FORT LAUDERDALE, Fla.,
Aug. 6, 2014 /PRNewswire/ -- Universal Insurance
Holdings, Inc. (NYSE: UVE) (or the "Company") today reported
net income of $17.1 million, or
$0.49 per diluted share, an increase
of $0.05, for the second quarter of
2014, compared to net income of $17.0
million, or $0.44 per diluted
share, for the same period in 2013.
"We are pleased to report strong second quarter operational and
financial results, demonstrating the merits of our strategy and our
prudent and disciplined approach to underwriting," said
Sean P. Downes, the Company's
Chairman, President and Chief Executive Officer. "The reduction in
costs that we were able to secure for our 2014-2015 reinsurance
program have allowed us to write more high quality, rate adequate
business. As a result, we are seeing increasing momentum in direct
premiums written, with a year-over-year increase in both new
and renewal policy submissions in Florida during the second quarter. In
addition, we have continued to increase our geographic diversity,
growing our policy count for new business in states outside of
Florida by over 40 percent
year-over-year. Looking ahead, we will continue to maintain
disciplined pricing analytics, and continue to make investments in
personnel to improve our processes and continue our entry into new
markets. We believe we are well positioned to grow
organically and drive shareholder returns as we enter the second
half of the year."
Second-Quarter 2014 & Recent Highlights
- Net income and diluted EPS grew by $97
thousand and $0.05,
respectively, compared to Q2 2013.
- Submitted applications to expand into Pennsylvania, consistent with the Company's
geographic diversification strategy.
- Received approval to and wrote first homeowners insurance
policy in Delaware.
- Repurchased in the open market common shares having value of
approximately $5 million through
June 30, 2014.
- Authorized an additional $10
million open market share repurchase program through
August 1, 2015, of which $498,000 has been deployed through June 30, 2014.
- Paid dividends of $0.10 per share
compared to $0.08 per share in Q2
2013.
- Affirmed a Financial Stability RatingĀ® of "A" from Demotech,
Inc. for insurance subsidiaries APPCIC and UPCIC.
Second-Quarter 2014 Results
Net income for the second quarter of 2014 of $17.1 million reflects an improvement across
multiple measures including direct written premiums, net earned
premiums, net investment income, realized gains, policy fees, other
revenues, total revenues and income before income taxes. Total
revenues of $87.0 million are higher
than any other quarter in the Company's history.
Diluted EPS of $0.49 benefitted
from lower outstanding shares as a result of the cumulative share
repurchases made by the Company.
At June 30, 2014, stockholders' equity was $178.1 million compared to $175.6 million at December 31, 2013
reflecting an increase in retained earnings of $23.7 million and share repurchases of
$20.2 million.
First Six-Months 2014 Results
For the first six months of 2014, the Company's net income
increased by $1.7 million, or 5.8
percent, compared to the same period of 2013. Diluted
earnings per share for the first six months of 2014 increased by
$0.14, or 19.2 percent, compared to
the same period of 2013.
Net premiums earned increased by $4.9
million to $137.2 million for
the six months of 2014 compared to the same period of 2013.
Share Repurchases
During the second quarter of 2014, the Company repurchased
446,271 shares of its common stock at an average purchase
price of $12.28 per share. In
addition, on June 17, 2014, the
Company announced that its board of directors authorized a share
repurchase program under which the Company may repurchase in the
open market up to $10 million of its
outstanding shares of common stock through August 1, 2015. Of the newly authorized
$10 million repurchase program,
$498,000 has been deployed through
June 30, 2014. The total
remaining authorization as of June 30,
2014 is approximately $9.5
million.
The Company intends to be disciplined and opportunistic with
respect to its remaining authorization to repurchase shares as
market conditions and other factors permit.
Cash Dividends
On April 16, 2014, the Company announced that its board of
directors declared a cash dividend of $0.10 per share of common stock which was paid on
July 3, 2014, to shareholders of record on June 19, 2014.
