Protective Insurance Corporation (NASDAQ:PTVCA) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 11:00 am ET
Greetings. Welcome to Protective Insurance Corporation's Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.
I will now turn the conference over to Marilynn Meek to begin. Thank you.
Thank you. Thank you all for joining us this morning for the Protective Insurance Corporation second quarter 2020 conference call. If you did not receive a copy of the press release, you may access it online at the company's website along with an Investor Presentation to accompany today's call and earnings release, which is available at www.protectiveinsurance.com. I would like to remind everyone that we are hosting a live webcast for the call, which may be accessed at the company's website as well.
At this time, management would like me to inform you that certain statements made during this conference call and in the press release, which are not historical, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Protective Insurance Corporation believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurances that expectations will be obtained. Factors and risks that could cause actual results to differ materially from expectations are detailed in the press release and are included from time-to-time with the company's filings with the SEC.
I would now like to introduce Jeremy Johnson, CEO of Protective Insurance Corporation, and turn the call over to him. Please go ahead.
Jeremy d. Edgecliffe-Johnson
Thank you. Good morning and thank you all for joining John and me this morning. Let me start by thanking my colleagues for their rapid adjustment to a new remote way of working. We continue to run the company, service our clients and pay our claims with the highest level of commitment and professionalism. This is a dedicated, experienced and resilient team, and I'm proud to be part of it.
I'm really pleased with this quarter's financial performance. Our commitment to rate increases in commercial auto, risk selection and mix of business can be seen clearly in the significant reduction in our accident year loss ratio. Furthermore, fewer vehicles on the road has reduced our claims frequency.
Although our premiums are reduced on both an earned and a written basis, adjusting for the lines of business we no longer write. Our premiums are up slightly over Q1 2020 and down slightly over the same quarter last year.
We are a specialist in writing transportation fleets, but our book is diversified by fleet size, vehicle type, industry-served, geography and distribution channel. And that diversification has supported our premium base through a challenging economic period.
On the asset side, our portfolio has responded well to the improvement in the equity and fixed income markets. And although it is still down for the year, we are encouraged by the recovery and remain fully confident in the underlying strength of our hold-to-maturity fixed income portfolio.
Turning to the numbers. Second quarter net income was $11.4 million or $0.80 per share, which compares