UNITED STATES | |||||
SECURITIES AND EXCHANGE COMMISSION | |||||
Washington, D.C. 20549 | |||||
FORM | |||||
CURRENT REPORT | |||||
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 | |||||
Date of Report (Date of earliest event reported): August 8, 2023 | |||||
(Exact name of registrant as specified in its charter) |
(State of Incorporation) | (Commission File No.) | (IRS Employer I.D. No.) |
(Address of Principal Executive Office ) | (Zip code) |
Registrant’s telephone number, including area code: |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-(c) under the Exchange Act (17CFR 240.13e-(c)) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ |
PROASSURANCE CORPORATION | ||
by: /s/ Jeffrey P. Lisenby | ||
----------------------------------------------------- | ||
Jeffrey P. Lisenby General Counsel |
NEWS RELEASE For More Information: Dana Hendricks EVP, Chief Financial Officer 800-282-6242 • 205-877-4462 • DanaHendricks@ProAssurance.com |
NEWS RELEASE CONTINUES |
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS | |||||||||||||||||||||||||||||||||||
Selected consolidated financial data for each period is summarized in the table below. | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
($ in thousands, except per share data) | 2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Gross premiums written(1) | $ | 237,928 | $ | 235,475 | 1.0 | % | $ | 553,722 | $ | 571,082 | (3.0 | %) | |||||||||||||||||||||||
Net premiums written | $ | 214,046 | $ | 210,151 | 1.9 | % | $ | 498,955 | $ | 521,066 | (4.2 | %) | |||||||||||||||||||||||
Net premiums earned | $ | 247,862 | $ | 247,271 | 0.2 | % | $ | 487,649 | $ | 512,982 | (4.9 | %) | |||||||||||||||||||||||
Net investment income | 31,650 | 21,944 | 44.2 | % | 61,960 | 42,387 | 46.2 | % | |||||||||||||||||||||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | 6,632 | 5,180 | 28.0 | % | 5,511 | 12,799 | (56.9 | %) | |||||||||||||||||||||||||||
Net investment gains (losses)(2) | 2,946 | (23,884) | 112.3 | % | 5,858 | (37,390) | 115.7 | % | |||||||||||||||||||||||||||
Other income (loss)(1) | 2,741 | 5,314 | (48.4 | %) | 3,528 | 8,119 | (56.5 | %) | |||||||||||||||||||||||||||
Total revenues(1) | 291,831 | 255,825 | 14.1 | % | 564,506 | 538,897 | 4.8 | % | |||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||
Net losses and loss adjustment expenses | 191,058 | 177,670 | 7.5 | % | 396,354 | 387,093 | 2.4 | % | |||||||||||||||||||||||||||
Underwriting, policy acquisition and operating expenses(1) | 76,976 | 77,333 | (0.5 | %) | 144,764 | 149,109 | (2.9 | %) | |||||||||||||||||||||||||||
SPC U.S. federal income tax expense | 994 | 349 | 184.8 | % | 1,526 | 991 | 54.0 | % | |||||||||||||||||||||||||||
SPC dividend expense (income) | 3,747 | (854) | 538.8 | % | 5,689 | 1,513 | 276.0 | % | |||||||||||||||||||||||||||
Interest expense | 5,502 | 4,919 | 11.9 | % | 10,965 | 9,360 | 17.1 | % | |||||||||||||||||||||||||||
Total expenses(1) | 278,277 | 259,417 | 7.3 | % | 559,298 | 548,066 | 2.0 | % | |||||||||||||||||||||||||||
Income (loss) before income taxes | 13,554 | (3,592) | 477.3 | % | 5,208 | (9,169) | 156.8 | % | |||||||||||||||||||||||||||
Income tax expense (benefit) | 2,927 | (1,933) | 251.4 | % | 755 | (3,950) | 119.1 | % | |||||||||||||||||||||||||||