Financial Results Presentation
The Company will make available an audio recording of a
presentation discussing its second quarter 2014 financial results
on August 6, 2014, at approximately 5:00 p.m. Eastern. The presentation will be
pre-recorded and there will be no opportunity for live questions.
The audio recording will be available at
www.universalinsuranceholdings.com until September 8,
2014.
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 and Delaware. 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 the Form 10-K for the year ended December 31,
2013.
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
ASSETS
|
|
2014
|
|
2013
|
Cash and cash
equivalents
|
|
$
201,357
|
|
$ 117,275
|
Restricted cash and
cash equivalents
|
|
2,635
|
|
2,600
|
Fixed maturities, at
fair value
|
|
323,145
|
|
289,418
|
Equity securities, at
fair value
|
|
12,420
|
|
65,022
|
Prepaid reinsurance
premiums
|
|
193,811
|
|
241,214
|
Reinsurance
recoverable
|
|
77,566
|
|
107,847
|
Reinsurance
receivable, net
|
|
26,352
|
|
203
|
Premiums receivable,
net
|
|
55,005
|
|
46,461
|
Other
receivables
|
|
3,340
|
|
2,587
|
Property and
equipment, net
|
|
9,815
|
|
9,289
|
Deferred policy
acquisition costs, net
|
|
28,077
|
|
15,899
|
Income taxes
recoverable
|
|
2,824
|
|
8,152
|
Deferred income tax
asset, net
|
|
11,813
|
|
12,051
|
Other
assets
|
|
2,242
|
|
2,072
|
Total assets
|
|
$
950,402
|
|
$ 920,090
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Unpaid losses and
loss adjustment expenses
|
|
$
144,625
|
|
$ 159,222
|
Unearned
premiums
|
|
412,709
|
|
383,488
|
Advance
premium
|
|
22,671
|
|
22,959
|
Accounts
payable
|
|
4,809
|
|
3,441
|
Book
overdraft
|
|
4,312
|
|
14,947
|
Payable for
securities purchased
|
|
1,026
|
|
-
|
Reinsurance payable,
net
|
|
120,095
|
|
86,232
|
Income taxes
payable
|
|
407
|
|
2,566
|
Dividends payable to
shareholders
|
|
3,503
|
|
-
|
Other liabilities and
accrued expenses
|
|
27,161
|
|
34,386
|
Long-term
debt
|
|
30,984
|
|
37,240
|
Total liabilities
|
|
772,302
|
|
744,481
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
Cumulative
convertible preferred stock, $.01 par value
|
|
-
|
|
-
|
Authorized shares -
1,000
|
|
|
|
|
Issued shares - 12 and
30
|
|
|
|
|
Outstanding shares - 12 and
30
|
|
|
|
|
Minimum liquidation
preference, $8.49 and $6.98 per share
|
|
|
|
|
Common stock, $.01
par value
|
|
449
|
|
436
|
Authorized shares -
55,000
|
|
|
|
|
Issued shares - 44,935 and
43,641
|
|
|
|
|
Outstanding shares - 34,988
and 35,366
|
|
|
|
|
Treasury shares, at
cost - 9,947 and 8,275
|
|
(55,701)
|
|
(35,467)
|
Additional paid-in
capital
|
|
41,539
|
|
42,282
|
Accumulated other
comprehensive income (loss), net of taxes
|
|
(623)
|
|
(376)
|
Retained
earnings
|
|
192,436
|
|
168,734
|
Total stockholders' equity
|
|
178,100
|
|
175,609
|
Total liabilities and stockholders' equity
|
|
$
950,402
|
|
$ 920,090
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
|
|
|
2014
|
|
2013
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
Direct premiums
written
|
|
$ 220,009
|
|
$ 219,946
|
Ceded premiums
written
|
|
