MORRISTOWN, N.J., Aug. 10,
2020 /PRNewswire/ -- ProSight Global, Inc. (NYSE: PROS) (ProSight)
today reported results for the second quarter of 2020.
Highlights for the three months ended June 30, 2020 include:
- Record net income from continuing operations of $17.3 million
and adjusted operating income(1)
of $16.9 million with annualized
return on equity ("ROE") of 12.9% and adjusted operating ROE
(2) of 12.6%.
- Record diluted book value per share ("BVPS") of $12.84 compared to $10.73 as of March 31,
2020. Book value per share was $12.01 as of December 31,
2019.
- Rate execution of 10.5% excluding workers comp and 8.8%
including workers comp with acceleration throughout the
quarter.
- Combined ratio of 99.6% compared to 98.1% for the second
quarter of 2019, representing the tenth consecutive quarter of
underwriting profit at ProSight.
- Loss ratio of 61.9% compared to 62.8% (61.7% adjusted for the
effect of WAQS (3)) for the second
quarter of 2019. The current quarter includes 2.0 points of
catastrophe losses from civil unrest vs 1.5 points in the second
quarter of 2019.
- Expense ratio of 37.7% compared to 35.3% (36.4% adjusted for
the effect of WAQS (3)) for the
second quarter of 2019. The current quarter includes $1.5 million, or 83 basis points, of
COVID-19-related allowance for bad debt and reflects reduced earned
premium associated with the impact of COVID-19. Excluding the
$1.5 million allowance for bad debt,
total general and administrative expenses were down 4.2% compared
to the second quarter of 2019.
- Gross written premiums ("GWP") for our customer segments
(4) decreased in line with our
expectations by 19.9% to $184.2
million compared to the second quarter of 2019, due to the
impact of COVID-19 on several of our niches.
- Closed on new credit facility that will refinance our existing
debt on favorable terms upon maturity in November 2020.
From CEO & President Larry
Hannon:
"Our thoughts are with all of those struggling from the ongoing
impact of COVID-19 and we continue to stand with our
Black friends, colleagues, and members of our community that are
fighting for justice and equality. At ProSight, we are
thankful for the outstanding effort of our employees, and the
support of our customers and distribution partners during these
difficult times.
"This was a strong quarter. We produced an underwriting
profit, generated a double-digit ROE, achieved a new milestone in
book value per share, closed on a new credit facility which
will refinance our debt on attractive terms, and made progress on
several initiatives that we expect will accelerate our growth and
profitability in 2021. Our rate execution was excellent
in the quarter and the trend has continued into the third
quarter.
"Our underwriting, risk selection and expense
management allowed us to remain solidly profitable and
grow our book value per share. We are executing well and
expect to have a solid second half of the year with an improvement
in our gross written premium versus the second quarter."
Updated Outlook:
"Looking at the third quarter and balance of 2020, we have
somewhat greater visibility into our near-term operating results.
This update represents our best estimates as of today for the full
year:
- Customer Segment Gross Written Premium: 5-10% decline
from 2019 versus the 10-20% communicated at the end of the first
quarter. This excludes the decline from the previously announced
exit from excess workers compensation.
- Net Loss Ratio: Potential for 0 to 1.5-point increase
from COVID-19 related claims and expenses in the current accident
year loss ratio versus the up-to-3-point increase we communicated
at the end of the first quarter.
- Expenses: Continued higher costs from bad debt
provisioning given state-mandated deferrals of collections and
cancellations coupled with the economic impact of COVID-19 on some
of our insureds.
- Net Investment Income: We expect our fixed income
portfolio, excluding limited partnerships, to yield approximately
3% for 2020, consistent with the 3% we communicated at the end of
the first quarter. Net investment income volatility for the
remainder of 2020 remains possible from our limited partnership
investments."
Results of Operations for the three months ended June 30, 2020:
Net income from continuing operations was $17.3 million, or
$0.39 per diluted share, for the
second quarter of 2020 compared to $8.7
million, or $0.22 per diluted
share, for the second quarter of 2019. Adjusted operating
income (1) was $16.9
million, or $0.39 per diluted
share, for the second quarter of 2020 compared to $14.2 million, or $0.36 per diluted share, for the second quarter
of 2019.
GWP including Other (3), decreased 20.7% for the
second quarter of 2020 when compared to the second quarter of 2019.
GWP (3) from customer segments was $184.2
million for the second quarter of 2020 compared to $230.0
million for the second quarter of 2019, a decrease of 19.9%,
primarily due to the impact of COVID-19 on our Transportation and
Media & Entertainment customer segments. Other
GWP (3) were $2.2 million for the second quarter of 2020
compared to $5.0 million for the
second quarter of 2019, the decrease driven by the timing
of our exit from excess workers'
compensation.
Underwriting income (1) was $0.7 million for the
second quarter of 2020 compared to $3.8 million for the second
quarter of 2019. The combined ratio for the second quarter of 2020
was 99.6% compared to 98.1% for the second quarter of 2019.
