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10/30/19

National General Holdings Corp. Reports Third Quarter 2019 Results

NEW YORK, Oct. 30, 2019 (GLOBE NEWSWIRE) -- National General Holdings Corp. (Nasdaq:NGHC) reported third quarter 2019 net income of $63.3 million or $0.54 per diluted share, compared to net income of $60.5 million or $0.55 per diluted share in the third quarter of 2018. Third quarter 2019 operating earnings (non-GAAP)(1) was $68.2 million or $0.59 per diluted share compared to $70.8 million or $0.65 per diluted share in the third quarter of 2018.

Third Quarter 2019 Highlights versus Third Quarter 2018*

  • Gross written premium grew $82.6 million or 6.7% to $1,316.9 million driven by continued underlying organic growth in our P&C segment of 3.1% and the acquisition of National Farmers Union Property and Casualty Company (“Farmers Union Insurance”) which closed on August 1, 2019, and continued organic growth in our A&H segment of 12.9%.
  • The overall combined ratio(12,13) was 92.5% compared to 91.3% in the prior year’s quarter, excluding non-cash amortization of intangible assets. The P&C segment reported an increase in combined ratio to 97.0% from 94.4% in the prior year’s quarter. The combined ratio includes prior year unfavorable development of $14.9 million compared to $7.2 million unfavorable in the prior year’s quarter, higher non-catastrophe weather losses predominantly in the Midwest, and $11.5 million of catastrophe losses related to weather-related events compared to $35.0 million of catastrophe losses in the prior year’s quarter. The A&H segment reported a decrease in combined ratio to 70.2% from 77.0% in the prior year’s quarter, driven by strong operating results in our small group self-funded and individual products and higher third party fees.
  • Service and fee income grew 11.8% to $179.3 million, driven by organic growth primarily in our group administration fees and third party technology services fees within our A&H segment.
  • Stockholders’ equity was $2.56 billion and fully diluted book value per share was $18.16 at September 30, 2019, growth of 15.3% and 19.1%, respectively, from December 31, 2018. Our trailing twelve-month operating return on average equity (ROE)(14) was 14.5% as of September 30, 2019.
  • Third quarter 2019 operating earnings (non-GAAP)(1) excludes the following, net of tax: $1.0 million or $0.01 per share loss on equity method investments, $0.3 million of net loss on investments, $5.4 million or $0.05 per share of non-cash amortization of intangible assets and $1.7 million or $0.01 per share bargain purchase gain on the acquisition of Farmers Union Insurance.

Barry Karfunkel, National General’s CEO, stated: “Our third quarter 2019 results generated a 92.5% combined ratio which highlights the diverse capabilities of our platform. While our P&C segment earnings were negatively impacted by non-catastrophe weather events within our homeowners product line and reserve strengthening within our small business auto product line, our personal auto line continued its strong performance via both our independent agency and direct to consumer distribution channels. Our A&H segment reported record profitability and growth in the quarter, utilizing our suite of products and owned distribution. I am pleased with the continued execution of our strategy of focused underwriting discipline and long term growth initiatives.”

*NOTE: Unless specified otherwise, discussion of our third quarter 2019 and 2018 results do not include financial results from the Reciprocal Exchanges, which are presented within our consolidated financial results within this release but are not included in net income available to NGHC common stockholders.

Overview of Third Quarter 2019 as Compared to Third Quarter 2018

  • Property & Casualty - Gross written premium grew by 5.9% to $1,154.3 million, net written premium increased by 4.5% to $820.0 million, and net earned premium increased by 11.7% to $827.6 million. P&C gross written premium growth was primarily driven by organic growth of 3.1% and $29.9 million or 2.8% of added premiums from the acquisition of Farmers Union Insurance. Service and fee income was $115.6 million compared to $114.0 million in the prior year’s quarter. Excluding non-cash amortization of intangible assets, the combined ratio(12,13) was 97.0% with a loss and LAE ratio of 75.8% and an expense ratio(11,13) of 21.2%, versus a prior year combined ratio of 94.4% with a loss and LAE ratio of 73.5% and an expense ratio of 20.9%. The loss and LAE ratio was impacted by pre-tax catastrophe losses of approximately $11.5 million primarily related to weather-related events in the third quarter 2019, compared to $35.0 million of losses in the third quarter 2018 and higher non-catastrophe weather losses. Unfavorable loss development was $14.9 million in the third quarter 2019 primarily driven by small business auto, compared to unfavorable loss development of $7.2 million in the third quarter 2018.
     
  • Accident & Health - Gross written premium grew by 12.9% to $162.6 million, net written premium grew by 19.2% to $147.3 million, and net earned premium grew by 8.7% to $168.9 million. The A&H gross written premium increase was driven by continued growth in our domestic A&H business. Service and fee income grew 37.2% to $63.7 million compared to $46.5 million in the prior year’s quarter, primarily driven by group administration fees and third party technology services fees which included a $5.8 million pre-tax sale of a software license to a third party. Excluding non-cash amortization of intangible assets, the combined ratio(12,13) was 70.2% with a loss and LAE ratio of 41.8% and an expense ratio(11,13) of 28.4%, versus a prior year combined ratio of 77.0% with a loss and LAE ratio of 46.8% and an expense ratio of 30.2%. The loss and LAE ratio reflects continued strong performance in both small group self-funded and individual products. Favorable loss development was $18.8 million in the third quarter 2019, compared to favorable loss development of $13.2 million in the third quarter 2018.
     
  • Reciprocal Exchanges - Results for the Reciprocal Exchanges are not included in net income available to NGHC common stockholders. Gross written premium was $118.3 million, net written premium was $67.3 million, and net earned premium was $57.1 million. Reciprocal Exchanges combined ratio(12,13) excluding non-cash amortization of intangible assets was 123.8% with a loss and LAE ratio of 82.8% and an expense ratio(11,13) of 41.0%.The loss and LAE ratio was impacted by higher non-catastrophe weather losses.

Third quarter 2019 investment income grew to $33.5 million, compared to $31.0 million in the third quarter of 2018. Total investments and cash and cash equivalents (including restricted cash) were $4.8 billion as of September 30, 2019. Accumulated other comprehensive income (loss) increased to a $80.4 million gain at September 30, 2019 from a $52.1 million loss at December 31, 2018, primarily due to the impact of lower interest rates which positively impacted bond valuations.

