- best insurance stock Allstate corp will conference call february 7 2013 : The Allstate Corp. will conduct a conference call and webcast at 9 a.m. Eastern Time (ET) on Thursday, Feb. 7 to discuss fourth quarter 2012 earnings. According to a release, the company will issue a news release announcing quarterly results at or after 4:05 p.m. ET on Wednesday, Feb. 6. Shortly thereafter, the company plans to post supplementary financial and statistical information online. These materials will be available on Allstate’s website at allstateinvestors.com.The investor webcast also can be accessed at allstateinvestors.com. For those unable to participate in the live event, a webcast replay and downloadable MP3 file will be posted on the company’s website shortly after the event ends. The company’s 2012 Annual Report on Form 10-K will be filed by its due date of March 1. The Allstate Corp. is a personal lines insurer. read Allstate Stock outlook 2013-2014
- Selective Insurance Group financial results ended December 31, 2012 : Selective Insurance Group, Inc. (NASDAQ:SIGI) today reported its financial results for the fourth quarter and year ended December 31, 2012. For the quarter, net income per diluted share was $0.02 and operating loss1 was $0.04. Net income for the year was $0.68 per diluted share and operating income1 was $0.58 per diluted share. Overall net premiums written grew 5% in the quarter and retention was up a point to 85%.
“Hurricane Sandy was the most significant event in company history, yet we still ended the quarter with positive net income – a testament to our strong underlying insurance operations performance and our comprehensive reinsurance program,” said Chairman, President and Chief Executive Officer Gregory E. Murphy. “For the quarter, Sandy resulted in net catastrophe losses of $47 million and a reinsurance reinstatement premium of $9 million; partially offset by flood claims handling fees of $16 million; resulting in an overall, pre-tax, net loss of $40 million and $0.46 per diluted share after tax. Sandy contributed 9.8 points to the combined ratio for the quarter, but only 2.5 points to the year, yielding an overall fourth quarter statutory combined ratio of 110.4%, excluding the impact from Sandy2 it was 100.6%.
“The hurricane made landfall in our top market share state of New Jersey,” said Murphy. “Our Claims and Flood departments have been working tirelessly to resolve claims quickly and fairly, and to inform flood customers of the federally mandated National Flood Insurance Program’s claims process. Personal lines received approximately 8,000 claims and have closed 85% and commercial lines received approximately 5,000 claims and have closed 62%.
“We were pleased with our overall performance in the quarter, delivering a statutory combined ratio of 100.6%, excluding the impact of Sandy2. Personal lines led the positive results with a combined ratio of 93.9%, excluding Sandy2, and renewal price that increased 8.3% for the quarter. In personal lines, we continue to file rate increases as well as improve the mix of business and expand the number of agency storefronts,” said Murphy.
“For the quarter, standard commercial lines had a combined ratio of 101.1%, excluding Sandy2,” continued Murphy. “We completed our 15th consecutive quarter of price increases with standard commercial lines renewal price up 6.7%, and 6.2% for the year. Our granular pricing strategy and sophisticated underwriting, as well as our strong agency relationships, has given us an edge over the past several years that continues to pay off in strong results.
“Investment income for the quarter was $26 million, after tax, compared to $23 million in the fourth quarter 2011, due to improved performance in the alternative investment portfolio. For the year, investment income, after tax, was $100 million. We continue to manage our investment income through a very low interest rate environment without unduly adding more credit or duration risk,” concluded Murphy.
