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Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Universal Insurance Holdings Reports Third Quarter 2021 Results

October 27, 2021 GMT

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Oct 27, 2021--

Universal Insurance Holdings (NYSE: UVE) (the “Company”) reported 2021 third quarter diluted EPS of $0.64 on a GAAP basis and $0.63 on a non-GAAP 1 adjusted basis. Quarterly direct premiums earned were up 15.0% from the year-ago quarter to $410.6 million, with an annualized return on average equity of 16.4%.

1 Excludes net realized and unrealized gains and losses on investments as well as any extraordinary reinstatement premiums and associated commissions (“non-GAAP adjusted EPS”). Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.

“Our third quarter results demonstrate continued execution of our multi-year strategic priorities, including disciplined growth and operational improvements,” said Stephen J. Donaghy, Chief Executive Officer. “Our direct premiums earned growth of 15.0% in the third quarter was primarily driven by primary rate increases in Florida earning through the book. We have now filed for more than 34% in primary rate increases in Florida over the past 18 months, while simultaneously continuing to shape our underwriting risks with total policies-in-force relatively flat year-over-year. Our business expenses were lower from continued expense management controls, including lower agency commissions and employee productivity gains, in addition to lower executive compensation accruals. These results were highlighted by a 16.4% annualized return on average equity in the quarter.”

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Summary Financial Results

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($thousands, except per share data)

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

2021

 

2020

 

Change

 

 

2021

 

2020

 

Change

(GAAP comparison)

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

287,254

 

 

$

311,665

 

 

(7.8)

%

 

 

$

829,192

 

 

$

799,644

 

 

3.7

%

Income (loss) before income taxes

26,464

 

 

(3,792)

 

 

NM

 

 

92,874

 

 

51,230

 

 

81.3

%

Income (loss) before income taxes margin

9.2

%

 

(1.2)

%

 

NM

 

 

11.2

%

 

6.4

%

 

4.8

pts

Diluted EPS

$

0.64

 

 

$

(0.10)

 

 

NM

 

 

$

2.19

 

 

$

1.14

 

 

92.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average equity (ROE)

16.4

%

 

(2.5)

%

 

NM

 

 

19.3

%

 

10.0

%

 

9.3

pts

Book value per share, end of period

$

15.86

 

 

$

15.15

 

 

4.7

%

 

 

$

15.86

 

 

$

15.15

 

 

4.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(Non-GAAP comparison) 2

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

25,943

 

 

(59,594)

 

 

NM

 

 

90,638

 

 

(817)

 

 

NM

Adjusted EPS

$

0.63

 

 

$

(1.43)

 

 

NM

 

 

$

2.13

 

 

$

(0.08)

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Reconciliation of GAAP to non-GAAP financial measures are provided in the attached tables. Adjusted operating income excludes net realized and unrealized gains and losses on investments, interest expense, and any extraordinary reinstatement premiums and associated commissions. Non-GAAP adjusted EPS excludes net realized and unrealized gains and losses on investments, as well as extraordinary reinstatement premiums and associated commissions.

NM = Not Meaningful

Total revenue declined 7.8% for the quarter, driven primarily by the realized gain on investments of $53.8 million in the third quarter of the prior year, versus a $4.3 million realized gain in the current quarter. Total revenue for the quarter benefited from continued primary rate increases earning through the book as policies renew. GAAP diluted EPS and non-GAAP adjusted EPS results for the quarter were driven primarily by a lower impact from weather events and lower prior years’ development when compared to the prior year’s quarter, partially offset by the impact of current year strengthening. The Company produced an annualized return on average equity of 16.4%.