Interest expense was $12.9 million, up from $12.6 million in the prior year’s quarter. Debt was $688.0 million at September 30, 2019, down from $705.8 million at December 31, 2018.

On August 1, 2019, we closed the acquisition of all of the issued and outstanding shares of capital stock of Farmers Union Insurance from a subsidiary of QBE Insurance Group. The purchase price for the transaction was $52.8 million, subject to customary post-closing adjustments. The net assets acquired exceeded the amount paid by the Company and, as a result, we recorded a pre-tax bargain purchase gain of $2.1 million.

The third quarter of 2019 provision for income taxes was $19.3 million and the effective tax rate for the quarter was 21.3% compared with income taxes of $16.4 million and an effective rate of 19.4% in the third quarter of 2018.

Stockholders’ equity was $2,559.8 million at September 30, 2019, growth of 15.3% from $2,220.8 million at December 31, 2018. Fully diluted book value per share was $18.16 at September 30, 2019, growth of 19.1% from $15.25 at December 31, 2018. Our trailing twelve-month operating return on average equity (ROE)(14) was 14.5% as of September 30, 2019.

Year-to-Date P&C Segment Notable Large Losses
Year   Quarter   Event   P&C Notable Large Losses and LAE
($ millions)
  P&C Loss and LAE Ratio Points*   EPS Impact After Tax
2019   Q3   Weather-related Events   $ 11.5   1.4 %   $ 0.08
2019   Q2   Weather-related Events   $ 18.4   2.2 %   $ 0.13
2019   Q1   Winter Weather   $ 12.1   1.6 %   $ 0.08
                     
2018   Q3   California Fires and Hurricane Florence   $ 35.0   4.7 %   $ 0.25
2018   Q2   Spring Weather-related and Texas Hail Events   $ 20.5   2.8 %   $ 0.15
2018   Q1   Winter Weather   $ 14.2   2.0 %   $ 0.10
                           

* Loss and LAE ratio points related to P&C net earned premium in quarter the loss event was recorded.

Additional Item

  • National General Enters into Business Share Purchase Agreement with an Investor Group Arranged by Impilo AB. - On August 30, 2019, we entered into a share purchase agreement, pursuant to which, subject to the satisfaction or waiver of the conditions set forth therein, we agreed to sell our Euro Accident Health and Care Insurance Sweden operation, to an investor group arranged by Impilo AB, a Swedish investment company focused on Nordic healthcare investments. The estimated sale price for this transaction is $138 million. Since this transaction is based on Swedish Krona (SEK) and will reflect certain closing adjustments, the final price will vary accordingly. The transaction is expected to close in late 2019 or early 2020, subject to customary closing conditions and regulatory approvals.

Conference Call

On Thursday, October 31, 2019 at 9:00 AM ET, Chief Executive Officer Barry Karfunkel and Chief Financial Officer Mike Weiner will review results and discuss business conditions via a conference call that may be accessed as follows:

800 Access Number:
973 Access Number:
Conference Entry Code:
Webcast Registration:
    800-346-7359
973-528-0008
313533
http://ir.nationalgeneral.com/events-and-presentations
     

A replay of the conference call will be accessible from 2:00 PM ET on Thursday, October 31, 2019 to 11:59 PM ET on Thursday, November 14, 2019 by dialing either 800-332-6854 (toll-free) within the U.S. or 973-528-0005 outside the U.S. and entering passcode 313533. In addition, a replay of the webcast can also be retrieved at http://ir.nationalgeneral.com/events-and-presentations.

About National General Holdings Corp.

National General Holdings Corp., headquartered in New York City, is a specialty personal lines insurance holding company. National General traces its roots to 1939, has a financial strength rating of A- (excellent) from A.M. Best, and provides personal and commercial automobile, homeowners, umbrella, recreational vehicle, motorcycle, lender-placed, supplemental health and other niche insurance products.

Forward Looking Statements

This news release contains “forward-looking statements” that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “plan,” “expect,” “project,” “intend,” “estimate,” “anticipate” and “believe” or their variations or similar terminology. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those expressed or implied in these statements as a result of significant risks and uncertainties, including, but not limited to, non-receipt of expected payments from insureds or reinsurers, changes in interest rates, a downgrade in the financial strength ratings of our insurance subsidiaries, the effect of the performance of financial markets on our investment portfolio, our ability to accurately underwrite and price our products and to maintain and establish accurate loss reserves, estimates of the fair value of investments, development of claims and the effect on loss reserves, large loss activity including hurricanes and wildfires, the cost and availability of reinsurance coverage, the effects of emerging claim and coverage issues, the effect of unpredictable catastrophic losses, changes in the demand for our products, our degree of success in integrating acquired businesses, the effect of general economic conditions, state and federal legislation, the effects of tax reform, regulations and regulatory investigations into industry practices, risks associated with conducting business outside the United States, developments relating to existing agreements, disruptions to our business relationships with third party vendors or agencies, breaches in data security or other disruptions involving our technology, heightened competition, changes in pricing environments, and changes in asset valuations. The forward-looking statements contained in this news release are made only as of the date of this release. The Company undertakes no obligation to publicly update any forward-looking statement except as may be required by law. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected is contained in the Company’s filings with the Securities and Exchange Commission.

Income Statement - Third Quarter
$ in thousands
(Unaudited)

    Three Months Ended September 30,
    2019     2018  
    NGHC   Reciprocal Exchanges   Consolidated     NGHC   Reciprocal Exchanges   Consolidated  
Revenues:                            
Gross written premium   $ 1,316,890     $ 118,267     $ 1,435,157       $ 1,234,320     $ 121,351     $ 1,355,671    
Net written premium   967,319     67,285     1,034,604       908,210     14,814     923,024    
Net earned premium   996,521     57,117     1,053,638       896,376     43,151     939,527    
                             
Ceding commission income   42,521     15,066     57,587       44,513     14,587     59,100    
Service and fee income   179,293     1,585     161,626   (A)   160,425     1,575     142,690   (G)
Net investment income   33,451     2,160     33,740   (B)   30,984     2,344     30,696   (H)
Net loss on investments   (428 )   (137 )   (565 )     (3,003 )   (167 )   (3,170 )  
Other income   2,146         2,146                  
Total revenues   $ 1,253,504     $ 75,791     $ 1,308,172   (C)   $ 1,129,295     $ 61,490     $ 1,168,843   (I)
                             
