MORRISTOWN, N.J., Feb. 24, 2020 /PRNewswire/ -- ProSight
Global, Inc. (NYSE: PROS) (ProSight) today reported results for the
fourth quarter of 2019.
Highlights for the three months ended December 31, 2019 include:
- Gross written premiums ("GWP") for customer segments
(2) increased 19.1%, to $249.0
million for the fourth quarter of 2019, as compared to the
fourth quarter of 2018, with growth in GWP across all customer
segments. The growth in the fourth quarter of 2019 included
$4.4 million of GWP from niches added
during 2019.
- The combined ratio was 97.2% for the fourth quarter of 2019,
compared to 95.1% for the fourth quarter of 2018.
- There were no catastrophe losses for the fourth quarter of
2019, compared to $3.6 million of
catastrophe losses (1.8 percentage points) for the fourth quarter
of 2018.
- The loss ratio was 61.9% for the fourth quarter of 2019,
compared to 58.6% for the fourth quarter of 2018. The adjusted loss
ratio (3) was 61.5% for the fourth quarter of 2019,
compared to 58.6% for the fourth quarter of 2018.
- The expense ratio was 35.3% for the fourth quarter of 2019,
compared to 36.5% for the fourth quarter of 2018. The
adjusted expense ratio (3) was 35.7% for the fourth
quarter of 2019, compared to 36.5% for the fourth quarter of
2018.
- Net investment income increased 37.1% to $17.4 million for the fourth quarter of 2019,
compared to the fourth quarter of 2018.
- The annualized return on equity ("ROE") was 11.0% for the
fourth quarter of 2019 and the annualized adjusted operating return
on equity (4) ("adjusted operating ROE") was 11.9% for
the fourth quarter of 2019.
Highlights for the year ended December
31, 2019 include:
- Gross written premiums for customer segments (2)
increased 16.7%, to $899.8 million
for the full year 2019 compared to the full year 2018, with growth
in GWP across all customer segments. The growth in the year
included $21.0 million of GWP from
niches added during 2019.
- The combined ratio was 98.0% for the full year 2019 compared to
96.7% for the full year 2018.
- There were $3.0 million of
catastrophe losses (0.4 percentage points) for the full year
2019 compared to $3.6 million of
catastrophe losses (0.5 percentage points) for the full year
2018.
- The loss ratio was 62.0% for the full year 2019 compared to
59.5% for the full year 2018. The adjusted loss ratio
(3) was 61.4% for full year 2019 compared to 59.6% for
the full year 2018.
- The expense ratio was 36.0% for the full year 2019 compared to
37.2% for the full year 2018. The adjusted expense ratio
(3) was 36.6% for the full year 2019 compared to 37.0%
for the full year 2018.
- Net investment income increased 23.1% to $68.9 million for the full year 2019 compared to
the full year 2018.
- Fully diluted book value per share grew by 21.6% to
$12.01, for the year ended
December 31, 2019.
- The return on equity was 9.8% for the full year 2019, and the
adjusted operating return on equity (4) was 12.4%
for the full year 2019.
From ProSight CEO Larry
Hannon:
"I would like to thank all of our employees who contributed to
our exceptional fourth quarter and full-year results. Coupled
with the strong support of our distribution partners, the ProSight
team delivered excellent financial results consistent with our high
expectations, including strong net income from continuing
operations, and record-level annual GWP and adjusted operating
income. Our success in 2019 is further evidence that our
focus on specific niches and ability to deliver differentiated
offerings that are valuable to our customers position us to deliver
double-digit top line growth, ROE, and increases in book value over
the long term. As we enter 2020, I believe we are poised to
build upon last year's achievements and success."
Results of Operations for the three months ended December 31, 2019
Net income from continuing operations was $14.7
million, or $0.33 per diluted
share, for the fourth quarter of 2019 compared to $13.5 million, or $0.34 per diluted share, for the fourth
quarter of 2018. Adjusted operating income (1) was
$16.0 million, or $0.36 per diluted share, for the fourth quarter
of 2019 compared to $15.7 million, or
$0.40 per diluted share, for
the fourth quarter of 2018.
GWP including Other (2), increased 12.7% for the
fourth quarter of 2019 when compared to the fourth quarter of 2018.
GWP (2) from customer segments was $249.0
million for the fourth quarter of 2019 compared to $209.1
million for the fourth quarter of 2018, an increase of 19.1%.
The growth was largest within the Transportation, Real Estate and
Consumer Services customer segments. Other GWP (2)
were $0.9 million for the fourth
quarter of 2019 compared to $12.7
million for the fourth quarter of 2018, the decrease driven
by the exit from excess workers' compensation.
Underwriting income (1) was $5.7
million for the fourth quarter of 2019 compared to $9.5
million for the fourth quarter of 2018. The combined
ratio for the fourth quarter of 2019 was 97.2% compared to 95.1%
for the fourth quarter of 2018. The decrease in underwriting
income (1) was due to changes in:
- The loss ratio was 61.9% for the fourth quarter of 2019
compared to 58.6% for the fourth quarter of 2018.
Excluding the effect of the whole account quota share reinsurance
agreements (the "WAQS"), the adjusted loss ratio
(3) was 61.5% for the fourth quarter of 2019
compared to 58.6% for the fourth quarter of
2018.
The adjusted loss ratio (3) for the fourth quarter
of 2019 included a current accident year loss ratio (excluding
catastrophe losses) of 61.5% compared to a current accident year
loss ratio (excluding catastrophe losses) of 57.3% in the fourth
quarter of 2018. There were no catastrophe losses in the
fourth quarter of 2019 compared to $3.6
million of catastrophe losses (1.8 percentage points) in the
fourth quarter of 2018. The adjusted loss ratio
(3) for the fourth quarter of 2019 included
$0.1 million (0.0 percentage points)
of favorable prior accident year loss development compared to
$1.0 million (0.5 percentage points)
of favorable prior accident year loss development in the fourth
quarter of 2018.
- The expense ratio was 35.3% for the fourth quarter of 2019
compared to 36.5% in the fourth quarter of 2018.
