FORT LAUDERDALE, Fla.,
Aug. 4, 2015 /PRNewswire/
-- Universal Insurance Holdings, Inc. (NYSE: UVE) (or
the "Company") today reported record net income for the second
quarter of 2015 of $24.7 million, an
increase of 44.2% ($7.6 million) over
the same period in 2014. Diluted earnings per share (EPS) was
$0.69 for the second quarter of 2015,
an increase of 40.9% ($0.20 per
share) over the same quarter in 2014. This compares to net
income of $17.1 million, or
$0.49 per diluted share, for the same
period in 2014.
"We are pleased to report another record quarter with sequential
improvement in multiple financial measures as we continue to focus
on excellence in all aspects of our business," said
Sean P. Downes, the Company's
Chairman, President and Chief Executive Officer. "The hard
work and dedication of our tremendous employees as well as our
loyal agency force continue to be key factors to our success.
With the help of our peer leading agency force, we continue to
focus on writing organically grown rate adequate business in all of
our active states.
"We believe that the strategic changes and improvements we made
to our reinsurance program will continue to drive financial
improvements. Specifically, our 2015/2016 reinsurance program
provides us with the necessary protection from significant storms
and allows us, as a result of our improved capital position, to
retain a greater share of our profitable business through the
elimination of the quota share agreement. Our second quarter
results reflect just one month of this quota share elimination, and
we look forward to realizing additional value moving
forward.
"As we enter the second half of the year, we remain confident in
our ability to increase market share by targeting profitable, rate
adequate business from our growing distribution channels, improve
our financial condition, continue our geographic expansion efforts
and deliver increasing returns to shareholders."
Second-Quarter 2015 & Recent Highlights
- Net earned premiums grew by $39.5
million, or 53.9%, to $112.9
million.
- Total revenues increased by $36.6
million, or 42.1%, to $123.6
million.
- Net income increased by $7.6
million, or 44.2%, to $24.7
million.
- Diluted EPS grew by $0.20, or
40.9%, to $0.69 per share.
- Paid dividends of $0.12 per
share.
- Eliminated quota share reinsurance with 2015-2016 reinsurance
program.
- Received Certificates of Authority from Michigan, Minnesota and Virginia.
Second-Quarter 2015 Results
Net income for the second quarter of 2015 of $24.7 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 improvements in our loss ratio. The increase
in net earned premiums reflects both growth in policies in force
and lower reinsurance costs, including the reduction in the cession
rate of the Company's quota share reinsurance contracts to 30%
effective June 2014, followed by the
elimination of quota share reinsurance effective June 2015. To a lesser degree but an
important strategic initiative is diversification of premium
outside of Florida as the Company
is now licensed to write premium in 13 states. The loss and loss
adjustment expense ratio was improved to 35.2% in the second
quarter of 2015 compared to 37.7% for the second quarter of 2014.
The Company's initiatives to expedite claims have resulted in
savings, reducing the severity and duration of claims and costs
associated with handling of claims.
Stockholders' equity reached an all-time high of $255.3 million as of June
30, 2015 compared to $218.9
million (pro-forma) as of December 31, 2014.
First Six-Months 2015 Results
For the first six months of 2015, the Company's net income
was $47.0 million, an increase of
$16.4 million, or 53.3%, compared to
the same period of 2014. Diluted earnings per share for the
first six months of 2015 was $1.31,
an increase of $0.44, or 51.0%,
compared to the same period of 2014.
Cash Dividends
On April 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
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 second quarter 2015 financial results
at approximately 5:00 pm Eastern on
August 4, 2015. The presentation will
be pre-recorded and there will be no opportunity for live
questions. The audio recording of this presentation will be
available at www.universalinsuranceholdings.com until September 4, 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, Indiana and Pennsylvania. 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, 2014 and Form 10-Q for the quarter
ended June 30, 2015.
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS (Unaudited)
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
ASSETS
|
|
2015
|
|
2014
|
|
Cash and cash
equivalents
|
|
$
213,330
|
|
$ 115,397
|
|
Restricted cash and
cash equivalents
|
|
2,635
|
|
2,635
|
|
Fixed maturities, at
fair value
|
|
359,589
|
|
353,949
|
|
Equity securities, at
fair value
|
|
38,515
|
|
19,642
|
|
Short-term
investments, at fair value
|
|
100,025