Underwriting

($thousands, except policies in force)

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

2021

 

2020

 

Change

 

 

2021

 

2020

 

Change

Policies in force (as of end of period)

967,821

 

 

965,462

 

 

0.2

%

 

 

967,821

 

 

965,462

 

 

0.2

%

Premiums in force (as of end of period)

$

1,649,546

 

 

$

1,459,971

 

 

13.0

%

 

 

$

1,649,546

 

 

$

1,459,971

 

 

13.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums written

$

432,984

 

 

$

409,418

 

 

5.8

%

 

 

$

1,271,925

 

 

$

1,148,656

 

 

10.7

%

Direct premiums earned

410,621

 

 

357,208

 

 

15.0

%

 

 

1,178,801

 

 

1,020,798

 

 

15.5

%

Net premiums earned

264,654

 

 

234,191

 

 

13.0

%

 

 

764,131

 

 

681,390

 

 

12.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense ratio 3

27.7

%

 

32.9

%

 

(5.2)

pts

 

 

31.1

%

 

32.8

%

 

(1.7)

pts

Loss & LAE ratio

70.9

%

 

101.8

%

 

(30.9)

pts

 

 

65.3

%

 

77.0

%

 

(11.7)

pts

Combined ratio

98.6

%

 

134.7

%

 

(36.1)

pts

 

 

96.4

%

 

109.8

%

 

(13.4)

pts

 

 

 

 

 

 

 

 

 

 

 

 

 

3 Expense ratio excludes interest expense.

 

 

 

 

 

 

 

Direct premiums earned were up 15.0% for the quarter, led by primary rate increases in Florida and other states, while policies-in-force remained relatively flat.

On the expense side, the combined ratio improved 36.1 points for the quarter. The improvement was driven primarily by decreased weather events and lower prior years’ reserve development, in addition to business expense management, partially offset by current year strengthening and higher reinsurance costs impact on the ratio.

  • The expense ratio improved 3.7 pointson a direct premiums earned basis due to continued focus on operating efficiencies. On a net basis, the expense ratio improved 5.2 points for the quarter.
  • The net loss and LAE ratio improved 30.9 points for the quarter. Quarterly drivers include:
    • A 29.0 point net improvement related to weather events being within the plan.
    • Adverse prior year’s reserve development of $11.5 million ($30.1 million in 3Q20) resulted in an 8.5 point net improvement for the quarter. Net adverse development in the current quarter was driven primarily by continued adjusting and settlement of Hurricane Irma and non-CAT claims on accident years prior to 2020.
    • Core losses of $176.1 million for the quarter ($140.4 million in 3Q20) resulted in a 3.6 point increase on a direct premium earned basis, driven by current year strengthening. On a net basis, core losses increased 6.6 points for the quarter.

Services

($thousands)

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

2021

 

2020

 

Change

 

 

2021

 

2020

 

Change

Commission revenue

$

11,418

 

 

$

8,997

 

 

26.9

%

 

 

$

30,404

 

 

$

23,770

 

 

27.9

%

Policy fees

5,859

 

 

6,167

 

 

(5.0)

%

 

 

17,821

 

 

18,253

 

 

(2.4)

%

Other revenue

1,966

 

 

1,935

 

 

1.6

%

 

 

5,862

 

 

6,529

 

 

(10.2)

%

Total

$

19,243

 

 

$

17,099

 

 

12.5

%

 

 

$

54,087

 

 

$

48,552

 

 

11.4

%

Total services revenue increased 12.5% for the quarter. The increase was primarily driven by commission revenue earned on ceded premiums, partially offset by lower policy fees.

Investments

($thousands)

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

2021

 

2020

 

Change

 

 

2021

 

2020

 

Change

Net investment income

$

2,797

 

 

$

4,557

 

 

(38.6)

%

 

 

$

8,641

 

 

$

17,570

 

 

(50.8)

%

Realized gains (losses)

4,319

 

 

53,827

 

 

(92.0)

%

 

 

5,357

 

 

54,294

 

 

(90.1)

%

Unrealized gains (losses)

(3,759)

 

 

1,991

 

 

NM

 

 

(3,024)

 

 

(2,162)

 

 

39.9

%

NM = Not Meaningful

Net investment income decreased 38.6% for the quarter as well as a significant decline in realized gains when compared to the prior year’s quarter. Both decreases are the result of the sale, and subsequent reinvestment at lower yields, of a majority of securities in the portfolio that were in an unrealized gain position in the third and fourth quarters of 2020 to recognize the fair value benefits in surplus.

