The Navigators Group Inc. (NASDAQ:NAVG) shares rallied massively in the past three years before plummeting with lower than expected results in the third quarter – NAVG stock traded in the range of $50 in the past three months. Navigators stock has the 52-week trading range of $45 to $60 – with the market capitalization of $1.5 billion.
Its stock rose sharply in Friday trading; because the company has topped earnings estimates for the fourth quarter by $0.27 per share.
The Navigators Group generated net Income of $26.9 million, higher from $21.6 million in the same period last year.
The company has generated growth across all business segments. Its Gross Written Premiums and Net Written Premiums were standing around $408.7 million and $304.9 million – representing year over year growth of 11.2% and 7.8%, respectively.
The company believes that they are in a strong position to expand their market share in the U.S., thanks to emerging growth opportunities in the U.S. economy.
Its net Investment Income grew above 14.3% year over year to $23.0 million.
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Stan Galanski, President and Chief Executive Officer, commented, “We are pleased to report solidly profitable results for the fourth quarter. Both the U.S. Insurance and Global Reinsurance segments produced excellent underwriting results, with combined ratios of 91.3% and 90.9% respectively.”
It has also announced the potential acquisition of a Belgium-based specialty underwriting manager and insurance company.
In the trailing twelve months, the Navigator Group generated operating cash flow of $255 million, while free cash flows were standing around $252 million. Aside from internal cash generation, the company’s strategy of liquidating its actively managed common equity holdings resulted in pre-tax gains of $37.1 million.
Strong cash position also enables the company to capitalize on emerging growth opportunities along with investments in organic and non-organic opportunities. Overall, the company expects to generate a double-digit revenue and earnings growth in the following quarters – which will further support its share price and cash generation.
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