March 05, 2018

ProSight Specialty Insurance Reports Strong 4Q And 2017 Full Year Financial Results

– Another Quarter Of Solid Growth In Premium And Underwriting Profits
– Run-Rate Return On Equity Of 9.5%
– Statutory Surplus Grows By More Than 20%
– Consistent Minimal Impact From Catastrophes

ProSight, a leader in differentiated specialty insurance, today reported strong financial results for the fourth quarter and year ended December 31, 2017. The company continues to show strong growth, and again benefited from minimal exposure to catastrophes.

“Our business model continues to gain considerable momentum with strong profit and growth across our portfolio,” said Joe Beneducci, CEO of ProSight. “The second half of 2017 demonstrated the benefit of our repatriated business profits from the UK and contributed to a run-rate ROE of 9.5%. While we’re excited about the core strength and success of our business, we’re most excited about what still lies ahead.”

Beneducci added, “In 2018, we plan on launching more exciting and innovative products and solutions that deliver superior value to our customers, and further differentiate us from traditional insurance companies.”

GAAP Highlights

  • 2017 full year gross premium of $819.5 million represents growth of 6.5% versus 2016.
  • Excluding a planned reduction in commercial auto premium, premium growth was 10.6%.
  • Pre-tax profit for the US-Produced business was $36.6 million and the net combined ratio was 98.4%.
  • The net loss ratio of 63.6% was an improvement of 8.8 points versus 2016. The loss ratio improvement reflects the benefits of a significant reduction in commercial auto losses.
  • Underwriting results continued to reflect the resilience to catastrophe exposures. The full year impact of catastrophe losses was less than $5.0 million pre-tax, gross and net of reinsurance.
  • Run-rate Return on Equity of 9.5%.

Statutory Highlights

  • Record pre-tax profit for the fourth quarter of $26.0 million and $45.8 million for the full year 2017.
  • Net combined ratio was 96.2% and 97.4% for the quarter and full year, respectively.
  • The fourth quarter of 2017 marked the second reporting period for inclusion of the profitable, repatriated business from the former UK operations.
  • Statutory surplus grew in 2017 by $78.6 million, or 22.1%.