We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Universal Insurance Holdings Inc | NYSE:UVE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.09 | 0.46% | 19.81 | 19.99 | 19.6155 | 19.88 | 163,183 | 01:00:00 |
FORT LAUDERDALE, Fla., Feb. 20, 2018 /PRNewswire/ -- Universal Insurance Holdings, Inc. (NYSE: UVE) today reported net income and diluted earnings per share (EPS) of $36.4 million and $1.03, respectively for the fourth quarter of 2017. For the year ended December 31, 2017, net income was $106.9 million while diluted EPS was $2.99.
Universal Insurance Holdings, Inc. Chairman and Chief Executive Officer Sean P. Downes commented: "In the months since Hurricane Irma made landfall, Universal has demonstrated the true value of our business model. Our comprehensive reinsurance program substantially limited net losses incurred from one of Florida's largest hurricanes in over a decade, our vertically integrated structure produced various income streams in the months following the storm, and our superior claims handling and catastrophe response teams delivered excellent service to our policyholders, closing claims in a timely and orderly manner. Our underlying results were also strong, highlighted by continued organic growth and underwriting profitability, as we maintained underwriting discipline and adhered to our strategy of producing profitable and rate-adequate business, with meaningful growth in both Florida and our Other States book, and steady expansion of our Universal DirectSM platform. Our balance sheet remains solid. During the fourth quarter we strengthened both current and prior accident year loss reserves, and we believe our loss reserves are appropriately set at current levels. We delivered a 33.0% ROE for the fourth quarter and a 25.7% ROE for 2017, results that validate our unique business model, and we remain well positioned to deliver outstanding value to shareholders throughout 2018 and beyond."
Fourth Quarter 2017 Highlights
Fourth Quarter 2017 Results
Direct premiums written grew 12.5% from the prior year's quarter to $239.5 million, with 9.4% growth in our Florida book and 36.8% growth in our Other States book. Our organic growth strategy within our home state of Florida remains on track, and our organic geographic expansion efforts within our Other States book continue to produce results. We note that fourth quarter 2017 results include an increased level of both new and renewal business within our Florida book surrounding Hurricane Irma, in part related to a temporary emergency order by the Florida Insurance Commissioner suspending policy cancellations and nonrenewals by insurance companies for a period following Hurricane Irma (please see "Hurricane Irma Overview" section for additional details). For the quarter, net premiums earned grew 12.0% to $183.7 million.
Commission revenue grew by 39.5% versus the prior year's quarter to $6.7 million, driven largely by the benefit of approximately $2.0 million of fee income related to reinstatement commissions received by Blue Atlantic Reinsurance Corporation during the fourth quarter of 2017. Policy fees grew by 12.1% versus the prior year's quarter to $4.2 million, driven by increased premium volume. Other revenue grew 30.3% versus the prior year's quarter to $2.1 million.
The net combined ratio was 77.6% in the fourth quarter of 2017 compared to 95.0% in the prior year's quarter. The increase in underwriting profitability was driven by both a reduction in the loss and loss adjustment expense ratio and the general and administrative expense ratio.
The net loss and LAE ratio was 45.3% in the fourth quarter of 2017, compared to 61.9% for the prior year's quarter. The main drivers of the change in the loss and LAE ratio are as follows:
The net general and administrative expense ratio was 32.3% in the fourth quarter of 2017, compared to 33.1% for the prior year's quarter, as a modest increase in the policy acquisition cost ratio was more than offset by a decline of the other operating expense ratio. The net policy acquisition cost ratio was 20.7% compared to 20.4% in the prior year, while the net other operating expense ratio was 11.6% compared to 12.7% in the prior year.
Additionally, our service company subsidiaries generated substantial additional revenues following Hurricane Irma that led to approximately $35.0 million of estimated pretax profit generated by service company subsidiaries during the fourth quarter of 2017 (please see "Hurricane Irma Overview" section for additional details). These benefits were reflected in both loss adjustment expenses and general and administrative expenses.
Net investment income grew by 27.5% from the prior year's quarter to $4.4 million, driven by the increasing size of our investment portfolio, a shift in asset mix, and an increased investment portfolio yield as compared to the prior year's quarter. Net realized investment gains were $0.1 million in the fourth quarter of 2017, compared to net realized gains of $1.0 million in the prior year's quarter. Total unrestricted cash and invested assets was $943.5 million at December 31, 2017, growth of 24.6% from $757.3 million at December 31, 2016.
Interest expense was $79 thousand for the fourth quarter of 2017, compared to $59 thousand in the prior year's quarter, with long term debt of $12.9 million at December 31, 2017 (debt-to-equity of 2.9%), compared to $15.4 million as of December 31, 2016 (debt-to-equity of 4.0%).
