FORT LAUDERDALE, Fla.,
Nov. 2, 2016 /PRNewswire/
-- Universal Insurance Holdings, Inc. (NYSE: UVE) today
reported third quarter net income of $26.9
million, a decrease of 11.3%, or $3.4
million, from the same quarter in 2015. Diluted
earnings per share (EPS) were $0.75
for the third quarter of 2016, a decrease of 10.7%, or $0.09 per share, from the same quarter in
2015.
"During the third quarter, Universal reported record top line
results with record premiums earned, net and total revenues and
strong profitability even as we experienced severe weather in our
coverage areas," said Sean P.
Downes, Universal's Chairman and Chief Executive Officer.
"Our strong performance is a testament to the fundamental strength
of our business model, including our focus on maintaining high
underwriting standards, and more importantly this quarter, our
claims handling abilities. The rigorous planning we conduct on an
ongoing basis to prepare for severe weather events served us well
in the quarter, and allowed us to respond quickly and effectively
following Hurricane Hermine.
"Looking ahead, we remain focused on writing high quality, rate
adequate organic business, both in Florida and across our expanding geographic
footprint. We will also continue to pursue new business
through our unique direct-to-consumer platform, Universal
DirectSM, both organically and by seeking partnerships
and joint ventures to deliver an even broader scope of products and
services to our customers. Universal enters the fourth
quarter well positioned to drive profitable growth, and we remain
confident in our ability to deliver increasing shareholder
value."
Third-Quarter 2016 & Recent Highlights
- Net earned premiums grew by $13.4
million, or 9.2%, to $159.5
million.
- Total revenues increased by $15.4
million, or 9.8%, to $172.4
million.
- Net income decreased by $3.4
million, or 11.3%, to $26.9
million.
- Diluted EPS decreased by $0.09,
or 10.7%, to $0.75 per share.
- Paid dividends of $0.14 per
share.
- Wrote our first policy in Virginia.
- Announced the launch of a Commercial Residential Program.
- Universal DirectSM is now offered in 11 states.
Third-Quarter 2016 Results
Net income for the third quarter of 2016 of $26.9 million reflects an improvement across all
revenue measures. Net earned premiums and total revenues were
higher than any other quarter in the Company's history. The
increase in net earned premiums is due entirely from organic growth
in policies in force.
Net income was offset by $11
million of pre-tax net losses and loss adjustment expenses
attributable to severe weather in 2016 including Hurricane Hermine.
These losses and loss adjustment expenses were incremental to
amounts provided for in the underlying loss ratio based on
historical experience for such events.
Net losses and loss adjustment expenses as a percentage of net
earned premiums increased 9.3 percentage points resulting in a net
loss ratio of 46.1% for the third quarter, compared to 36.8% for
the same period last year. The primary driver of this increase was
the severe weather during 2016.
Stockholders' equity reached an all-time high of $373.3 million as of September 30, 2016 compared to $293.1 million as of December 31,
2015. Book value per common share also reached an all-time
high of $10.66 as September 30, 2016 compared to $8.34 as of December 31,
2015.
Cash Dividends
On August 31, 2016, the Company
announced that its Board of Directors had declared a cash dividend
of $0.14 per share of common stock
that was paid on October 24, 2016 to
shareholders of record on September 12,
2016.
Conference Call
Members of the Universal management team will host a conference
call on Wednesday, November 2, 2016
at 4:45 PM ET to discuss the third
quarter 2016 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 toll at (270) 823-1518 (using the Conference I.D.:
97544219). 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 toll at (404) 537-3406
(using the Conference I.D.: 97544219), and will be available
through November 17, 2016.
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 and Virginia. American Platinum
Property and Casualty Insurance Company, 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.
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, 2015.
