Delaware | 001-33251 | 65-0231984 | ||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 Par Value | UVE | New York Stock Exchange |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
Exhibit Number | Description | |||||||
104 | The cover page from this Current Report on Form 8-K formatted in Inline XBRL (included as Exhibit 101). |
Date: April 25, 2024 | UNIVERSAL INSURANCE HOLDINGS, INC. | |||||||||||||||||||
By: | /s/ Frank C. Wilcox | |||||||||||||||||||
Name: | Frank C. Wilcox | |||||||||||||||||||
Title: | Chief Financial Officer |
($thousands, except per share data) | Three Months Ended March 31, | ||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
GAAP comparison | |||||||||||||||||
Total revenues | $ | 367,959 | $ | 316,508 | 16.3 | % | |||||||||||
Operating income | $ | 49,106 | $ | 34,427 | 42.6 | % | |||||||||||
Operating income margin | 13.3 | % | 10.9 | % | 2.4 | pts | |||||||||||
Net income available to common stockholders | $ | 33,654 | $ | 24,170 | 39.2 | % | |||||||||||
Diluted earnings per common share | $ | 1.14 | $ | 0.79 | 44.3 | % | |||||||||||
Annualized ROCE | 38.1 | % | 31.7 | % | 6.4 | pts | |||||||||||
Book value per share, end of period | $ | 12.68 | $ | 10.57 | 20.0 | % | |||||||||||
Non-GAAP comparison1 |
|||||||||||||||||
Core revenue | $ | 364,930 | $ | 316,339 | 15.4 | % | |||||||||||
Adjusted operating income | $ | 46,077 | $ | 34,258 | 34.5 | % | |||||||||||
Adjusted operating income margin | 12.6 | % | 10.8 | % | 1.8 | pts | |||||||||||
Adjusted net income available to common stockholders | $ | 31,370 | $ | 24,043 | 30.5 | % | |||||||||||
Adjusted diluted earnings per common share | $ | 1.07 | $ | 0.79 | 35.4 | % | |||||||||||
Annualized adjusted ROCE | 29.4 | % | 23.9 | % | 5.5 | pts | |||||||||||
Adjusted book value per share, end of period | $ | 15.34 | $ | 13.52 | 13.5 | % | |||||||||||
Underwriting Summary | |||||||||||||||||
Premiums: | |||||||||||||||||
Premiums in force | $ | 1,963,765 | $ | 1,862,716 | 5.4 | % | |||||||||||
Policies in force | 820,078 | 827,981 | (1.0) | % | |||||||||||||
Direct premiums written | $ | 446,179 | $ | 410,102 | 8.8 | % | |||||||||||
Direct premiums earned | $ | 482,072 | $ | 455,368 | 5.9 | % | |||||||||||
Ceded premiums earned | $ | (148,047) | $ | (173,144) | (14.5) | % | |||||||||||
Ceded premium ratio | 30.7 | % | 38.0 | % | (7.3) | pts | |||||||||||
Net premiums earned | $ | 334,025 | $ | 282,224 | 18.4 | % | |||||||||||
Net ratios: | |||||||||||||||||
Loss ratio | 71.9 | % | 73.1 | % | (1.2) | pts | |||||||||||
Expense ratio | 23.6 | % | 26.9 | % | (3.3) | pts | |||||||||||
Combined ratio | 95.5 | % | 100.0 | % | (4.5) | pts | |||||||||||
1 Reconciliation of GAAP to non-GAAP financial measures are provided in the attached tables. Adjusted net income available to common stockholders, adjusted diluted earnings per common share and core revenue exclude net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. Adjusted operating income excludes the items above and interest and amortization of debt issuance costs. Adjusted book value per share excludes accumulated other comprehensive income, net of taxes. Adjusted ROCE is calculated by dividing annualized adjusted net income available to common stockholders by average adjusted book value per share, with the denominator further excluding current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. | |||||||||||||||||
March 31, | December 31, | |||||||||||||
2024 | 2023 | |||||||||||||
ASSETS: | ||||||||||||||
Invested Assets | ||||||||||||||
Fixed maturities, at fair value | $ | 1,107,058 | $ | 1,064,330 | ||||||||||
Equity securities, at fair value | 81,659 | 80,495 | ||||||||||||
Other investments, at fair value | 10,434 | 10,434 | ||||||||||||
Investment real estate, net | 5,479 | 5,525 | ||||||||||||
Total invested assets | 1,204,630 | 1,160,784 | ||||||||||||
Cash and cash equivalents | 396,323 | 397,306 | ||||||||||||
Restricted cash and cash equivalents | 2,635 | 2,635 | ||||||||||||
Prepaid reinsurance premiums | 88,499 | 236,254 | ||||||||||||
Reinsurance recoverable | 124,646 | 219,102 | ||||||||||||
Premiums receivable, net | 73,974 | 77,064 | ||||||||||||
Property and equipment, net | 49,416 | 47,628 | ||||||||||||
Deferred policy acquisition costs | 106,632 | 109,985 | ||||||||||||
