Monday, ProAssurance Corp. (PRA), reported an increase in profit for the third quarter ended September 30, attributed to higher net premium earned by the company, as well as an investment gain during the quarter.
ProAssurance reported a net income for the third quarter increased of $55.20 million or $1.67 per share, compared to $22.24 million or $0.66 per share a year ago. On average, six analysts polled by Thomson Reuters expected the company to earn $1.23 per share for the quarter. Analysts' estimates typically exclude special items.
Operating income for the quarter increased to $52.219 million or $1.58 per share from $44.269 million or $1.31 a year ago.
The property and casualty insurer's net premium written increased to $158.70 million from $116.40 million a year-ago. The net premium earned rose to $131.95 million from $113.44 million in the prior year period. Net investment income declined to $38.57 million from $39.84 million a year-ago. Net realized investment gains for the quarter were $7.27 million, compared with a loss of $34.23 million a year-ago.
ProAssurance's total revenues for the quarter increased to $182.59 million from $118.08 million in the comparable period a year-ago. Analysts estimated revenues of $165.42 million for the quarter.
The company's total expenses increased to $103.11 million from $90.89 million during the prior year quarter.
According to the company, the combined ratio for the quarter declined to 74.6% from 79.0% year-ago.
ProAssurance said that it purchased approximately 41,000 shares of its common stock in the open market at a cost of $2.1 million during the third quarter, bringing the total share repurchase through the first nine months of the year to approximately 881,000 shares, at a cost of $38.1 million.
Since the end of the third quarter, the company has purchased approximately 250,000 shares at a cost of $12.9 million, which leaves $116.3 million left in its outstanding authorization, including the additional $100 million authorized for repurchase by the company's Board in September, 2009.
Year-to-date net income increased to $137.44 million or $4.13 per share, compared with $101.43 or $2.98 per share in the prior year period. Year-to-date revenues increased to $488.80 million from $430.77 million in the prior year period.
PRA closed Monday's trade on the New York Stock Exchange at $50.73, up $0.45 or 0.89%. In the after-hours, the stock further rose $0.17 or 0.34% to trade at $50.90.
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