The decrease in underwriting income (1) was
due to reduced earned premium and bad debt expense attributable to
COVID-19:
The expense ratio was 37.7% for the second quarter of 2020
compared to 35.3% in the second quarter of 2019, with the increase
driven by reduced earned premium, an increase in our allowance
for bad debt attributable to COVID-19, and a ceding commission
benefit from our Whole Account Quota Share
("WAQS") reinsurance agreements in the second quarter of
2019. The policy acquisition expense ratio was 23.1% in the
second quarter of 2020 compared to 22.5% in the second quarter of
2019. The general & administrative expense ratio, which
includes the bad debt allowance, was 14.6% in the second quarter of
2020 compared to 12.8% in the second quarter of
2019.
The loss ratio was 61.9% for the second quarter of
2020 compared to 62.8% for the second quarter of
2019.
The current accident year loss ratio, excluding
catastrophe losses and prior year development, for the second
quarter of 2020 was 59.8% compared to 62.6% in the
second quarter of 2019.
The current accident year loss ratio for the second quarter of
2020 includes $3.6 million (2.0
percentage points) of catastrophe losses due to civil unrest. The
current accident year loss ratio for the second quarter of 2019
includes $3.0 million (1.5 percentage
points) of catastrophe losses due to weather events.
The loss ratio for the second quarter of 2020 included
$0.3 million (0.1 percentage points)
of unfavorable prior accident year loss development compared to
$2.7 million (1.3 percentage points)
of favorable prior accident year loss development in the second
quarter of 2019.
Net investment income increased by 36.7% to $23.8 million for
the second quarter of 2020, compared to $17.4 million for the
second quarter of 2019. The increase in net investment income
was driven by unrealized gains from our limited partnerships
and growth in the book value of the investment portfolio
of 12.7% to $2.3 billion, partially
offset by a decline in investment yields on fixed maturity
securities.
Realized investment gains, net of realized losses, for the
second quarter of 2020 were $1.9
million compared to $0.1
million for the second quarter of 2019 and include
an increase to our credit loss allowance of $1.5 million.
Total stockholders' equity was $586.1 million as of
June 30, 2020, compared to
$543.0 million as of December 31, 2019. Tangible stockholders'
equity (5) was $556.9 million as of
June 30, 2020, compared to
$513.8 million as of
December 31, 2019. The increases in
total stockholders' equity and tangible stockholders'
equity (5) were driven by $24.6 million of net income in the first six
months of 2020 and an increase in other comprehensive income
of $15.3 million, driven by net
unrealized gains on investment securities during the second quarter
of 2020.
Fully diluted book value per share grew by 6.9%
to $12.84 at June 30, 2020,
compared to $12.01 at December 31, 2019. Fully diluted tangible book
value per
share (5) increased by
7.4% to $12.21 at June 30,
2020, compared to $11.37 at December 31,
2019.
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(1) Adjusted
operating income and underwriting income are non-GAAP measures. See
"Reconciliation of Non-GAAP Measures".
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|
(2) 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. 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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(3) In
connection with the divestment of our U.K. business, New York
Marine as reinsured entered into the whole account quota share
reinsurance agreements ("WAQS") with third party reinsurers to
maintain reasonable underwriting leverage within New York Marine
and its subsidiary insurance companies during a transition period
following the U.K. divestment. The effective date of the WAQS was
April 1, 2017. During 2018 and following the transition of the
U.S. business back to New York Marine, the WAQS were terminated.
Effective January 1, 2020, the WAQS was commuted at an amount equal
to ceded reserves. The effect of the WAQS on our results of
operations is primarily reflected in our ceded written premiums,
losses and LAE, as well as our underwriting, acquisition and
insurance expenses.
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|
(4) Total GWP
for the second quarter of 2020 including Other were $186.4
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 2019, 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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|
(5) Tangible
stockholders' equity and fully diluted tangible book value per
share are non-GAAP measures. Tangible stockholders' equity is
total stockholders' equity excluding the value of goodwill and
other intangible assets. Fully diluted tangible book value
per share is total stockholders' equity
excluding the 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,
August 11, 2020 at 10:00 a.m. EST, ProSight senior
management will host a conference call to discuss second quarter
2020 financial results.
The call will be available via webcast at
https://investors.prosightspecialty.com/ or by accessing the
online registration link here. A replay of the call
will be available at 1:00 p.m. on Tuesday,
August 11, 2020, until 11:59 p.m. Tuesday, August 18, 2020, and can be accessed by
dialing (800) 585-8367 or (416) 621-4642. The webcast will be
available one hour after the call concludes and will be archived on
our 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's 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, including without limitation, the following:
performance of, and our relationships with, third-party agents and
vendors on which we rely to distribute certain business on our
behalf, adequacy of our loss reserves including as a result of
changes in the legal, regulatory, and economic environments in
which the Company operates or the impacts of COVID-19, judicial,
legislative, regulatory and other governmental developments,
including in response to COVID-19, litigation tactics and
developments, the effects of natural and man-made catastrophic
events, the availability and affordability of reinsurance, changes
in the business, financial condition or results of operations of
the entities in which we invest, infection rates and severity and
duration of pandemics, including COVID-19, and their
direct and indirect effects on our investments, business
operations, customers (including claims activity) and third
parties, as well as management's response to these factors.