|
|
49,990
|
|
Investment real
estate, net
|
|
5,849
|
|
—
|
|
Prepaid reinsurance
premiums
|
|
110,739
|
|
190,505
|
|
Reinsurance
recoverable
|
|
38,157
|
|
55,187
|
|
Reinsurance
receivable, net
|
|
716
|
|
7,468
|
|
Premiums receivable,
net
|
|
59,171
|
|
50,987
|
|
Other
receivables
|
|
4,524
|
|
2,763
|
|
Property and
equipment, net
|
|
23,818
|
|
17,254
|
|
Deferred policy
acquisition costs, net
|
|
62,181
|
|
25,660
|
|
Income taxes
recoverable
|
|
12,949
|
|
5,675
|
|
Deferred income tax
asset, net
|
|
10,250
|
|
11,850
|
|
Other
assets
|
|
4,919
|
|
2,812
|
|
Total assets
|
|
$ 1,047,367
|
|
$ 911,774
|
|
|
|
|
|
|
LIABILITIES,
CONTINGENTLY REDEEMABLE COMMON STOCK AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
Unpaid losses and
loss adjustment expenses
|
$
|
112,117
|
$
|
134,353
|
|
Unearned
premiums
|
|
455,882
|
|
395,748
|
|
Advance
premium
|
|
29,303
|
|
17,919
|
|
Accounts
payable
|
|
1,981
|
|
4,121
|
|
Book
overdraft
|
|
2,725
|
|
5,924
|
|
Reinsurance payable,
net
|
|
131,738
|
|
66,066
|
|
Income taxes
payable
|
|
1,659
|
|
1,799
|
|
Dividends payable to
shareholders
|
|
4,283
|
|
—
|
|
Other liabilities and
accrued expenses
|
|
27,751
|
|
36,318
|
|
Long-term
debt
|
|
24,600
|
|
30,610
|
|
Total liabilities
|
|
792,039
|
|
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 - 10 and
12
|
|
|
|
|
|
Outstanding shares - 10 and
12
|
|
|
|
|
|
Minimum liquidation
preference, $9.99 and $8.49 per share
|
|
|
|
|
|
Common stock, $.01
par value
|
|
456
|
|
448
|
|
Authorized shares -
55,000
|
|
|
|
|
|
Issued shares - 45,562 and
43,769
|
|
|
|
|
|
Outstanding shares - 35,695
and 34,102
|
|
|
|
|
|
Treasury shares, at
cost - 9,867 and 9,667
|
|
(67,229)
|
|
(62,153)
|
|
Additional paid-in
capital
|
|
62,845
|
|
40,987
|
|
Accumulated other
comprehensive income (loss), net of taxes
|
|
(1,721)
|
|
(1,835)
|
|
Retained
earnings
|
|
260,977
|
|
222,469
|
|
Total stockholders' equity
|
|
255,328
|
|
199,916
|
|
Total liabilities, contingently redeemable
common stock
and stockholders' equity
|
|
$ 1,047,367
|
|
$ 911,774
|
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
|
Direct premiums
written
|
|
$ 249,971
|
|
$ 220,009
|
|
Ceded premiums
written
|
|
(7,933)
|
|
(76,483)
|
|
Net premiums
written
|
|
242,038
|
|
143,526
|
|
Change in net
unearned premiums
|
|
(129,150)
|
|
(70,164)
|
|
Premiums earned,
net
|
|
112,888
|
|
73,362
|
|
Net investment income
(expense)
|
|
1,207
|
|
412
|
|
Net realized gains (losses)
on investments
|
|
110
|
|
3,950
|
|
Commission
revenue
|
|
3,474
|
|
3,670
|
|
Policy fees
|
|
4,352
|
|
3,899
|
|
Other revenue
|
|
1,560
|
|
1,696
|
|
Total premiums earned
and other revenues
|
|
123,591
|
|
86,989
|
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
|
Losses and loss adjustment
expenses
|
|
39,704
|
|
27,679
|
|
General and administrative
expenses
|
|
42,667
|
|
28,901
|
|
Total operating costs
and expenses
|
|
82,371
|
|
56,580
|
|
INCOME BEFORE INCOME
TAXES
|
|
41,220
|
|
30,409
|
|
Income tax
expense
|
|
16,516
|
|
13,283
|
|
NET INCOME
|
|
$ 24,704
|
|
$ 17,126
|
|
Basic earnings per
common share
|
|
$
0.71
|
|
$
0.50
|
|
Weighted average
common shares outstanding - Basic
|
|
35,019
|
|
33,968
|
|
Fully diluted
earnings per common share
|
|
$
0.69
|
|
$
0.49
|
|
Weighted average
common shares outstanding - Diluted
|
|
36,002
|
|
35,174
|
|
Cash dividend
declared per common share
|
|
$
0.12
|
|
$
0.10
|
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
|
Direct premiums
written
|
|
$ 461,576
|
|
$ 411,926
|
|
Ceded premiums
written
|
|
(114,430)
|
|
(198,132)
|
|
Net premiums
written
|
|
347,146
|
|
213,794
|
|
Change in net
unearned premiums
|
|
(139,898)
|
|
(76,625)
|
|
Premiums earned,
net
|
|
207,248
|
|
137,169
|
|
Net investment income
(expense)
|
|
2,069
|
|
930
|
|
Net realized gains (losses)
on investments
|
|
281
|
|
4,852
|
|
Commission
revenue
|
|
6,642
|
|
7,759
|
|
Policy fees
|
|
8,184
|
|
7,411
|
|
Other revenue
|
|
2,977
|
|
3,173
|
|
Total premiums earned
and other revenues
|
|
227,401
|
|
161,294
|
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
|
Losses and loss adjustment
expenses
|
|
73,294
|
|
54,504
|
|
General and administrative
expenses
|
|
74,864
|
|
53,264
|
|
Total operating costs
and expenses
|
|
148,158
|
|
107,768
|
|
INCOME BEFORE INCOME
TAXES
|
|
79,243
|
|
53,526
|
|
Income tax
expense
|
|
32,209
|
|
22,851
|
|
NET INCOME
|
|
$ 47,034
|
|
$ 30,675
|
|
Basic earnings per
common share
|
|
$
1.35
|
|
$
0.91
|
|
Weighted average
common shares outstanding - Basic
|
|
34,800
|
|
33,696
|
|
Fully diluted
earnings per common share
|
|
$
1.31
|
|
$
0.87
|
|
Weighted average
common shares outstanding - Diluted
|
|
35,987
|
|
35,450
|
|
Cash dividend
declared per common share
|
|
$
0.24
|
|
$
0.20
|
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-results-for-second-quarter-2015-300123634.html
SOURCE Universal Insurance Holdings, Inc.