Fourth Quarter Highlights 2012 Compared to Fourth Quarter 2011
Net income of $1.3 million, or $0.02 per diluted share, compared to $18.0 million, or $0.33 in 2011
Operating loss1 of $2.3 million, or $0.04 per diluted share, compared to operating income1 of $20.4 million, or $0.37 in 2011
Combined ratio: GAAP: 109.0% compared to 97.9% in 2011; Statutory: 110.4% compared to 98.7% in 2011
Combined ratio excluding the impact of Hurricane Sandy2: GAAP 99.3%; Statutory 100.6%
Favorable prior year statutory reserve development on our casualty lines totaled $2 million compared to $10 million in 2011
Total net premiums written (NPW) were $370.6 million, which were reduced by the reinstatement premium related to Hurricane Sandy of $8.6 million
Standard Commercial Lines NPW were $273.2 million
Standard Personal Lines NPW were $68.1 million
Excess and Surplus Lines NPW were $29.4 million
Catastrophe losses were $33.8 million, after tax, including $30.3 million for Hurricane Sandy
Gross pre-tax catastrophe losses from Hurricane Sandy were $136 million
Flood net income of $12.0 million, after tax, including $10.1 million for Hurricane Sandy
Investment income, after tax, was $26.3 million
Net realized gains, after tax, totaled $3.6 million
Year-End Highlights for 2012 Compared to Year-End 2011
Balance Sheet and Guidance
- Net income was $38.0 million, or $0.68 per diluted share, compared to $22.0 million, or $0.40 in 2011
- Operating income1 was $32.1 million, or $0.58 per diluted share, compared to $21.2 million, or $0.38 in 2011
- Combined ratio: GAAP: 104.0% compared to 107.2% in 2011; Statutory: 103.5% compared to 106.7% in 2011
- Combined ratio excluding the impact of Hurricane Sandy2: GAAP 101.5%; Statutory 101.0%
- Favorable prior year statutory reserve development on our casualty lines totaled $17 million compared to $29 million in 2011
- Total NPW were $1,666.9 million, which were reduced by the reinstatement premium related to Hurricane Sandy of $8.6 million
- Standard Commercial Lines NPW were $1,263.7 million
- Standard Personal Lines NPW were $289.9 million
- Excess and Surplus Lines NPW were $113.3 million
- Catastrophe losses were $64.1 million, after tax, including $30.3 million for Hurricane Sandy
- Flood net income of $19.1 million, after tax, including $10.1 million for Hurricane Sandy
- Investment income, after tax, was $100.3 million
- Net realized gains, after tax, totaled $5.8 million for the year
At December 31, 2012, Selective’s assets were $6.8 billion, up 20% over prior year primarily due to reinsurance recoverables of $1.4 billion, compared with $0.6 billion in 2011, and $4.3 billion in the company’s investment portfolio, which increased 5% compared to December 31, 2011.
Stockholders’ equity was up 3% for the year to $1.1 billion and book value per share increased 2% to $19.77. Statutory surplus was down 1% in 2012 to $1.1 billion.
Selective’s Board of Directors declared a $0.13 per share quarterly cash dividend on common stock payable March 1, 2013 to stockholders of record as of February 15, 2013.
Selective expects to generate a 2013 full year statutory combined ratio, excluding catastrophes, of 96.0%. We currently estimate catastrophe losses will add three points to that ratio. In addition, investment income will be down slightly to $90-$95 million. Anticipated weighted average shares at year end 2013 of 56 million.
The supplemental investor packet, including financial information that is not part of this press release, is available on the Investor Relations’ page of Selective’s public website at www.selective.com. Selective’s quarterly analyst conference call will be simulcast at 8:30 a.m. ET, on February 1, 2013 at www.selective.com. The webcast will be available for rebroadcast until the close of business on March 1, 2013.
About Selective Insurance Group, Inc.
Selective Insurance Group, Inc. is a holding company for ten property and casualty insurance companies rated “A” (Excellent) by A.M. Best. Through independent agents, the insurance companies offer primary and alternative market insurance for commercial and personal risks, and flood insurance underwritten by the National Flood Insurance Program. Selective maintains a website at www.selective.com.
In this press release, Selective and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations and projections regarding Selective’s future operations and performance.
Certain statements in this report, including information incorporated by reference, are “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The PSLRA provides a safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934 for forward-looking statements. These statements relate to our intentions, beliefs, projections, estimations or forecasts of future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, or performance to be materially different from those expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by use of words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely” or “continue” or other comparable terminology. These statements are only predictions, and we can give no assurance that such expectations will prove to be correct. We undertake no obligation, other than as may be required under the federal securities laws, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Factors that could cause our actual results to differ materially from those projected, forecasted or estimated by us in forward-looking statements, include, but are not limited to:
These risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors emerge from time-to-time. We can neither predict such new risk factors nor can we assess the impact, if any, of such new risk factors on our businesses or the extent to which any factor or combination of factors may cause actual results to differ materially from those expressed or implied in any forward-looking statements in this report. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this report might not occur.
