A quick rundown of First Quarter results from some of the leading insurers in Massachusetts. Please note, the information has been taken directly from press releases and or sharholder materials. See an insurer that you would like added to the list? Let us know…
MAPFRE: Business in the U.S. is up by 6.3 percent and earnings by 4 percent
MAPFRE’s net earnings in the first three months of 2017 rose to 206 million euros, representing a 7.5 percent increase on the first quarter of the previous year. Spain, Brazil and the United States, together with MAPFRE RE, continue to drive growth.
The North America Regional Area registered growth of 6.2 percent between January and March this year, exceeding 654 million euros in premium volume. The performance of the United States business is a particular highlight, with growth of 6.3 percent to 569 million euros and an earnings increase of 4 percent, exceeding 12 million euros, positively influenced in this quarter by both local currency growth and the dollar appreciation (+4 percent).
Massachusetts premiums increased by 10 percent, particularly in the automobile line, meanwhile outside of Massachusetts, business declined by 3.6 percent due to the cancellation of unprofitable business, in accordance with the objective of improving profitability in these states. The attributable profit of this Regional Area increased by 4.3 percent on the first quarter of 2016 to 16 million euros.
SAFETY: Direct written premiums for the quarter increased by 1.9%
BOSTON–(BUSINESS WIRE) Safety Insurance Group, Inc. (NASDAQ:SAFT) today reported first quarter 2017 results. Net income for the quarter ended March 31, 2017 was $12.0 million, or $0.79 per diluted share, compared to net income of $12.7 million, or $0.84 per diluted share, for the comparable 2016 period. Safety’s book value per share increased to $44.54 at March 31, 2017 from $44.27 at December 31, 2016. Safety paid $0.70 per share in dividends to investors during the quarters ended March 31, 2017 and, 2016, respectively. Safety paid $2.80 per share in dividends to investors during the year ended December 31, 2016.
Direct written premiums for the quarter ended March 31, 2017 increased by $3.7 million, or 1.9%, to $199.7 million from $196.0 million for the comparable 2016 period. The 2017 increase occurred primarily in our homeowners and private passenger automobile lines of business, which experienced increases in average written premium per exposure of 4.3% and 4.1% respectively. Our commercial passenger automobile line of business has also experienced an increase of 2.3% in average written premium per exposure.
Net written premiums for the March 31, 2017 increased by $5.2 million, or 2.8%, to $190.9 million from $185.7 million for the comparable 2016 period. Net earned premiums for the quarter ended March 31, 2017 increased by $4.0 million, or 2.2%, to $189.7 million from $185.7 million for the comparable 2016 period. Net written and net earned premiums increased primarily due to increases in our homeowners and automobile business as discussed above.
For the quarter ended March 31, 2017, loss and loss adjustment expenses incurred increased by $2.4 million, or 1.9%, to $128.4 million from $126.0 million for the comparable 2016 period. Loss, expense, and combined ratios calculated under U.S. generally accepted accounting principles for the quarter ended March 31, 2017 were 67.7%, 31.5%, and 99.2%, respectively, compared to 67.9%, 30.1%, and 98.0%, respectively, for the comparable 2016 period. Total prior year favorable development included in the pre-tax results for the quarter ended March 31, 2017 was $10.4 million compared to $10.1 million for the comparable 2016 period.
Net investment income for the quarter ended March 31, 2017 decreased by $0.5 million, or 5.5%, to $9.1 million from $9.6 million for the comparable 2016 period. The decrease is a result of fixed maturity amortization related to prepayment activities. Net effective annualized yield on the investment portfolio for the quarter ended March 31, 2017 was 2.9% compared to 3.2% for the comparable 2016 period. Our duration was 4.1 years at March 31, 2017 and 4.3 years at December 31, 2016, respectively.
Today, our Board of Directors approved and declared a quarterly cash dividend of $0.70 per share on the issued and outstanding common stock, payable on June 15, 2017 to shareholders of record at the close of business on June 1, 2017.
TRAVELERS: First Quarter Return on Equity and Core Return on Equity of 10.5% and 10.8%, Respectively
Board of Directors Declares 7.5% Increase in the Company’s Regular Quarterly Cash Dividend to $0.72 per Share and Authorizes an Additional $5.0 Billion of Share Repurchases
- Net income of $617 million and core income (formerly referred to as operating income) of $614 million, included significant catastrophe losses of $226 million after-tax ($347 million pre-tax).