Capital Deployment

During the third quarter, the Company repurchased approximately 101 thousand shares at an aggregate cost of $1.4 million. The Company’s current share repurchase authorization program has $17.8 million remaining as of September 30, 2021 and runs through November 3, 2022.

On July 19, 2021, the Board of Directors declared a quarterly cash dividend of 16 cents per share of common stock, which was paid on August 9, 2021, to shareholders of record as of the close of business on August 2, 2021.

Guidance

The Company is maintaining its guidance for 2021 (assuming no further extraordinary weather events and no realized or unrealized gains in 2021):

  • GAAP and Non-GAAP Adjusted EPS in a range of $2.75 - $3.00
  • Annualized return on average equity in a range of 17.0% - 19.0%

Conference Call and Webcast

  • Thursday, October 28, 2021 at 9:00 a.m. ET
  • U.S. Dial-in Number: (855) 752-6647
  • International: (503) 343-6667
  • Participant code: 3793583
  • Listen to live webcast: UniversalInsuranceHoldings.com
  • Replay of the call will be available on the UVE website and by phone at (855) 859-2056 or internationally at (404) 537-3406 using the participant code: 3793583 through November 12, 2021

About Universal Insurance Holdings, Inc.

Universal Insurance Holdings (UVE) is a holding company offering property and casualty insurance and value-added insurance services. We develop, market, and write insurance products for consumers predominantly in the personal residential homeowners lines of business and perform substantially all other insurance-related services for our primary insurance entities, including risk management, claims management and distribution. We sell insurance products through both our appointed independent agents and through our direct online distribution channels in the United States across 19 states (primarily Florida). Learn more at UniversalInsuranceHoldings.com.

Non-GAAP Financial Measures and Key Performance Indicators

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission (“SEC”), including adjusted earnings per diluted share, which excludes the impact of the net realized and unrealized gains and losses on investments as well as any extraordinary reinstatement premiums and associated commissions. Extraordinary reinstatement premiums are not covered by reinstatement premium protection and attach just below the Florida Hurricane Catastrophe Fund (“FHCF”) reinsurance layer. Adjusted operating income excludes the impact of the net realized and unrealized gains and losses on investments, as well as interest expense and any extraordinary reinstatement premiums and associated commissions. A “non-GAAP financial measure” is generally defined as a numerical measure of a company’s historical or future performance that excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”). UVE management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. UVE management also believes that these non-GAAP financial measures enhance the ability of investors to analyze UVE’s business trends and to understand UVE’s performance. UVE’s management utilizes these non-GAAP financial measures as guides in long-term planning. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures presented in accordance with GAAP. For more information regarding our key performance indicators, please refer to the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Key Performance Indicators” in our forthcoming Quarterly Report on Form 10-Q for the quarter ended September 30, 2021.

Forward-Looking Statements

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,” “will,” “plan,” 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, including those risks and uncertainties described under the heading “Risk Factors” and “Liquidity and Capital Resources” in our 2020 Annual Report on Form 10-K, and supplemented in our subsequent Quarterly Reports on Form 10-Q. Future results could differ materially from those described, and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. 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 the Company’s Annual Report on Form 10-K and the most recent quarterly reports on Form 10-Q.

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except per share data)

 

 

 

September 30,

 

December 31,

 

 

2021

 

2020

ASSETS:

 

 

 

 

Invested Assets

 

 

 

 

Fixed maturities, at fair value

 

$

1,029,157

 

 

$

819,861

 

Equity securities, at fair value

 

77,099

 

 

84,887

 

Assets held for sale

 

253

 

 

 

Investment real estate, net

 

5,934

 

 

15,176

 

Total invested assets

 

1,112,443

 

 

919,924

 

Cash and cash equivalents

 

224,822

 

 

167,156

 

Restricted cash and cash equivalents

 

15,836

 

 

12,715

 

Prepaid reinsurance premiums

 

386,466

 

 

215,723

 

Reinsurance recoverable

 

134,935

 

 

160,417

 