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/A for the period ended
December 31, 2019 filed on
March 10, 2020, as updated by
ProSight's Quarterly Reports on Form 10-Q and its other periodic
filings with the SEC. 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/A for the period ended December 31, 2019 filed on March 10, 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 operating return on tangible equity,
adjusted loss excluding WAQS, adjusted expense ratio excluding
WAQS, adjusted combined ratio excluding WAQS, tangible
stockholders' equity, tangible book value per share and fully
diluted tangible book value per share 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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Inquiries:
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Joe
Hathaway
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JHathaway@prosightspecialty.com
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973.532.1706
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PROSIGHT
GLOBAL, INC.
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
($ in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
June 30
|
|
December 31
|
|
2020
|
|
2019
|
|
Assets
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
Fixed maturity
securities, available-for-sale at fair value (amortized cost
$2,102,989 in 2020 and
$1,999,403 in 2019, allowance for credit losses $(1,985) in 2020
and $0 in 2019)
|
$
|
2,162,780
|
|
$
|
2,040,682
|
|
Commercial levered
loans at amortized cost (fair value $12,628 in 2020 and $13,950 in
2019)
|
|
13,463
|
|
|
14,069
|
|
Non-redeemable
preferred stock securities at fair value (amortized cost $11,670 in
2020 and $0 in 2019)
|
|
11,785
|
|
|
—
|
|
Limited partnerships
and limited liability companies at fair value (cost $74,019 in 2020
and $62,226 in 2019)
|
|
|
79,717
|
|
|
66,660
|
|
Short-term
investments
|
|
|
496
|
|
|
43,873
|
|
Total
investments
|
|
2,268,241
|
|
|
2,165,284
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
50,637
|
|
|
17,284
|
|
Restricted
cash
|
|
9,966
|
|
|
10,213
|
|
Accrued investment
income
|
|
14,119
|
|
|
13,610
|
|
Premiums and other
receivables, net
|
|
143,519
|
|
|
190,004
|
|
Receivable from
reinsurers on paid losses, net
|
|
2,497
|
|
|
3,481
|
|
Reinsurance
receivables on unpaid losses, net
|
|
141,427
|
|
|
193,952
|
|
Deferred policy
acquisition costs
|
|
94,587
|
|
|
98,812
|
|
Prepaid reinsurance
premiums
|
|
47,837
|
|
|
42,861
|
|
Net deferred income
taxes
|
|
—
|
|
|
4,803
|
|
Goodwill and net
intangible assets
|
|
29,174
|
|
|
29,189
|
|
Fixed assets and
capitalized software, net
|
|
35,630
|
|
|
37,167
|
|
Funds withheld
related to sale of affiliate
|
|
19,529
|
|
|
19,453
|
|
Other
assets
|
|
34,218
|
|
|
29,537
|
|
Assets of
discontinued operations
|
|
|
23,171
|
|
|
21,584
|
|
Total
assets
|
$
|
2,914,552
|
|
$
|
2,877,234
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Reserve for unpaid
losses and loss adjustment expenses
|
$
|
1,544,123
|
|
$
|
1,521,648
|
|
Reserve for unearned
premiums
|
|
450,934
|
|
|
483,223
|
|
Ceded reinsurance
payable
|
|
20,324
|
|
|
17,768
|
|
Notes payable, net of
debt issuance costs
|
|
164,862
|
|
|
164,693
|
|
Secured loans
payable, net of issuance costs
|
|
24,997
|
|
|
—
|
|
Funds held under
reinsurance agreements
|
|
22,858
|
|
|
58,855
|
|
Net deferred income
taxes
|
|
75
|
|