- difficult conditions in global capital markets and the economy;
- deterioration in the public debt and equity markets and private investment marketplace that could lead to investment losses and fluctuations in interest rates;
- ratings downgrades could affect investment values and therefore statutory surplus;
- the adequacy of our loss reserves and loss expense reserves;
- the frequency and severity of natural and man-made catastrophic events, including, but not limited to, hurricanes, tornadoes, windstorms, earthquakes, hail, terrorism, explosions, severe winter weather, floods and fires;
- adverse market, governmental, regulatory, legal or judicial conditions or actions;
- the concentration of our business in the Eastern Region;
- the cost and availability of reinsurance;
- our ability to collect on reinsurance and the solvency of our reinsurers;
- uncertainties related to insurance premium rate increases and business retention;
- changes in insurance regulations that impact our ability to write and/or cease writing insurance policies in one or more states, particularly changes in New Jersey automobile insurance laws and regulations;
- recent federal financial regulatory reform provisions that could pose certain risks to our operations;
- our ability to maintain favorable ratings from rating agencies, including A.M. Best, Standard & Poor’s, Moody’s and Fitch;
- our entry into new markets and businesses; and
- other risks and uncertainties we identify in filings with the United States Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K and other periodic reports.
Selective’s SEC filings can be accessed through the Investor Relations’ section of Selective’s website, www.selective.com, or through the SEC’s EDGAR Database at www.sec.gov (Selective EDGAR CIK No. 0000230557).
1 Operating income differs from net income by the exclusion of realized gains or losses on investments and the results of discontinued operations. It is used as an important financial measure by management, analysts and investors, because the realization of investment gains and losses on sales in any given period is largely discretionary as to timing. In addition, these investment gains and losses, as well as other-than-temporary investment impairments that are charged to earnings and the results of discontinued operations, could distort the analysis of trends. Operating income is not intended as a substitute for net income prepared in accordance with U.S. generally accepted accounting principles (GAAP). A reconciliation of operating income to net income is provided in the GAAP Highlights and Reconciliation of Non-GAAP Measures to Comparable GAAP Measures. Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners Accounting Practices and Procedures Manual and, therefore, is not reconciled to GAAP.
2 The Hurricane Sandy impact includes catastrophe losses, reinstatement premium on the catastrophe reinsurance program and the flood claims handling fees generated as a result of Hurricane Sandy.
- best insurance stock – Brightcove Inc earnings loss q4 2012 : Brightcove Inc. (BCOV – Snapshot Report) reported a loss of 13 cents in the fourth quarter of 2012, wider than the Zacks Consensus Estimate of a loss of 7 cents. However, loss per share was narrower than a loss of 75 cents reported in the year-ago quarter.RevenuesRevenues jumped 31.3% from the year-ago quarter to $24.3 million, slightly better than the consensus mark. The year-over-year surprise was primarily driven by a 34.2% surge in Subscription and Support revenues, which fully offset an 8.4% plunge in Professional services and Other revenues.Brighcove’s revenues from premium offerings jumped 29% year over year to $21.8 million. Premium refers to Brighcove’s traditional video cloud customers, the enterprise edition of app cloud and Zencoder customers on annual contracts. Revenues from volume offerings surged 53.0% year over year to $2.5 million.Brightcove’s customer base expanded 64% from the year-ago quarter to 6367, which includes 1625 premium customers and 4742 volume customers. Sequentially, both premium and volume customers increased by 52 and 172, respectively.Brightcove added a number of major companies to its customer base that includes the likes of insurance provider Allstate (ALL – Analyst Report) and biopharmaceutical company Bristol Meyers Squibb (BMY – Analyst Report). Brightcove also entered into a partnership with Viacom (VIA – Snapshot Report) and NBC.Revenues from non-media customers (60% of total revenues) grew 60% year over year, while media customers (40% of total revenue) increased 17% from the year-ago quarter. Recurring dollar retention rate was 89% in the fourth quarter.Region wise, revenues from North America (64% of total revenue) increased 29% year over year to $15.6 million. Europe (23% of total revenue) jumped 33.0% year over year to $5.6 million. Asia-Pacific including Japan (13% of total