10/24/2024 | Press release | Distributed by Public on 10/24/2024 14:17
($thousands, except per share data) |
Three Months Ended September 30,
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Nine Months Ended September 30,
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2024 | 2023 | Change |
2024
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2023 | Change | |||||||
GAAP comparison | ||||||||||||
Total revenues | $ | 387,554 | $ | 360,048 | 7.6 | % | $ | 1,135,727 | $ | 1,016,126 | 11.8 | % |
Operating income (loss)
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$ | (16,504) | $ | (6,246) | 164.2 | % | $ | 82,130 | $ | 67,349 | 21.9 | % |
Operating income (loss) margin
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(4.3) | % | (1.7) | % | (2.6) | pts | 7.2 | % | 6.6 | % | 0.6 | pts |
Net income (loss) available to common stockholders
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$ | (16,166) | $ | (5,918) | 173.2 | % | $ | 52,902 | $ | 46,816 | 13.0 | % |
Diluted earnings (loss) per common share
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$ | (0.57) | $ | (0.20) | 185.0 | % | $ | 1.80 | $ | 1.54 | 16.9 | % |
Annualized ROCE | (16.3) | % | (7.4) | % | (8.9) | pts | 19.0 | % | 21.2 | % | (2.2) | pts |
Book value per share, end of period | $ | 14.15 | $ | 10.33 | 37.0 | % | $ | 14.15 | $ | 10.33 | 37.0 | % |
Non-GAAP comparison1
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Core revenue | $ | 381,401 | $ | 361,764 | 5.4 | % | $ | 1,125,501 | $ | 1,015,060 | 10.9 | % |
Adjusted operating income (loss)
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$ | (22,657) | $ | (4,530) | 400.2 | % | $ | 71,904 | $ | 66,283 | 8.5 | % |
Adjusted operating income (loss) margin
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(5.9) | % | (1.3) | % | (4.6) | pts | 6.4 | % | 6.5 | % | (0.1) | pts |
Adjusted net income (loss) available to common stockholders
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$ | (20,805) | $ | (4,624) | 349.9 | % | $ | 45,192 | $ | 46,012 | (1.8) | % |
Adjusted diluted earnings (loss) per common share
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$ | (0.73) | $ | (0.16) | 356.3 | % | $ | 1.54 | $ | 1.51 | 2.0 | % |
Annualized adjusted ROCE | (18.3) | % | (4.4) | % | (13.9) | pts | 14.1 | % | 15.4 | % | (1.3) | pts |
Adjusted book value per share, end of period | $ | 15.76 | $ | 14.00 | 12.6 | % | $ | 15.76 | $ | 14.00 | 12.6 | % |
Underwriting Summary | ||||||||||||
Premiums: | ||||||||||||
Premiums in force | $ | 2,046,310 | $ | 1,914,493 | 6.9 | % | $ | 2,046,310 | $ | 1,914,493 | 6.9 | % |
Policies in force | 844,539 | 807,553 | 4.6 | % | 844,539 | 807,553 | 4.6 | % | ||||
Direct premiums written | $ | 574,351 | $ | 531,988 | 8.0 | % | $ | 1,598,797 | $ | 1,489,216 | 7.4 | % |
Direct premiums earned | $ | 507,745 | $ | 474,311 | 7.0 | % | $ | 1,480,466 | $ | 1,393,003 | 6.3 | % |
Ceded premiums earned | $ | (162,009) | $ | (143,271) | 13.1 | % | $ | (455,747) | $ | (476,465) | (4.3) | % |
Ceded premium ratio | 31.9 | % | 30.2 | % | 1.7 | pts | 30.8 | % | 34.2 | % | (3.4) | pts |
Net premiums earned | $ | 345,736 | $ | 331,040 | 4.4 | % | $ | 1,024,719 | $ | 916,538 | 11.8 | % |
Net ratios: | ||||||||||||
Loss ratio | 91.7 | % | 87.0 | % | 4.7 | pts | 78.1 | % | 78.3 | % | (0.2) | pts |
Expense ratio | 25.2 | % | 23.7 | % | 1.5 | pts | 24.7 | % | 25.2 | % | (0.5) | pts |
Combined ratio | 116.9 | % | 110.7 | % | 6.2 | pts | 102.8 | % | 103.5 | % | (0.7) | pts |
1 Reconciliation of GAAP to non-GAAP financial measures are provided in the attached tables. Adjusted net income (loss) available to common stockholders, adjusted diluted earnings (loss) per common share and core revenue exclude net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. Adjusted operating income (loss) excludes the items above and interest and amortization of debt issuance costs. Adjusted book value per share excludes accumulated other comprehensive income (loss), net of taxes. Adjusted ROCE is calculated by dividing annualized adjusted net income (loss) available to common stockholders by average adjusted book value per share, with the denominator further excluding current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments.