Expenses:                            
Loss and loss adjustment expense   $ 698,064     $ 47,270     $ 745,334       $ 617,098     $ 40,212     $ 657,310    
Acquisition costs and other underwriting expenses   193,521     15,569     209,090       180,180     11,290     191,470    
General and administrative expenses   258,583     24,533     263,864   (D)   234,626     20,417     235,733   (J)
Interest expense   12,898     1,871     12,898   (E)   12,583     2,632     12,583   (K)
Total expenses   $ 1,163,066     $ 89,243     $ 1,231,186   (F)   $ 1,044,487     $ 74,551     $ 1,097,096   (L)
                             
Income (loss) before provision (benefit) for income taxes   $ 90,438     $ (13,452 )   $ 76,986       $ 84,808     $ (13,061 )   $ 71,747    
Provision (benefit) for income taxes   19,284     (2,537 )   16,747       16,426     (908 )   15,518    
Net income (loss) before non-controlling interest and dividends on preferred shares   71,154     (10,915 )   60,239       68,382     (12,153 )   56,229    
Less: net income (loss) attributable to noncontrolling interest       (10,915 )   (10,915 )         (12,153 )   (12,153 )  
Net income before dividends on preferred shares   71,154         71,154       68,382         68,382    
Less: dividends on preferred shares   7,875         7,875       7,875         7,875    
Net income available to common stockholders   $ 63,279     $     $ 63,279       $ 60,507     $     $ 60,507    
                                                     

NOTES: Consolidated column includes eliminations as follows: (A) $(19,252), (B) $(1,871), (C) $(21,123), (D) $(19,252), (E) $(1,871), (F) $(21,123) || (G) $(19,310), (H) $(2,632), (I) $(21,942), (J) $(19,310), (K) $(2,632) and (L) $(21,942).

Income Statement - Year to Date
$ in thousands
(Unaudited)

    Nine Months Ended September 30,
    2019     2018  
    NGHC   Reciprocal Exchanges   Consolidated     NGHC   Reciprocal Exchanges   Consolidated  
Revenues:                            
Gross written premium   $ 3,913,861     $ 344,982     $ 4,258,843       $ 3,793,830     $ 337,021     $ 4,129,250   (G)
Net written premium   3,022,206     172,460     3,194,666       2,787,402     132,240     2,919,642    
Net earned premium   2,899,041     149,405     3,048,446       2,646,962     141,009     2,787,971    
                             
Ceding commission income   136,867     50,446     187,313       119,453     39,523     158,976    
Service and fee income   525,730     4,471     476,041   (A)   463,293     4,466     415,313   (H)
Net investment income   103,683     6,454     102,316   (B)   82,186     6,693     81,702   (I)
Net loss on investments   (4,936 )   (837 )   (5,773 )     (21,490 )   (1,266 )   (22,756 )  
Other income   2,146         2,146                  
Total revenues   $ 3,662,531     $ 209,939     $ 3,810,489   (C)   $ 3,290,404     $ 190,425     $ 3,421,206   (J)
                             
Expenses:                            
Loss and loss adjustment expense   $ 1,988,094     $ 124,584     $ 2,112,678       $ 1,835,383     $ 126,421     $ 1,961,804    
Acquisition costs and other underwriting expenses   582,805     32,329     615,134       509,088     32,952     542,040    
General and administrative expenses   746,243     67,642     759,725   (D)   681,581     62,032     691,167   (K)
Interest expense   38,822     7,821     38,822   (E)   38,775     7,177     38,775   (L)
Total expenses   $ 3,355,964     $ 232,376     $ 3,526,359   (F)   $ 3,064,827     $ 228,582     $ 3,233,786   (M)
                             
Income (loss) before provision (benefit) for income taxes   $ 306,567     $ (22,437 )   $ 284,130       $ 225,577     $ (38,157 )   $ 187,420    
Provision (benefit) for income taxes   65,779     (4,285 )   61,494       44,439     (6,178 )   38,261    
Net income (loss) before non-controlling interest and dividends on preferred shares   240,788     (18,152 )   222,636       181,138     (31,979 )   149,159    
Less: net income (loss) attributable to noncontrolling interest       (18,152 )   (18,152 )         (31,979 )   (31,979 )  
Net income before dividends on preferred shares   240,788         240,788       181,138         181,138    
Less: dividends on preferred shares   24,675         24,675       23,625         23,625    
Net income available to common stockholders   $ 216,113     $     $ 216,113       $ 157,513     $     $ 157,513    
                                                     

NOTES: Consolidated column includes eliminations as follows: (A) $(54,160), (B) $(7,821), (C) $(61,981), (D) $(54,160), (E) $(7,821), (F) $(61,981) || (G) $(1,601), (H) $(52,446), (I) $(7,177), (J) $(59,623), (K) $(52,446), (L) $(7,177) and (M) $(59,623).

Earnings and Per Share Data
$ in thousands, except shares and per share data
(Unaudited)

  Three Months Ended September 30,   Nine Months Ended September 30,
  2019   2018   2019   2018
Net income available to common stockholders $ 63,279     $ 60,507     $ 216,113     $ 157,513  
Basic net income per common share $ 0.56     $ 0.56     $ 1.91     $ 1.47  
Diluted net income per common share $ 0.54     $ 0.55     $ 1.87     $ 1.44  
               
Operating earnings attributable to NGHC (non-GAAP)(1) $ 68,237     $ 70,798     $ 236,093     $ 197,905  
Basic operating earnings per common share (non-GAAP)(1) $ 0.60     $ 0.66     $ 2.09     $ 1.85  
Diluted operating earnings per common share (non-GAAP)(1) $ 0.59     $ 0.65     $ 2.03     $ 1.81  
               
Dividends declared per common share $ 0.05     $ 0.04     $ 0.13     $ 0.12  
               
Weighted average number of basic shares outstanding 113,263,367     107,101,837     113,153,121     106,944,461  
Weighted average number of diluted shares outstanding 116,138,489     109,563,392     116,087,524     109,315,780  
Shares outstanding, end of period 113,313,042     107,132,560          
Fully diluted shares outstanding, end of period 116,188,164     109,594,115          
Book value per share $ 18.62     $ 15.00          
Fully diluted book value per share $ 18.16     $ 14.66          
                       