Excluding the effect of the WAQS, the adjusted expense
ratio (3) was 35.7% for the fourth quarter of
2019 compared to 36.5% in the fourth quarter of 2018.
Excluding the WAQS, the policy acquisition expense ratio was 23.0%
in the fourth quarter of 2019 compared to 23.6% in the fourth
quarter of 2018 and general & administrative expense ratio was
12.7% in the fourth quarter of 2019 compared to 12.9% in the fourth
quarter of 2018.
Net investment income increased by 37.1% to $17.4
million for the fourth quarter of 2019, from $12.7
million for the fourth quarter of 2018. The increase in net
investment income was driven by an increase in the size of the
investment portfolio and improved performance of limited
partnerships. The net annualized yield on average invested assets
at book value was 3.3% for the fourth quarter of 2019 and 2.7% for
the fourth quarter of 2018. Realized investment gains, net,
for the fourth quarter of 2019 were $0.3 million compared to realized investment
losses, net, of $2.4 million for the
fourth quarter of 2018.
Results of Operations for the year ended December 31, 2019
Net income from continuing operations was $45.5
million, or $1.10 per diluted
share, for the full year 2019 compared to $53.7 million, or $1.36 per diluted share, for the full year
2018. The decrease in net income resulted from an increase in
other expenses of $16.2 million,
primarily due to vesting of non-recurring grants of restricted
stock units in connection with the initial public offering and
costs related to the departure of our former CEO. Adjusted
operating income (1) was $57.6 million, or $1.39 per diluted share for the full year 2019
compared to $55.3 million, or
$1.40 per diluted share, for the full
year 2018.
GWP including Other (2), increased 8.1% for the full
year 2019 when compared to the full year 2018. GWP (2)
from customer segments was $899.8 million for the full
year 2019 compared to $770.9 million for the full year
2018, an increase of 16.7%. The growth was largest within the Real
Estate, Consumer Services and Transportation customer
segments. Other GWP (2) were $68.2 million for the full year 2019 compared to
$124.2 million for the full year
2018, the decrease driven by the exit from excess workers'
compensation.
Underwriting income (1) was $16.4
million for the full year 2019 compared to $24.4
million for the full year 2018. The combined ratio for
the full year 2019 was 98.0% compared to 96.7% for the full year
2018. The decrease in underwriting income (1) was
due to changes in:
- The loss ratio was 62.0% for the full year 2019 compared
to 59.5% for the full year 2018. Excluding the effect of
the WAQS, the adjusted loss ratio (3) was 61.4% for
the full year 2019 compared to 59.6% for the full
year 2018.
The adjusted loss ratio (3) for the full year 2019
included a current accident year loss ratio (excluding catastrophe
losses) of 61.2% compared to a current accident year loss ratio
(excluding catastrophe losses) of 59.8% for the full year
2018. There were $3.0 million
of catastrophe losses (0.4 percentage points) for the full year
2019 compared to $3.6 million of
catastrophe losses (0.5 percentage points) in the full year 2018.
The adjusted loss ratio (3) for the full year 2019
also included $1.6 million (0.2
percentage points) of favorable prior accident year loss
development compared to $5.0 million
(0.7 percentage points) of favorable prior accident year loss
development in the full year 2018.
- The expense ratio was 36.0% for the full year 2019 compared to
37.2% for the full year 2018. Excluding the effect of
the WAQS, the adjusted expense ratio (3) was
36.6% for the full year 2019 compared to 37.0% for the full year
2018. Excluding the WAQS, the policy acquisition expense
ratio was 23.5% for the full year 2019 compared to 23.6% for the
full year 2018 and general & administrative expense ratio was
13.1% for the full year 2019 compared to 13.4% for the full year
2018.
Net investment income increased by 23.1% to $68.9
million for the full year 2019, from $56.0 million for
the full year 2018. The increase in net investment income was
driven by an increase in the size of the investment portfolio and
improved performance of limited partnerships. Total invested assets
at book value were $2.2
billion at December 31, 2019,
growth of 20.3%, from $1.8 billion at December 31, 2018.
The net yield on average invested assets at book value was 3.4% for
the full year 2019 and 3.2% for the full year 2018. Realized
investment gains, net, for the full year 2019 were
$0.8 million compared to realized
investment losses, net, of $1.6
million for the full year 2018.
Total stockholders' equity was $543.0 million as of
December 31, 2019, compared to
$389.8 million as of December 31, 2018. Tangible stockholders'
equity (5) was $513.8 million as of December 31, 2019, compared $360.6 million as of December 31, 2018. The increases in total
stockholders' equity and tangible stockholders' equity
(5) were driven by an increase in other comprehensive
income of $59.8 million, proceeds
from common stock sold in the initial public offering of
$50.8 million and net income of
$38.9 million for the year ended
December 31, 2019. Fully
diluted book value per share grew by 21.6% to $12.01 at December 31,
2019, compared to $9.88 at December 31, 2018. Fully diluted tangible book
value per share (5) increased by 24.4% to $11.37 at December 31,
2019, compared to $9.14 at
December 31, 2018.
(1). Adjusted
operating income and underwriting income are non-GAAP measures. See
"Reconciliation of Non-GAAP Measures".
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(2). Total GWP for
the fourth quarter of 2019 including Other were $249.9 million.
Total GWP for the year ended December 31, 2019 including Other were
$968.0 million. Other includes GWP from certain niches that are no
longer part of our customer segments. "Other" includes GWP from (i)
primary and excess workers' compensation coverage for exited
Self-Insured Groups (ii) niches exited prior to 2018, many with a
concentration in commercial auto, (iii) certain fronting
arrangements in which all premium written is ceded to a third
party, (iv) participation in industry pools, and (v) emerging new
business.
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(3). Adjusted loss
ratio and adjusted expense ratio are non-GAAP financial measures.
We define adjusted loss ratio and adjusted expense ratio as the
corresponding ratio excluding the effects of the WAQS. We use these
adjusted ratios as internal performance measures in the management
of our operations because we believe they give our management and
other users of our financial information useful insight into our
results of operations and our underlying business performance. Our
adjusted loss ratio and adjusted expense ratio should not be viewed
as substitutes for our loss ratio, expense ratio and combined
ratio, respectively.