Premiums receivable, net

 

71,132

 

 

66,883

 

Property and equipment, net

 

53,222

 

 

53,572

 

Deferred policy acquisition costs

 

113,979

 

 

110,614

 

Goodwill

 

2,319

 

 

2,319

 

Other assets

 

28,074

 

 

49,418

 

TOTAL ASSETS

 

$

2,143,228

 

 

$

1,758,741

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

LIABILITIES:

 

 

 

 

Unpaid losses and loss adjustment expenses

 

$

212,488

 

 

$

322,465

 

Unearned premiums

 

876,259

 

 

783,135

 

Advance premium

 

71,069

 

 

49,562

 

Reinsurance payable, net

 

399,905

 

 

10,312

 

Debt

 

7,353

 

 

8,456

 

Other liabilities

 

81,879

 

 

135,549

 

Total liabilities

 

1,648,953

 

 

1,309,479

 

STOCKHOLDERS' EQUITY:

 

 

 

 

Cumulative convertible preferred stock ($0.01 par value) 4

 

 

 

 

Common stock ($0.01 par value) 5

 

470

 

 

468

 

Treasury shares, at cost - 15,797 and 15,680

 

(227,115)

 

 

(225,506)

 

Additional paid-in capital

 

107,382

 

 

103,445

 

Accumulated other comprehensive income (loss), net of taxes

 

(7,398)

 

 

3,343

 

Retained earnings

 

620,936

 

 

567,512

 

Total stockholders' equity

 

494,275

 

 

449,262

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,143,228

 

 

$

1,758,741

 

 

 

 

 

 

Notes:

 

 

 

 

4 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.

5 Common stock ($0.01 par value): Authorized - 55,000 shares; Issued - 46,964 and 46,817 shares; Outstanding 31,167 and 31,137 shares.

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2021

 

2020

 

 

2021

 

2020

REVENUES

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

264,654

 

 

$

234,191

 

 

 

$

764,131

 

 

$

681,390

 

Net investment income

 

2,797

 

 

4,557

 

 

 

8,641

 

 

17,570

 

Net realized gains/(losses) on investments

 

4,319

 

 

53,827

 

 

 

5,357

 

 

54,294

 

Net change in unrealized gains/(losses) of equity securities

 

(3,759)

 

 

1,991

 

 

 

(3,024)

 

 

(2,162)

 

Commission revenue

 

11,418

 

 

8,997

 

 

 

30,404

 

 

23,770

 

Policy fees

 

5,859

 

 

6,167

 

 

 

17,821

 

 

18,253

 

Other revenue

 

1,966

 

 

1,935

 

 

 

5,862

 

 

6,529

 

Total revenues

 

287,254

 

 

311,665

 

 

 

829,192

 

 

799,644

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

187,581

 

 

238,477

 

 

 

498,765

 

 

524,870

 

Policy acquisition costs

 

57,062

 

 

51,594

 

 

 

170,287

 

 

146,982

 

Other operating expenses

 

16,108

 

 

25,370

 

 

 

67,169

 

 

76,477

 

Interest expense

 

39

 

 

16

 

 

 

97

 

 

85

 

Total expenses

 

260,790

 

 

315,457

 

 

 

736,318

 

 

748,414

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax expense

 

26,464

 

 

(3,792)

 

 

 

92,874

 

 

51,230

 

Income tax expense (benefit)

 

6,281

 

 

(623)

 

 

 

24,342

 

 

14,450

 

NET INCOME (LOSS)

 

$

20,183

 

 

$

(3,169)

 

 

 

$

68,532

 

 

$

36,780

 

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SHARE AND PER SHARE INFORMATION

(in thousands, except per share data)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2021

 

2020

 

 

2021

 

2020

Weighted average common shares outstanding - basic

 

31,247

 

 

31,659

 

 

 

31,232

 

 

32,116

 

Weighted average common shares outstanding - diluted

 

31,337

 

 

31,659

 

 

 

31,302

 

 

32,202

 

Shares outstanding, end of period

 

31,167

 

 

31,334

 

 

 