The effective tax rate for the fourth quarter of 2017 was 37.9%, compared to 39.9% in the prior year's quarter. The current year's quarter includes several discrete items, which in aggregate reduced our income tax expense by approximately $0.2 million, lowering the effective tax rate by 0.3 percentage points for the quarter. Discrete items included a credit to income tax expense of $5.0 million for excess tax benefits resulting from stock-based awards that vested and/or were exercised during the fourth quarter, largely offset by a deferred tax asset (DTA) remeasurement of $4.7 million related to tax reform legislation passed in December 2017.
Stockholders' equity was $440.0 million at December 31, 2017, growth of 4.6% from September 30, 2017, or 18.5% from December 31, 2016. Book value per common was $12.67 at December 31, 2017, growth of 3.7% from $12.21 at September 30, 2017, or 19.6% from $10.59 at December 31, 2016. Return on Average Common Equity (ROE) was 33.0% for the fourth quarter of 2017 compared to 14.4% for the fourth quarter of 2016, and 25.7% for year ended December 31, 2017 compared to 29.4% for year ended December 31, 2016.
During the fourth quarter, the Company repurchased 10,000 shares for $0.3 million, or an average cost of $25.71 per share. For the year ended December 31, 2017, the Company repurchased 770,559 shares for $18.1 million, or an average cost of $23.54 per share. Our current share repurchase authorization program has $19.8 million remaining and runs through December 31, 2018.
On November 16, 2017, the Company announced that its Board of Directors declared a cash dividend of $0.27 per share of common stock that was paid on December 4, 2017 to shareholders of record as of November 27, 2017. The $0.27 per share dividend included the regular $0.14 per share fourth quarter dividend and an additional special dividend of $0.13 per share. Total cash dividends during 2017 were $0.69 per share, a dividend yield of 2.8% based on the average UVE share price throughout 2017. On January 22, 2018, the Company announced that its Board of Directors declared a cash dividend of $0.14 per share of common stock to be paid on March 12, 2018 to shareholders of record as of February 28, 2018.
Hurricane Irma Overview
Hurricane Irma made initial landfall in the Florida Keys on September 10, 2017 as a Category 4 storm on the Saffir-Simpson Hurricane Scale. Hurricane Irma was an extremely destructive event that caused a wide swath of damage across the entire Florida peninsula and throughout the Southeastern United States. Although Hurricane Irma was a devastating catastrophic event, the ultimate net financial impact to Universal was substantially limited by both our comprehensive reinsurance program and benefits received as a result of our vertically integrated structure. The initial net loss and LAE reported by the Company in the third quarter of 2017 related to Hurricane Irma was $37.0 million. This amount was partially offset by favorable revisions to ceded losses and LAE of $9.2 million during the fourth quarter of 2017 to reflect recoveries related to our Other States Reinsurance Program. Additionally, our service company subsidiaries generated substantial additional revenues following Hurricane Irma that led to approximately $35.0 million of estimated pretax profit generated by service company subsidiaries during the fourth quarter of 2017. In total, for the year ended December 31, 2017, the Company estimates that Hurricane Irma had an aggregate net benefit on its financial results of approximately $7.2 million on a pretax basis. The discussion below provides additional commentary surrounding the various effects of Hurricane Irma on the Company's financial results.
Conference Call
Members of the Universal management team will host a conference call on Wednesday, February 21, 2018 at 10:00 AM ET to discuss fourth quarter 2017 financial results. Following prepared remarks, management will conduct a question and answer session. The call will be accessible by dialing toll free at (888) 887-7180 or internationally (toll) at (270) 823-1518 using the Conference ID: 9892307. A live audio webcast of the call will also be accessible on the Universal Insurance website at www.universalinsuranceholdings.com. A replay of the call can be accessed toll free at (855) 859-2056 or internationally (toll) at (404) 537-3406 using the Conference ID: 9892307, and will be available through March 8, 2018.
About Universal Insurance Holdings, Inc.
Universal Insurance Holdings, Inc., with its wholly-owned subsidiaries, is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Universal Property & Casualty Insurance Company (UPCIC), a wholly-owned subsidiary of the Company, is one of the leading writers of homeowners insurance in Florida and is now fully licensed and has commenced its operations in North Carolina, South Carolina, Hawaii, Georgia, Massachusetts, Maryland, Delaware, Indiana, Pennsylvania, Minnesota, Michigan, Alabama, Virginia, New Jersey, and New York. American Platinum Property and Casualty Insurance Company (APPCIC), also a wholly-owned subsidiary, currently writes homeowners multi-peril insurance on Florida homes valued in excess of $1 million, which are limits and coverages currently not targeted through its affiliate UPCIC. APPCIC is additionally licensed and has commenced writing Fire, Commercial Multi-Peril, and Other Liability lines of business in Florida. For additional information on the Company, please visit our investor relations website at www.universalinsuranceholdings.com.