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(4). Adjusted
operating return on equity is a non-GAAP measure
Adjusted operating return on equity is adjusted operating income
expressed on an annualized basis as a percentage of average
beginning and ending stockholders' equity during the
period.
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(5). Tangible
stockholders' equity and fully diluted tangible book value per
share are non-GAAP measures. Tangible stockholders' equity is total
common stockholders' equity excluding the value of goodwill and
other intangible assets. Fully diluted tangible book value
per share is total common stockholders' equity excluding value of
goodwill and other intangible assets divided by the number of
common shares outstanding, unvested restricted shares and
vested not issued shares. See "Reconciliation of Non-GAAP
Measures".
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Conference Call
As previously announced, on Tuesday,
February 25, 2020 at 10:00 a.m. EST, ProSight
senior management will host a conference call to discuss fourth
quarter 2019 financial results. The call will be available via
webcast at https://investors.prosightspecialty.com or by
dialing (866) 497-6416 (within the United States) or (825) 312-2248
(international), using the passcode 2172418. A replay of the
call will be available at 1:00 p.m.
on Tuesday, February 25, 2020, until 11:59 p.m. Tuesday,
March 3, 2020, and can be accessed by dialing (800) 585-8367 or
(416) 621-4642, using the passcode 2172418. The webcast will be
available one hour after the call concludes and will be archived on
ProSight's website for one year.
About ProSight
Founded in 2009 and headquartered in Morristown, New Jersey, ProSight Global, Inc.
is an innovative property and casualty insurance company that
designs unique insurance solutions to help customers improve their
business and realize value from their insurance purchasing
decision. The company focuses on select niche industries, deploying
differentiated underwriting and claims expertise with the goal of
enhancing each customer's operating performance. ProSight's
products are sold through a limited and select group of retail and
wholesale distribution partners. Each of ProSight's regulated
insurance company subsidiaries are rated "A-" (Excellent) by A.M.
Best. ProSight's shares trade on the New York Stock Exchange
("NYSE") under the ticker symbol PROS. To learn more about
ProSight visit www.prosightspecialty.com.
Forward-Looking Statements
This release contains forward-looking statements.
Forward-looking statements include statements relating to future
developments in ProSight business or expectations for ProSight's
future financial performance and any statement not involving a
historical fact. Forward-looking statements use words such as
"anticipate," "believe," "estimate," "expect," "intend," "plan,"
"should," "seek," "continue," and other words and terms of similar
meaning. ProSight's management believes that these
forward-looking statements are reasonable as of the time
made. However, caution should be taken not to place undue
reliance on any such forward-looking statements because such
statements speak only as of the date when made. Except as
required by law, ProSight undertakes no obligation to publicly
update any forward-looking statements, whether as a result of new
information, future events, or otherwise. Forward-looking
statements are subject to known and unknown risks and
uncertainties, many of which may be beyond our control. ProSight
cautions you that forward-looking statements are not guarantees of
future performance or outcomes and that actual performance and
outcomes may differ materially from those made in or suggested by
the forward-looking statements contained in this release. For
a discussion of some of the risks and important factors that could
affect ProSight's future results and financial condition, see our
filings with the U.S. Securities and Exchange Commission ("SEC"),
including, but not limited to, the risks and uncertainties included
under the captions "Risk Factors" in ProSight's Annual Report on
Form 10-K for the period ended December 31,
2019 filed on February 24,
2020. References to "we," "us," "our," the "Company" and
"ProSight", refer to ProSight Global, Inc. and its consolidated
subsidiaries.
Reorganization
ProSight was incorporated in Delaware in 2010. Prior to July 25, 2019, ProSight was a wholly-owned
subsidiary of ProSight Global Holdings Limited ("PGHL"), a
Bermuda holding company.
Effective July 25, 2019, PGHL merged
with and into ProSight, with ProSight surviving the merger. As a
result of the merger, all shares of PGHL then outstanding were
converted into the right to receive, without interest, 6.46 shares
of ProSight for each share of PGHL. The historical share and
per share figures contained in this release relating to periods
prior to and including June 30,
2019 have been restated to give effect to this conversion,
including reclassifying an amount equal to the change in value of
common stock to additional paid-in capital, as of the stated period
or date. Further details regarding this merger and related
reorganization transactions are included in ProSight's Annual
Report on Form 10-K for the period ended December 31, 2019 filed on February 24, 2020.
Non-GAAP Financial Measures
In presenting ProSight Global, Inc.'s results, management
has included financial measures that are not calculated under
standards or rules that comprise of U.S. generally accepted
accounting principles ("GAAP"). Such measures, including
underwriting income, adjusted operating income, adjusted operating
return on equity, adjusted loss excluding WAQS, adjusted expense
ratio excluding WAQS, adjusted combined ratio excluding WAQS and
tangible stockholders' equity are referred to as non-GAAP measures.
These non-GAAP measures may be defined or calculated differently by
other companies. These measures should not be viewed as a
substitute for those measures determined in accordance with
GAAP. Reconciliations of these non-GAAP financial measures to
the most comparable GAAP figures are included at the end of this
press release.
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Media:
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Institutional
Investors:
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Joe
Hathaway
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Dean
Evans
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JHathaway@prosightspecialty.com
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DEvans@prosightspecialty.com
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973.532.1706
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973.532.1440
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PROSIGHT GLOBAL,
INC.
