Orion180 Insurance Group (NASDAQ:OIG) Issues Earnings Results, Beats Estimates By $0.05 EPS

Orion180 Insurance Group (NASDAQ:OIG) posted its quarterly earnings results on Tuesday. The company reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.05, Zacks reports. The business had revenue of $53.90 million during the quarter, compared to the consensus estimate of $43.71 million.

Here are the key takeaways from Orion180 Insurance Group’s conference call:

• Third-quarter growth was strong: managed premiums written rose 60% to $204 million, premiums in force increased 72% to $678 million, revenue grew 58% to $53.9 million, and adjusted EBITDA advanced 65% to $25.1 million.
• Underwriting results improved, with the combined ratio falling to 68.8% from 95.8% and the net loss ratio improving to 42.8%. The gross loss ratio rose to 32.8% from 27.3%, which management attributed in part to seasonal storm activity.
• The company is pursuing further growth through expansion in newer states, including Colorado, and new offerings such as FlexLuxe and its landlord product; management also cited technology, product customization, and agent relationships as differentiators.
• The September IPO generated approximately $224 million in net proceeds, which Orion180 used to reduce debt; it ended the quarter with $166 million in cash and cash equivalents and $56 million of debt, and said it intends to pay down debt using excess cash.
• Policy retention eased to 87.6% from 89.6%, and management acknowledged some pricing pressure and near-term macro uncertainty, though it said these had not significantly affected results through the quarter.

Orion180 Insurance Group Trading Up 0.4%

OIG traded up $0.04 during trading on Thursday, reaching $10.44. The stock had a trading volume of 40,554 shares, compared to its average volume of 348,466. Orion180 Insurance Group has a one year low of $7.78 and a one year high of $12.06.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. UBS Group began coverage on Orion180 Insurance Group in a report on Tuesday, October 13th. They issued a “buy” rating and a $14.00 price objective on the stock. Texas Capital upgraded Orion180 Insurance Group to a “strong-buy” rating in a report on Tuesday, October 20th. Royal Bank Of Canada began coverage on Orion180 Insurance Group in a research report on Tuesday, October 13th. They set an “outperform” rating and a $15.00 price target on the stock. Deutsche Bank began coverage on Orion180 Insurance Group in a research note on Tuesday, October 13th. They issued a “buy” rating and a $12.90 price target on the stock. Finally, Citigroup started coverage on Orion180 Insurance Group in a research note on Tuesday, October 13th. They issued a “market outperform” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Orion180 Insurance Group presently has a consensus rating of “Moderate Buy” and an average target price of $14.98.

Insider Activity at Orion180 Insurance Group

In other Orion180 Insurance Group news, major shareholder Craig Darling bought 6,990 shares of Orion180 Insurance Group stock in a transaction dated Tuesday, September 22nd. The shares were purchased at an average cost of $10.72 per share, with a total value of $74,932.80. Following the transaction, the insider directly owned 5,711,190 shares of the company’s stock, valued at $61,223,956.80. This represents a 0.12% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. In the last quarter, insiders have acquired 10,990 shares of company stock worth $115,797. Insiders own 2.58% of the company’s stock.

Orion180 Insurance Group Company Profile

Orion180 Insurance Group, Inc. is a technology-driven property and casualty insurance company focused primarily on personal lines coverage. Through its insurance subsidiaries, the company provides products designed to protect residential properties and personal belongings, including homeowners, renters and related property insurance offerings. The company uses proprietary technology and data analytics to support policy underwriting, pricing, distribution and claims management. Orion180 distributes its products through independent insurance agents and other channels, with an emphasis on simplifying the insurance purchasing and servicing experience for customers and agents.