Forward-Looking Statements and Risk Factors
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future results could differ materially from those described, and the Company undertakes no obligation to correct or update any forward-looking statements. For further information regarding risk factors that could affect the Company's operations and future results, refer to the Company's reports filed with the Securities and Exchange Commission, including Form 10-K for the year ended December 31, 2016 and Form 10-Q for the quarter ended September 30, 2017.
UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||
(in thousands, except per share data) | ||||
December 31, |
December 31, | |||
2017 |
2016 | |||
ASSETS |
||||
Invested Assets |
||||
Fixed maturities, at fair value |
$ 639,334 |
$ 584,361 | ||
Equity securities, at fair value |
62,215 |
50,803 | ||
Short-term investments, at fair value |
10,000 |
5,002 | ||
Investment real estate, net |
18,474 |
11,435 | ||
Total invested assets |
730,023 |
651,601 | ||
Cash and cash equivalents |
213,486 |
105,730 | ||
Restricted cash and cash equivalents |
2,635 |
2,635 | ||
Prepaid reinsurance premiums |
132,806 |
124,385 | ||
Reinsurance recoverable |
182,405 |
106 | ||
Premiums receivable, net |
56,500 |
53,833 | ||
Property and equipment, net |
32,866 |
32,162 | ||
Deferred policy acquisition costs |
73,059 |
64,912 | ||
Goodwill |
2,319 |
2,319 | ||
Other assets |
28,900 |
22,324 | ||
TOTAL ASSETS |
$ 1,454,999 |
$ 1,060,007 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
LIABILITIES: |
||||
Unpaid losses and loss adjustment expenses |
248,425 |
58,494 | ||
Unearned premiums |
532,444 |
475,756 | ||
Advance premium |
26,216 |
17,796 | ||
Reinsurance payable, net |
110,381 |
80,891 | ||
Long-term debt |
12,868 |
15,028 | ||
Other liabilities |
84,677 |
40,852 | ||
Total liabilities |
1,015,011 |
688,817 | ||
STOCKHOLDERS' EQUITY: |
||||
Cumulative convertible preferred stock ($0.01 par value) 1 |
— |
— | ||
Common stock ($0.01 par value) 2 |
458 |
453 | ||
Treasury shares, at cost - 11,043 and 10,272 |
(105,123) |
(86,982) | ||
Additional paid-in capital |
86,186 |
82,263 | ||
Accumulated other comprehensive income (loss), net of taxes |
(6,281) |
(6,408) | ||
Retained earnings |
464,748 |
381,864 | ||
Total stockholders' equity |
439,988 |
371,190 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 1,454,999 |
$ 1,060,007 | ||
Notes: |
||||
1 - 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. | ||||
2 - Common stock ($0.01 par value): Authorized - 55,000 shares; Issued - 45,778 and 45,324 shares; Outstanding 34,735 and 35,052 shares. |
UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||
(in thousands) | |||||||||
Three Months Ended |
Twelve Months Ended | ||||||||
December 31, |
December 31, | ||||||||
2017 |
2016 |
2017 |
2016 | ||||||
REVENUES |
|||||||||
Net premiums earned |
$ 183,708 |
$ 163,973 |
$ 688,793 |
$ 632,416 | |||||
Net investment income |
4,448 |
3,489 |
13,460 |
9,540 | |||||
Net realized gains/(losses) on investments |
120 |
950 |
2,570 |
2,294 | |||||
Commission revenue |
6,707 |
4,806 |
21,253 |
17,733 | |||||
Policy fees |
4,244 |
3,787 |
18,838 |
16,880 | |||||
Other revenue |
2,085 |
1,600 |
7,002 |
6,426 | |||||
Total revenues |
201,312 |
178,605 |
751,916 |
685,289 | |||||
EXPENSES |
|||||||||
Losses and loss adjustment expenses |
83,299 |
101,480 |
350,428 |
301,229 | |||||
Policy acquisition costs |
38,092 |
33,523 |
138,846 |
125,978 | |||||
Other operating expenses |
21,251 |
20,814 |
91,810 |
94,777 | |||||
Interest expense |
79 |
59 |
348 |
422 | |||||
Total expenses |