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September 30,
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December 31, | |||
2024 | 2023 | |||
ASSETS: | ||||
Invested Assets | ||||
Fixed maturities, at fair value | $ | 1,276,732 | $ | 1,064,330 |
Equity securities, at fair value | 79,470 | 80,495 | ||
Other investments, at fair value
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12,248 | 10,434 | ||
Investment real estate, net | 5,618 | 5,525 | ||
Total invested assets | 1,374,068 | 1,160,784 | ||
Cash and cash equivalents | 333,678 | 397,306 | ||
Restricted cash and cash equivalents | 68,635 | 2,635 | ||
Prepaid reinsurance premiums | 418,834 | 236,254 | ||
Reinsurance recoverable | 130,124 | 219,102 | ||
Premiums receivable, net | 92,400 | 77,064 | ||
Property and equipment, net | 49,358 | 47,628 | ||
Deferred policy acquisition costs | 125,305 | 109,985 | ||
Goodwill | 2,319 | 2,319 | ||
Other assets | 55,797 | 63,484 | ||
TOTAL ASSETS | $ | 2,650,518 | $ | 2,316,561 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
LIABILITIES: | ||||
Unpaid losses and loss adjustment expenses | $ | 460,437 | $ | 510,117 |
Unearned premiums | 1,108,890 | 990,559 | ||
Advance premium | 71,700 | 48,660 | ||
Reinsurance payable, net | 420,282 | 191,850 | ||
Long-term debt, net | 101,434 | 102,006 | ||
Other liabilities | 87,530 | 132,072 | ||
Total liabilities | 2,250,273 | 1,975,264 | ||
STOCKHOLDERS' EQUITY: | ||||
Cumulative convertible preferred stock ($0.01 par value)2
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- | - | ||
Common stock ($0.01 par value)3
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472 | 472 | ||
Treasury shares, at cost - 19,012 and 18,303
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(274,977) | (260,779) | ||
Additional paid-in capital | 121,003 | 115,086 | ||
Accumulated other comprehensive income (loss), net of taxes | (45,593) | (74,172) | ||
Retained earnings | 599,340 | 560,690 | ||
Total stockholders' equity | 400,245 | 341,297 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,650,518 | $ | 2,316,561 |
Notes: | ||||
2 Cumulative convertible preferred stock ($0.01 par value): Authorized - 1,000 shares; Issued - 10 and 10 shares; Outstanding - 10 and 10 shares; Minimum liquidation preference - $9.99 and $9.99 per share.
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3 Common stock ($0.01 par value): Authorized - 55,000 shares; Issued - 47,298 and 47,269 shares; Outstanding 28,286 and 28,966 shares.
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Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
REVENUES | ||||||||
Net premiums earned | $ | 345,736 | $ | 331,040 | $ | 1,024,719 | $ | 916,538 |
Net investment income | 15,406 | 12,755 | 43,589 | 34,735 | ||||
Net realized gains (losses) on investments | (1,146) | (431) | (1,534) | (337) | ||||
Net change in unrealized gains (losses) on investments
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7,299 | (1,285) | 11,760 | 1,403 | ||||
Commission revenue | 12,959 | 10,830 | 35,671 | 43,098 | ||||
Policy fees | 5,194 | 5,111 | 15,175 | 14,662 | ||||
Other revenue | 2,106 | 2,028 | 6,347 | 6,027 | ||||
Total revenues | 387,554 | 360,048 | 1,135,727 | 1,016,126 | ||||
EXPENSES | ||||||||
Losses and loss adjustment expenses | 316,955 | 287,972 | 800,714 | 717,853 | ||||
Policy acquisition costs | 58,665 | 53,180 | 170,100 | 156,877 | ||||
Other operating expenses | 28,438 | 25,142 | 82,783 | 74,047 | ||||
Total operating costs and expenses | 404,058 | 366,294 | 1,053,597 | 948,777 | ||||
Interest and amortization of debt issuance costs | 1,619 | 1,631 | 4,864 | 4,896 | ||||
Income (loss) before income tax expense (benefit)
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(18,123) | (7,877) | 77,266 | 62,453 | ||||
Income tax expense (benefit)
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(1,960) | (1,962) | 24,356 | 15,629 | ||||
NET INCOME (LOSS)
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$ | (16,163) | $ | (5,915) | $ | 52,910 | $ | 46,824 |
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Weighted average common shares outstanding - basic | 28,355 | 29,617 | 28,607 | 30,087 | ||||
Weighted average common shares outstanding - diluted | 28,355 | 29,617 | 29,317 | 30,378 | ||||
Shares outstanding, end of period | 28,286 | 29,186 | 28,286 | 29,186 | ||||
Basic earnings (loss) per common share
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$ | (0.57) | $ | (0.20) | $ | 1.85 | $ | 1.56 |
Diluted earnings (loss) per common share
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$ | (0.57) | $ | (0.20) | $ | 1.80 | $ | 1.54 |
Cash dividend declared per common share | $ | 0.16 | $ | 0.16 | $ | 0.48 | $ | 0.48 |