CONSOLIDATED
BALANCE SHEETS
($ in thousands,
except per share amounts)
|
|
|
|
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December 31
|
|
December 31
|
|
|
2019
|
|
2018
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Assets
|
|
|
|
|
|
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Investments:
|
|
|
|
|
|
|
Fixed income
securities, available-for-sale at fair value (amortized cost
$1,999,403 in 2019 and $1,729,755 in 2018)
|
|
$
|
2,040,682
|
|
$
|
1,693,382
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Commercial levered
loans at amortized cost (fair value $13,950 in 2019 and $15,858 in
2018)
|
|
|
14,069
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|
|
16,915
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Limited partnerships
and limited liability companies at fair value (cost $62,226 in 2019
and $51,903 in 2018)
|
|
|
66,660
|
|
|
53,432
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Short-term
investments
|
|
|
43,873
|
|
|
36,661
|
Total
investments
|
|
|
2,165,284
|
|
|
1,800,390
|
|
|
|
|
|
|
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Cash and cash
equivalents
|
|
|
17,284
|
|
|
22,279
|
Restricted
cash
|
|
|
10,213
|
|
|
7,621
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Accrued investment
income
|
|
|
13,610
|
|
|
12,279
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Premiums and other
receivables, net
|
|
|
190,004
|
|
|
200,347
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Receivable from
reinsurers on paid losses
|
|
|
3,481
|
|
|
12,428
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Reinsurance
receivables on unpaid losses
|
|
|
193,952
|
|
|
185,295
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Deferred policy
acquisition costs
|
|
|
98,812
|
|
|
93,613
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Prepaid reinsurance
premiums
|
|
|
42,861
|
|
|
44,626
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Net deferred income
taxes
|
|
|
4,803
|
|
|
33,239
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Goodwill and net
intangible assets
|
|
|
29,189
|
|
|
29,219
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Fixed assets and
capitalized software, net
|
|
|
37,167
|
|
|
39,001
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Funds withheld
related to sale of affiliate
|
|
|
19,453
|
|
|
19,397
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Other
assets
|
|
|
29,537
|
|
|
57,653
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Assets of
discontinued operations
|
|
|
21,584
|
|
|
19,719
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Total
assets
|
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$
|
2,877,234
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|
$
|
2,577,106
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|
|
|
|
|
|
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Liabilities
|
|
|
|
|
|
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Reserve for unpaid
losses and loss adjustment expenses
|
|
$
|
1,521,648
|
|
$
|
1,396,812
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Reserve for unearned
premiums
|
|
|
483,223
|
|
|
435,933
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Ceded reinsurance
payable
|
|
|
17,768
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|
|
13,281
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Notes payable, net of
debt issuance costs
|
|
|
164,693
|
|
|
182,355
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Funds held under
reinsurance agreements
|
|
|
58,855
|
|
|
63,165
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Other
liabilities
|
|
|
56,438
|
|
|
73,474
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Liabilities of
discontinued operations
|
|
|
31,578
|
|
|
22,256
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Total
liabilities
|
|
|
2,334,203
|
|
|
2,187,276
|
|
|
|
|
|
|
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Stockholders'
equity
|
|
|
|
|
|
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Preferred stock,
$0.01 par value; 50,000,000 shares authorized; no shares issued or
outstanding
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|
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—
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|
|
—
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Common stock, $0.01
par value; 200,000,000 shares authorized; 43,071,186 and 38,864,289
shares issued,
43,058,266 and 38,851,369 shares outstanding in 2019 and 2018,
respectively
|
|
|
431
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|
|
389
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Paid-in
capital
|
|
|
661,761
|
|
|
607,260
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Accumulated other
comprehensive income (loss)
|
|
|
37,453
|
|
|
(22,315)
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Retained
deficit
|
|
|
(156,414)
|
|
|
(195,304)
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Treasury shares - at
cost (12,920 shares)
|
|
|
(200)
|
|
|
(200)
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Total
stockholders' equity
|
|
|
543,031
|
|
|
389,830
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Total liabilities
and stockholders' equity
|
|
$
|
2,877,234
|
|
$
|
2,577,106
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PROSIGHT GLOBAL,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
($ in
thousands)
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(Unaudited)
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|
|
|
|
|
|
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Three Months Ended
December 31
|
|
Years Ended
December 31
|
|
|
|
2019
|
|
2018
|
|
2019
|
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2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Gross written
premiums
|
|
$
|
249,945
|
|
$
|
221,841
|
|
$
|
968,011
|
|
$
|
895,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earned
premiums
|
|
|
207,311
|
|
|
193,098
|
|
|
807,854
|
|
|
730,785
|
|
Net investment
income
|
|
|
17,367
|
|
|
12,670
|
|
|
68,897
|
|
|
55,971
|
|
Realized investment
gains (losses), net
|
|
|
275
|
|
|
(2,362)
|
|
|
770
|
|
|
(1,557)
|
|
Other income
|
|
|
152
|
|
|
169
|
|
|
538
|
|
|
673
|
|
Total
revenues
|
|
|
225,105
|
|
|
203,575
|
|
|
878,059
|
|
|
785,872
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses and loss
adjustment expenses incurred
|
|
|
128,381
|
|
|
113,067
|
|
|
501,025
|
|
|
434,830
|
|
Policy acquisition
expenses
|
|
|
46,712
|
|
|
45,610
|
|
|
184,771
|
|
|
171,429
|
|
General and
administrative expenses
|
|
|
26,497
|
|
|
24,965
|
|
|
105,686
|
|
|
100,118
|
|
Interest
expense
|
|
|
3,070
|
|
|
3,170
|
|
|
12,795
|
|
|
12,377
|
|
Other
expense
|
|
|
1,819
|
|
|
—
|
|
|
16,151
|
|
|
—
|
|
Total
expenses
|
|
|
206,479
|
|
|
186,812
|
|
|
820,428
|
|
|
718,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
|
18,626
|
|
|
16,763
|
|
|
57,631
|
|
|
67,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
(554)
|
|
|
(633)
|
|
|
(185)
|
|
|
(853)
|
|
Deferred
|
|
|
4,438
|
|
|
3,932
|
|
|
12,322
|
|
|
14,242
|
|
Total income tax
expense
|
|
|
3,884
|
|
|
3,299
|
|
|
12,137
|
|
|
13,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
|
14,742
|
|
|
13,464
|
|
|
45,494
|
|
|
53,729
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income from
discontinued operations
|
|
|
(6,222)
|
|
|
656
|
|
|
(6,604)
|
|
|
814
|
|
Net
income
|
|
$
|
8,520
|
|
$
|
14,120
|
|
$
|
38,890
|
|
$
|
54,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on equity
(1)
|
|
|
11.0
|
%
|
|
13.9
|
%
|
|
9.8
|
%
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (2)
|
|
$
|
15,953
|
|
$
|
15,657
|
|
$
|
57,636
|
|
$
|
55,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
return on equity (3)
|
|
|
11.9
|
%
|
|
16.2
|
%
|
|
12.4
|
%
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1). Return on equity
is net income from continuing operations expressed on an annualized
basis as a percentage of average beginning and ending stockholders'
equity during the period.
|
(2). Adjusted
operating income is a non-GAAP measure. See "Reconciliation of
Non-GAAP Measures".
|
(3). Adjusted
operating return on equity is a non-GAAP measure.