|
—
|
|
Other
liabilities
|
|
66,762
|
|
|
56,438
|
|
Liabilities of
discontinued operations
|
|
|
33,517
|
|
|
31,578
|
|
Total
liabilities
|
|
2,328,452
|
|
|
2,334,203
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Preferred stock,
$0.01 par value; 50,000,000 shares authorized; no shares issued or
outstanding
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value; 200,000,000 shares authorized; 43,355,319 and 43,071,186
shares
issued, 43,342,399 and 43,058,266 shares outstanding in 2020 and
2019, respectively
|
|
433
|
|
|
431
|
|
Paid-in
capital
|
|
664,895
|
|
|
661,761
|
|
Accumulated other
comprehensive income
|
|
52,756
|
|
|
37,453
|
|
Retained
deficit
|
|
(131,784)
|
|
|
(156,414)
|
|
Treasury shares - at
cost (12,920 shares)
|
|
|
(200)
|
|
|
(200)
|
|
Total
stockholders' equity
|
|
|
586,100
|
|
|
543,031
|
|
Total liabilities
and stockholders' equity
|
$
|
2,914,552
|
|
$
|
2,877,234
|
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PROSIGHT GLOBAL,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
Six Months Ended
June 30
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross written
premiums
|
$
|
186,394
|
|
$
|
235,032
|
|
$
|
400,178
|
|
$
|
490,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earned
premiums
|
|
181,629
|
|
|
202,480
|
|
|
387,291
|
|
|
398,088
|
|
|
Net investment
income
|
|
23,791
|
|
|
17,398
|
|
|
32,606
|
|
|
34,556
|
|
|
Realized investment
gains, net
|
|
1,891
|
|
|
137
|
|
|
2,123
|
|
|
250
|
|
|
Other income
|
|
101
|
|
|
97
|
|
|
213
|
|
|
190
|
|
|
Total
revenues
|
|
207,412
|
|
|
220,112
|
|
|
422,233
|
|
|
433,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses and loss
adjustment expenses incurred
|
|
112,473
|
|
|
127,115
|
|
|
240,030
|
|
|
245,448
|
|
|
Policy acquisition
expenses
|
|
42,033
|
|
|
45,533
|
|
|
89,019
|
|
|
92,106
|
|
|
General and
administrative expenses
|
|
26,415
|
|
|
26,028
|
|
|
53,052
|
|
|
53,222
|
|
|
Interest
expense
|
|
3,067
|
|
|
3,147
|
|
|
6,172
|
|
|
6,509
|
|
|
Other
expense
|
|
1,390
|
|
|
7,170
|
|
|
3,127
|
|
|
7,170
|
|
|
Total
expenses
|
|
185,378
|
|
|
208,993
|
|
|
391,400
|
|
|
404,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
22,034
|
|
|
11,119
|
|
|
30,833
|
|
|
28,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
4,116
|
|
|
82
|
|
|
5,747
|
|
|
223
|
|
|
Deferred
|
|
635
|
|
|
2,341
|
|
|
992
|
|
|
6,015
|
|
|
Total income tax
expense
|
|
4,751
|
|
|
2,423
|
|
|
6,739
|
|
|
6,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
17,283
|
|
|
8,696
|
|
|
24,094
|
|
|
22,391
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
discontinued operations
|
|
279
|
|
|
(78)
|
|
|
536
|
|
|
(333)
|
|
|
Net
income
|
$
|
17,562
|
|
$
|
8,618
|
|
$
|
24,630
|
|
$
|
22,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on equity
(1)
|
|
12.9
|
%
|
|
7.9
|
%
|
|
8.5
|
%
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (2)
|
$
|
16,890
|
|
$
|
14,228
|
|
$
|
24,879
|
|
$
|
27,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
return on equity (3)
|
|
12.6
|
%
|
|
12.8
|
%
|
|
8.8
|
%
|
|
13.1
|
%
|
|
(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
June 30, 2020
|
|
Three Months Ended
June 30, 2019
|
|
|
Including
|
|
Effect of
|
|
Excluding
|
|
Including
|
|
Effect of
|
|
Excluding
|
|
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
|
Gross written
premiums
|
$
|
186,394
|
|
$
|
—
|
|