Reconciliation of Net Income to Operating Earnings (Non-GAAP)(1)(14)
$ in thousands, except per share data
(Unaudited)

    Three Months Ended September 30,   Nine Months Ended September 30,
    2019   2018   2019   2018
Net income available to common stockholders   $ 63,279     $ 60,507     $ 216,113     $ 157,513  
Add (subtract):                
Equity in losses of equity method investments   1,205     676     1,408     2,979  
Net loss on investments   428     3,003     4,936     21,490  
Non-cash amortization of intangible assets   6,788     8,260     21,093     23,397  
Other income (bargain purchase gain)   (2,146 )       (2,146 )    
Income tax expense (benefit)   (1,317 )   (1,648 )   (5,311 )   (7,474 )
Operating earnings attributable to NGHC (non-GAAP)(1)   $ 68,237     $ 70,798     $ 236,093     $ 197,905  
                 
Operating earnings per common share (non-GAAP)(1):                
Basic operating earnings per common share (non-GAAP)(1)   $ 0.60     $ 0.66     $ 2.09     $ 1.85  
Diluted operating earnings per common share (non-GAAP)(1)   $ 0.59     $ 0.65     $ 2.03     $ 1.81  
                                 

Balance Sheet
$ in thousands
(Unaudited)

    September 30, 2019     December 31, 2018  
ASSETS   NGHC   Reciprocal Exchanges   Consolidated     NGHC   Reciprocal Exchanges   Consolidated  
Total investments (2)   $ 4,612,272     $ 334,398     $ 4,839,252   (A)   $ 4,013,699     $ 314,411     $ 4,226,806   (H)
Cash and cash equivalents, including restricted cash   226,888     434     227,322       233,383     200     233,583    
Premiums and other receivables, net   1,478,586     62,540     1,541,126       1,338,485     61,327     1,399,812    
Reinsurance balances (3)   1,909,583     238,234     2,147,817       2,023,911     253,501     2,277,412    
Intangible assets, net   388,953     3,270     392,223       376,532     3,405     379,937    
Goodwill   181,587         181,587       180,183         180,183    
Other (4)   751,970     25,806     744,669   (B)   739,068     27,879     741,547   (I)
Total assets   $ 9,549,839     $ 664,682     $ 10,073,996   (C)   $ 8,905,261     $ 660,723     $ 9,439,280   (J)
LIABILITIES AND STOCKHOLDERS’ EQUITY                            
Liabilities:                            
Unpaid loss and loss adjustment expense reserves   $ 2,845,799     $ 193,456     $ 3,039,255       $ 2,778,689     $ 178,470     $ 2,957,159    
Unearned premiums and other revenue   2,184,938     265,538     2,450,476       2,014,965     265,763     2,280,728    
Reinsurance payable   629,300     44,424     673,724       615,872     40,393     656,265    
Accounts payable and accrued expenses (5)   312,475     38,307     317,675   (D)   390,338     33,120     398,058   (K)
Debt   687,978     107,418     687,978   (E)   705,795     101,304     705,795   (L)
Other   329,515     43,754     373,269       178,764     61,640     240,404    
Total liabilities   $ 6,990,005     $ 692,897     $ 7,542,377   (F)   $ 6,684,423     $ 680,690     $ 7,238,409   (M)
Stockholders’ equity:                            
Common stock (6)   $ 1,133     $     $ 1,133       $ 1,129     $     $ 1,129    
Preferred stock (7)   450,000         450,000       450,000         450,000    
Additional paid-in capital   1,062,859         1,062,859       1,057,783         1,057,783    
Accumulated other comprehensive income (loss)   80,387         80,387       (52,130 )       (52,130 )  
Retained earnings   965,455         965,455       764,056         764,056    
Total National General Holdings Corp. stockholders’ equity   2,559,834         2,559,834       2,220,838         2,220,838    
Noncontrolling interest       (28,215 )   (28,215 )         (19,967 )   (19,967 )  
Total stockholders’ equity   $ 2,559,834     $ (28,215 )   $ 2,531,619       $ 2,220,838     $ (19,967 )   $ 2,200,871    
Total liabilities and stockholders’ equity   $ 9,549,839     $ 664,682     $ 10,073,996   (G)   $ 8,905,261     $ 660,723     $ 9,439,280   (N)
                                                     

NOTES: Consolidated column includes eliminations as follows: (A) $(107,418), (B) $(33,107), (C) $(140,525), (D) $(33,107), (E) $(107,418), (F) $(140,525), (G) $(140,525) || (H) $(101,304), (I) $(25,400), (J) $(126,704), (K) $(25,400), (L) $(101,304), (M) $(126,704) and (N) $(126,704).

Segment Information - Third Quarter
$ in thousands
(Unaudited)

    Three Months Ended September 30,
    2019     2018
    P&C   A&H   NGHC     Reciprocal
Exchanges
    P&C   A&H   NGHC     Reciprocal Exchanges
Gross written premium   $ 1,154,335     $ 162,555     $ 1,316,890       $ 118,267       $ 1,090,372     $ 143,948     $ 1,234,320       $ 121,351  
Net written premium   819,970     147,349     967,319       67,285       784,634     123,576     908,210       14,814  
Net earned premium   827,618     168,903     996,521       57,117       741,030     155,346     896,376       43,151  
                                       
Ceding commission income   40,260     2,261     42,521       15,066       44,244     269     44,513       14,587  
Service and fee income   115,557     63,736     179,293       1,585       113,967     46,458     160,425       1,575  
Total underwriting revenues   $ 983,435     $ 234,900     $ 1,218,335       $ 73,768       $ 899,241     $ 202,073     $ 1,101,314       $ 59,313  
                                       
Loss and loss adjustment expense   627,452     70,612     698,064       47,270       544,446     72,652     617,098       40,212  
Acquisition costs and other underwriting expenses   146,307     47,214     193,521       15,569       135,406     44,774     180,180       11,290  
General and administrative expenses   190,286     68,297     258,583       24,533       184,101     50,525     234,626       20,417  
Total underwriting expenses   $ 964,045     $ 186,123     $ 1,150,168       $ 87,372       $ 863,953     $ 167,951     $ 1,031,904       $ 71,919  
                                       