Goodwill | 2,319 | 2,319 | ||||||||||||
Other assets | 71,070 | 63,484 | ||||||||||||
TOTAL ASSETS | $ | 2,120,144 | $ | 2,316,561 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
LIABILITIES: | ||||||||||||||
Unpaid losses and loss adjustment expenses | $ | 429,629 | $ | 510,117 | ||||||||||
Unearned premiums | 954,666 | 990,559 | ||||||||||||
Advance premium | 74,370 | 48,660 | ||||||||||||
Reinsurance payable, net | 97,871 | 191,850 | ||||||||||||
Long-term debt, net | 101,815 | 102,006 | ||||||||||||
Other liabilities | 97,129 | 132,072 | ||||||||||||
Total liabilities | 1,755,480 | 1,975,264 | ||||||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||||
Cumulative convertible preferred stock ($0.01 par value)2 |
— | — | ||||||||||||
Common stock ($0.01 par value)3 |
472 | 472 | ||||||||||||
Treasury shares, at cost - 18,511 and 18,303 | (264,918) | (260,779) | ||||||||||||
Additional paid-in capital | 116,239 | 115,086 | ||||||||||||
Accumulated other comprehensive income (loss), net of taxes | (76,714) | (74,172) | ||||||||||||
Retained earnings | 589,585 | 560,690 | ||||||||||||
Total stockholders' equity | 364,664 | 341,297 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,120,144 | $ | 2,316,561 | ||||||||||
Notes: | ||||||||||||||
2 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. | ||||||||||||||
3 Common stock ($0.01 par value): Authorized - 55,000 shares; Issued - 47,269 and 47,269 shares; Outstanding 28,758 and 28,966 shares. |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
REVENUES | ||||||||||||||
Net premiums earned | $ | 334,025 | $ | 282,224 | ||||||||||
Net investment income | 13,523 | 10,698 | ||||||||||||
Net realized gains (losses) on investments | (77) | (788) | ||||||||||||
Net change in unrealized gains (losses) on investments |
3,106 | 957 | ||||||||||||
Commission revenue | 11,033 | 17,282 | ||||||||||||
Policy fees | 4,405 | 4,167 | ||||||||||||
Other revenue | 1,944 | 1,968 | ||||||||||||
Total revenues | 367,959 | 316,508 | ||||||||||||
EXPENSES | ||||||||||||||
Losses and loss adjustment expenses | 240,187 | 206,154 | ||||||||||||
Policy acquisition costs | 54,821 | 51,691 | ||||||||||||
Other operating expenses | 23,845 | 24,236 | ||||||||||||
Total operating costs and expenses | 318,853 | 282,081 | ||||||||||||
Interest and amortization of debt issuance costs | 1,622 | 1,636 | ||||||||||||
Income before income tax expense | 47,484 | 32,791 | ||||||||||||
Income tax expense | 13,827 | 8,618 | ||||||||||||
NET INCOME | $ | 33,657 | $ | 24,173 |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Weighted average common shares outstanding - basic | 28,869 | 30,382 | ||||||||||||
Weighted average common shares outstanding - diluted | 29,404 | 30,626 | ||||||||||||
Shares outstanding, end of period | 28,758 | 30,440 | ||||||||||||
Basic earnings per common share | $ | 1.17 | $ | 0.80 | ||||||||||
Diluted earnings per common share | $ | 1.14 | $ | 0.79 | ||||||||||
Cash dividend declared per common share | $ | 0.16 | $ | 0.16 | ||||||||||
Book value per share, end of period | $ | 12.68 | $ | 10.57 | ||||||||||
Annualized return on average common equity (ROCE) | 38.1 | % | 31.7 | % | ||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Premiums | ||||||||||||||
Direct premiums written - Florida | $ | 354,825 | $ | 337,365 | ||||||||||
Direct premiums written - Other States | 91,354 | 72,737 | ||||||||||||
Direct premiums written - Total | $ | 446,179 | $ | 410,102 | ||||||||||
Direct premiums earned | $ | 482,072 | $ | 455,368 | ||||||||||
Net premiums earned | $ | 334,025 | $ | 282,224 | ||||||||||
Underwriting Ratios - Net | ||||||||||||||
Loss and loss adjustment expense ratio | 71.9 | % | 73.1 | % | ||||||||||
General and administrative expense ratio |
23.6 | % | 26.9 | % | ||||||||||
Policy acquisition cost ratio | 16.4 | % | 18.3 | % | ||||||||||
Other operating expense ratio | 7.2 | % | 8.6 | % | ||||||||||
Combined ratio | 95.5 | % | 100.0 | % | ||||||||||
As of | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Policies in force | ||||||||||||||
Florida | 570,395 | 595,327 | ||||||||||||
Other States | 249,683 | 232,654 | ||||||||||||
Total | 820,078 | 827,981 | ||||||||||||
Premiums in force | ||||||||||||||
