Profits dip at Navigators in Q1
The Navigators Group achieved growth across its US casualty, international marine and international management liability and E&O divisions though its net income dipped and book as a whole shrank in the first quarter of 2015.
It made a net profit of $25.9 million for the three months ended March 31, 2015, compared with $28 million for the comparable period in 2014. But its gross written premiums and net written premiums were $396.5 million and $289 million, respectively, a decrease of 6.2 percent and 7.3 percent from the comparable period in 2014.
The company said this was partly because it had chosen not to renew a $30 million crop reinsurance treaty.
The combined ratio for the three months ended March 31, 2015, rose very slightly to 92.3 percent compared with 92.2 percent in 2014.
Stan Galanski, president and chief executive officer said: "We are pleased to report a combined ratio of 92.3 percent for the first quarter of 2015, our ninth consecutive quarter of underwriting profit.
“Each of our three new underwriting segments – US insurance, international insurance, and global reinsurance experienced profitable results in the quarter. We produced a 10.1 percent annualised return on equity which contributed to growth in book value of 2.6 percent, and we continue to achieve growth in our US casualty, international marine, and international management liability and E&O divisions.
“Our new continental European offices are off to a good start and we are developing additional property and casualty products both in the US and in London."
According to the company, the 2014 results included a one-time foreign exchange gain of $10 million ($6.6 million after-tax) due to a change in the functional currency of the company’s Lloyd's Syndicate, which was equally offset by a reversal within the Accumulated Other Comprehensive Income component of stockholders' equity.
In 2015, other income for the three months was $2.2 million, primarily consisting of a net foreign exchange gain.
During the first quarter of 2015, Navigators Group realigned its reporting segments from insurance companies, Lloyd's operations and corporate to US insurance, international insurance, global reinsurance and corporate. Its new global reinsurance business segment was previously reported within the US insurance and Lloyd's operations segments as assumed reinsurance.
