National General Holdings Corp (NGHC) has reported 26.11 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $41.99 million, or $0.31 a share in the quarter, compared with $56.83 million, or $0.49 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $41.28 million, or $0.38 a share compared with $53.73 million or $0.50 a share, a year ago. Revenue during the quarter surged 42.12 percent to $1,102.79 million from $775.96 million in the previous year period. During the quarter, the company has written premium worth $1,126.74 million on net basis, up 51.32 percent or $382.15 million.
Total expenses increase substantially
Operating income for the quarter was $44.43 million, compared with $68.24 million in the previous year period. Net investment income was at $26.39 million for the quarter, up 21.78 percent or $4.72 million from year-ago period. Meanwhile, income from fees and commission for the quarter jumped 53.54 percent or $50.89 million to $145.94 million. The company has booked a loss on investments of $0.16 million in the quarter compared with a gain of $3.62 million for the previous year period.
Barry Karfunkel, National General’s President and Chief executive officer, stated: “The first quarter saw strong organic growth in our Property and Casualty segment, especially in our auto book, as we continue to take advantage of the current market dislocation. The opportunity that we are seeing in the market is exceptional, and we are excited to be in a position to benefit from it. Our Accident and Health segment had another strong quarter, as the segment has built the scale to be a significant contributor to earnings moving forward. Internally, we remain focused on integrating recent acquisitions and enhancing the capabilities of our state-of-the-art platform.”
Liabilities outpace assets growth
Total assets increased 34.11 percent or $1,973.24 million to $7,757.48 million on Mar. 31, 2017. On the other hand, total liabilities were at $5,797.90 million as on Mar. 31, 2017, up 38.77 percent or $1,619.75 million from year-ago. Return on assets stood at 0.61 percent in the quarter, down 0.53 from 1.14 percent in the last year period. At the same time, return on equity was at 1.74 percent in the quarter, down 1.54 from 3.28 percent in the last year period.
Investments increase substantially
Investments stood at $3,835.70 million as on Mar. 31, 2017, up 40.06 percent or $1,097.03 million from year-ago. Meanwhile, yield on investments went down 10 basis points to 0.69 percent in the quarter. Meanwhile, reinsurance recoverables moved up 632.53 percent or $835.93 million over the year to $968.09 million on Mar. 31, 2017.
Total debt was at $745.96 million as on Mar. 31, 2017, up 67.16 percent or $299.72 million from year-ago. Shareholders equity stood at $1,959.58 million as on Mar. 31, 2017, up 22.01 percent or $353.48 million from year-ago. As a result, debt to equity ratio went up 10 basis points to 0.38 percent in the quarter from 0.28 percent in the last year period.
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