Florida | $ | 1,587,950 | $ | 1,543,967 | ||||||||||
Other States | 375,815 | 318,749 | ||||||||||||
Total | $ | 1,963,765 | $ | 1,862,716 | ||||||||||
Total Insured Value | ||||||||||||||
Florida | $ | 188,222,514 | $ | 197,085,882 | ||||||||||
Other States | 140,982,423 | 123,651,801 | ||||||||||||
Total | $ | 329,204,937 | $ | 320,737,683 |
GAAP revenue to core revenue | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
GAAP revenue | $ | 367,959 | $ | 316,508 | |||||||
less: Net realized gains (losses) on investments | (77) | (788) | |||||||||
less: Net change in unrealized gains (losses) on investments |
3,106 | 957 | |||||||||
Core revenue | $ | 364,930 | $ | 316,339 | |||||||
GAAP operating income to adjusted operating income | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
GAAP income before income tax expense | $ | 47,484 | $ | 32,791 | |||||||
add: Interest and amortization of debt issuance costs | 1,622 | 1,636 | |||||||||
GAAP operating income | 49,106 | 34,427 | |||||||||
less: Net realized gains (losses) on investments | (77) | (788) | |||||||||
less: Net change in unrealized gains (losses) on investments |
3,106 | 957 | |||||||||
Adjusted operating income | $ | 46,077 | $ | 34,258 |
GAAP operating income margin to adjusted operating income margin | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 |
2023 |
||||||||||
GAAP operating income (a) | $ | 49,106 | $ | 34,427 | |||||||
GAAP revenue (b) | 367,959 | 316,508 | |||||||||
GAAP operating income margin (a÷b) | 13.3 | % | 10.9 | % | |||||||
Adjusted operating income (c) | 46,077 | 34,258 | |||||||||
Core revenue (d) | 364,930 | 316,339 | |||||||||
Adjusted operating income margin (c÷d) | 12.6 | % | 10.8 | % |
GAAP net income (NI) to adjusted NI available to common stockholders | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 |
2023 |
||||||||||
GAAP NI | $ | 33,657 | $ | 24,173 | |||||||
less: Preferred dividends | 3 | 3 | |||||||||
GAAP NI available to common stockholders (e) | 33,654 | 24,170 | |||||||||
less: Net realized gains (losses) on investments | (77) | (788) | |||||||||
less: Net change in unrealized gains (losses) on investments |
3,106 | 957 | |||||||||
add: Income tax effect on above adjustments | 745 | 42 | |||||||||
Adjusted NI available to common stockholders (f) | $ | 31,370 | $ | 24,043 | |||||||
Weighted average diluted common shares outstanding (g) | 29,404 | 30,626 | |||||||||
Diluted earnings per common share (e÷g) | $ | 1.14 | $ | 0.79 | |||||||
Diluted adjusted earnings per common share (f÷g) | $ | 1.07 | $ | 0.79 |
GAAP stockholders’ equity to adjusted common stockholders’ equity | ||||||||||||||||||||
As of | ||||||||||||||||||||
March 31, | March 31, | December 31, | ||||||||||||||||||
2024 |
2023 |
2023 |
||||||||||||||||||
GAAP stockholders’ equity | $ | 364,664 | $ | 321,806 | $ | 341,297 | ||||||||||||||
less: Preferred equity | 100 | 100 | 100 | |||||||||||||||||
Common stockholders’ equity (h) | 364,564 | 321,706 | 341,197 | |||||||||||||||||
less: Accumulated other comprehensive (loss), net of taxes | (76,714) | (89,991) | (74,172) | |||||||||||||||||
Adjusted common stockholders’ equity (i) | $ | 441,278 | $ | 411,697 | $ | 415,369 | ||||||||||||||
Common shares outstanding (j) |
28,758 | 30,440 | 28,966 | |||||||||||||||||
Book value per common share (h÷j) | $ | 12.68 | $ | 10.57 | $ | 11.78 | ||||||||||||||
Adjusted book value per common share (i÷j) | $ | 15.34 | $ | 13.52 | $ | 14.34 |
GAAP return on common equity (ROCE) to adjusted ROCE | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2024 |
2023 |
2023 |
||||||||||||||||||
Actual or Annualized NI available to common stockholders (k) | $ | 134,616 | $ | 96,680 | $ | 66,813 | ||||||||||||||
Average common stockholders’ equity (l) | 352,881 | 304,751 | 314,497 | |||||||||||||||||
ROCE (k÷l) | 38.1 | % | 31.7 | % | 21.2 | % | ||||||||||||||
Annualized adjusted NI available to common stockholders (m) |
$ | 125,480 | $ | 96,172 | $ | 58,657 | ||||||||||||||
Adjusted average common stockholders’ equity4 (n) |
427,182 | 401,574 | 399,396 | |||||||||||||||||
Adjusted ROCE (m÷n) | 29.4 | % | 23.9 | % | 14.7 | % | ||||||||||||||
4 Adjusted average common stockholders’ equity excludes current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. | ||||||||||||||||||||