Book value per share, end of period | $ | 14.15 | $ | 10.33 | $ | 14.15 | $ | 10.33 |
Annualized return on average common equity (ROCE) | (16.3) | % | (7.4) | % | 19.0 | % | 21.2 | % |
Three Months Ended |
Nine Months Ended
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September 30,
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September 30,
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2024 | 2023 | 2024 | 2023 | |||||
Premiums | ||||||||
Direct premiums written - Florida | $ | 440,018 | $ | 430,946 | $ | 1,255,861 | $ | 1,225,295 |
Direct premiums written - Other States | 134,333 | 101,042 | 342,936 | 263,921 | ||||
Direct premiums written - Total | $ | 574,351 | $ | 531,988 | $ | 1,598,797 | $ | 1,489,216 |
Direct premiums earned | $ | 507,745 | $ | 474,311 | $ | 1,480,466 | $ | 1,393,003 |
Net premiums earned | $ | 345,736 | $ | 331,040 | $ | 1,024,719 | $ | 916,538 |
Underwriting Ratios - Net | ||||||||
Loss and loss adjustment expense ratio | 91.7 | % | 87.0 | % | 78.1 | % | 78.3 | % |
General and administrative expense ratio
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25.2 | % | 23.7 | % | 24.7 | % | 25.2 | % |
Policy acquisition cost ratio | 17.0 | % | 16.1 | % | 16.6 | % | 17.1 | % |
Other operating expense ratio | 8.2 | % | 7.6 | % | 8.1 | % | 8.1 | % |
Combined ratio | 116.9 | % | 110.7 | % | 102.8 | % | 103.5 | % |
As of | ||||
September 30,
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2024 | 2023 | |||
Policies in force | ||||
Florida | 570,432 | 570,339 | ||
Other States | 274,107 | 237,214 | ||
Total | 844,539 | 807,553 | ||
Premiums in force | ||||
Florida | $ | 1,609,836 | $ | 1,571,600 |
Other States | 436,474 | 342,893 | ||
Total | $ | 2,046,310 | $ | 1,914,493 |
Total Insured Value | ||||
Florida | $ | 187,639,152 | $ | 190,299,057 |
Other States | 160,357,285 | 130,281,463 | ||
Total | $ | 347,996,437 | $ | 320,580,520 |
GAAP revenue to core revenue | ||||||||
Three Months Ended |
Nine Months Ended
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September 30,
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September 30,
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2024 | 2023 | 2024 | 2023 | |||||
GAAP revenue | $ | 387,554 | $ | 360,048 | $ | 1,135,727 | $ | 1,016,126 |
less: Net realized gains (losses) on investments | (1,146) | (431) | (1,534) | (337) | ||||
less: Net change in unrealized gains (losses) on investments
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7,299 | (1,285) | 11,760 | 1,403 | ||||
Core revenue | $ | 381,401 | $ | 361,764 | $ | 1,125,501 | $ | 1,015,060 |
GAAP operating income (loss) to adjusted operating income (loss)
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Three Months Ended |
Nine Months Ended
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September 30,
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September 30,
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2024 | 2023 | 2024 | 2023 | |||||
GAAP income (loss) before income tax expense (benefit)
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$ | (18,123) | $ | (7,877) | $ | 77,266 | $ | 62,453 |
add: Interest and amortization of debt issuance costs | 1,619 | 1,631 | 4,864 | 4,896 | ||||
GAAP operating income (loss)
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(16,504) | (6,246) | 82,130 | 67,349 | ||||
less: Net realized gains (losses) on investments | (1,146) | (431) | (1,534) | (337) | ||||
less: Net change in unrealized gains (losses) on investments
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7,299 | (1,285) | 11,760 | 1,403 | ||||
Adjusted operating income (loss)
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$ | (22,657) | $ | (4,530) | $ | 71,904 | $ | 66,283 |
GAAP operating income (loss) margin to adjusted operating income (loss) margin
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Three Months Ended |
Nine Months Ended
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September 30,
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September 30,
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2024
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2023
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2024
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2023
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GAAP operating income (loss) (a)
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$ | (16,504) | $ | (6,246) | $ | 82,130 | $ | 67,349 |
GAAP revenue (b) | 387,554 | 360,048 | 1,135,727 | 1,016,126 | ||||
GAAP operating income (loss) margin (a÷b)
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(4.3) | % | (1.7) | % | 7.2 | % | 6.6 | % |
Adjusted operating income (loss) (c)