Adjusted operating return on equity is adjusted operating income
expressed on an annualized basis as a percentage of average
beginning and ending stockholders' equity during the
period.
|
PROSIGHT GLOBAL,
INC.
FACTORS AFFECTING
THE RESULTS OF OPERATIONS (WAQS) (UNAUDITED)
($ in
thousands)
|
|
|
|
|
Three Months Ended
December 31, 2019
|
|
Three Months Ended
December 31, 2018
|
|
|
|
Including
|
|
Effect of
|
|
Excluding
|
|
Including
|
|
Effect of
|
|
Excluding
|
|
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
Gross written
premiums
|
|
$
|
249,945
|
|
$
|
—
|
|
$
|
249,945
|
|
$
|
221,841
|
|
$
|
—
|
|
$
|
221,841
|
|
Ceded written
premiums
|
|
|
(27,749)
|
|
|
—
|
|
|
(27,749)
|
|
|
(25,670)
|
|
|
(9,888)
|
|
|
(15,782)
|
|
Net written
premiums
|
|
$
|
222,196
|
|
$
|
—
|
|
$
|
222,196
|
|
$
|
196,171
|
|
$
|
(9,888)
|
|
$
|
206,059
|
|
Net
retention(1)
|
|
|
88.9
|
%
|
|
—
|
|
|
88.9
|
%
|
|
88.4
|
%
|
|
—
|
|
|
92.9
|
%
|
Net earned
premiums
|
|
$
|
207,311
|
|
$
|
—
|
|
$
|
207,311
|
|
$
|
193,098
|
|
$
|
40
|
|
$
|
193,058
|
|
Losses and
LAE(4)
|
|
|
128,381
|
|
|
907
|
|
|
127,474
|
|
|
113,067
|
|
|
(92)
|
|
|
113,159
|
|
Underwriting,
acquisition and insurance expenses
|
|
|
73,209
|
|
|
(906)
|
|
|
74,115
|
|
|
70,575
|
|
|
128
|
|
|
70,447
|
|
Underwriting income
(loss)(2)
|
|
$
|
5,721
|
|
$
|
(1)
|
|
$
|
5,722
|
|
$
|
9,456
|
|
$
|
4
|
|
$
|
9,452
|
|
Loss and LAE
ratio
|
|
|
61.9
|
%
|
|
—
|
|
|
—
|
|
|
58.6
|
%
|
|
—
|
|
|
—
|
|
Expense
ratio
|
|
|
35.3
|
%
|
|
—
|
|
|
—
|
|
|
36.5
|
%
|
|
—
|
|
|
—
|
|
Combined
ratio
|
|
|
97.2
|
%
|
|
—
|
|
|
—
|
|
|
95.1
|
%
|
|
—
|
|
|
—
|
|
Adjusted loss and LAE
ratio(3)
|
|
|
—
|
|
|
—
|
|
|
61.5
|
%
|
|
—
|
|
|
—
|
|
|
58.6
|
%
|
Adjusted expense
ratio(3)
|
|
|
—
|
|
|
—
|
|
|
35.7
|
%
|
|
—
|
|
|
—
|
|
|
36.5
|
%
|
Adjusted combined
ratio(3)
|
|
|
—
|
|
|
—
|
|
|
97.2
|
%
|
|
—
|
|
|
—
|
|
|
95.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of prior year
development
unfavorable(favorable) (4)
|
|
S
|
787
|
|
S
|
907
|
|
S
|
(120)
|
|
S
|
(970)
|
|
$
|
—
|
|
S
|
(970)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31, 2019
|
|
Years Ended
December 31, 2018
|
|
|
|
Including
|
|
Effect of
|
|
Excluding
|
|
Including
|
|
Effect of
|
|
Excluding
|
|
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
Gross written
premiums
|
|
$
|
968,011
|
|
$
|
—
|
|
$
|
968,011
|
|
$
|
895,112
|
|
$
|
—
|
|
$
|
895,112
|
|
Ceded written
premiums
|
|
|
(115,871)
|
|
|
3
|
|
|
(115,874)
|
|
|
(45,038)
|
|
|
58,857
|
|
|
(103,895)
|
|
Net written
premiums
|
|
$
|
852,140
|
|
$
|
3
|
|
$
|
852,137
|
|
$
|
850,074
|
|
$
|
58,857
|
|
$
|
791,217
|
|
Net
retention(1)
|
|
|
88.0
|
%
|
|
—
|
|
|
88.0
|
%
|
|
95.0
|
%
|
|
—
|
|
|
88.4
|
%
|
Net earned
premiums
|
|
$
|
807,854
|
|
$
|
3
|
|
$
|
807,851
|
|
$
|
730,785
|
|
$
|
(14,560)
|
|
$
|
745,345
|
|
Losses and
LAE(4)
|
|
|
501,025
|
|
|
4,746
|
|
|
496,279
|
|
|
434,830
|
|
|
(9,514)
|
|
|
444,344
|
|
Underwriting,
acquisition and insurance expenses
|
|
|
290,457
|
|
|
(4,743)
|
|
|
295,200
|
|
|
271,547
|
|
|
(3,955)
|
|
|
275,502
|
|
Underwriting income
(loss)(2)
|
|
$
|
16,372
|
|
$
|
—
|
|
$
|
16,372
|
|
$
|
24,409
|
|
$
|
(1,091)
|
|
$
|
25,499
|
|
Loss and LAE
ratio
|
|
|
62.0
|
%
|
|
—
|
|
|
—
|
|
|
59.5
|
%
|
|
65.3
|
%
|
|
—
|
|
Expense
ratio
|
|
|
36.0
|
%
|
|
—
|
|
|
—
|
|
|
37.2
|
%
|
|
27.2
|
%
|
|
—
|
|
Combined
ratio
|
|
|
98.0
|
%
|
|
—
|
|
|
—
|
|
|
96.7
|
%
|
|
92.5
|
%
|
|
—
|
|
Adjusted loss and LAE
ratio(3)
|
|
|
—
|
|
|
—
|
|
|
61.4
|
%
|
|
—
|
|
|
—
|
|
|
59.6
|
%
|
Adjusted expense
ratio(3)
|
|
|
—
|
|
|
—
|
|
|
36.6
|
%
|
|
—
|
|
|
—
|
|
|
37.0
|
%
|
Adjusted combined
ratio(3)
|
|
|
—
|
|
|
—
|
|
|
98.0
|
%
|
|
—
|
|
|
—
|
|
|
96.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of prior year
development
unfavorable(favorable) (4)
|
|
S
|
3,154
|
|
S
|
4,746
|
|
S
|
(1,592)
|
|
S
|
(5,017)
|
|
$
|
—
|
|
S
|
(5,017)
|
|
|
(1). Net retention is
a non-GAAP measure. We define net retention as the ratio of net
written premiums to gross written premiums.