Underwriting income (loss)   19,390     48,777     68,167       (13,604 )     35,288     34,122     69,410       (12,606 )
Non-cash amortization of intangible assets   5,257     1,531     6,788       18       6,546     1,714     8,260       (14 )
Underwriting income (loss) before amortization and impairment   $ 24,647     $ 50,308     $ 74,955       $ (13,586 )     $ 41,834     $ 35,836     $ 77,670       $ (12,620 )
                                       
Underwriting ratios                                      
Loss and loss adjustment expense ratio (8)   75.8 %   41.8 %   70.1 %     82.8 %     73.5 %   46.8 %   68.8 %     93.2 %
Operating expense ratio (Non-GAAP) (9)   21.8 %   29.3 %   23.1 %     41.1 %     21.8 %   31.3 %   23.4 %     36.0 %
Combined ratio (Non-GAAP) (10)   97.6 %   71.1 %   93.2 %     123.9 %     95.3 %   78.1 %   92.2 %     129.2 %
                                       
Underwriting ratios (before amortization and impairment)                                      
Loss and loss adjustment expense ratio (8)   75.8 %   41.8 %   70.1 %     82.8 %     73.5 %   46.8 %   68.8 %     93.2 %
Operating expense ratio (Non-GAAP) (11)   21.2 %   28.4 %   22.4 %     41.0 %     20.9 %   30.2 %   22.5 %     36.1 %
Combined ratio before amortization and impairment (Non-GAAP) (12)   97.0 %   70.2 %   92.5 %     123.8 %     94.4 %   77.0 %   91.3 %     129.3 %
                                                       

NOTE: Loss and loss adjustment expenses for the three months ended September 30, 2019 included $14,909 of unfavorable development on prior accident year loss and loss adjustment expense reserves in the P&C segment, and $18,788 of favorable development in the A&H segment, versus $7,234 of unfavorable development in the P&C segment, and $13,200 of favorable development in the A&H segment for the three months ended September 30, 2018.

Segment Information - Year to Date
$ in thousands
(Unaudited)

    Nine Months Ended September 30,
    2019     2018
    P&C   A&H   NGHC     Reciprocal
Exchanges
    P&C   A&H   NGHC     Reciprocal Exchanges
Gross written premium   $ 3,321,090     $ 592,771     $ 3,913,861       $ 344,982       $ 3,259,270     $ 534,560     $ 3,793,830       $ 337,021  
Net written premium   2,521,969     500,237     3,022,206       172,460       2,301,215     486,187     2,787,402       132,240  
Net earned premium   2,402,509     496,532     2,899,041       149,405       2,181,571     465,391     2,646,962       141,009  
                                       
Ceding commission income   128,087     8,780     136,867       50,446       118,664     789     119,453       39,523  
Service and fee income   348,045     177,685     525,730       4,471       328,707     134,586     463,293       4,466  
Total underwriting revenues   $ 2,878,641     $ 682,997     $ 3,561,638       $ 204,322       $ 2,628,942     $ 600,766     $ 3,229,708       $ 184,998  
                                       
Loss and loss adjustment expense   1,746,409     241,685     1,988,094       124,584       1,583,019     252,364     1,835,383       126,421  
Acquisition costs and other underwriting expenses   429,742     153,063     582,805       32,329       372,589     136,499     509,088       32,952  
General and administrative expenses   558,016     188,227     746,243       67,642       533,316     148,265     681,581       62,032  
Total underwriting expenses   $ 2,734,167     $ 582,975     $ 3,317,142       $ 224,555       $ 2,488,924     $ 537,128     $ 3,026,052       $ 221,405  
                                       
Underwriting income (loss)   144,474     100,022     244,496       (20,233 )     140,018     63,638     203,656       (36,407 )
Non-cash amortization of intangible assets   16,154     4,939     21,093       41       18,125     5,272     23,397       (67 )
Underwriting income (loss) before amortization and impairment   $ 160,628     $ 104,961     $ 265,589       $ (20,192 )     $ 158,143     $ 68,910     $ 227,053       $ (36,474 )
                                       
Underwriting ratios                                      
Loss and loss adjustment expense ratio (8)   72.7 %   48.7 %   68.6 %     83.4 %     72.6 %   54.2 %   69.3 %     89.7 %
Operating expense ratio (Non-GAAP) (9)   21.3 %   31.2 %   23.0 %     30.2 %     21.0 %   32.1 %   23.0 %     36.2 %
Combined ratio (Non-GAAP) (10)   94.0 %   79.9 %   91.6 %     113.6 %     93.6 %   86.3 %   92.3 %     125.9 %
                                       
Underwriting ratios (before amortization and impairment)                                      
Loss and loss adjustment expense ratio (8)   72.7 %   48.7 %   68.6 %     83.4 %     72.6 %   54.2 %   69.3 %     89.7 %
Operating expense ratio (Non-GAAP) (11)   20.6 %   30.2 %   22.3 %     30.1 %     20.2 %   31.0 %   22.1 %     36.2 %
Combined ratio before amortization and impairment (Non-GAAP) (12)   93.3 %   78.9 %   90.9 %     113.5 %     92.8 %   85.2 %   91.4 %     125.9 %
                                                       

NOTE: Loss and loss adjustment expenses for the nine months ended September 30, 2019 included $19,791 of unfavorable development on prior accident year loss and loss adjustment expense reserves in the P&C segment, and $37,775 of favorable development in the A&H segment, versus $13,318 of favorable development in the P&C segment, and $24,623 of favorable development in the A&H segment for the nine months ended September 30, 2018.

Reconciliation of Operating Expense Ratio (Non-GAAP)(9,11,13)
$ in thousands
(Unaudited)

    Three Months Ended September 30,
    2019     2018
    P&C   A&H   NGHC     Reciprocal Exchanges     P&C   A&H   NGHC     Reciprocal Exchanges
Total underwriting expenses   $ 964,045     $ 186,123     $ 1,150,168       $ 87,372       $ 863,953     $ 167,951     $ 1,031,904       $ 71,919  
Less: Loss and loss adjustment expense   627,452     70,612     698,064       47,270       544,446     72,652     617,098       40,212  
Less: Ceding commission income   40,260     2,261     42,521       15,066       44,244     269     44,513       14,587  
Less: Service and fee income   115,557     63,736     179,293       1,585       113,967     46,458     160,425       1,575  
Operating expense   180,776     49,514     230,290       23,451       161,296     48,572     209,868       15,545  
Net earned premium   $ 827,618     $ 168,903     $ 996,521       $ 57,117       $ 741,030     $ 155,346     $ 896,376       $ 43,151  
Operating expense ratio (Non-GAAP) (9)   21.8 %   29.3 %   23.1 %     41.1 %     21.8 %   31.3 %   23.4 %     36.0 %
                                       