$
|
186,394
|
|
$
|
235,032
|
|
$
|
—
|
|
$
|
235,032
|
|
|
Ceded written
premiums
|
|
(29,771)
|
|
|
—
|
|
|
(29,771)
|
|
|
(24,464)
|
|
|
—
|
|
|
(24,464)
|
|
|
Net written
premiums
|
$
|
156,623
|
|
$
|
—
|
|
$
|
156,623
|
|
$
|
210,568
|
|
$
|
—
|
|
$
|
210,568
|
|
|
Net
retention(1)
|
|
84.0
|
%
|
|
—
|
|
|
84.0
|
%
|
|
89.6
|
%
|
|
—
|
|
|
89.6
|
%
|
|
Net earned
premiums
|
$
|
181,629
|
|
$
|
—
|
|
$
|
181,629
|
|
$
|
202,480
|
|
$
|
—
|
|
$
|
202,480
|
|
|
Losses and
LAE
|
|
112,473
|
|
|
—
|
|
|
112,473
|
|
|
127,115
|
|
|
2,255
|
|
|
124,860
|
|
|
Underwriting,
acquisition and insurance expenses
|
|
68,448
|
|
|
—
|
|
|
68,448
|
|
|
71,561
|
|
|
(2,255)
|
|
|
73,816
|
|
|
Underwriting income
(2)
|
$
|
708
|
|
$
|
—
|
|
$
|
708
|
|
$
|
3,804
|
|
$
|
—
|
|
$
|
3,804
|
|
|
Loss and LAE
ratio
|
|
61.9
|
%
|
|
—
|
|
|
—
|
|
|
62.8
|
%
|
|
—
|
|
|
—
|
|
|
Expense
ratio
|
|
37.7
|
%
|
|
—
|
|
|
—
|
|
|
35.3
|
%
|
|
—
|
|
|
—
|
|
|
Combined
ratio
|
|
99.6
|
%
|
|
—
|
|
|
—
|
|
|
98.1
|
%
|
|
—
|
|
|
—
|
|
|
Adjusted loss and LAE
ratio(3)
|
|
—
|
|
|
—
|
|
|
61.9
|
%
|
|
—
|
|
|
—
|
|
|
61.7
|
%
|
|
Adjusted expense
ratio(3)
|
|
—
|
|
|
—
|
|
|
37.7
|
%
|
|
—
|
|
|
—
|
|
|
36.4
|
%
|
|
Adjusted combined
ratio(3)
|
|
—
|
|
|
—
|
|
|
99.6
|
%
|
|
—
|
|
|
—
|
|
|
98.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of prior year
reserve development unfavorable/(favorable)
(4)
|
$
|
310
|
|
$
|
—
|
|
$
|
310
|
|
$
|
(2,733)
|
|
$
|
2,255
|
|
$
|
(4,988)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2020
|
|
Six Months Ended
June 30, 2019
|
|
|
Including
|
|
Effect of
|
|
Excluding
|
|
Including
|
|
Effect of
|
|
Excluding
|
|
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
WAQS
|
|
|
Gross written
premiums
|
$
|
400,178
|
|
$
|
—
|
|
$
|
400,178
|
|
$
|
490,870
|
|
$
|
—
|
|
$
|
490,870
|
|
|
Ceded written
premiums
|
|
(53,372)
|
|
|
—
|
|
|
(53,372)
|
|
|
(70,400)
|
|
|
3
|
|
|
(70,403)
|
|
|
Net written
premiums
|
$
|
346,806
|
|
$
|
—
|
|
$
|
346,806
|
|
$
|
420,470
|
|
$
|
3
|
|
$
|
420,467
|
|
|
Net
retention(1)
|
|
86.7
|
%
|
|
—
|
|
|
86.7
|
%
|
|
85.7
|
%
|
|
—
|
|
|
85.7
|
%
|
|
Net earned
premiums
|
$
|
387,291
|
|
$
|
—
|
|
$
|
387,291
|
|
$
|
398,088
|
|
$
|
3
|
|
$
|
398,085
|
|
|
Losses and
LAE
|
|
240,030
|
|
|
—
|
|
|
240,030
|
|
|
245,448
|
|
|
2,207
|
|
|
243,241
|
|
|
Underwriting,
acquisition and insurance expenses
|
|
142,071
|
|
|
—
|
|
|
142,071
|
|
|
145,328
|
|
|
(2,205)
|
|
|
147,533
|
|
|
Underwriting income
(2)
|
$
|
5,190
|
|
$
|
—
|
|
$
|
5,190
|
|
$
|
7,312
|
|
$
|
1
|
|
$
|
7,311
|
|
|
Loss and LAE
ratio
|
|
62.0
|
%
|
|
—
|
|
|
—
|
|
|
61.7
|
%
|
|
—
|
|
|
—
|
|
|
Expense
ratio
|
|
36.7
|
%
|
|
—
|
|
|
—
|
|
|
36.5
|
%
|
|
—
|
|
|
—
|
|
|
Combined
ratio
|
|
98.7
|
%
|
|
—
|
|
|
—
|
|
|
98.2
|
%
|
|
—
|
|
|
—
|
|
|
Adjusted loss and LAE
ratio(3)
|
|
—
|
|
|
—
|
|
|
62.0
|
%
|
|
—
|
|
|
—
|
|
|
61.1
|
%
|
|
Adjusted expense
ratio(3)
|
|
—
|
|
|
—
|
|
|
36.7
|
%
|
|
—
|
|
|
—
|
|
|
37.1
|
%
|
|
Adjusted combined
ratio(3)
|
|
—
|
|
|
—
|
|
|
98.7
|
%
|
|
—
|
|
|
—
|
|
|
98.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of prior year
development unfavorable/(favorable) (4)
|
$
|
508
|
|
$
|
—
|
|
$
|
508
|
|
$
|
(3,128)
|
|
$
|
2,207
|
|
$
|
(5,335)
|
|
|
(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 reserve development is included within losses and
LAE.
|
|
PROSIGHT GLOBAL,
INC.