31,167

 

 

31,334

 

Basic earnings (loss) per common share

 

$

0.65

 

 

$

(0.10)

 

 

 

$

2.19

 

 

$

1.14

 

Diluted earnings (loss) per common share

 

$

0.64

 

 

$

(0.10)

 

 

 

$

2.19

 

 

$

1.14

 

Cash dividend declared per common share

 

$

0.16

 

 

$

0.16

 

 

 

$

0.48

 

 

$

0.48

 

Book value per share, end of period

 

$

15.86

 

 

$

15.15

 

 

 

$

15.86

 

 

$

15.15

 

Annualized return on average equity (ROE)

 

16.4

%

 

(2.5)

%

 

 

19.3

%

 

10.0

%

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION

(in thousands, except for Policies In Force data)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2021

 

2020

 

 

2021

 

2020

Premiums

 

 

 

 

 

 

 

 

 

Direct premiums written - Florida

 

$

354,799

 

 

$

334,916

 

 

 

$

1,062,180

 

 

$

948,196

 

Direct premiums written - Other States

78,185

74,502

209,745

200,460

 

Direct premiums written - Total

 

$

432,984

 

 

$

409,418

 

 

 

$

1,271,925

 

 

$

1,148,656

 

Direct premiums earned

 

$

410,621

 

 

$

357,208

 

 

 

$

1,178,801

 

 

$

1,020,798

 

Net premiums earned

 

$

264,654

 

 

$

234,191

 

 

 

$

764,131

 

 

$

681,390

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios - Net

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense ratio

 

70.9

%

 

101.8

%

 

 

65.3

%

 

77.0

%

Policy acquisition cost ratio

 

21.6

%

 

22.1

%

 

 

22.3

%

 

21.6

%

Other operating expense ratio 6

 

6.1

%

 

10.8

%

 

 

8.8

%

 

11.2

%

General and administrative expense ratio 6

 

27.7

%

 

32.9

%

 

 

31.1

%

 

32.8

%

Combined ratio

 

98.6

%

 

134.7

%

 

 

96.4

%

 

109.8

%

 

 

 

 

 

 

 

 

 

 

Other Items

 

 

 

 

 

 

 

 

 

(Favorable)/Unfavorable prior year's reserve development

 

$11,489

 

$30,085

 

 

$17,983

 

$34,904

Points on the loss and loss adjustment expense ratio

 

4.4 pts

 

12.9

pts

 

 

2.4

pts

 

5.1

pts

 

 

 

 

 

 

 

 

 

 

6 Expense ratio excludes interest expense.

 

 

As of

 

 

September 30,

 

 

2021

 

2020

Policies in force

 

 

 

 

Florida

 

716,767

 

 

715,130

 

Other States

 

251,054

 

 

250,332

 

Total

 

967,821

 

 

965,462

 

 

 

 

 

 

Premiums in force

 

 

 

 

Florida

 

$

1,371,760

 

 

$

1,202,318

 

Other States

 

277,786

 

 

257,653

 

Total

 

$

1,649,546

 

 

$

1,459,971

 

 

 

 

 

 

Total Insured Value

 

 

 

 

Florida

 

$

204,334,645

 

 

$

185,382,817

 

Other States

 

114,992,734

 

 

105,432,408

 

Total

 

$

319,327,379

 

 

$

290,815,225

 

 

Three Months Ended September 30, 2021

 

Direct

 

Loss
Ratio

 

Ceded

 

Loss
Ratio

 

Net

 

Loss
Ratio

Premiums earned

$

410,621

 

 

 

 

$

145,967

 

 

 

 

$

264,654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expenses:

 

 

 

 

 

 

 

 

 

 

 

Core losses

$

176,161

 

 

42.9

%

 

$

69

 

 

%

 

$

176,092

 

 

66.5

%

Weather events 7

 

 

%

 

 

 

%

 

 

 

%

Prior year’s reserve development

87,907

 

 

21.4

%

 

76,418

 

 

52.4

%

 

11,489

 

 

4.4

%

Total losses and loss adjustment expenses

$

264,068

 

