FORT LAUDERDALE, Fla.,
April 30, 2015 /PRNewswire/
-- Universal Insurance Holdings, Inc. (NYSE: UVE) (or
the "Company") today reported record net income of $22.3 million and diluted earnings per share
(EPS) of $0.62, an increase of
$8.8 million and $0.24, respectively, for the first quarter of
2015. This compares to net income of $13.5 million, or $0.38 per diluted share, for the same period in
2014.
"We are pleased to report a strong start to 2015, as we
delivered the highest quarterly net income and diluted EPS in the
Company's history," said Sean P.
Downes, the Company's Chairman, President and Chief
Executive Officer. "We continue to demonstrate consistent
execution on our key strategic priorities, including a focus on
driving organic growth, while writing high quality, rate adequate
business. The significant growth in our net earned premiums during
the quarter was driven by our growth initiatives, improving
reinsurance economics, as well as a reduction in the cession rate
of the Company's quota share reinsurance contracts. Looking
ahead in 2015, we remain confident in our ability to drive
profitable organic growth, maintain our healthy financial position,
continue our geographic expansion efforts and deliver increasing
returns to shareholders."
First-Quarter 2015 & Recent Highlights
- Net earned premiums grew by $30.6
million, or 47.9%, to $94.4
million.
- Total revenues increased by $29.5
million, or 39.7%, to $103.8
million.
- Net income increased by $8.8
million, or 64.8%, to $22.3
million.
- Diluted EPS grew by $0.24, or
63.2%, to $0.62 per share.
- Paid dividends of $0.12 per
share.
- Acquired assets from Aplin Peer & Associates Inc., a
privately held independent claims adjusting company, in
February 2015.
First-Quarter 2015 Results
Net income for the first quarter of 2015 of $22.3 million reflects an improvement across
multiple measures including an increase in direct premiums written,
net premiums written, net earned premiums, policy fees, net
investment income and total revenues. Operating expenses were lower
as a percentage of net earned premiums and total revenues compared
to the first quarter of 2014.
The increase in net earned premiums reflects both growth in
policies in force and the reduction in the cession rate of the
Company's quota share reinsurance contracts effective June 2014. The decrease in operating expenses as
a percentage of total revenues is due primarily to operational
initiatives to settle claims and changes in the structure of our
reinsurance program effective June
2014, including the reduction in our quota share cession
rate.
At March 31, 2015, stockholders' equity reached an all-time
high at $241.9 million compared to
pro-forma stockholders' equity of $218.9
million at December 31, 2014, reflecting year-to-date
net income of $22.3 million and
dividend payments of $4.2
million.
Cash Dividends
On January 13, 2015, the Company
announced that its board of directors declared a cash dividend of
$0.12 per share of common stock,
which was paid on March 2, 2015 to shareholders of record on
February 18, 2015.
On April 13, 2015, the Company announced that its board of
directors declared a cash dividend of $0.12 per share of common stock to be paid on
July 2, 2015 to shareholders of
record on June 18, 2015.
If declared and paid as intended, the annual aggregate dividend
in 2015 will be $0.48 for each common
share.
Financial Results Presentation
The Company will make available an audio recording of a
presentation discussing its first quarter 2015 financial results at
approximately 5:00 pm Eastern on
April 30, 2015. 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 June 1, 2015.
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 and Indiana. 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, 2014 and the Form 10-Q for the
quarter ended March 31, 2015.