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(22,657) | (4,530) | 71,904 | 66,283 | ||||
Core revenue (d) | 381,401 | 361,764 | 1,125,501 | 1,015,060 | ||||
Adjusted operating income (loss) margin (c÷d)
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(5.9) | % | (1.3) | % | 6.4 | % | 6.5 | % |
GAAP net income (loss) (NI) to adjusted NI (loss) available to common stockholders
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Three Months Ended |
Nine Months Ended
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September 30,
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September 30,
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2024
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2023
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2024
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2023
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GAAP NI (loss)
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$ | (16,163) | $ | (5,915) | $ | 52,910 | $ | 46,824 |
less: Preferred dividends | 3 | 3 | 8 | 8 | ||||
GAAP NI (loss) available to common stockholders (e)
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(16,166) | (5,918) | 52,902 | 46,816 | ||||
less: Net realized gains (losses) on investments | (1,146) | (431) | (1,534) | (337) | ||||
less: Net change in unrealized gains (losses) on investments
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7,299 | (1,285) | 11,760 | 1,403 | ||||
add: Income tax effect on above adjustments | 1,514 | (422) | 2,516 | 262 | ||||
Adjusted NI (loss) available to common stockholders (f)
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$ | (20,805) | $ | (4,624) | $ | 45,192 | $ | 46,012 |
Weighted average diluted common shares outstanding (g) | 28,355 | 29,617 | 29,317 | 30,378 | ||||
Diluted earnings (loss) per common share (e÷g)
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$ | (0.57) | $ | (0.20) | $ | 1.80 | $ | 1.54 |
Diluted adjusted earnings (loss) per common share (f÷g)
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$ | (0.73) | $ | (0.16) | $ | 1.54 | $ | 1.51 |
GAAP stockholders' equity to adjusted common stockholders' equity | ||||||
As of | ||||||
September 30,
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September 30,
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December 31, | ||||
2024
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2023
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2023
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GAAP stockholders' equity | $ | 400,245 | $ | 301,502 | $ | 341,297 |
less: Preferred equity | 100 | 100 | 100 | |||
Common stockholders' equity (h) | 400,145 | 301,402 | 341,197 | |||
less: Accumulated other comprehensive (loss), net of taxes | (45,593) | (107,115) | (74,172) | |||
Adjusted common stockholders' equity (i) | $ | 445,738 | $ | 408,517 | $ | 415,369 |
Common shares outstanding (j)
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28,286 | 29,186 | 28,966 | |||
Book value per common share (h÷j) | $ | 14.15 | $ | 10.33 | $ | 11.78 |
Adjusted book value per common share (i÷j) | $ | 15.76 | $ | 14.00 | $ | 14.34 |
GAAP return on common equity (ROCE) to adjusted ROCE | ||||||||||
Three Months Ended |
Nine Months Ended
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Year Ended | ||||||||
September 30,
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September 30,
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December 31, | ||||||||
2024
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2023
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2024
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2023
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2023
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Actual or Annualized NI (loss) available to common stockholders (k)
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$ | (64,664) | $ | (23,672) | $ | 70,536 | $ | 62,421 | $ | 66,813 |
Average common stockholders' equity (l) | 396,641 | 317,987 | 370,671 | 294,599 | 314,497 | |||||
ROCE (k÷l) | (16.3) | % | (7.4) | % | 19.0 | % | 21.2 | % | 21.2 | % |
Annualized adjusted NI (loss) available to common stockholders (m)
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$ | (83,220) | $ | (18,496) | $ | 60,256 | $ | 61,349 | $ | 58,657 |
Adjusted average common stockholders' equity4 (n)
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454,977 | 420,120 | 426,699 | 399,646 | 399,396 | |||||
Adjusted ROCE (m÷n) | (18.3) | % | (4.4) | % | 14.1 | % | 15.4 | % | 14.7 | % |
4 Adjusted average common stockholders' equity excludes current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments.
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