 

64.3

%

 

$

76,487

 

 

52.4

%

 

$

187,581

 

 

70.9

%

 

 

 

 

 

 

 

 

 

 

 

 

7 Includes only current year weather events beyond those expected.

 

Nine Months Ended September 30, 2021

 

Direct

 

Loss
Ratio

 

Ceded

 

Loss
Ratio

 

Net

 

Loss
Ratio

Premiums earned

$

1,178,801

 

 

 

 

$

414,670

 

 

 

 

$

764,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expenses:

 

 

 

 

 

 

 

 

 

 

 

Core losses

$

480,801

 

 

40.8

%

 

$

19

 

 

%

 

$

480,782

 

 

62.9

%

Weather events 7

 

 

%

 

 

 

%

 

 

 

%

Prior year’s reserve development

296,867

 

 

25.2

%

 

278,884

 

 

67.3

%

 

17,983

 

 

2.4

%

Total losses and loss adjustment expenses

$

777,668

 

 

66.0

%

 

$

278,903

 

 

67.3

%

 

$

498,765

 

 

65.3

%

 

 

 

 

 

 

 

 

 

 

 

 

7 Includes only current year weather events beyond those expected.

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except for per share data)

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

Guidance

 

September 30,

 

 

September 30,

 

 

Full Year 2021E

 

2021

 

2020

 

 

2021

 

2020

 

 

 

Income (Loss) Before Income Taxes

$

26,464

 

 

$

(3,792)

 

 

 

$

92,874

 

 

$

51,230

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Net unrealized (gains)/losses on equity securities

3,759

 

 

(1,991)

 

 

 

3,024

 

 

2,162

 

 

 

 

Net realized (gains)/losses on investments

(4,319)

 

 

(53,827)

 

 

 

(5,357)

 

 

(54,294)

 

 

 

 

Interest Expense

39

 

 

16

 

 

 

97

 

 

85

 

 

 

 

Total Adjustments

(521)

 

 

(55,802)

 

 

 

(2,236)

 

 

(52,047)

 

 

 

 

Non-GAAP Adjusted Operating Income (Loss)

$

25,943

 

 

$

(59,594)

 

 

 

$

90,638

 

 

$

(817)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Diluted EPS

$

0.64

 

 

$

(0.10)

 

 

 

$

2.19

 

 

$

1.14

 

 

 

$ 2.75 - 3.00

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Net unrealized (gains)/losses on equity securities

0.12

 

 

(0.06)

 

 

 

0.09

 

 

0.07

 

 

 

 

Net realized (gains)/losses on investments

(0.14)

 

 

(1.70)

 

 

 

(0.17)

 

 

(1.69)

 

 

 

 

Total Pre-Tax Adjustments

(0.02)

 

 

(1.76)

 

 

 

(0.08)

 

 

(1.62)

 

 

 

 

Income Tax on Above Adjustments

0.01

 

 

0.43

 

 

 

0.02

 

 

0.40

 

 

 

 

Total Adjustments

(0.01)

 

 

(1.33)

 

 

 

(0.06)

 

 

(1.22)

 

 

 

 

Non-GAAP Adjusted EPS

$

0.63

 

 

$

(1.43)

 

 

 

$

2.13

 

 

$

(0.08)

 

 

 

$ 2.75 - 3.00

 

 

 

 

 

 

 

 

 

 

 

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211027005823/en/

CONTACT: Investor Relations Contact:

Rob Luther, 954-958-1200 ext. 6750

VP, Corporate Development, Strategy & IR

rluther@universalproperty.comMedia Relations Contact:

Andy Brimmer / Mahmoud Siddig, 212-355-4449

Joele Frank, Wilkinson Brimmer Katcher

KEYWORD: UNITED STATES NORTH AMERICA FLORIDA

INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES

SOURCE: Universal Insurance Holdings

Copyright Business Wire 2021.

PUB: 10/27/2021 04:15 PM/DISC: 10/27/2021 04:17 PM

http://www.businesswire.com/news/home/20211027005823/en