Total underwriting expenses   $ 964,045     $ 186,123     $ 1,150,168       $ 87,372       $ 863,953     $ 167,951     $ 1,031,904       $ 71,919  
Less: Loss and loss adjustment expense   627,452     70,612     698,064       47,270       544,446     72,652     617,098       40,212  
Less: Ceding commission income   40,260     2,261     42,521       15,066       44,244     269     44,513       14,587  
Less: Service and fee income   115,557     63,736     179,293       1,585       113,967     46,458     160,425       1,575  
Less: Non-cash amortization of intangible assets   5,257     1,531     6,788       18       6,546     1,714     8,260       (14 )
Operating expense before amortization and impairment   175,519     47,983     223,502       23,433       154,750     46,858     201,608       15,559  
Net earned premium   $ 827,618     $ 168,903     $ 996,521       $ 57,117       $ 741,030     $ 155,346     $ 896,376       $ 43,151  
Operating expense ratio before amortization and impairment (Non-GAAP) (11)   21.2 %   28.4 %   22.4 %     41.0 %     20.9 %   30.2 %   22.5 %     36.1 %
                                                       

Reconciliation of Operating Expense Ratio (Non-GAAP)(9,11,13)
$ in thousands
(Unaudited)

    Nine Months Ended September 30,
    2019     2018
    P&C   A&H   NGHC     Reciprocal Exchanges     P&C   A&H   NGHC     Reciprocal Exchanges
Total underwriting expenses   $ 2,734,167     $ 582,975     $ 3,317,142       $ 224,555       $ 2,488,924     $ 537,128     $ 3,026,052       $ 221,405  
Less: Loss and loss adjustment expense   1,746,409     241,685     1,988,094       124,584       1,583,019     252,364     1,835,383       126,421  
Less: Ceding commission income   128,087     8,780     136,867       50,446       118,664     789     119,453       39,523  
Less: Service and fee income   348,045     177,685     525,730       4,471       328,707     134,586     463,293       4,466  
Operating expense   511,626     154,825     666,451       45,054       458,534     149,389     607,923       50,995  
Net earned premium   $ 2,402,509     $ 496,532     $ 2,899,041       $ 149,405       $ 2,181,571     $ 465,391     $ 2,646,962       $ 141,009  
Operating expense ratio (Non-GAAP) (9)   21.3 %   31.2 %   23.0 %     30.2 %     21.0 %   32.1 %   23.0 %     36.2 %
                                       
Total underwriting expenses   $ 2,734,167     $ 582,975     $ 3,317,142       $ 224,555       $ 2,488,924     $ 537,128     $ 3,026,052       $ 221,405  
Less: Loss and loss adjustment expense   1,746,409     241,685     1,988,094       124,584       1,583,019     252,364     1,835,383       126,421  
Less: Ceding commission income   128,087     8,780     136,867       50,446       118,664     789     119,453       39,523  
Less: Service and fee income   348,045     177,685     525,730       4,471       328,707     134,586     463,293       4,466  
Less: Non-cash amortization of intangible assets   16,154     4,939     21,093       41       18,125     5,272     23,397       (67 )
Operating expense before amortization and impairment   495,472     149,886     645,358       45,013       440,409     144,117     584,526       51,062  
Net earned premium   $ 2,402,509     $ 496,532     $ 2,899,041       $ 149,405       $ 2,181,571     $ 465,391     $ 2,646,962       $ 141,009  
Operating expense ratio before amortization and impairment (Non-GAAP) (11)   20.6 %   30.2 %   22.3 %     30.1 %     20.2 %   31.0 %   22.1 %     36.2 %

Premiums by Product Line
$ in thousands
(Unaudited)

  Three Months Ended September 30,
  Gross Written Premium     Net Written Premium     Net Earned Premium
  2019   2018   Change     2019   2018   Change     2019   2018   Change
Property & Casualty                                      
Personal Auto $ 705,709     $ 661,126     6.7 %     $ 560,032     $ 502,964     11.3 %     $ 568,346     $ 496,139     14.6 %
Homeowners 201,977     192,349     5.0 %     82,601     112,390     (26.5 )%     86,525     80,308     7.7 %
RV/Packaged 55,631     54,964     1.2 %     52,283     54,627     (4.3 )%     51,023     51,229     (0.4 )%
Small Business Auto 76,987     75,218     2.4 %     56,615     53,155     6.5 %     62,265     59,636     4.4 %
Lender-placed insurance 97,468     94,462     3.2 %     61,579     56,529     8.9 %     56,599     48,466     16.8 %
Other 16,563     12,253     35.2 %     6,860     4,969     38.1 %     2,860     5,252     (45.5 )%
Total Premium $ 1,154,335     $ 1,090,372     5.9 %     $ 819,970     $ 784,634     4.5 %     $ 827,618     $ 741,030     11.7 %
                                       
Accident & Health                                      
Group 73,223     61,743     18.6 %     59,001     51,296     15.0 %     59,009     51,310     15.0 %
Individual 85,728     78,378     9.4 %     85,541     78,372     9.1 %     85,971     78,874     9.0 %
International 3,604     3,827     (5.8 )%     2,807     (6,092 )   nm     23,923     25,162     (4.9 )%
Total Premium $ 162,555     $ 143,948     12.9 %     $ 147,349     $ 123,576     19.2 %     $ 168,903     $ 155,346     8.7 %
                                       
Total National General $ 1,316,890     $ 1,234,320     6.7 %     $ 967,319     $ 908,210     6.5 %     $ 996,521     $ 896,376     11.2 %
                                       
Reciprocal Exchanges                                      
Personal Auto $ 39,166     $ 40,240     (2.7 )%     $ 67,154     $ 12,845     nm     $ 33,953     $ 13,353     nm
Homeowners 78,079     80,070     (2.5 )%     (2,047 )   2,002     nm     22,759     29,698     (23.4 )%
Other 1,022     1,041     (1.8 )%     2,178     (33 )   nm     405     100     nm
Total Premium $ 118,267     $ 121,351     (2.5 )%     $ 67,285     $ 14,814     nm     $ 57,117     $ 43,151     32.4 %
                                       