|
(2). Underwriting
income is a non-GAAP measure. See "Reconciliation of Non-GAAP
Financial Measures".
|
(3). Adjusted loss
ratio and adjusted expense ratio are non-GAAP financial measures.
We define adjusted loss ratio and adjusted expense ratio as the
corresponding ratio excluding the effects of the WAQS. We use
these adjusted ratios as internal performance measures in the
management of our operations because we believe they give our
management and other users of our financial information useful
insight into our results of operations and our underlying business
performance. Our adjusted loss and LAE ratio, adjusted expense
ratio and adjusted combined ratio should not be viewed as
substitutes for our loss and LAE ratio, expense ratio and combined
ratio, respectively.
|
(4). The effect of
prior year development is included within losses and
LAE.
|
PROSIGHT GLOBAL,
INC.
SUPPLEMENTARY
UNDERWRITING INFORMATION (EXCLUDING WAQS)
(UNAUDITED)
($ in
thousands)
|
|
|
|
|
Three Months Ended
December 31
|
|
Years Ended
December 31
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross written
premiums
|
|
$
|
249,945
|
|
$
|
221,841
|
|
$
|
968,011
|
|
$
|
895,112
|
|
Net written
premiums
|
|
|
222,196
|
|
|
206,059
|
|
|
852,137
|
|
|
791,217
|
|
Net earned
premiums
|
|
|
207,311
|
|
|
193,058
|
|
|
807,851
|
|
|
745,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses and
LAE
|
|
|
127,474
|
|
|
113,159
|
|
|
496,279
|
|
|
444,344
|
|
Catastrophe loss and
LAE
|
|
|
—
|
|
|
3,560
|
|
|
3,000
|
|
|
3,560
|
|
Favorable prior period
reserve development
|
|
|
(120)
|
|
|
(970)
|
|
|
(1,592)
|
|
|
(5,017)
|
|
Underwriting,
acquisition, and insurance expenses
|
|
|
74,115
|
|
|
70,447
|
|
|
295,200
|
|
|
275,502
|
|
Policy acquisition
expenses
|
|
|
47,618
|
|
|
45,482
|
|
|
189,514
|
|
|
175,384
|
|
General and
administrative expenses
|
|
|
26,497
|
|
|
24,965
|
|
|
105,686
|
|
|
100,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
income
|
|
$
|
5,722
|
|
$
|
9,452
|
|
$
|
16,372
|
|
$
|
25,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
underwriting ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ex-cat current accident
year loss and LAE ratio
|
|
|
61.5
|
%
|
|
57.3
|
%
|
|
61.2
|
%
|
|
59.8
|
%
|
Catastrophe loss and
LAE ratio
|
|
|
-
|
%
|
|
1.8
|
%
|
|
0.4
|
%
|
|
0.5
|
%
|
Favorable prior period
reserve development ratio
|
|
|
-
|
%
|
|
(0.5)
|
%
|
|
(0.2)
|
%
|
|
(0.7)
|
%
|
Adjusted loss and LAE
ratio
|
|
|
61.5
|
%
|
|
58.6
|
%
|
|
61.4
|
%
|
|
59.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy acquisition
expense ratio
|
|
|
23.0
|
%
|
|
23.6
|
%
|
|
23.5
|
%
|
|
23.6
|
%
|
General and
administrative expense ratio
|
|
|
12.7
|
%
|
|
12.9
|
%
|
|
13.1
|
%
|
|
13.4
|
%
|
Adjusted expense
ratio
|
|
|
35.7
|
%
|
|
36.5
|
%
|
|
36.6
|
%
|
|
37.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted combined
ratio
|
|
|
97.2
|
%
|
|
95.1
|
%
|
|
98.0
|
%
|
|
96.6
|
%
|
PROSIGHT GLOBAL,
INC.