Net income (loss) | $ | 10,627 | $ | (1,659) | 740.6 | % | $ | 4,453 | $ | (5,219) | 185.3 | % | |||||||||||||||||||||||
Non-GAAP operating income (loss) | $ | 8,562 | $ | 16,328 | (47.6 | %) | $ | 490 | $ | 24,008 | (98.0 | %) | |||||||||||||||||||||||
Weighted average number of common shares outstanding | |||||||||||||||||||||||||||||||||||
Basic | 53,815 | 54,068 | 53,900 | 54,040 | |||||||||||||||||||||||||||||||
Diluted | 53,918 | 54,186 | 54,017 | 54,165 | |||||||||||||||||||||||||||||||
Earnings (loss) per share | |||||||||||||||||||||||||||||||||||
Net income (loss) per diluted share | $ | 0.20 | $ | (0.03) | $ | 0.23 | $ | 0.08 | $ | (0.10) | $ | 0.18 | |||||||||||||||||||||||
Non-GAAP operating income (loss) per diluted share | $ | 0.16 | $ | 0.30 | $ | (0.14) | $ | 0.01 | $ | 0.44 | $ | (0.43) | |||||||||||||||||||||||
NEWS RELEASE CONTINUES |
NEWS RELEASE CONTINUES |
BALANCE SHEET HIGHLIGHTS | |||||||||||
($ in thousands, except per share data) | June 30, 2023 | December 31, 2022 | |||||||||
Total investments | $ | 4,315,417 | $ | 4,387,683 | |||||||
Total assets | $ | 5,657,412 | $ | 5,699,999 | |||||||
Total liabilities | $ | 4,537,698 | $ | 4,595,981 | |||||||
Common shares (par value $0.01) | $ | 636 | $ | 634 | |||||||
Retained earnings | $ | 1,425,038 | $ | 1,423,286 | |||||||
Treasury shares | $ | (439,185) | $ | (419,214) | |||||||
Shareholders’ equity | $ | 1,119,714 | $ | 1,104,018 | |||||||
Book value per share | $ | 21.24 | $ | 20.46 | |||||||
Non-GAAP adjusted book value per share(1) | $ | 26.31 | $ | 25.99 | |||||||
(1) Adjusted book value per share is a Non-GAAP financial measure. See a reconciliation of book value per share to Non-GAAP adjusted book value per share under the heading “Non-GAAP Financial Measures” that follows. |
NEWS RELEASE CONTINUES |
CONSOLIDATED KEY RATIOS | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Current accident year net loss ratio | 79.6 | % | 79.5 | % | 81.1 | % | 80.2 | % | |||||||||||||||
Effect of prior accident years’ reserve development | (2.5 | %) | (7.6 | %) | 0.2 | % | (4.7 | %) | |||||||||||||||
Net loss ratio | 77.1 | % | 71.9 | % | 81.3 | % | 75.5 | % | |||||||||||||||
Underwriting expense ratio | 31.1 | % | 31.3 | % | 29.7 | % | 29.1 | % | |||||||||||||||
Combined ratio | 108.2 | % | 103.2 | % | 111.0 | % | 104.6 | % | |||||||||||||||
Operating ratio | 95.4 | % | 94.3 | % | 98.3 | % | 96.3 | % | |||||||||||||||
Return on equity(1) | 3.2 | % | (0.4 | %) | 0.5 | % | (0.7 | %) | |||||||||||||||
Non-GAAP operating return on equity(1)(2) | 3.0 | % | 5.3 | % | 0.1 | % | 3.7 | % | |||||||||||||||
Combined ratio, excluding transaction-related costs(3) | 108.2 | % | 102.9 | % | 111.0 | % | 104.3 | % | |||||||||||||||
(1) Quarterly amounts are annualized. Refer to our June 30, 2023 report on Form 10-Q under the heading “Non-GAAP Operating ROE” in the Executive Summary of Operations section for details on our calculation. | |||||||||||||||||||||||
(2) See a reconciliation of ROE to Non-GAAP operating ROE under the heading “Non-GAAP Financial Measures” that follows. | |||||||||||||||||||||||
