National General Holdings Corp (NGHC) has reported 117.38 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $38.79 million, or $0.28 a share in the quarter, compared with $17.84 million, or $0.13 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $32.56 million, or $0.30 a share compared with $42.26 million or $0.39 a share, a year ago. Revenue during the quarter grew 27.31 percent to $1,031.18 million from $810.01 million in the previous year period. During the quarter, the company has written premium worth $782.88 million on net basis, up 20.23 percent or $131.71 million.
Total expenses increase substantially
Operating income for the quarter was $39.98 million, compared with $24.64 million in the previous year period. Net investment income was at $22.71 million for the quarter, up 1.46 percent or $0.33 million from year-ago period. Meanwhile, income from fees and commission for the quarter moved up marginally by 2.21 percent or $2.59 million to $119.39 million. The company has recorded a gain on investments of $6.81 million in the quarter compared with a loss of $7.29 million for the previous year period.
Barry Karfunkel, National General’s President and Chief executive officer, stated: “This was a year of growth for National General. We experienced significant top line expansion, driven by both organic opportunities and recent acquisitions, entered into a renewal rights transaction with Nationwide for its non-standard auto business, and recorded a solid ROE of 12% despite an increase in catastrophe losses in our Property and Casualty segment. So far in 2017, we have announced our acquisition of Quotit® Corporation and HealthCompare® from The Word & Brown Companies, which will allow us to provide a single quote and bind platform to our agents for both major medical and supplemental products. We continue to leverage our industry leading technology infrastructure and take advantage of the vast opportunity that we are experiencing in the market today. All of these pieces contribute to building a premier personal lines company from which we expect to generate strong results.”
Liabilities outpace assets growth
Total assets increased 30.23 percent or $1,681.59 million to $7,244.98 million on Dec. 31, 2016. On the other hand, total liabilities were at $5,319.48 million as on Dec. 31, 2016, up 32.10 percent or $1,292.72 million from year-ago. Return on assets stood at 0.81 percent in the quarter, up 0.20 from 0.61 percent in the last year period. At the same time, return on equity was at 1.61 percent in the quarter, up 0.71 from 0.89 percent in the last year period.
Investments increase substantially
Investments stood at $3,548.45 million as on Dec. 31, 2016, up 33.01 percent or $880.74 million from year-ago. Meanwhile, yield on investments went down 20 basis points to 0.64 percent in the quarter. Meanwhile, reinsurance recoverables moved up 5.72 percent or $47.62 million over the year to $880.80 million on Dec. 31, 2016.
Total debt was at $752 million as on Dec. 31, 2016, up 52.99 percent or $260.46 million from year-ago. Shareholders equity stood at $1,925.50 million as on Dec. 31, 2016, up 25.31 percent or $388.86 million from year-ago. As a result, debt to equity ratio went up 7 basis points to 0.39 percent in the quarter from 0.32 percent in the last year period.
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