SUPPLEMENTARY
UNDERWRITING INFORMATION (EXCLUDING WAQS)
(UNAUDITED)
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
Six Months Ended
June 30
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross written
premiums
|
$
|
186,394
|
|
$
|
235,032
|
|
$
|
400,178
|
|
$
|
490,870
|
|
|
Net written
premiums
|
|
156,623
|
|
|
210,568
|
|
|
346,806
|
|
|
420,470
|
|
|
Net earned
premiums
|
|
181,629
|
|
|
202,480
|
|
|
387,291
|
|
|
398,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses and
LAE
|
|
112,473
|
|
|
124,860
|
|
|
240,030
|
|
|
243,241
|
|
|
Catastrophe loss and
LAE
|
|
3,633
|
|
|
3,000
|
|
|
3,633
|
|
|
3,000
|
|
|
Unfavorable/(favorable)
prior year reserve development
|
|
310
|
|
|
(4,988)
|
|
|
508
|
|
|
(5,335)
|
|
|
Underwriting,
acquisition, and insurance expenses
|
|
68,448
|
|
|
73,816
|
|
|
142,071
|
|
|
147,533
|
|
|
Policy acquisition
expenses
|
|
42,033
|
|
|
47,788
|
|
|
89,019
|
|
|
94,311
|
|
|
General and
administrative expenses
|
|
26,415
|
|
|
26,028
|
|
|
53,052
|
|
|
53,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
income
|
$
|
708
|
|
$
|
3,804
|
|
$
|
5,190
|
|
$
|
7,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Underwriting ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ex-cat current accident
year loss and LAE ratio
|
|
59.8
|
%
|
|
62.6
|
%
|
|
60.9
|
%
|
|
61.7
|
%
|
|
Catastrophe loss and
LAE ratio
|
|
2.0
|
%
|
|
1.5
|
%
|
|
0.9
|
%
|
|
0.8
|
%
|
|
Unfavorable/(favorable)
prior year reserve development ratio
|
|
|
0.1
|
%
|
|
(2.4)
|
%
|
|
0.2
|
%
|
|
(1.4)
|
%
|
|
Adjusted Loss and LAE
ratio
|
|
61.9
|
%
|
|
61.7
|
%
|
|
62.0
|
%
|
|
61.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy acquisition
expense ratio
|
|
23.1
|
%
|
|
23.6
|
%
|
|
23.0
|
%
|
|
23.7
|
%
|
|
General and
administrative expense ratio
|
|
|
14.6
|
%
|
|
12.8
|
%
|
|
13.7
|
%
|
|
13.4
|
%
|
|
Adjusted Expense
ratio
|
|
37.7
|
%
|
|
36.4
|
%
|
|
36.7
|
%
|
|
37.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Combined
ratio
|
|
99.6
|
%
|
|
98.1
|
%
|
|
98.7
|
%
|
|
98.2
|
%
|
|
PROSIGHT GLOBAL,
INC.
SUPPLEMENTARY
UNDERWRITING INFORMATION (UNAUDITED)
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
Six Months Ended
June 30
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross written
premiums
|
$
|
186,394
|
|
$
|
235,032
|
|
$
|
400,178
|
|
$
|
490,870
|
|
|
Net written
premiums
|
|
156,623
|
|
|
210,568
|
|
|
346,806
|
|
|
420,470
|
|
|
Net earned
premiums
|
|
181,629
|
|
|
202,480
|
|
|
387,291
|
|
|
398,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses and
LAE
|
|
112,473
|
|
|
127,115
|
|
|
240,030
|
|
|
245,448
|
|
|
Catastrophe loss and
LAE
|
|
3,633
|
|
|
3,000
|
|
|
3,633
|
|
|
3,000
|
|
|
Unfavorable/(favorable)
prior year reserve development
|
|
310
|
|
|
(2,733)
|
|
|
508
|
|
|
(3,128)
|
|
|
Underwriting,
acquisition, and insurance expenses
|
|
68,448
|
|
|
71,561
|
|
|
142,071
|
|
|
145,328
|
|
|
Policy acquisition
expenses
|
|
42,033
|
|
|
45,533
|
|
|
89,019
|
|
|
92,106
|
|
|
General and
administrative expenses
|
|
26,415
|
|
|
26,028
|
|
|
53,052
|
|
|
53,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
income
|
$
|
708
|
|
$
|
3,804
|
|
$
|
5,190
|
|
$
|
7,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ex-cat current accident
year loss and LAE ratio
|
|
59.8
|
%
|
|
62.6
|
%
|
|
60.9
|
%
|
|
61.7
|
%
|
|
Catastrophe loss and
LAE ratio
|
|
2.0
|
%
|
|
1.5
|
%
|
|
0.9
|
%
|
|
0.8
|
%
|
|
Unfavorable/(favorable)
prior year reserve development ratio
|
|
|
0.1
|
%
|
|
(1.3)
|
%
|
|
0.2
|
%
|
|
(0.8)
|
%
|
|
Loss and LAE
ratio
|
|
61.9
|
%
|
|
62.8
|
%
|
|
62.0
|
%
|
|
61.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy acquisition
expense ratio
|
|
23.1
|
%
|
|
22.5
|
%
|
|
23.0
|
%
|
|
23.1
|
%
|
|
General and
administrative expense ratio
|
|
|
14.6
|
%
|
|
12.8
|
%
|
|
13.7
|
%
|
|
13.4
|
%
|
|
Expense
ratio
|
|
37.7
|
%
|
|
35.3
|
%
|
|
36.7
|
%
|
|
36.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined
ratio
|
|
99.6
|
%
|
|
98.1
|
%
|
|
98.7
|
%
|
|
98.2
|
%
|
|
PROSIGHT GLOBAL,
INC.