- Quarter benefited from strong underlying underwriting results and net investment income that increased 9% after-tax over the prior year quarter as a result of higher private equity returns.
- The combined ratio, which includes catastrophe losses, was 96.0%; the underlying combined ratio remained strong at 91.7%.
- Record net written premiums of $6.495 billion up 5% from the prior year quarter, reflecting growth in all segments.
- Total capital returned to shareholders of $476 million in the quarter, including $286 million of share repurchases. Reduced share repurchases from recent quarters to provide financing flexibility for pending acquisition of Simply Business.
- Book value per share of $84.51 and adjusted book value per share of $81.56 increased 2% and 1%, respectively, from year-end 2016.
The HANOVER: Continued price increases in Personal and Commercial Lines
WORCESTER, Mass., May 3, 2017 /PRNewswire/ — The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $45.2 million, or $1.05 per diluted share, for the first quarter of 2017, compared to $78.2 million, or $1.80 per diluted share, in the prior-year quarter. Operating income was $40.8 million, or $0.95 per diluted share, for the first quarter of 2017, compared to $71.5 million, or $1.64 per diluted share, in the prior-year quarter.
First Quarter Highlights
- Catastrophe losses of $84.1 million before taxes, or 7.1% of earned premiums, primarily from domestic catastrophe events in the Midwest; this compared to $31.2 million, or 2.7%, in the prior-year quarter
- Combined ratio, excluding catastrophes(2) of 92.4%, in line with the first quarter of 2016
- No domestic prior-year loss reserve development
- Net premiums written up 3.7%, driven by growth in domestic businesses
- Continued price increases in Personal and Commercial Lines
- Net investment income of $71.1 million in the first quarter, up 4.1% compared to the prior-year period
- Book value per share of $68.44, up 1.5% from December 31, 2016; book value per share excluding net unrealized gains on investments(3) of $63.62, up 1.0%
LIBERTY MUTUAL: 1st Quarter sees net income down 11% from 2016’s 1stQ
BOSTON, May 4, 2017 /PRNewswire/ — Liberty Mutual Holding Company Inc. and its subsidiaries (collectively “LMHC” or the “Company”) today reported net income attributable to LMHC of $351 million for the three months ended March 31, 2017, a decrease of $42 million from the same period in 2016.
“Net income in the first quarter was $351 million, down 11 percent from the prior year as elevated severe wind and hail storm losses more than offset significant improvement in investment results,” said David H. Long, Liberty Mutual Insurance Chairman and CEO. “Net written premiums in the quarter increased 5.3 percent but the combined ratio deteriorated 5.2 points to 101.5%.”
- Net written premium (“NWP”) for the three months ended March 31, 2017 was $9.234 billion, an increase of $462 million or 5.3% over the same period in 2016.
- Pre-tax operating income (“PTOI”) before partnerships, limited liability companies (“LLC”) and other equity method income for the three months ended March 31, 2017 was $168 million, a decrease of $446 million or 72.6% from the same period in 2016.
- Net operating income before partnerships, LLC and other equity method income for the three months ended March 31, 2017 was $144 million, a decrease of $271 million or 65.3% from the same period in 2016.
- Partnerships, LLC and other equity method income for the three months ended March 31, 2017 was $162 million, an increase of $139 million over the same period in 2016.
- Net realized gains (losses) for the three months ended March 31, 2017 were $169 million versus ($39) million for the same period in 2016.
- Ironshore Inc. (“Ironshore”) acquisition costs for the three months ended March 31, 2017 were $10 million versus zero for the same period in 2016.
- Loss on extinguishment of debt for the three months ended March 31, 2017 was $1 million, a decrease of $7 million or 87.5% from the same period in 2016.
- Consolidated net income for the three months ended March 31, 2017 was $351 million, a decrease of $52 million or 12.9% from the same period in 2016.
- Net income attributable to LMHC for the three months ended March 31, 2017 was $351 million, a decrease of $42 million or 10.7% from the same period in 2016.
- Cash flow (used in) provided by operations for the three months ended March 31, 2017 was ($66) million versus $299 million for the same period in 2016.
- The consolidated combined ratio before catastrophes1 and net incurred losses attributable to prior years2 for the three months ended March 31, 2017 was 93.9%, an increase of 1.6 points over the same period in 2016. Including the impact of catastrophes and net incurred losses attributable to prior years, the Company’s combined ratio3 for the three months ended March 31, 2017 increased 5.2 points to 101.5%.