(76,483)
|
|
(133,897)
|
Net premiums
written
|
|
143,526
|
|
86,049
|
Change in net
unearned premium
|
|
(70,164)
|
|
(19,182)
|
Premiums earned,
net
|
|
73,362
|
|
66,867
|
Net investment income
(expense)
|
|
412
|
|
137
|
Net realized gains
(losses) on investments
|
|
3,950
|
|
(1)
|
Net change in
unrealized gains (losses) on investments
|
|
-
|
|
23
|
Commission
revenue
|
|
3,670
|
|
5,271
|
Policy fees
|
|
3,899
|
|
3,819
|
Other
revenue
|
|
1,696
|
|
1,640
|
Total premiums earned
and other revenues
|
|
86,989
|
|
77,756
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
Losses and loss
adjustment expenses
|
|
27,679
|
|
25,199
|
General and
administrative expenses
|
|
28,901
|
|
22,869
|
Total operating costs
and expenses
|
|
56,580
|
|
48,068
|
INCOME BEFORE INCOME
TAXES
|
|
30,409
|
|
29,688
|
Income taxes,
current
|
|
13,398
|
|
12,351
|
Income taxes,
deferred
|
|
(115)
|
|
308
|
Income taxes,
net
|
|
13,283
|
|
12,659
|
NET INCOME
|
|
$ 17,126
|
|
$ 17,029
|
|
|
|
|
|
Basic earnings per
common share
|
|
$ 0.50
|
|
$ 0.47
|
Weighted average
common shares outstanding - Basic
|
|
33,968
|
|
36,378
|
|
|
|
|
|
Fully diluted
earnings per common share
|
|
$ 0.49
|
|
$ 0.44
|
Weighted average
common shares outstanding - Diluted
|
|
35,174
|
|
38,314
|
|
|
|
|
|
Cash dividend
declared per common share
|
|
$ 0.10
|
|
$ 0.08
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
June 30,
|
|
|
2014
|
|
2013
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
Direct premiums
written
|
|
$ 411,926
|
|
$ 424,085
|
Ceded premiums
written
|
|
(198,132)
|
|
(275,214)
|
Net premiums
written
|
|
213,794
|
|
148,871
|
Change in net
unearned premium
|
|
(76,625)
|
|
(16,595)
|
Premiums earned,
net
|
|
137,169
|
|
132,276
|
Net investment income
(expense)
|
|
930
|
|
149
|
Net realized gains (losses)
on investments
|
|
4,852
|
|
(16,038)
|
Net change in unrealized
gains (losses) on investments
|
|
-
|
|
7,597
|
Commission
revenue
|
|
7,759
|
|
10,257
|
Policy fees
|
|
7,411
|
|
7,505
|
Other revenue
|
|
3,173
|
|
3,165
|
Total premiums earned
and other revenues
|
|
161,294
|
|
145,211
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
Losses and loss adjustment
expenses
|
|
54,504
|
|
51,682
|
General and administrative
expenses
|
|
53,264
|
|
44,079
|
Total operating costs
and expenses
|
|
107,768
|
|
95,761
|
INCOME BEFORE INCOME
TAXES
|
|
53,526
|
|
49,450
|
Income taxes,
current
|
|
22,457
|
|
16,298
|
Income taxes,
deferred
|
|
394
|
|
4,164
|
Income
taxes, net
|
|
22,851
|
|
20,462
|
NET INCOME
|
|
$ 30,675
|
|
$ 28,988
|
|
|
|
|
|
Basic earnings per
common share
|
|
$
0.91
|
|
$
0.76
|
Weighted average
common shares outstanding - Basic
|
|
33,696
|
|
38,138
|
|
|
|
|
|
Fully diluted
earnings per common share
|
|
$
0.87
|
|
$
0.73
|
Weighted average
common shares outstanding - Diluted
|
|
35,450
|
|
39,760
|
|
|
|
|
|
Cash dividend
declared per common share
|
|
$
0.20
|
|
$
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contact:
Andy
Brimmer / Mahmoud Siddig
Joele Frank, Wilkinson Brimmer
Katcher
212-355-4449
SOURCE Universal Insurance Holdings, Inc.