revenue) soared 35.0% from the year-ago quarter to $3.1 million.MarginsGross margin increased 20 basis points (“bps”) on a year-over-year basis to 69.8% in the reported quarter. Operating expenses soared 27.7% year over year to $20.7 million due to 27.5% year-over-year increase in research & development expenses, 20.6% year-on-year rise in sales & marketing expenses and a 46.1% jump in general & administrative expenses.Loss from operations (including stock-based compensation) was $3.7 million, wider than $3.3 million reported in the year-ago quarter on a higher revenue base.Net loss (including stock based compensation) of $3.7 million was narrower than a loss of $3.8 million incurred in the prior-year quarter.Balance Sheet and Cash flowExiting the fourth quarter, Brightcove had cash, cash equivalents and investments of $30.0 million, down from $30.8 million reported in the third quarter. Brightcove generated cash flow of $2.7 million in the fourth quarter. Free cash flow was $2.5 million in the quarter.OutlookFor the first quarter, Brightcove expects revenues in the range of $23.5 million to $24.0 million, which represents 18% to 21% year-over-year growth. Non-GAAP operating loss is expected to be $2.0 million to $2.3 million. Non-GAAP loss is expected in the range of 8 cents to 10 cents per share.For fiscal 2013, Brightcove expects revenues to be in the range of $102.0 million to $105.0 million, which represents 16% to 19% year-over-year growth. Non-GAAP loss is expected to be $4.5 million to $6.5 million. Non-GAAP net loss per share is expected in the range of 18 cents to 25 cents per share.RecommendationWe believe that strong demand for cloud-based solutions, security and mobile products, and online videos along with strategic acquisitions are the positives for the stock over the long term. However, intense competition and sluggish macro-economic environment are the near-term headwinds.Currently, Brightcove has a Zacks Rank #3 (Hold).
Principal Financial Group Earnings report Next Week : Principal Financial Group Inc. (PFG): Provides retirement savings, investment, and insurance products and services worldwide. Market cap at $8.9B, most recent closing price at $30.30. In Dec 2011: Reported EPS at 0.71 vs. estimate at 0.75 (surprise of -5.3%). In Mar 2012: Reported EPS at 0.7 vs. estimate at 0.74 (surprise of -5.4%). In June 2012: Reported EPS at 0.72 vs. estimate at 0.74 (surprise of -2.7%). In Sep 2012: Reported 0.45 vs. estimate at 0.49 (surprise of -8.2%. [Average earnings surprise at -5.4%]. The company is expected to report earnings on January 31st, 2013.
- best insurance stock – American Equity earnings conference call February 21 2013 : merican Equity Investment Life Holding Company (NYSE: AEL) announced today that it will release fourth quarter 2012 earnings after the close of market on Wednesday, February 20, 2013. The fourth quarter earnings release and financial supplement will be posted on the American Equity website ( www.american-equity.com) at that time.
EARNINGS CONFERENCE CALL
AEL will hold a conference call to discuss fourth quarter 2012 earnings on Thursday, February 21, 2013, at 9:00 a.m. CST. The conference call will be webcast live on the Internet. Investors and interested parties who wish to listen to the call on the Internet may do so at www.american-equity.com.
The call may also be accessed by telephone at 866-314-4865, passcode 36024971 (international callers, please dial 617-213-8050). An audio replay will be available shortly after the call on AEL’s website. An audio replay will also be available via telephone through March 14, 2013, by calling 888-286-8010, passcode 12797737 (international callers will need to dial 617-801-6888).
ABOUT AMERICAN EQUITY
American Equity Investment Life Holding Company, through its wholly-owned operating subsidiaries, is a full service underwriter of annuity and life insurance products, with a primary emphasis on the sale of index and fixed rate annuities. The company’s headquarters are located at 6000 Westown Parkway, West Des Moines, Iowa, 50266. The mailing address of the company is: P.O. Box 71216, Des Moines, Iowa 50325
- Best insurance stock today – Zacks estimates Willis Group Holdings EPS : Willis Group Holdings plc (WSH – Analyst Report) reported fourth-quarter 2012 adjusted net income from continuing operations of 45 cents per share, surpassing the Zacks Consensus Estimate by a penny. Results were in line with the year-ago earnings.Including goodwill impairment charge of $2.62 per share, write-off of unamortized cash retention awards of 79 cents, 2012 cash bonus accrual of $1 per share, insurance recovery of 2 cents, loss on disposal of operations of 1 cent, deferred tax valuation allowance of 64 cents and dilutive impact of potentially issuable shares of 6 cents, Willis Group incurred a loss of $4.65 per share, compared with an income of 14 cents in the prior-year quarter.
