ProSight Specialty Insurance Reports Excellent 2Q Financial Results and Again Outperforms Past Results
- ANNUALIZED 15.8% RETURN ON EQUITY
- 5% GROWTH IN GROSS PREMIUM WRITTEN
- FAVORABLE PRIOR YEAR RESERVE DEVELOPMENT
MORRISTOWN, N.J. – August 8, 2018– ProSight, a leader in specialty insurance, today reported strong financial results for the second quarter and six-months ended June 30, 2018. The company again established new records for premium written through the second quarter and pre-tax income, reflecting an excellent loss ratio and a major increase in net investment income.
“Our continued growth and increasing profitability are natural outcomes of our uniquely valuable insurance offerings, superior service and technology platform,” said Joe Beneducci, CEO of ProSight.
“We continue to invest and grow our InsureTech platform, ProSight Direct, after the successful launch earlier this year. We expect to deliver more differentiated products to the market with full digital service capabilities,” Beneducci added. “Leading the innovation of the direct-to-customer insurance market from a scaled, profitable and nimble insurance carrier is well ahead of the InsureTech curve.”
- Annualized ROE of 15.8% improved 6.3 points from 9.5% in 2017.
- Gross Written Premium of $499.4 million grew 9.5% or $43.3 million more than 2017.
- Pre-tax profit of $37.6 million increased 79.9% or $16.7 million from 2017.
- The net combined ratio was 96.1%, an improvement of 0.8 points from 2017.
- The net loss ratio was 60.3%, an improvement of 3.5 points versus 2017, with positive contributions from all lines.
- Underwriting results continued to reflect the intended resilience to catastrophes as the loss impact of catastrophes was less than $1 million.
- Investment income increased 88.5% from 2017 due to the increase in invested assets in the US portfolio, rising interest rates on floating rate securities and new alternative investments.
- Net combined ratio was 92.3% an improvement of 3.8 points from 2017.
- Statutory net loss of $7 million is lower than GAAP income due to statutory accounting for strong premium growth. This should lead to strong statutory net income in the second half of 2018.
- Statutory surplus was $433.4 million as of June 30, 2018.