National General Holdings Corp (NASDAQ:NGHCP) Q4 2018 Earnings Conference Call - Final Transcript

Feb 26, 2019 • 09:30 am ET


National General Holdings Corp (NASDAQ:NGHCP) Q4 2018 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Fourth Quarter 2018 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Christine Worley. Ma'am, the floor is yours.

Christine Worley

Thank you. Good morning, and welcome to the National General Holdings Corp Fourth Quarter 2018 Earnings Conference Call. My name is Christine Worley, and I'm the Director of Investor Relations at National General. With me this morning are Barry Karfunkel, Chief Executive Officer and Mike Weiner, Chief Financial Officer. Before Mr. Karfunkel and Mr. Weiner review our results, please note the following with respect to forward-looking statements.

Members of our management team may include statements other than historical facts in their remarks. Such statements may include the plans and objectives of management for future operations, including those relating to future changes in the Company's business activities and earnings results or potential. These statements are based on current expectations and involve assumptions that are difficult or impossible to predict accurately, many of which are beyond our control.

There can be no assurance that actual developments will be consistent with these assumptions. Actual results may differ materially from those expressed or implied in these statements as a result of significant risks and uncertainties, including the factors set forth in our filings with the Securities and Exchange Commission. The projections and statements in this presentation speak only as of the date of this presentation, as we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by law.

Our management will refer to financial measures that are not derived from generally accepted accounting principles or GAAP. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures and related information is provided in the press release for our fourth quarter 2018 earnings, which is available in the Investor Relations section of our Web-site at

It is now my pleasure to turn the call over to our CEO, Mr. Barry Karfunkel.

Barry Karfunkel

Good morning, and thank you for joining our fourth quarter earnings conference call. I'd like to provide some added color around the performance of our various lines of business, as well as provide some outlook for how we're thinking about them for 2019.

Our personal auto has had a tremendous year in 2018 in terms of operating results and growth. Top line growth slowed in the second half of the year and we expect gross written premium growth to remain in the mid- to high-single digits for 2019.

We've also reduced our quota share from 15% to 7% on the auto line, allowing us to retain more of the strong reperforming business. The heart of market and REIT dislocation that drove outstanding organic growth levels during 2017 has subsided. In the current environment, we