Financial Condition as of March 31, 2017
- Total debt was $8.146 billion as of March 31, 2017, an increase of $543 million or 7.1% over December 31, 2016.
- Total equity was $21.014 billion as of March 31, 2017, an increase of $627 million or 3.1% over December 31, 2016.
On May 1, 2017, the Company acquired Ironshore for approximately $2.9 billion subject to standard post-closing adjustments. Transaction related costs primarily consist of non-recurring banking, legal, tax, and accounting expenses and are reflected on the Consolidated Statements of Income separately. Concurrent with the acquisition, the Company will combine its existing Liberty International Underwriters’ U.S. business and Ironshore’s U.S. specialty lines business under the Ironshore brand. On May 2, 2017, Ironshore exercised its option to redeem in full its outstanding $250 million Ironshore Holdings (US) Inc. 8.5% Senior Notes maturing in 2020 in accordance with the contractual make whole provisions.
On April 17, 2017, the Company completed the acquisition of TRU Services, LLC, specializing in providing medical stop loss products to mid and large-size medical plan sponsors. The transaction is not material to the Company.
Management has assessed material subsequent events through May 4, 2017, the date the financial statements were available to be issued.
VERMONT MUTUAL: At 190th Annual Meeting announced that Direct Written Premium had increased more than 8% in 2016
While we don’t have the first quarter results for Vermont Mutual, the insurer did send us a release about their 2016 results announced during the company’s 190th annual meeting. As such, we thought we would share them here:
MONTPELIER, Vermont (May 10, 2017)—Recently Vermont Mutual Insurance Group® held its 190th Annual Meeting. Over the course of 2016, Vermont Mutual Insurance Group increased its direct written premium by more than 8% to an unprecedented $434,265,941. Additionally, policyholders’ surplus increased 10% during the year to an all-time high of $420,456,488.
“This past year stands out as one of the most successful in the 190-year history of our company,” stated Dan Bridge, Vermont Mutual’s President & CEO. Bridge continued “Our strong financial results strengthened our business for our policyholders, Independent Agency Partners and employees. We were again named one of the Top 50 property casualty insurers in the U.S. and one of the Best Places to Work in Vermont. Operational improvements and modernization efforts were significant and we remain well-positioned to meet the needs of both our Agent Partners and their customers for years to come.”
Mark McDonnell, Executive Vice President and COO, added “We continue to foster a relationship-based approach in claims, underwriting and marketing, and thankfully our Agent Partners favored us with a record level of new business of over $64 million. Our growth and strong retention is an indication that agents and policyholders are pleased with the value they receive from insuring with Vermont Mututal.”
METLIFE: Net income down in the first quarter of 2017 v. 2016
NEW YORK–(BUSINESS WIRE)–May 3, 2017– MetLife, Inc. (NYSE: MET) today announced the following results for the first quarter of 2017:
First Quarter Results
On a GAAP basis, MetLife reported first quarter 2017 net income of $820 million, compared to net income of $2.2 billion in the first quarter of 2016. On a per share basis, net income was $0.75, compared to net income of $1.98 per share in the prior-year period.
Net income includes $602 million, after tax, in net derivative losses reflecting changes in equity markets and interest rates, compared to $868 million, after tax, in net derivative gains in the first quarter of 2016. MetLifeuses derivatives as part of its broader asset-liability management strategy to hedge certain risks, such as movements in interest rates and foreign currencies. This hedging activity often generates derivative gains or losses and creates fluctuations in net income because the risk being hedged may not have the same GAAP accounting treatment.
In the quarter, rising equity markets and costs associated with repositioning our hedging strategies contributed to the net derivative losses. Approximately 67 percent of the net derivative losses in the quarter were attributable to asymmetrical and non-economic accounting. Excluding asymmetrical and non-economic accounting impacts, first quarter 2017 net income was $1.3 billion.
Supplemental slides related to the company’s derivative losses for the first quarter of 2017, titled “1Q17 Supplemental Slides,” are available on the MetLife Investor Relations website at www.metlife.com in the Conferences & Presentations section, and in the Form 8-K furnished by MetLife to the U.S. Securities and Exchange Commission (SEC) in connection with this earnings news release.