(3) Our consolidated underwriting expense ratio for the three and six months ended June 30, 2022 includes $0.7 million and $1.9 million, respectively, of transaction-related costs included in consolidated operating expenses associated with our acquisition of NORCAL. These costs do not reflect normal operating results. | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||
Gross premiums written | $ | 170,174 | $ | 167,760 | 1.4 | % | $ | 409,049 | $ | 425,433 | (3.9 | %) | |||||||||||||||||||||||
Net premiums written | $ | 145,562 | $ | 150,015 | (3.0 | %) | $ | 359,627 | $ | 384,853 | (6.6 | %) | |||||||||||||||||||||||
Net premiums earned | $ | 178,902 | $ | 183,547 | (2.5 | %) | $ | 358,245 | $ | 381,514 | (6.1 | %) | |||||||||||||||||||||||
Other income | 1,021 | 1,903 | (46.3 | %) | 2,014 | 2,924 | (31.1 | %) | |||||||||||||||||||||||||||
Total revenues | 179,923 | 185,450 | (3.0 | %) | 360,259 | 384,438 | (6.3 | %) | |||||||||||||||||||||||||||
Net losses and loss adjustment expenses | (145,044) | (137,002) | 5.9 | % | (309,096) | (302,960) | 2.0 | % | |||||||||||||||||||||||||||
Underwriting, policy acquisition and operating expenses | (47,439) | (48,077) | (1.3 | %) | (88,399) | (90,958) | (2.8 | %) | |||||||||||||||||||||||||||
Total expenses | (192,483) | (185,079) | 4.0 | % | (397,495) | (393,918) | 0.9 | % | |||||||||||||||||||||||||||
Segment results | $ | (12,560) | $ | 371 | (3,485.4 | %) | $ | (37,236) | $ | (9,480) | (292.8 | %) |
SPECIALTY P&C SEGMENT KEY RATIOS | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Current accident year net loss ratio | 84.7 | % | 84.1 | % | 86.0 | % | 85.0 | % | |||||||||||||||
Effect of prior accident years’ reserve development | (3.6 | %) | (9.5 | %) | 0.3 | % | (5.6 | %) | |||||||||||||||
Net loss ratio | 81.1 | % | 74.6 | % | 86.3 | % | 79.4 | % | |||||||||||||||
Underwriting expense ratio | 26.5 | % | 26.2 | % | 24.7 | % | 23.8 | % | |||||||||||||||
Combined ratio | 107.6 | % | 100.8 | % | 111.0 | % | 103.2 | % |
NEWS RELEASE CONTINUES |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||
Gross premiums written | $ | 62,757 | $ | 63,634 | (1.4 | %) | $ | 136,187 | $ | 135,752 | 0.3 | % | |||||||||||||||||||||||
Net premiums written | $ | 42,323 | $ | 42,558 | (0.6 | %) | $ | 89,894 | $ | 87,824 | 2.4 | % | |||||||||||||||||||||||
Net premiums earned | $ | 41,018 | $ | 41,709 | (1.7 | %) | $ | 81,821 | $ | 82,393 | (0.7 | %) | |||||||||||||||||||||||
Other income | 651 | 517 | 25.9 | % | 1,232 | 1,199 | 2.8 | % | |||||||||||||||||||||||||||
Total revenues | 41,669 | 42,226 | (1.3 | %) | 83,053 | 83,592 | (0.6 | %) | |||||||||||||||||||||||||||
Net losses and loss adjustment expenses | (29,762) | (27,947) | 6.5 | % | (60,606) | (55,158) | 9.9 | % | |||||||||||||||||||||||||||
Underwriting, policy acquisition and operating expenses | (14,400) | (13,669) | 5.3 | % | (27,379) | (26,669) | 2.7 | % | |||||||||||||||||||||||||||
Total expenses | (44,162) | (41,616) | 6.1 | % | (87,985) | (81,827) | 7.5 | % | |||||||||||||||||||||||||||
Segment results | $ | (2,493) | $ | 610 | (508.7 | %) | $ | (4,932) | $ | 1,765 | (379.4 | %) |
WORKERS’ COMPENSATION INSURANCE SEGMENT KEY RATIOS | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Current accident year net loss ratio | 72.6 | % | 71.8 | % | 72.6 | % | 71.8 | % | |||||||||||||||
Effect of prior accident years’ reserve development | 0.0 | % | (4.8 | %) | 1.5 | % | (4.9 | %) | |||||||||||||||