142,721 |
155,876 |
581,432 |
522,406 | |||||
Income before income tax expense |
58,591 |
22,729 |
170,484 |
162,883 | |||||
Income tax expense |
22,195 |
9,072 |
63,549 |
63,473 | |||||
NET INCOME |
$ 36,396 |
$ 13,657 |
$ 106,935 |
$ 99,410 |
UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES | |||||||||
SHARE AND PER SHARE INFORMATION | |||||||||
(in thousands, except per share data) | |||||||||
Three Months Ended |
Twelve Months Ended | ||||||||
December 31, |
December 31, | ||||||||
2017 |
2016 |
2017 |
2016 | ||||||
Weighted average common shares outstanding - basic |
34,589 |
35,042 |
34,841 |
34,919 | |||||
Weighted average common shares outstanding - diluted |
35,495 |
35,802 |
35,809 |
35,650 | |||||
Shares outstanding, end of period |
34,735 |
35,052 |
34,735 |
35,052 | |||||
Basic earnings per common share |
$ 1.05 |
$ 0.39 |
$ 3.07 |
$ 2.85 | |||||
Diluted earnings per common share |
$ 1.03 |
$ 0.38 |
$ 2.99 |
$ 2.79 | |||||
Cash dividend declared per common share |
$ 0.14 |
$ 0.14 |
$ 0.69 |
$ 0.69 | |||||
Book value per share, end of period |
$ 12.67 |
$ 10.59 |
$ 12.67 |
$ 10.59 | |||||
Return on average equity (ROE) |
33.0% |
14.4% |
25.7% |
29.4% |
UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES | |||||||||
SUPPLEMENTARY INFORMATION | |||||||||
(in thousands, except Policies In-Force) | |||||||||
Three Months Ended |
Twelve Months Ended | ||||||||
December 31, |
December 31, | ||||||||
2017 |
2016 |
2017 |
2016 | ||||||
Premiums |
|||||||||
Direct premiums written - Florida |
$ 205,785 |
$ 188,170 |
$ 923,962 |
$ 860,646 | |||||
Direct premiums written - Other States |
33,751 |
24,665 |
131,924 |
93,971 | |||||
Direct premiums written - Total |
$ 239,536 |
$ 212,835 |
$ 1,055,886 |
$ 954,617 | |||||
Direct premiums earned |
$ 263,392 |
$ 238,656 |
$ 999,199 |
$ 921,227 | |||||
Net premiums earned |
$ 183,708 |
$ 163,973 |
$ 688,793 |
$ 632,416 | |||||
Underwriting Ratios - Net |
|||||||||
Loss and loss adjustment expense ratio |
45.3% |
61.9% |
50.9% |
47.6% | |||||
Policy acquisition cost ratio |
20.7% |
20.4% |
20.2% |
19.9% | |||||
Other operating expense ratio |
11.6% |
12.7% |
13.3% |
15.0% | |||||
General and administrative expense ratio |
32.3% |
33.1% |
33.5% |
34.9% | |||||
Combined ratio |
77.6% |
95.0% |
84.4% |
82.5% | |||||
Other Items |
|||||||||
(Favorable)/Unfavorable prior year reserve development |
26,181 |
(4,532) |
27,499 |
(4,690) | |||||
Points on the loss and loss adjustment expense ratio |
14.3% |
-2.8% |
4.0% |
-0.7% | |||||
As of |
|||||||||
December 31, |
|||||||||
2017 |
2016 |
||||||||
Policies In-Force |
|||||||||
Florida |
618,280 |
577,783 |
|||||||
Other States |
146,238 |
105,133 |
|||||||
Total |
764,518 |
682,916 |
|||||||
In-Force Premium |
|||||||||
Florida |
$ 926,087 |
$ 862,332 |
|||||||
Other States |
131,515 |
93,637 |
|||||||
Total |
$ 1,057,602 |
$ 955,969 |
|||||||
Total Insured Value |
|||||||||
Florida |
$146,624,470 |
$134,493,470 |
|||||||
Other States |
51,772,540 |
35,543,396 |
|||||||
Total |
$198,397,010 |
$170,036,866 |
Contacts: |
|
Investors |
Media |
Dean Evans |
Andy Brimmer / Mahmoud Siddig |
VP Investor Relations |
Joele Frank, Wilkinson Brimmer Katcher |
954-958-1306 |
212-355-4449 |
de0130@universalproperty.com |
View original content:http://www.prnewswire.com/news-releases/universal-insurance-holdings-inc-reports-fourth-quarter-and-full-year-2017-results-300601428.html
SOURCE Universal Insurance Holdings, Inc.
Copyright 2018 PR Newswire
1 Year Universal Insurance Chart |
1 Month Universal Insurance Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions