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
- Premium Growth Continues – Direct
premiums written grew 12.5% in the fourth quarter, with 9.4% growth
in Florida and 36.8% growth
in Other States; Universal DirectSM contributed
to growth in all geographies. We began writing in New York during the quarter, and now write in
16 states with licenses in 4 additional states.
- Strong Underwriting Profitability – The fourth
quarter net combined ratio was 77.6%, improved from 95.0% in the
prior year's quarter (which included Hurricane Matthew) with
reductions in both the loss and LAE ratio and the G&A expense
ratio. The current quarter includes a $9.2
million (5.0 points) loss and LAE benefit from Hurricane
Irma due to reinsurance recoveries recognized during the quarter,
and approximately $35.0 million (19.1
points) of estimated pretax profit relating to additional income
generated by our service company subsidiaries following the storm.
The current quarter also includes $26.2
million (14.3 points) of prior accident year reserve
strengthening and $18.3 million (9.9
points) of current accident year reserve strengthening.
- Solid Balance Sheet – Book value per share grew
3.7% from September 30, 2017 (19.6%
from year-end 2016) to $12.67. Our
investment portfolio is stable and composed of high quality
securities, we have minimal debt or goodwill, and we are protected
by a comprehensive reinsurance program, which performed as expected
and designed following Hurricane Irma. We took action to strengthen
both current and prior accident year reserves during the fourth
quarter, driven primarily by Assignment of Benefits (AOB) related
claims within our Florida
book, including the increased litigation frequency experienced
during 2017 surrounding the AOB issue. We believe our loss reserves
are appropriately set at current levels.
- Focused on Shareholder Returns – Return on
Average Common Equity (ROE) was 33.0% for the fourth quarter of
2017 and 25.7% for the full year 2017. We paid total dividends of
$0.69 per share during 2017 for an
annual dividend yield of 2.8%, including a special dividend during
the fourth quarter. We repurchased 10,000 shares for $0.3 million ($25.71 per share) during the fourth quarter and
770,559 shares for $18.1 million
($23.54 per share) during the full
year; $19.8 million remains on our
buyback authorization.
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 current year's quarter included a benefit of $9.2 million (5.0 points on the loss and LAE
ratio), reflecting recoveries received from our reinsurance program
related to Hurricane Irma (please see "Hurricane Irma Overview"
section for additional details), compared to net losses and LAE of
$26.6 million (16.2 points) in the
fourth quarter of 2016 related to Hurricane Matthew.
- Fourth quarter 2017 results include $26.2 million (14.3 points) of unfavorable prior
year reserve development, related to accident years 2013, 2015, and
2016, driven primarily by Assignment of Benefits (AOB) related
claims within our Florida
book, including the increased litigation frequency experienced
during 2017 surrounding the AOB issue. Fourth quarter 2016 results
included $4.5 million (2.8 points) of
favorable prior year reserve development.
- Fourth quarter 2017 results include $18.3 million (9.9 points) of current accident
year reserve strengthening, driven primarily by AOB related claims,
as discussed above. The prior year's quarter included $16.8 million (10.2 points) of current accident
year reserve strengthening.
- We believe our loss reserves are appropriately set at current
levels, as we note that the 2013-2016 accident years are well
seasoned at this point and have been increased meaningfully from
initial picks, while the current accident year loss pick includes
added conservatism above the actuarial best estimate.
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.
- Comprehensive Reinsurance Program – During the quarter
ended September 30, 2017, the Company
recorded gross losses and loss adjustment expenses of $452.0 million resulting from Hurricane Irma,
reflecting gross losses and LAE of $450.0
million at Universal Property & Casualty Insurance
Company (UPCIC) and $2.0 million at
American Platinum Property and Casualty Insurance Company (APPCIC).