Net loss ratio | 72.6 | % | 67.0 | % | 74.1 | % | 66.9 | % | |||||||||||||||
Underwriting expense ratio | 35.1 | % | 32.8 | % | 33.5 | % | 32.4 | % | |||||||||||||||
Combined ratio | 107.7 | % | 99.8 | % | 107.6 | % | 99.3 | % |
NEWS RELEASE CONTINUES |
SEGREGATED PORTFOLIO CELL REINSURANCE SEGMENT RESULTS | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||
Gross premiums written | $ | 25,113 | $ | 16,634 | 51.0 | % | $ | 47,994 | $ | 45,003 | 6.6 | % | |||||||||||||||||||||||
Net premiums written | $ | 23,057 | $ | 14,515 | 58.8 | % | $ | 43,005 | $ | 39,732 | 8.2 | % | |||||||||||||||||||||||
Net premiums earned | $ | 24,094 | $ | 16,222 | 48.5 | % | $ | 39,394 | $ | 35,536 | 10.9 | % | |||||||||||||||||||||||
Net investment income | 603 | 211 | 185.8 | % | 1,024 | 323 | 217.0 | % | |||||||||||||||||||||||||||
Net investment gains (losses) | 1,194 | (2,782) | 142.9 | % | 2,355 | (3,493) | 167.4 | % | |||||||||||||||||||||||||||
Other income | 1 | 1 | — | % | 1 | 1 | — | % | |||||||||||||||||||||||||||
Net losses and loss adjustment expenses | (13,816) | (9,272) | 49.0 | % | (22,238) | (20,763) | 7.1 | % | |||||||||||||||||||||||||||
Underwriting, policy acquisition and operating expenses | (6,538) | (5,237) | 24.8 | % | (11,575) | (9,605) | 20.5 | % | |||||||||||||||||||||||||||
SPC U.S. federal income tax expense(1) | (994) | (349) | 184.8 | % | (1,526) | (991) | 54.0 | % | |||||||||||||||||||||||||||
SPC net results | 4,544 | (1,206) | 476.8 | % | 7,435 | 1,008 | 637.6 | % | |||||||||||||||||||||||||||
SPC dividend (expense) income (2) | (3,747) | 854 | 538.8 | % | (5,689) | (1,513) | 276.0 | % | |||||||||||||||||||||||||||
Segment results (3) | $ | 797 | $ | (352) | 326.4 | % | $ | 1,746 | $ | (505) | 445.7 | % | |||||||||||||||||||||||
(1) Represents the provision for U.S. federal income taxes for SPCs at Inova Re, which have elected to be taxed as a U.S. corporation under Section 953(d) of the Internal Revenue Code. U.S. federal income taxes are included in the total SPC net results and are paid by the individual SPCs. | |||||||||||||||||||||||||||||||||||
(2) Represents the net (profit) loss attributable to external cell participants. | |||||||||||||||||||||||||||||||||||
(3) Represents our share of the net profit (loss) and OCI of the SPCs in which we participate. |
SEGREGATED PORTFOLIO CELL REINSURANCE SEGMENT KEY RATIOS | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Current accident year net loss ratio | 62.9 | % | 70.7 | % | 63.7 | % | 67.3 | % | |||||||||||||||
Effect of prior accident years’ reserve development | (5.6 | %) | (13.5 | %) | (7.2 | %) | (8.9 | %) | |||||||||||||||
Net loss ratio | 57.3 | % | 57.2 | % | 56.5 | % | 58.4 | % | |||||||||||||||
Underwriting expense ratio | 27.1 | % | 32.3 | % | 29.4 | % | 27.0 | % | |||||||||||||||
Combined ratio | 84.4 | % | 89.5 | % | 85.9 | % | 85.4 | % | |||||||||||||||
NEWS RELEASE CONTINUES |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||
Gross premiums written | $ | 4,997 | $ | 4,081 | 22.4 | % | $ | 8,486 | $ | 9,897 | (14.3 | %) | |||||||||||||||||||||||
Net premiums written | $ | 3,104 | $ | 3,063 | 1.3 | % | $ | 6,429 | $ | 8,657 | (25.7 | %) | |||||||||||||||||||||||
Net premiums earned | $ | 3,848 | $ | 5,793 | (33.6 | %) | $ | 8,189 | $ | 13,539 | (39.5 | %) | |||||||||||||||||||||||