SHARE AND PER
SHARE INFORMATION (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30
|
|
December 31
|
|
|
2020
|
|
2019
|
|
Shares
outstanding
|
|
|
43,342,399
|
|
|
43,058,266
|
|
Fully diluted shares
outstanding
|
|
|
45,629,697
|
|
|
45,196,716
|
|
|
|
|
|
|
|
|
Book value per
share(1)
|
|
$
|
13.52
|
|
$
|
12.61
|
|
Book value per share
(fully diluted)(1)
|
|
$
|
12.84
|
|
$
|
12.01
|
|
Tangible book value
per share(1)
|
|
$
|
12.85
|
|
$
|
11.93
|
|
Tangible book value
per share (fully diluted)(1)
|
|
$
|
12.21
|
|
$
|
11.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
Six Months Ended
June 30
|
|
|
(share amounts in
thousands)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
Weighted average
basic shares outstanding
|
|
|
43,810
|
|
|
38,851
|
|
|
43,866
|
|
|
38,851
|
|
|
Weighted average
diluted shares outstanding
|
|
|
43,827
|
|
|
39,455
|
|
|
44,056
|
|
|
39,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
- basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
$
|
0.39
|
|
$
|
0.22
|
|
$
|
0.55
|
|
$
|
0.58
|
|
|
Adjusted operating
income(2)
|
|
$
|
0.39
|
|
$
|
0.37
|
|
$
|
0.57
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
- diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
$
|
0.39
|
|
$
|
0.22
|
|
$
|
0.55
|
|
$
|
0.57
|
|
|
Adjusted operating
income(2)
|
|
$
|
0.39
|
|
$
|
0.36
|
|
$
|
0.56
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
return on equity ("ROE") (3)
|
|
|
12.6
|
%
|
|
12.8
|
%
|
|
8.8
|
%
|
|
13.1
|
%
|
|
Adjusted operating
return on tangible equity ("ROTE")(3)
|
|
|
13.3
|
%
|
|
13.8
|
%
|
|
9.3
|
%
|
|
14.1
|
%
|
|
(1) Book value per
share is total stockholders' equity divided by the number of common
shares outstanding. Fully diluted book value per share is total
stockholders' equity divided by the number of common shares
outstanding, unvested restricted shares and vested non issued
shares. Tangible book value per share and fully diluted tangible
book value per share are non-GAAP measures. Tangible book value per
share is total stockholders' equity excluding the value of goodwill
and other intangible assets divided by the number of common shares
outstanding. Fully diluted tangible book value per share is
total stockholders' equity excluding the value of goodwill and
other intangible assets divided by the number of common shares
outstanding, unvested restricted shares, and vested non-issued
shares. See "Reconciliation of Non-GAAP Financial
Measures".
|
|
(2) Adjusted
operating income is a non-GAAP measure. See "Reconciliation of
Non-GAAP Financial Measures".
|
|
(3) Adjusted
operating return on equity and adjusted operating return on
tangible equity are non-GAAP measures. 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. Adjusted operating return on tangible
equity is adjusted operating income expressed on an annualized
basis as a percentage of average beginning and ending stockholders'
equity, excluding goodwill and other intangible assets, during the
period.
|
|
PROSIGHT GLOBAL,
INC.