The Company's reinsurance protection performed as expected,
reducing exposure to the maximum retention limits, limiting net
losses and loss adjustment expenses from Hurricane Irma to
$37.0 million. During the quarter
ended December 31, 2017, the Company
revised its estimated gross losses and loss adjustment expenses to
$447.0 million, reflecting gross
losses and LAE of $445.0 million at
UPCIC and $2.0 million at APPCIC,
which had no effect on the Company's net loss retention. This
revision to gross losses at UPCIC was to account for claims
experience during the fourth quarter, and we note that as of
February 9, 2018, the Company has
received 68,634 claims relating to Hurricane Irma, of which 57,799,
or approximately 84%, have already been closed. Because gross
losses and LAE in states outside of Florida are projected to be $12.8 million (which is above our $5.0 million Non-Florida retention) additional
recoveries from our Other States Reinsurance Program during the
fourth quarter served to reduce UPCIC's aggregate retention from
$35 million to $27.2 million. After adding in APPCIC's net
retention of $2.0 million, this
resulted in a total net retention of losses and loss adjustment
expenses of $29.2 million related to
Hurricane Irma for the year ended December
31, 2017. Additionally, the Company experienced
approximately $2.4 million of gross
losses and loss adjustment expenses related to hailstorms in
Minnesota that occurred in June of
2017. As a result of Hurricane Irma satisfying an otherwise
recoverable provision within our Other States Reinsurance Program,
the Company's retention in states outside of Florida was reduced to $1.0 million from $5.0
million. This resulted in an effective savings of
$1.4 million recorded in the fourth
quarter of 2017 on the Minnesota
hailstorm events, as the Company retained only the first
$1.0 million of losses on the event.
Through May 31, 2018, our Other
States Reinsurance Program will continue to have a net retention of
$1.0 million as a result of the
otherwise recoverable provision having been satisfied.
- Vertically Integrated Structure – As we have previously
disclosed, the Company benefits from our vertically integrated
structure by retaining certain revenues and/or fees that are paid
to our subsidiary service providers for various services provided,
including reinsurance brokerage, claims adjusting and other
services. This benefit is particularly notable during large
catastrophic events such as Hurricane Irma, which result in a
substantial number of claims leading to increased activity at our
service company subsidiaries. As a result of Hurricane Irma, the
quarter and year ended December 31,
2017 included the benefit of additional net revenues within
our service provider subsidiaries, particularly Universal Adjusting
Corporation (UAC) and Blue Atlantic Reinsurance Corporation (BARC),
which led to a higher level of profitability than would otherwise
be the case in a normal quarter or year. In aggregate, the company
estimates that these additional revenues at service company
subsidiaries resulted in approximately $35.0
million of net pretax benefit during the fourth quarter and
full year 2017. This favorable benefit related primarily to two
factors: (1) as a result of the increased level of claims following
Hurricane Irma, UAC, which manages our claims processing and
adjustment functions, experienced a significant increase in net
revenues and net profit in the months following the storm, and (2)
Commission Revenue included a benefit of approximately $2.0 million related to reinstatement premium
commissions received by BARC.
- Other Factors – In addition to the items discussed
above, Hurricane Irma resulted in various other effects on our
ongoing business, in particular with respect to premium writings
and policy fee income. We experienced an increased level of premium
volume, including an increase in both new and renewal business, as
well as a corresponding increase in policy fee income, during both
the quarter ending September 30, 2017
and the quarter ending December 31,
2017. Several days after Hurricane Irma made landfall, the
Florida Insurance Commissioner issued an emergency order that
temporarily suspended policy cancellations and nonrenewals by
insurance companies. Specifically, the order barred insurance
companies from cancelling or nonrenewing policies between
September 4, 2017 and October 15, 2017; barred the cancellation or
nonrenewal of policies covering residential properties damaged by
Hurricane Irma until at least 90 days after the properties are
repaired; and required that any cancellations or nonrenewals issued
or mailed from August 25, 2017
through September 3, 2017 were
withdrawn and reissued no earlier than October 15, 2017. This emergency order resulted
in increased levels of premium and policy fee volume as compared to
both the prior year and our internal expectations. In addition, the
emergency order resulted in a delay of our previously filed FL
statewide rate increase (which was for an average statewide
increase of 3.4%). We had initially expected our rates to be
approved by the Florida OIR in September, and as a result of
Hurricane Irma and the corresponding emergency order, the rates
were not approved until early December. We began using our new
rates on December 7, 2017 for new
business and on January 26, 2018 for
renewal business.
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.