Net investment income | 137 | 143 | (4.2 | %) | 325 | 355 | (8.5 | %) | |||||||||||||||||||||||||||
Net investment gains (losses) | 33 | (485) | 106.8 | % | 22 | (884) | 102.5 | % | |||||||||||||||||||||||||||
Other income (loss) | 5 | 129 | (96.1 | %) | 2 | 263 | (99.2 | %) | |||||||||||||||||||||||||||
Net losses and loss adjustment expenses | (2,436) | (3,449) | (29.4 | %) | (4,414) | (8,212) | (46.2 | %) | |||||||||||||||||||||||||||
Underwriting, policy acquisition and operating expenses | (1,434) | (1,508) | (4.9 | %) | (3,155) | (4,218) | (25.2 | %) | |||||||||||||||||||||||||||
Segment results | $ | 153 | $ | 623 | (75.4 | %) | $ | 969 | $ | 843 | 14.9 | % |
LLOYD’S SYNDICATES SEGMENT KEY RATIOS | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Current accident year net loss ratio | 23.8 | % | 14.1 | % | 38.4 | % | 29.9 | % | |||||||||||||||
Effect of prior accident years’ reserve development | 39.5 | % | 45.4 | % | 15.5 | % | 30.8 | % | |||||||||||||||
Net loss ratio | 63.3 | % | 59.5 | % | 53.9 | % | 60.7 | % | |||||||||||||||
Underwriting expense ratio | 37.3 | % | 26.0 | % | 38.5 | % | 31.2 | % | |||||||||||||||
Combined ratio | 100.6 | % | 85.5 | % | 92.4 | % | 91.9 | % |
NEWS RELEASE CONTINUES |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||
Net investment income | $ | 30,910 | $ | 21,590 | 43.2 | % | $ | 60,611 | $ | 41,709 | 45.3 | % | |||||||||||||||||||||||
Equity in earnings (loss) of unconsolidated subsidiaries: | |||||||||||||||||||||||||||||||||||
All other investments, primarily investment fund LPs/LLCs | 8,143 | 7,028 | 15.9 | % | 7,376 | 17,035 | (56.7 | %) | |||||||||||||||||||||||||||
Tax credit partnerships | (1,511) | (1,848) | (18.2 | %) | (1,865) | (4,236) | (56.0 | %) | |||||||||||||||||||||||||||
Total equity in earnings (loss) of unconsolidated subsidiaries: | 6,632 | 5,180 | 28.0 | % | 5,511 | 12,799 | (56.9 | %) | |||||||||||||||||||||||||||
Net investment gains (losses) | (281) | (20,617) | (98.6 | %) | 481 | (33,013) | 101.5 | % | |||||||||||||||||||||||||||
Other income (loss) | 2,173 | 3,626 | (40.1 | %) | 2,500 | 5,691 | (56.1 | %) | |||||||||||||||||||||||||||
Operating expenses | (8,275) | (9,019) | (8.2 | %) | (16,477) | (17,756) | (7.2 | %) | |||||||||||||||||||||||||||
Interest expense | (5,502) | (4,919) | 11.9 | % | (10,965) | (9,360) | 17.1 | % | |||||||||||||||||||||||||||
Income tax (expense) benefit | (2,927) | 1,789 | 263.6 | % | (755) | 3,559 | 121.2 | % | |||||||||||||||||||||||||||
Segment results | $ | 22,730 | $ | (2,370) | 1059.1 | % | $ | 40,906 | $ | 3,629 | 1027.2 | % | |||||||||||||||||||||||
Consolidated effective tax rate | 21.6% | 53.8% | 14.5% | 43.1% |
NEWS RELEASE CONTINUES |
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP OPERATING INCOME (LOSS) | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
(In thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income (loss) | $ | 10,627 | $ | (1,659) | $ | 4,453 | $ | (5,219) | |||||||||||||||
Items excluded in the calculation of Non-GAAP operating income (loss): | |||||||||||||||||||||||
Net investment (gains) losses (1) | (2,946) | 23,884 | (5,858) | 37,390 | |||||||||||||||||||
Net investment gains (losses) attributable to SPCs which no profit/loss is retained (2) | 939 | (2,198) | 1,852 | (2,800) | |||||||||||||||||||