Consolidated Total $ 1,435,157     $ 1,355,671     5.9 %     $ 1,034,604     $ 923,024     12.1 %     $ 1,053,638     $ 939,527     12.1 %
                                                                     

nm - not meaningful

Premiums by Product Line
$ in thousands
(Unaudited)

  Nine Months Ended September 30,
  Gross Written Premium     Net Written Premium     Net Earned Premium
  2019   2018   Change     2019   2018   Change     2019   2018   Change
Property & Casualty                                      
Personal Auto $ 2,083,702     $ 2,018,563     3.2 %     $ 1,730,904     $ 1,542,685     12.2 %     $ 1,621,734     $ 1,436,793     12.9 %
Homeowners 544,056     524,342     3.8 %     276,250     255,290     8.2 %     272,591     242,161     12.6 %
RV/Packaged 168,796     164,427     2.7 %     162,047     162,934     (0.5 )%     150,739     145,911     3.3 %
Small Business Auto 246,694     246,448     0.1 %     196,221     181,314     8.2 %     189,957     178,302     6.5 %
Lender-placed insurance 232,265     259,995     (10.7 )%     140,863     134,630     4.6 %     158,595     162,629     (2.5 )%
Other 45,577     45,495     0.2 %     15,684     24,362     (35.6 )%     8,893     15,775     (43.6 )%
Total Premium $ 3,321,090     $ 3,259,270     1.9 %     $ 2,521,969     $ 2,301,215     9.6 %     $ 2,402,509     $ 2,181,571     10.1 %
                                       
Accident & Health                                      
Group 213,197     177,036     20.4 %     170,911     145,760     17.3 %     170,921     145,788     17.2 %
Individual 252,719     231,890     9.0 %     252,316     231,884     8.8 %     252,122     232,069     8.6 %
International 126,855     125,634     1.0 %     77,010     108,543     (29.1 )%     73,489     87,534     (16.0 )%
Total Premium $ 592,771     $ 534,560     10.9 %     $ 500,237     $ 486,187     2.9 %     $ 496,532     $ 465,391     6.7 %
                                       
Total National General $ 3,913,861     $ 3,793,830     3.2 %     $ 3,022,206     $ 2,787,402     8.4 %     $ 2,899,041     $ 2,646,962     9.5 %
                                       
Reciprocal Exchanges                                      
Personal Auto $ 120,012     $ 116,602     2.9 %     $ 101,460     $ 40,860     nm     $ 65,907     $ 38,812     69.8 %
Homeowners 222,019     217,486     2.1 %     68,180     90,826     (24.9 )%     82,475     101,578     (18.8 )%
Other 2,951     2,933     0.6 %     2,820     554     nm     1,023     619     65.3 %
Total Premium $ 344,982     $ 337,021     2.4 %     $ 172,460     $ 132,240     30.4 %     $ 149,405     $ 141,009     6.0 %
                                       
Consolidated Total (A) $ 4,258,843     $ 4,129,250     3.1 %     $ 3,194,666     $ 2,919,642     9.4 %     $ 3,048,446     $ 2,787,971     9.3 %
                                                                     

nm - not meaningful

NOTES: (A) Consolidated Total includes eliminations between National General and the Reciprocal Exchanges of $(567) in Personal Auto and $(1,034) in Homeowners Gross Written Premium in 2018, respectively.

Fee Income
$ in thousands
(Unaudited)

  Three Months Ended September 30,   Nine Months Ended September 30,
  2019   2018   Change   2019   2018   Change
Property & Casualty                      
Service and Fee Income $ 115,557     $ 113,967     1.4 %   $ 348,045     $ 328,707     5.9 %
Ceding Commission Income 40,260     44,244     (9.0 )%   128,087     118,664     7.9 %
Property & Casualty $ 155,817     $ 158,211     (1.5 )%   $ 476,132     $ 447,371     6.4 %
                       
Accident & Health                      
Service and Fee Income                      
Group $ 34,848     $ 25,198     38.3 %   $ 98,084     $ 74,768     31.2 %
Individual 2,128     4,512     (52.8 )%   5,506     7,973     (30.9 )%
Third Party Fee 26,760     16,748     59.8 %   74,095     51,845     42.9 %
Total Service and Fee Income 63,736     46,458     37.2 %   177,685     134,586     32.0 %
Ceding Commission Income 2,261     269     nm   8,780     789     nm
Accident and Health $ 65,997     $ 46,727     41.2 %   $ 186,465     $ 135,375     37.7 %
                       
Total National General $ 221,814     $ 204,938     8.2 %   $ 662,597     $ 582,746     13.7 %
                       
Reciprocal Exchanges                      
Service and Fee Income $ 1,585     $ 1,575     0.6 %   $ 4,471     $ 4,466     0.1 %
Ceding Commission Income 15,066     14,587     3.3 %   50,446     39,523     27.6 %
Reciprocal Exchanges $ 16,651     $ 16,162     3.0 %   $ 54,917     $ 43,989     24.8 %
                       
Consolidated Total (A) $ 219,213     $ 201,790     8.6 %   $ 663,354     $ 574,289     15.5 %
                                           

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NOTES: (A) Consolidated Total includes eliminations between National General and the Reciprocal Exchanges in Service and Fee Income of $(19,252) and $(19,310) in the three months ended September 30, 2019 and 2018, respectively, and $(54,160) and $(52,446) in the nine months ended September 30, 2019 and 2018, respectively.

Additional Disclosures

(1) References to operating earnings and basic and diluted operating earnings per share (“EPS”) are non-GAAP financial measures defined by the Company as net income/loss and basic and diluted earnings per share excluding after-tax net gain or loss on investments (including foreign exchange gain or loss), other-than-temporary impairment losses, earnings or losses of equity method investments (related parties), deferred tax asset impairment, non-cash impairment of goodwill and non-cash amortization of intangible assets, and any significant non-recurring or infrequent items that may not be indicative of ongoing operations. The Company believes operating earnings and basic and diluted operating EPS are relevant measures of the Company’s profitability because operating earnings and basic and diluted operating EPS contain the components of net income upon which the Company’s management has the most influence and excludes factors outside management’s direct control and non-recurring items. Other companies may calculate these measures differently, and therefore, their measures may not be comparable to those used by National General. Please see the Non-GAAP Financial Measures table within this release for the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure.