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
ASSETS
|
|
2015
|
|
2014
|
Cash and cash
equivalents
|
|
$ 182,311
|
|
$ 115,397
|
Restricted cash and
cash equivalents
|
|
2,635
|
|
2,635
|
Fixed maturities, at
fair value
|
|
347,912
|
|
353,949
|
Equity securities, at
fair value
|
|
21,396
|
|
19,642
|
Short-term
investments, at fair value
|
|
37,506
|
|
49,990
|
Prepaid reinsurance
premiums
|
|
194,691
|
|
190,505
|
Reinsurance
recoverable
|
|
51,366
|
|
55,187
|
Reinsurance
receivable, net
|
|
4,297
|
|
7,468
|
Premiums receivable,
net
|
|
55,033
|
|
50,987
|
Other
receivables
|
|
3,284
|
|
2,763
|
Property and
equipment, net
|
|
21,153
|
|
17,254
|
Deferred policy
acquisition costs, net
|
|
26,195
|
|
25,660
|
Income taxes
recoverable
|
|
—
|
|
5,675
|
Deferred income tax
asset, net
|
|
11,717
|
|
11,850
|
Other
assets
|
|
7,661
|
|
2,812
|
Total assets
|
|
$ 967,157
|
|
$ 911,774
|
LIABILITIES,
CONTINGENTLY REDEEMABLE COMMON STOCK AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Unpaid losses and
loss adjustment expenses
|
|
$ 125,161
|
|
$ 134,353
|
Unearned
premiums
|
|
410,683
|
|
395,748
|
Advance
premium
|
|
22,185
|
|
17,919
|
Accounts
payable
|
|
2,472
|
|
4,121
|
Book
overdraft
|
|
7,478
|
|
5,924
|
Reinsurance payable,
net
|
|
91,258
|
|
66,066
|
Income taxes
payable
|
|
6,681
|
|
1,799
|
Other liabilities and
accrued expenses
|
|
27,505
|
|
36,318
|
Long-term
debt
|
|
31,813
|
|
30,610
|
Total liabilities
|
|
725,236
|
|
692,858
|
Contingently
redeemable common stock
|
|
—
|
|
19,000
|
Issued shares - 0 and
1,000
|
|
|
|
|
Outstanding shares - 0
and 1,000
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
Cumulative
convertible preferred stock, $.01 par value
|
|
—
|
|
—
|
Authorized shares -
1,000
|
|
|
|
|
Issued shares - 12 and
12
|
|
|
|
|
Outstanding shares - 12 and
12
|
|
|
|
|
Minimum liquidation
preference, $8.49 and $8.49 per share
|
|
|
|
|
Common stock, $.01
par value
|
|
452
|
|
448
|
Authorized shares -
55,000
|
|
|
|
|
Issued shares - 45,224 and
43,769
|
|
|
|
|
Outstanding shares - 35,557
and 34,102
|
|
|
|
|
Treasury shares, at
cost - 9,667 and 9,667
|
|
(62,153)
|
|
(62,153)
|
Additional paid-in
capital
|
|
63,700
|
|
40,987
|
Accumulated other
comprehensive income (loss), net of taxes
|
|
(638)
|
|
(1,835)
|
Retained
earnings
|
|
240,560
|
|
222,469
|
Total stockholders' equity
|
|
241,921
|
|
199,916
|
Total liabilities, contingently redeemable
common stock
and stockholders' equity
|
|
$ 967,157
|
|
$ 911,774
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2015
|
|
2014
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
Direct premiums
written
|
|
$ 211,605
|
|
$ 191,917
|
Ceded premiums
written
|
|
(106,497)
|
|
(121,649)
|
Net premiums
written
|
|
105,108
|
|
70,268
|
Change in net
unearned premium
|
|
(10,748)
|
|
(6,461)
|
Premiums earned,
net
|
|
94,360
|
|
63,807
|
Net investment income
(expense)
|
|
862
|
|
518
|
Net realized gains (losses)
on investments
|
|
171
|
|
902
|
Commission
revenue
|
|
3,168
|
|
4,089
|
Policy fees
|
|
3,832
|
|
3,512
|
Other revenue
|
|
1,417
|
|
1,477
|
Total premiums earned
and other revenues
|
|
103,810
|
|
74,305
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
Losses and loss adjustment
expenses
|
|
33,590
|
|
26,825
|
General and administrative
expenses
|
|
32,197
|
|
24,363
|
Total operating costs
and expenses
|
|
65,787
|
|
51,188
|
INCOME BEFORE INCOME
TAXES
|
|
38,023
|
|
23,117
|
Income tax
expense
|
|
15,693
|
|
9,568
|
NET INCOME
|
|
$ 22,330
|
|
$ 13,549
|
Basic earnings per
common share
|
|
$
0.65
|
|
$
0.41
|
Weighted average
common shares outstanding - Basic
|
|
34,578
|
|
33,422
|
Fully diluted
earnings per common share
|
|
$
0.62
|
|
$
0.38
|
Weighted average
common shares outstanding - Diluted
|
|
36,081
|
|
35,641
|
Cash dividend
declared per common share
|
|
$
0.12
|
|
$
0.10
|
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-record-first-quarter-2015-financial-results-300075561.html
SOURCE Universal Insurance Holdings, Inc.