Transaction-related costs (3) | — | 685 | — | 1,862 | |||||||||||||||||||
Guaranty fund assessments (recoupments) | 1 | 113 | (74) | 125 | |||||||||||||||||||
Pre-tax effect of exclusions | (2,006) | 22,484 | (4,080) | 36,577 | |||||||||||||||||||
Tax effect, at 21% (4) | (59) | (4,497) | 117 | (7,350) | |||||||||||||||||||
After-tax effect of exclusions | (2,065) | 17,987 | (3,963) | 29,227 | |||||||||||||||||||
Non-GAAP operating income (loss) | $ | 8,562 | $ | 16,328 | $ | 490 | $ | 24,008 | |||||||||||||||
Per diluted common share: | |||||||||||||||||||||||
Net income (loss) | $ | 0.20 | $ | (0.03) | $ | 0.08 | $ | (0.10) | |||||||||||||||
Effect of exclusions | (0.04) | 0.33 | (0.07) | 0.54 | |||||||||||||||||||
Non-GAAP operating income (loss) per diluted common share | $ | 0.16 | $ | 0.30 | $ | 0.01 | $ | 0.44 | |||||||||||||||
NEWS RELEASE CONTINUES |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
ROE(1) | 3.2 | % | (0.4 | %) | 0.5 | % | (0.7 | %) | |||||||||||||||
Pre-tax effect of items excluded in the calculation of Non-GAAP operating ROE | (0.2 | %) | 7.2 | % | (0.4 | %) | 5.5 | % | |||||||||||||||
Tax effect, at 21%(2) | — | % | (1.5 | %) | — | % | (1.1 | %) | |||||||||||||||
Non-GAAP operating ROE | 3.0 | % | 5.3 | % | 0.1 | % | 3.7 | % | |||||||||||||||
(1) Quarterly amounts are annualized. Refer to our June 30, 2023 report on Form 10-Q under the heading “Non-GAAP Operating ROE” in the Executive Summary of Operations section for details on our calculation. | |||||||||||||||||||||||
(2) The 21% rate is the statutory tax rate associated with the taxable or tax deductible items. See further discussion in footnote 4 in this section under the heading "Non-GAAP Operating Income." |
Book Value Per Share | |||||
Book Value Per Share at December 31, 2022 | $ | 20.46 | |||
Less: AOCI Per Share(1) | (5.53) | ||||
Non-GAAP Adjusted Book Value Per Share at December 31, 2022 | 25.99 | ||||
Increase (decrease) to Non-GAAP Adjusted Book Value Per Share during the six months ended June 30, 2023 attributable to: | |||||
Dividends declared | (0.05) | ||||
Cumulative repurchase of shares(2) | 0.32 | ||||
Net income (loss) | 0.08 | ||||
Other(3) | (0.03) | ||||
Non-GAAP Adjusted Book Value Per Share at June 30, 2023 | 26.31 | ||||
Add: AOCI Per Share(1) | (5.07) | ||||
Book Value Per Share at June 30, 2023 | $ | 21.24 | |||
(1) Primarily the impact of accumulated unrealized investment gains (losses) on our available-for-sale fixed maturity investments. See Note 9 of the Notes to Condensed Consolidated Financial Statements in our June 30, 2023 report on Form 10-Q for additional information. | |||||
(2) Represents the impact of our repurchase of 1.4 million common shares, conducted through a 10b5-1 stock repurchase plan during the second quarter of 2023. See Note 9 of the Notes to Condensed Consolidated Financial Statements in our June 30, 2023 report on Form 10-Q for additional information. | |||||
(3) Includes the impact of share-based compensation. | |||||
NEWS RELEASE CONTINUES |
8B^D=6;(JQ
M>KECDC:HOJ45]H'9F>%<3SZ>L3&"\]_II\IP9)G:N_GW5HMBG?K/)%I^]#\^
M_:/V4G@_%=1IJUF-/>?M&DGR^SY9F:TB?7%:+89WZSR1:?O0Y@ A2"
M #H !VX['_:]SG$V=6U523(:[D)H_E_ >8C([;&]&I?HJ_\ .ZV8K,5?