SUPPLEMENTARY
UNDERWRITING INFORMATION (UNAUDITED)
($ in
thousands)
|
|
|
|
|
Three Months Ended
December 31
|
|
Years Ended
December 31
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross written
premiums
|
|
$
|
249,945
|
|
$
|
221,841
|
|
$
|
968,011
|
|
$
|
895,112
|
|
Net written
premiums
|
|
|
222,196
|
|
|
196,171
|
|
|
852,140
|
|
|
850,074
|
|
Net earned
premiums
|
|
|
207,311
|
|
|
193,098
|
|
|
807,854
|
|
|
730,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses and
LAE
|
|
|
128,381
|
|
|
113,067
|
|
|
501,025
|
|
|
434,830
|
|
Catastrophe loss and
LAE
|
|
|
—
|
|
|
3,560
|
|
|
3,000
|
|
|
3,560
|
|
Unfavorable(favorable)
prior period reserve development
|
|
|
787
|
|
|
(970)
|
|
|
3,154
|
|
|
(5,017)
|
|
Underwriting,
acquisition, and insurance expenses
|
|
|
73,209
|
|
|
70,575
|
|
|
290,457
|
|
|
271,547
|
|
Policy acquisition
expenses
|
|
|
46,712
|
|
|
45,610
|
|
|
184,771
|
|
|
171,429
|
|
General and
administrative expenses
|
|
|
26,497
|
|
|
24,965
|
|
|
105,686
|
|
|
100,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
income
|
|
$
|
5,721
|
|
$
|
9,456
|
|
$
|
16,372
|
|
$
|
24,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ex-Cat current accident
year loss and LAE ratio
|
|
|
61.5
|
%
|
|
57.2
|
%
|
|
61.2
|
%
|
|
59.7
|
%
|
Catastrophe loss and
LAE ratio
|
|
|
-
|
%
|
|
1.8
|
%
|
|
0.4
|
%
|
|
0.5
|
%
|
Unfavorable(favorable)
prior period reserve development ratio
|
|
|
0.4
|
%
|
|
(0.5)
|
%
|
|
0.4
|
%
|
|
(0.7)
|
%
|
Loss and LAE
ratio
|
|
|
61.9
|
%
|
|
58.6
|
%
|
|
62.0
|
%
|
|
59.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy acquisition
expense ratio
|
|
|
22.5
|
%
|
|
23.6
|
%
|
|
22.9
|
%
|
|
23.5
|
%
|
General and
administrative expense ratio
|
|
|
12.8
|
%
|
|
12.9
|
%
|
|
13.1
|
%
|
|
13.7
|
%
|
Expense
ratio
|
|
|
35.3
|
%
|
|
36.5
|
%
|
|
36.0
|
%
|
|
37.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined
ratio
|
|
|
97.2
|
%
|
|
95.1
|
%
|
|
98.0
|
%
|
|
96.7
|
%
|
PROSIGHT GLOBAL,
INC.
SHARE AND PER
SHARE INFORMATION (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
December 31
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
Shares
outstanding
|
|
|
|
|
|
|
|
|
43,058,266
|
|
|
38,851,369
|
|
Fully diluted shares
outstanding
|
|
|
|
|
|
|
|
|
45,196,716
|
|
|
39,454,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share(1)
|
|
|
|
|
|
|
|
$
|
12.61
|
|
$
|
10.03
|
|
Book value per share
(fully diluted)(1)
|
|
|
|
|
|
|
|
$
|
12.01
|
|
$
|
9.88
|
|
Tangible book value
per share(1)
|
|
|
|
|
|
|
|
$
|
11.93
|
|
$
|
9.28
|
|
Tangible book value
per share (fully diluted)(1)
|
|
|
|
|
|
|
|
$
|
11.37
|
|
$
|
9.14
|
|
|
(share amounts in
thousands)
|
|
Three Months Ended
December 31
|
|
Years Ended
December 31
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Weighted average
basic shares outstanding
|
|
|
43,978
|
|
|
38,785
|
|
|
41,095
|
|
|
38,753
|
|
Weighted average
diluted shares outstanding
|
|
|
44,340
|
|
|
39,447
|
|
|
41,523
|
|
|
39,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
- basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
$
|
0.34
|
|
$
|
0.35
|
|
$
|
1.11
|
|
$
|
1.39
|
|
Adjusted operating
income(2)
|
|
$
|
0.36
|
|
$
|
0.40
|
|
$
|
1.40
|
|
$
|
1.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
- diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
$
|
0.33
|
|
$
|
0.34
|
|
$
|
1.10
|
|
$
|
1.36
|
|
Adjusted operating
income(2)
|
|
$
|
0.36
|
|
$
|
0.40
|
|
$
|
1.39
|
|
$
|
1.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
return on equity (ROE)(3)
|
|
|
11.9
|
%
|
|
16.2
|
%
|
|
12.4
|
%
|
|
14.4
|
%
|
Adjusted operating
return on tangible equity (ROTE)(3)
|
|
|
12.6
|
%
|
|
17.5
|
%
|
|
13.2
|
%
|
|
15.6
|
%
|
|
(1). Book value per
share is total common stockholders' equity divided by the number of
common shares outstanding. Tangible book value per share is total
common stockholders' equity excluding value of goodwill and other
intangible assets divided by the number of common shares
outstanding. Fully diluted book value per share is total
common stockholders' equity divided by the number of common shares
outstanding, unvested restricted shares and vested not issued
shares. Fully diluted tangible book value per share is total
common stockholders' equity excluding the after-tax value of
goodwill and other intangible assets divided by the number of
common shares outstanding, unvested restricted shares,
and vested not issued shares.
|
(2). Adjusted
operating income is a non-GAAP measure. See "Reconciliation of
Non-GAAP Financial Measures".
|
(3). Adjusted
operating return on equity (a non-GAAP measure) is the annualized
value of adjusted operating income divided by average total
stockholders' equity for the two most recent sequential
periods. Adjusted operating return on tangible equity is the
annualized value of adjusted operating income divided by average
total stockholders' equity excluding goodwill and other intangible
assets for the two most recent sequential periods.
|
PROSIGHT GLOBAL,
INC.
