The Navigators Group, Inc. (NAVG) has reported a 7.95 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $21.11 million, or $0.70 a share in the quarter, compared with $22.93 million, or $0.77 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $20.41 million, or $0.68 a share compared with $20.24 million or $0.68 a share, a year ago.
Revenue during the quarter grew 7.12 percent to $308.60 million from $288.10 million in the previous year period.
Total expenses move up
Operating income for the quarter was $28.76 million, compared with $32.92 million in the previous year period. Net investment income was at $21.45 million for the quarter, up 9.46 percent or $1.85 million from year-ago period. The company has booked a loss on investments of $0.04 million in the quarter compared with a gain of $1.60 million for the previous year period.
Stan Galanski, president and chief executive officer, commented, "We are pleased to report profitable underwriting results and reasonable premium growth for the quarter. Our U.S. Insurance and Global Reinsurance segments had excellent quarters, achieving double digit premium growth and increased underwriting profit over first quarter 2016. Cost control continues to be a priority and our other operating expenses were down 3.7% from first quarter 2016, offset by increased commission levels in large part resulting from competitive market conditions. This is evident in the results of our International Insurance segment, which continues to be challenged by soft trading conditions, particularly in the London market. Our investment portfolio continued to perform well. Book value per share increased 1.2% during the quarter."
Liabilities outpace assets growth
Total assets increased 5.55 percent or $260.71 million to $4,957.34 million on Mar. 31, 2017. On the other hand, total liabilities were at $3,751.21 million as on Mar. 31, 2017, up 5.59 percent or $198.45 million from year-ago. Return on assets stood at 0.50 percent in the quarter, down 0.07 from 0.57 percent in the last year period. At the same time, return on equity was at 1.75 percent in the quarter, down 0.25 from 2 percent in the last year period.
Investments move up
Investments stood at $3,183.11 million as on Mar. 31, 2017, up 5.95 percent or $178.80 million from year-ago. Meanwhile, yield on investments went up 2 basis points to 0.67 percent in the quarter. Total debt was almost stable over the past one year at $263.77 million on Mar. 31, 2017. Shareholders equity stood at $1,206.14 million as on Mar. 31, 2017, up 5.44 percent or $62.26 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.22 percent in the quarter from 0.23 percent in the last year period.
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