M*G7I%
1-&Q^S83*Z_E8&V,;F,?:QUV)R(O6"U$^)[F
M+\62Q=4E@D:J/BFC9)&YKV- UD^O8>U+3UVG+95[6/9;V2O9R"UF1S?78"&2P^JY*K; >1]JS^'S^QTL/O6.R>4LS8*;7,[ B1P2O:QTK8B>>S;M+_ &9Q7!EO.V#-/V;4;SM$8LMJ
M[7F?+NLD4R3/Y:VKTYI;#]E_:G^R>,:?->T5T^>?LNJF9VK&'-:L=Y,^$=SD
MBF69V^[6U>G-*8BCNID_GKR->U'- RS-Q)VB.0\'%3GJX'/9:7=M6DDC>R&QAMJDDR4\=:22Q;?,W&9R3+XF
M5\MAUASJ;;%B&LEJ&%NL-";Y[5?V94R.H 8P\[EQ&8:B23/J1XG+6999LC96.2.WX%17V1NTK
MF.'N3--Y*P;E]]U3,P79ZZ.>QN1P\S74\_B)7QLED2'*86Q=IN5D4SF2213)
M!8=$V"2VGT'=\5LF%Q6P8*]#D\-FL?3RF*R%=WB@NX^_7CM5+,2JB.\,L$K'
M]'(US556O:U[7-0/;P !P>O1%7X=/7[7S_E]X@&>T_=K
MF/;N6L#Q;B[+9L5QABUMYIGD-:]NZ[-!'8GA=.KGOD9CM8^1VL8QM=K9LK<2
M9MKPU)89R_/_ #)BN/-)VO>LV[PXG4=?RVQ7VM?$R6:OB:4UQU6OY[XXWVKC
MHFU*D*O1T]F>&&-'22,8ZI!Y?Y7S&][9LNZ[#8FMYO:LWD\_DYIY&RO2SE+<
MEI8$>R*"+RJ<7/6@C=EKEICI8E2.:*)+.Z[L
MX]\+VYD%:K"R6U%/H)H?;K]EPJ2I=S_ .Q+1E1DEC^I_N-J6S2E>GC>ZM
MK^U^!]RDKT1K:E/8(;U?S?SI^8I5GQNIP^N4N*MGT?/9#5MQP.4UG8L3(V'(
MX;,575;U21S&2L\3>KX9H98I&20VJLMBG8C>V2M8EC
.19G?=S>SB\<<:,H[-RS[CRAN[88)?
MDFW59+Q_K]SI'(_Y.QEJ".QL-F"1)88\IGV-K20N22O@*,Z),LD6CCH:T,5>
MO%'#!7CCA@@B8V*&"*)B1QQ0Q,:V.*..-J,9'&UK&-1&M:B(G0(6O!OLG.6D
M]WGY+Y;I54ZQ/M8K0\%+<7ZVZOG0-S^Q/JM>RQCFM\%AFNUY:=R9W6*Y#61U
MC;QQ?[.%V6];]Q?=G)&1^DVKZBW'WKF/]Y1_6+W_-9#!1V*_E_V9CXKD3I6P^?!9@4HWYU
MY$ACVZ9%)$UNG-7EZQOBQ%>*YL
M4JRL>C+=;"K'&YSW358\SBQ#]F1XWH8?LSU
JO=Y<,;&>)Z
MJYW17.57*J@?N@ ZN]M#L[U>6.*M^XZMK&QFVZSE,37FFZI'5R4D"R
MXBZKFU[4D?N66AI6FRP5Y+,*P^951MAL3VU)F4Q%W'V[6/R->6ID2I?JS0N^NAEJW(9J\L+NCHI8W1N^N:J%RE(WJU4_R_.B_,J?;0
MK1N_U[*4/%O:-V67'1+%@N1*T?(6*B\NI#'6M96S/4V2A!%55B)7K9VI/:A<
MZK6_.LG%!_9S