GROSS WRITTEN
PREMIUM BY CUSTOMER SEGMENT (UNAUDITED)
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
|
|
Six Months Ended
June 30
|
|
|
|
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
|
|
Construction
|
$
|
27.7
|
|
$
|
32.5
|
|
(14.8)
|
%
|
$
|
52.2
|
|
$
|
55.8
|
|
(6.5)
|
%
|
|
Consumer
Services
|
|
40.7
|
|
|
37.9
|
|
7.4
|
|
|
71.3
|
|
|
65.4
|
|
9.0
|
|
|
Marine and
Energy
|
|
26.8
|
|
|
25.6
|
|
4.7
|
|
|
59.6
|
|
|
45.5
|
|
31.0
|
|
|
Media and
Entertainment
|
|
17.4
|
|
|
32.4
|
|
(46.3)
|
|
|
47.9
|
|
|
62.1
|
|
(22.9)
|
|
|
Professional
Services
|
|
31.9
|
|
|
29.1
|
|
9.6
|
|
|
61.6
|
|
|
58.7
|
|
4.9
|
|
|
Real
Estate
|
|
47.3
|
|
|
46.6
|
|
1.5
|
|
|
80.5
|
|
|
75.3
|
|
6.9
|
|
|
Sports
|
|
4.7
|
|
|
6.9
|
|
(31.9)
|
|
|
14.3
|
|
|
14.7
|
|
(2.7)
|
|
|
Transportation
|
|
|
(12.3)
|
|
|
19.0
|
|
(164.7)
|
|
|
9.1
|
|
|
49.7
|
|
(81.7)
|
|
|
Customer segments
subtotal
|
|
184.2
|
|
|
230.0
|
|
(19.9)
|
|
|
396.5
|
|
|
427.2
|
|
(7.2)
|
|
|
Other
|
|
|
2.2
|
|
|
5.0
|
|
(56.0)
|
|
|
3.7
|
|
|
63.7
|
|
(94.2)
|
|
|
Total
|
$
|
186.4
|
|
$
|
235.0
|
|
(20.7)
|
%
|
$
|
400.2
|
|
$
|
490.9
|
|
(18.5)
|
%
|
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 six months ended
June 30, 2020 and 2019 reconciles to
underwriting income as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
Six Months Ended
June 30
|
|
($ in
thousands)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net income from
continuing operations
|
|
$
|
17,283
|
|
$
|
8,696
|
|
$
|
24,094
|
|
$
|
22,391
|
|
Income tax
expense
|
|
|
4,751
|
|
|
2,423
|
|
|
6,739
|
|
|
6,238
|
|
Income from
continuing operations before taxes
|
|
|
22,034
|
|
|
11,119
|
|
|
30,833
|
|
|
28,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
|
23,791
|
|
|
17,398
|
|
|
32,606
|
|
|
34,556
|
|
Realized investment
gains, net
|
|
|
1,891
|
|
|
137
|
|
|
2,123
|
|
|
250
|
|
Interest and other
expense, net
|
|
|
4,356
|
|
|
10,220
|
|
|
9,086
|
|
|
13,489
|
|
Underwriting
income
|
|
$
|
708
|
|
$
|
3,804
|
|
$
|
5,190
|
|
$
|
7,312
|
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 net income calculated in accordance with GAAP. Other
companies may calculate adjusted operating income differently.
Net income for the three months and six months ended
June 30, 2020 and 2019 reconciles to
adjusted operating income as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
Six Months Ended
June 30
|
|
($ in
thousands)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net income from
continuing operations
|
|
$
|
17,283
|
|
$
|
8,696
|
|
$
|
24,094
|
|
$
|
22,391
|
|
Income tax
expense
|
|
|
4,751
|
|
|
2,423
|
|
|
6,739
|
|
|
6,238
|
|
Income from
continuing operations before taxes
|
|
|
22,034
|
|
|
11,119
|
|
|
30,833
|
|
|
28,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense
(1)
|
|
|
1,390
|
|
|
7,170
|
|
|
3,127
|
|
|
7,170
|
|
Realized investment
gains, net
|
|
|
(1,891)
|
|
|
(137)
|
|
|
(2,123)
|
|
|
(250)
|
|
Adjusted operating
income before taxes
|
|
|
21,533
|
|
|
18,152
|
|
|
31,837
|
|
|
35,549
|
|
Less: income tax
expense on adjusted operating income
|
|
|
4,643
|
|
|
3,924
|
|
|
6,958
|
|
|
7,691
|
|
Adjusted operating
income
|
|
$
|
16,890
|
|
$
|
14,228
|
|
$
|
24,879
|
|
$
|
27,858
|
|
(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
that we use as an internal performance measure to evaluate the
strength of our balance sheet and to compare returns relative to
this measure. We define tangible stockholders' equity as
stockholders' equity less goodwill and net intangible assets.
Tangible stockholders' equity should not be considered in isolation
or viewed as a substitute for stockholders' equity calculated in
accordance with GAAP. Other companies may calculate tangible
stockholders' equity differently.
Stockholders' equity at June 30,
2020 and December 31, 2019
reconciles to tangible stockholders' equity as follows:
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
($ in thousands
except per share amounts)
|
|
|
|
|
Stockholders'
equity
|
|
$
|
586,100
|
|
$
|
543,031
|
|
Less: goodwill and
net intangible assets
|
|
|
29,174
|
|
|
29,189
|
|
Tangible
stockholders' equity
|
|
$
|
556,926
|
|
$
|
513,842
|
|
Book value per
share
|
|
$
|
13.52
|
|
$
|
12.61
|
|
Book value per share
(fully diluted)
|
|
$
|
12.84
|
|
$
|
12.01
|
|
Tangible book value
per share
|
|
$
|
12.85
|
|
$
|
11.93
|
|
Tangible book value
per share (fully diluted)
|
|
$
|
12.21
|
|
$
|
11.37
|
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SOURCE ProSight Global, Inc.