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
|
2016
|
|
2015
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
Direct premiums
written
|
|
$
241,888
|
|
$
222,572
|
Change in unearned
premium
|
|
(7,388)
|
|
(7,769)
|
Direct premium
earned
|
|
234,500
|
|
214,803
|
Ceded premium
earned
|
|
(74,966)
|
|
(68,650)
|
Premiums earned,
net
|
|
159,534
|
|
146,153
|
Net investment income
(expense)
|
|
2,304
|
|
1,307
|
Net realized gains (losses)
on investments
|
|
101
|
|
11
|
Commission
revenue
|
|
4,603
|
|
4,115
|
Policy fees
|
|
4,226
|
|
3,820
|
Other revenue
|
|
1,668
|
|
1,637
|
Total premiums earned
and other revenues
|
|
172,436
|
|
157,043
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
Losses and loss adjustment
expenses
|
|
73,548
|
|
53,854
|
General and administrative
expenses
|
|
54,725
|
|
55,289
|
Total operating costs
and expenses
|
|
128,273
|
|
109,143
|
INCOME BEFORE INCOME
TAXES
|
|
44,163
|
|
47,900
|
Income tax
expense
|
|
17,281
|
|
17,602
|
NET INCOME
|
|
$
26,882
|
|
$
30,298
|
Basic earnings per
common share
|
|
$
0.77
|
|
$
0.87
|
Weighted average
common shares outstanding - Basic
|
|
35,042
|
|
34,911
|
Fully diluted
earnings per common share
|
|
$
0.75
|
|
$
0.84
|
Weighted average
common shares outstanding - Diluted
|
|
35,723
|
|
35,999
|
Cash dividend
declared per common share
|
|
$
0.14
|
|
$
0.12
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2016
|
|
2015
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
Direct premiums
written
|
|
$
741,782
|
|
$
684,147
|
Ceded premiums
written
|
|
(59,211)
|
|
(67,903)
|
Net premiums
written
|
|
682,571
|
|
616,244
|
Change in net
unearned premiums
|
|
(214,128)
|
|
(262,843)
|
Premiums earned,
net
|
|
468,443
|
|
353,401
|
Net investment income
(expense)
|
|
6,051
|
|
3,376
|
Net realized gains (losses)
on investments
|
|
1,344
|
|
292
|
Commission
revenue
|
|
12,927
|
|
10,757
|
Policy fees
|
|
13,093
|
|
12,003
|
Other revenue
|
|
4,827
|
|
4,614
|
Total premiums earned
and other revenues
|
|
506,685
|
|
384,443
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
Losses and loss adjustment
expenses
|
|
199,749
|
|
127,148
|
General and administrative
expenses
|
|
166,780
|
|
130,152
|
Total operating costs
and expenses
|
|
366,529
|
|
257,300
|
INCOME BEFORE INCOME
TAXES
|
|
140,156
|
|
127,143
|
Income tax
expense
|
|
54,400
|
|
49,811
|
NET INCOME
|
|
$
85,756
|
|
$
77,332
|
Basic earnings per
common share
|
|
$
2.46
|
|
$
2.22
|
Weighted average
common shares outstanding - Basic
|
|
34,878
|
|
34,837
|
Fully diluted
earnings per common share
|
|
$
2.41
|
|
$
2.15
|
Weighted average
common shares outstanding - Diluted
|
|
35,594
|
|
35,918
|
Cash dividend
declared per common share
|
|
$
0.42
|
|
$
0.36
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
ASSETS
|
|
2016
|
|
2015
|
Cash and cash
equivalents
|
|
$
205,241
|
|
$
197,014
|
Restricted cash and
cash equivalents
|
|
2,635
|
|
2,635
|
Fixed maturities, at
fair value
|
|
584,274
|
|
416,083
|
Equity securities, at
fair value
|
|
44,240
|
|
42,214
|
Short-term
investments, at fair value
|
|
5,003
|
|
25,021
|
Investment real
estate, net
|
|
10,384
|
|
6,117
|
Prepaid reinsurance
premiums
|
|
198,910
|
|
114,673
|
Reinsurance
recoverable
|
|
—
|
|
22,853
|
Premiums receivable,
net
|
|
60,570
|
|
50,980
|
Other
receivables
|
|
5,863
|
|
4,979
|
Property and
equipment, net
|
|
30,845
|
|
27,065
|
Deferred policy
acquisition costs, net
|
|
68,300
|
|
60,019
|
Income taxes
recoverable
|
|
10,643
|
|
5,420
|
Deferred income tax
asset, net
|
|
1,877
|
|
13,912
|
Other
assets
|
|
5,437
|
|
4,563
|
Total assets
|
|
$
1,234,222
|
|
$
993,548
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Unpaid losses and
loss adjustment expenses
|
|
$
54,209
|
|
$
98,840
|
Unearned
premiums
|
|
501,577
|
|
442,366
|
Advance
premium
|
|
28,721
|
|
24,813
|
Accounts
payable
|
|
2,294
|
|
378
|
Reinsurance payable,
net
|
|
211,863
|
|
73,585
|
Dividends
payable
|
|
4,903
|
|
—
|
Other liabilities and
accrued expenses
|
|
41,995
|
|
36,424
|
Long-term
debt
|
|
15,396
|
|
24,050
|
Total liabilities
|
|
860,958
|
|
700,456
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
Cumulative
convertible preferred stock, $.01 par value
|
|
—
|
|
—
|
Authorized shares -
1,000
|
|
|
|
|
Issued shares - 10 and
10
|
|
|
|
|
Outstanding shares -
10 and 10
|
|
|
|
|
Minimum liquidation
preference, $9.99 and $9.99 per share
|
|
|
|
|
Common stock, $.01
par value
|
|
453
|
|
455
|
Authorized shares -
55,000
|
|
|
|
|
Issued shares - 45,292
and 45,525
|
|
|
|
|
Outstanding shares -
35,024 and 35,110
|
|
|
|
|
Treasury shares, at
cost - 10,268 and 10,415
|
|
(86,887)
|
|
(80,802)
|
Additional paid-in
capital
|
|
80,399
|
|
70,789
|
Accumulated other
comprehensive income (loss), net of taxes
|
|
1,625
|
|
(4,006)
|
Retained
earnings
|
|
377,674
|
|
306,656
|
Total stockholders' equity
|
|
373,264
|
|
293,092
|
Total liabilities and stockholders' equity
|
|
$
1,234,222
|
|
$
993,548
|
|
|
|
|
|
|
|
|
Investor Contact:
Andy
Brimmer / Mahmoud Siddig
Joele Frank, Wilkinson Brimmer
Katcher
212-355-4449
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/universal-insurance-holdings-inc-reports-third-quarter-2016-financial-results-300356158.html
SOURCE Universal Insurance Holdings, Inc.