2019. While we experienced unfavorable commercial automobile loss development during the year, the net loss development impact on our financials was minimal, mitigated by our unlimited aggregate stop-loss reinsurance treaties and by favorable loss development in workers’ compensation. We are well positioned to create additional value for all our stakeholders in 2020.”

For earnings history and earnings-related data on Protective Insurance Corporation (PTVCA) click here.

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