Stamford, Connecticut-based Navigators Group bucked trends this quarter, reporting total revenue of $288 million, surging past analyst expectations of $251 million.
The results represent a 10.7% rise from the same period last year, which brought in a little more than $260 million.
Operating earnings during the first quarter of 2016 were at $20.2 million compared to $20.9 million at the same time last year. The combined ratio for the three months was 95.1%, again up from last year’s 92.3%.
The results come amid more disappointing first quarter earning reports from competitors. Large insurers such as American International Group and
Berkshire Hathaway have reported dips thanks to hedge fund troubles, low interest rates and a softening market.
Stan Galanski, president and chief executive with Navigators, highlighted sections of the business that performed particularly well.
“Our marine business continued to perform very well globally as did our U.S. property and casualty products. Premium growth benefitted from the ongoing development of the previous investments made in new products and new offices over the past few years. This was most evident in our International Insurance segment, where our newer first-party products at Lloyd's contributed meaningfully to growth as did our European regional offices,” Galanski said.
“At the same time, we continue to walk away from business that does not meet our standards for rates and policy terms, emphasizing the integrity of individual risk underwriting. We are encouraged by the improved contribution to earnings from our investment portfolio, which was achieved while maintaining the overall credit quality of the portfolio."
Net investment income for the three months ended March 31, 2016 was $19.6 million, an increase of 20.6% from the comparable period in 2015. The annualized pre-tax investment yield, excluding net realized gains and losses and other-than-temporary impairment losses recognized in earnings, was 2.7% for the three months ended March 31, 2016, compared to 2.4% for the comparable period in 2015.
There were $1.6 million of net realized gains recognized in earnings for the three months ended March 31, 2016, compared to $5.6 million for the same period in 2015.