MetLife reported operating earnings of $1.5 billion, up 16 percent from the first quarter of 2016, and 17 percent on a constant currency basis*. On a per share basis, operating earnings were $1.41, up 18 percent from the prior-year quarter.
First quarter 2017 operating earnings included the following notable items:
- unfavorable catastrophe experience net of prior year development in Property & Casualty, which decreased operating earnings by $45 million, or $0.04 per share, after tax
- legal matters in Corporate & Other pertaining to the guaranty fund assessment for the Penn Treaty insolvency and an increase in litigation reserves, which decreased operating earnings by $44 million, or $0.04 per share, after tax
- expenses associated with the company’s previously announced unit cost initiative in Corporate & Other, which decreased operating earnings by $21 million, or $0.02 per share, after tax
- reserve adjustments primarily resulting from modeling improvements of individual life products, which increased operating earnings by $34 million, or $0.03 per share, after tax
- variable investment income above the company’s 2017 quarterly business plan range (excluding for this notable item only, Brighthouse Financial), primarily in Retirement and Income Solutions, which increased operating earnings by $15 million, or $0.01 per share, after tax, and the impact of deferred acquisition costs (DAC)
PROGRESSIVE: Agency business has an increase in auto policy applications
(From Progressive’s Letter to Shareholders): For the quarter, we are delighted with both our overall net written and earned premium growth of 12% and 13%, respectively, compared to last year. Personal Lines (auto plus special lines) had very healthy net written and earned premium growth of 13%. The net written premium for Commercial Lines was flat, while the net earned premium showed growth of 18%. Our Property business had strong net written and earned premium growth of 27% and 13%, respectively.
For the quarter, the Agency business had very robust new auto policy applications growth at 15% with a combined ratio (CR) of 90.5. On the Direct side, new auto policy applications were slightly negative, but took a strong positive turn in March, we believe, because the federal tax refund backlog cleared. In addition, we ramped up our year-over-year media spend. The CR for Direct business was 93.1. Given the strong profitability of Direct auto through the first few months, we are increasing our planned 2017 media spend. Our Personal Lines CR is at a very healthy 91.8.
Our Commercial Lines new policy application growth continues to be negative. In the third quarter last year, we aggressively increased rates and implemented several underwriting restrictions in specific segments that we believed were causing frequency to rise. At the end of March, we felt comfortable with our enhanced segmentation and have lifted several of the restrictions. We are already seeing signs of improvement in our new business applications and while it is too soon to correlate the increase to the restriction lifts, we are nevertheless pleased. Our Commercial Lines CR for the quarter was 89.6.
GEICO: Both written and earned premiums increased this quarter
Premiums written and earned in the first quarter of 2017 were $7,587 million and $6,845 million, respectively, and represented increases of 15.6% and 13.1%, respectively, compared to 2016. These increases reflected voluntary auto policy-in-force growth of 9.2% and increased premiums per auto policy of approximately 4.7% over the past twelve months, which was attributable to rate increases, coverage changes and changes in state and risk mix. Voluntary auto new business sales in the first quarter of 2017 increased 30.2% compared to the first quarter of 2016. Voluntary auto policies-in-force increased approximately 568,000 during the first quarter of 2017.
Losses and loss adjustment expenses in the first quarter of 2017 increased $767 million (15.9%) over 2016. Incurred losses and loss adjustment expenses were reduced $93 million in 2017 and $143 million in 2016 from the re-estimation of unpaid liabilities for prior years’ claims. Claims frequencies in the first quarter of 2017 for property damage and collision coverages were relatively unchanged compared to 2016, and increased two to three percent for bodily injury coverage. Claim frequencies for personal injury protection coverage decreased approximately one percent in the first quarter of 2017. Average claims severities were higher in the first quarter of 2017 for property damage, collision and bodily injury coverages (four to six percent range). In addition, in each period, we experienced storm losses of approximately $100 million representing approximately 1.5% and 1.7%, respectively, of premiums earned.
Underwriting expenses in the first quarter of 2017 were $1,080 million, an increase of $117 million (12.1%) over 2016. Our expense ratio (underwriting expenses to premiums earned) in the first quarter of 2017 decreased 0.2 percentage points compared to 2016. The largest components of underwriting expenses are employee-related expenses (salaries and benefits) and advertising costs. The increase in underwriting expenses reflects the increase in policies-in-force.