GROSS WRITTEN
PREMIUM BY CUSTOMER SEGMENT (UNAUDITED)
($ in
millions)
|
|
|
|
|
Three Months Ended
December 31
|
|
|
|
Years Ended
December 31
|
|
|
|
|
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|
Construction
|
|
$
|
34.9
|
|
$
|
30.0
|
|
16.3
|
|
$
|
117.9
|
|
$
|
101.9
|
|
15.7
|
|
Consumer
Services
|
|
|
32.8
|
|
|
26.9
|
|
21.9
|
|
|
133.7
|
|
|
107.1
|
|
24.8
|
|
Marine and
Energy
|
|
|
22.8
|
|
|
21.1
|
|
8.1
|
|
|
94.1
|
|
|
83.0
|
|
13.4
|
|
Media and
Entertainment
|
|
|
34.2
|
|
|
32.1
|
|
6.5
|
|
|
124.9
|
|
|
119.9
|
|
4.2
|
|
Professional
Services
|
|
|
33.6
|
|
|
28.3
|
|
18.7
|
|
|
119.3
|
|
|
110.5
|
|
8.0
|
|
Real
Estate
|
|
|
50.7
|
|
|
41.1
|
|
23.4
|
|
|
167.6
|
|
|
132.7
|
|
26.3
|
|
Sports
|
|
|
7.2
|
|
|
5.0
|
|
44.0
|
|
|
30.1
|
|
|
23.6
|
|
27.5
|
|
Transportation
|
|
|
32.8
|
|
|
24.6
|
|
33.3
|
|
|
112.2
|
|
|
92.2
|
|
21.7
|
|
Customer segments
subtotal
|
|
|
249.0
|
|
|
209.1
|
|
19.1
|
|
|
899.8
|
|
|
770.9
|
|
16.7
|
|
Other
|
|
|
0.9
|
|
|
12.7
|
|
(92.9)
|
|
|
68.2
|
|
|
124.2
|
|
(45.1)
|
|
Total
|
|
$
|
249.9
|
|
$
|
221.8
|
|
12.7
|
|
$
|
968.0
|
|
$
|
895.1
|
|
8.1
|
|
Reconciliation of Non-GAAP Financial Measures
Underwriting income is a non-GAAP financial measure that we
believe is useful in evaluating our underwriting performance
without regard to investment income. Underwriting income represents
the pre-tax profitability of our insurance operations and is
derived by subtracting losses and LAE, and underwriting,
acquisition and insurance expenses from net earned premiums. We use
underwriting income as an internal performance measure in the
management of our operations because we believe it gives us and
users of our financial information useful insight into our results
of operations and our underlying business performance. Underwriting
income should not be considered in isolation or viewed as a
substitute for net income calculated in accordance with GAAP. Other
companies may calculate underwriting income differently.
Net income for the three months and years ended December 31, 2019 and 2018 reconciles to
underwriting income as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31
|
|
Years Ended
December 31
|
($ in
thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income from
continuing operations
|
|
$
|
14,742
|
|
$
|
13,464
|
|
$
|
45,494
|
|
$
|
53,729
|
Income tax
expense
|
|
|
3,884
|
|
|
3,299
|
|
|
12,137
|
|
|
13,389
|
Income from
continuing operations before taxes
|
|
|
18,626
|
|
|
16,763
|
|
|
57,631
|
|
|
67,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
|
17,367
|
|
|
12,670
|
|
|
68,897
|
|
|
55,971
|
Realized investment
gains (losses), net
|
|
|
275
|
|
|
(2,362)
|
|
|
770
|
|
|
(1,557)
|
Interest and other
expense, net
|
|
|
4,737
|
|
|
3,001
|
|
|
28,408
|
|
|
11,704
|
Underwriting
income
|
|
$
|
5,721
|
|
$
|
9,456
|
|
$
|
16,372
|
|
$
|
24,409
|
Adjusted operating income is a non-GAAP financial measure that
we use as an internal performance measure in the management of our
operations because we believe it gives our management and other
users of our financial information useful insight into our results
of operations and underlying business performance, by excluding
items that are not part of our underlying profitability drivers or
likely to re-occur in the foreseeable future. Adjusted operating
income should not be considered in isolation or viewed as a
substitute for our net income calculated in accordance with GAAP.
Other companies may calculate adjusted operating income
differently.
Net income for the three months and years ended December 31, 2019 and 2018 reconciles to adjusted
operating income as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31
|
|
Years Ended
December 31
|
($ in
thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income from
continuing operations
|
|
$
|
14,742
|
|
$
|
13,464
|
|
$
|
45,494
|
|
$
|
53,729
|
Income tax
expense
|
|
|
3,884
|
|
|
3,299
|
|
|
12,137
|
|
|
13,389
|
Income from
continuing operations before taxes
|
|
|
18,626
|
|
|
16,763
|
|
|
57,631
|
|
|
67,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense
(1)
|
|
|
1,819
|
|
|
—
|
|
|
16,151
|
|
|
—
|
Realized investment
(gains)
|
|
|
(275)
|
|
|
2,362
|
|
|
(770)
|
|
|
1,557
|
Adjusted operating
income before taxes
|
|
|
20,170
|
|
|
19,125
|
|
|
73,012
|
|
|
68,675
|
Less: income tax
expense on adjusted operating income
|
|
|
4,217
|
|
|
3,468
|
|
|
15,376
|
|
|
13,389
|
Adjusted operating
income
|
|
$
|
15,953
|
|
$
|
15,657
|
|
$
|
57,636
|
|
$
|
55,286
|
|
|
(1)
|
Other expense within
the adjusted operating income includes non-recurring grants of
restricted stock units in connection with the initial public
offering and costs associated with the transition of our former
Chief Executive Officer.
|
Tangible stockholders' equity is a non-GAAP financial measure.
We define tangible stockholders' equity as stockholders' equity
less goodwill and net intangible assets. Our definition of tangible
stockholders' equity may not be comparable to that of other
companies and it should not be viewed as a substitute for
stockholders' equity calculated in accordance with GAAP. We use
tangible stockholders' equity internally to evaluate the strength
of our balance sheet and to compare returns relative to this
measure.
Stockholders' equity at December 31,
2019 and 2018 reconciles to tangible stockholders' equity as
follows:
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
($ in
thousands)
|
|
|
|
Stockholders'
equity
|
|
$
|
543,031
|
|
$
|
389,830
|
Less: goodwill and
net intangible assets
|
|
|
29,189
|
|
|
29,219
|
Tangible
stockholders' equity
|
|
$
|
513,842
|
|
$
|
360,611
|
Book value per
share
|
|
$
|
12.61
|
|
$
|
10.03
|
Book value per share
(fully diluted)
|
|
$
|
12.01
|
|
$
|
9.88
|
Tangible book value
per share
|
|
$
|
11.93
|
|
$
|
9.28
|
Tangible book value
per share (fully diluted)
|
|
$
|
11.37
|
|
$
|
9.14
|
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SOURCE ProSight Global, Inc.