(2) Total investments includes $234,617 and $233,723 in related parties at September 30, 2019 and December 31, 2018, respectively.

(3) Reinsurance balances includes $4,496 and $7,425 from related parties at September 30, 2019 and December 31, 2018, respectively.

(4) Other includes $1,195 and $2,362 from related parties at September 30, 2019 and December 31, 2018, respectively.

(5) Accounts payable and accrued expenses includes $771 and $69,874 to related parties at September 30, 2019 and December 31, 2018, respectively.

(6) Common stock: $0.01 par value - authorized 150,000,000 shares, issued and outstanding 113,313,042 shares - September 30, 2019; authorized 150,000,000 shares, issued and outstanding 112,940,595 shares - December 31, 2018.

(7) Preferred stock: $0.01 par value - authorized 10,000,000 shares, issued and outstanding 2,565,120 shares - September 30, 2019; authorized 10,000,000 shares, issued and outstanding 2,565,120 shares - December 31, 2018.

(8) Loss and loss adjustment expense ratio (loss ratio) is calculated by dividing loss and loss adjustment expense by net earned premium.

(9) Operating expense ratio is a non-GAAP financial measure defined by the Company, which is commonly used in the insurance industry. The Company calculates the ratio by dividing operating expense by net earned premium. Operating expense consists of the sum of acquisition and other underwriting costs and general and administrative expenses less ceding commission income and service and fee income. The ratio is used as an indicator of the Company’s efficiency in acquiring and servicing its business.

(10) Combined ratio is a non-GAAP financial measure defined by the Company, which is commonly used in the insurance industry. The Company calculates the ratio by adding the loss and loss adjustment expense ratio(8) and the operating expense ratio (non-GAAP)(9) together. The ratio is used as an indicator of the Company’s underwriting discipline, efficiency in acquiring and servicing its business, and overall underwriting profit. Management uses operating expense ratio (non-GAAP) and combined ratio (non-GAAP) to evaluate financial performance against historical results and establish targets. A combined ratio under 100% generally indicates an underwriting profit, while over 100% an underwriting loss.

(11) Operating expense ratio before amortization and impairment is a non-GAAP financial measure defined by the Company, which is commonly used in the insurance industry. The Company calculates the ratio by dividing the operating expense before amortization and impairment by net earned premium. Operating expense before amortization and impairment consists of the sum of acquisition and other underwriting costs and general and administrative expenses less ceding commission income and service and fee income less non-cash amortization of intangible assets and non-cash impairment of goodwill. The ratio is used as an indicator of the Company’s efficiency in acquiring and servicing its business. Management believes that this measure provides a more useful comparison to the operating expense ratio of other insurance companies involved in fewer acquisitions.

(12) Combined ratio before amortization and impairment is a non-GAAP financial measure defined by the Company, which is commonly used in the insurance industry. The Company calculates the ratio by adding the loss and loss adjustment expense ratio(8) and the operating expense ratio before amortization and impairment (non-GAAP)(11) together. The ratio is used as an indicator of the Company’s underwriting discipline, efficiency in acquiring and servicing its business, and overall underwriting profit. Management believes that this measure of underwriting profitability provides a more useful comparison to the combined ratio of other insurance companies involved in fewer acquisitions. A combined ratio under 100% generally indicates an underwriting profit, while over 100% an underwriting loss.

(13) Combined ratio (non-GAAP), operating expense ratio (non-GAAP), combined ratio before amortization and impairment (non-GAAP) and operating expense ratio before amortization and impairment (non-GAAP) are considered non-GAAP financial measures under applicable SEC rules. Other companies may calculate these ratios differently, and therefore, their measures may not be comparable to those used by National General. Please see the Non-GAAP Financial Measures table within this release for the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure.

(14) Trailing twelve month operating return on average equity is the ratio of the previous twelve months operating earnings (non-GAAP) to average shareholders’ equity for the same twelve-month period. Average shareholders’ equity is the sum of the shareholders’ equity excluding preferred stock at the beginning and end of the period divided by two. In the opinion of the Company’s management this ratio is an important indicator of how well management creates value for its shareholders through its operating activities and capital management. Other companies may calculate these measures differently, and therefore, their measures may not be comparable to those used by National General. Please see the Non-GAAP Financial Measures table within this release for the reconciliation of net income to operating earnings, which is the Non-GAAP component of the operating return on average equity.

(15) Combined ratio excluding losses from various weather-related events, is calculated by taking the combined ratio as defined in Note 12, and adjusting it to exclude the total net losses of $11.5 million and $35.0 million from these events for the three months ended September 30, 2019 and 2018, respectively. The Company believes this measure enhances investors’ understanding of our results by eliminating what we believe are volatile and unusual events.

Year       Combined Ratio (12)   Impact of Weather-related Events   Combined Ratio Excluding Weather-related Events (15)
2019   P&C Segment   97.0 %   1.4 %   95.6 %
                 
2019   Overall NGHC   92.5 %   1.2 %   91.3 %
                 
                 
2018   P&C Segment   94.4 %   4.7 %   89.7 %
                 
2018   Overall NGHC   91.3 %   3.9 %   87.4 %

(16) Our products in the P&C segment include personal auto, homeowners, RV/Packaged, small business auto, lender-placed insurance and other products. The personal auto product includes policies for standard, preferred and nonstandard automobile insurance. The homeowners product includes multiple-peril policies and personal umbrella coverage to the homeowner. The RV/Packaged product offers policies that include RV automatic personal effects coverage, optional replacement cost coverage, RV storage coverage and full-time liability coverage. The small business auto product offers policies that include liability and physical damage coverage for light-to-medium duty commercial vehicles. The lender-placed insurance product offers fire, home and flood products, as well as collateral protection insurance and guaranteed asset protection products for automobiles. Our products and revenue in the A&H segment include group, individual and third party fees. The group product includes revenue from our small group self-funded product. The individual product line includes revenue from our supplemental products including short-term medical, accident/AD&D, hospital indemnity, cancer/critical illness, dental and term life insurance. Third party fees include commission and general agent fees for selling policies issued by third-party insurance companies, fees generated through selling our technology products to third parties and fees from our international health insurance offerings.

Investor Contact

Paul Anderson
Director of Investor Relations
Phone: 212-380-9462
Email: Paul.Anderson@NGIC.com

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Source: National General Holdings Corp