Operational PerformanceTotal revenue in the quarter increased 6.3% year over year to $871 million due to higher commissions and fees. Commissions and fees improved 7% year over year to $867 million in the quarter.
Investment income plummeted 100% year over year to $4 million, attributable to lower net yields on cash and cash equivalents.Total expense shot up 123% year over year to $1.6 billion, primarily due to an increase in salaries and benefits, and goodwill impairment charge.In the quarter under review, adjusted operating income was $166 million, up 8.5% year over year. Operating margin expanded 40 basis points to 19.1%.Quarterly Segment UpdateGlobal: Organic growth in commissions and fees was 11.6% in the quarter, while reported growth was 11.3%. Organic growth was primarily driven by better results across all lines of business.Operating margin was 19.7%, expanding 340 basis points year over year.North America: Commissions and fees, on an organic basis, grew 5%, while on a reported basis grew 4.7%.Operating margin in the quarter contracted 250 basis points to 17.2%.International: On an organic basis, commissions and fees increased 7.4% year over year, while on a reported basis, it increased 6.4%. Latin America reported strong double-digit growth, while Europe and UK reported mid-single digit growth. Asia recorded low single-digit growth.Operating margin was 23.6%, contracting 270 basis points.
Full year HighlightsAdjusted net income from continuing operations of $2.58 per share were in line with the Zacks Consensus Estimate. Earnings declined 5.8% over 2011.Including goodwill impairment charge of $2.60 per share, write-off of unamortized cash retention awards of 78 cents, 2012 cash bonus accrual of 99 cents, insurance recovery of 3 cents, loss on disposal of operations of 2 cents, India JV settlement of 6 cents, write-off of uncollectible accounts receivable balance and legal fees of 5 cents, deferred tax valuation allowance of 64 cents and the dilutive impact of potentially issuable shares of 6 cents, Willis Group incurred a loss of $2.58 per share, compared with an income of $1.15 in 2011.Cost Savings InitiativeManagement is reviewing the organizational design and expects to reduce headcount. The review will be completed in the first quarter of 2013. As a result Willis Group expects to incur a pre-tax charge of about $35 million to $45 million in the first quarter of 2013.Nevertheless, beginning in the second quarter, the company expects to realize cost savings, primarily through headcount reduction, of approximately $20 million to $25 million in 2013. Moreover, it expects annualized cost savings of approximately $25 million to $30 million.Financial UpdateWillis exited 2012 with cash and cash equivalents of $500 million, up 14.7% year over year.Long-term debt slid 0.7% to $2.3 billion from 2011 end.Cash flow from operating activities in 2012 was $524 million, up 19.4%.Dividend UpdateIn Feb 2013, the board of directors approved a 3.7% increase in the quarterly cash dividend. Willis will pay the increased dividend of 28 cents on Apr 15, 2013 to shareholders of record as on Mar 29, 2013. The annualized dividend comes to $1.12 per share.Performance of other insurance brokersMarsh & McLennan Companies, Inc. (MMC – Analyst Report) reported its fourth-quarter 2012 operating earnings of 52 cents per share, in line with the Zacks Consensus Estimate.However, the results were slightly higher than the year-ago quarter’s earnings of 46 cents per share.Arthur J Gallagher & Co. (AJG – Snapshot Report) reported earnings of 39 cents in the fourth quarter, a penny above the Zacks Consensus Estimate and up 11% year over year.Aon plc (AON – Snapshot Report) posted earnings of $1.27 per share, exceeding the Zacks Consensus Estimate by 1.6% and the year-ago earnings by 31%.Zacks RankWillis Group currently carries a Zacks Rank #3 (Hold)