FORT LAUDERDALE, Fla.,
Oct. 29, 2015 /PRNewswire/
-- Universal Insurance Holdings, Inc. (NYSE: UVE) (or
the "Company") today reported third quarter 2015 net income of
$30.3 million, an increase of 42.0%
($9.0 million) over the same period
in 2014 and a record in Company history. Diluted earnings per
share (EPS) were $0.84 for the third
quarter of 2015, an increase of 37.7% ($0.23 per share) over the same quarter in 2014,
and also represented a Company record. This compares to net
income of $21.3 million, or
$0.61 per diluted share, for the same
period in 2014.
"We are pleased to report our third consecutive quarter of
achieving the highest quarterly net income in Company history,"
said Sean P. Downes, Universal's
Chairman, President and Chief Executive Officer. "Our results
demonstrate, once again, the strength and diversity of our business
model and continued execution on our strategic initiatives to write
high quality, rate adequate business, expand our geographic
footprint and drive enhanced value for shareholders."
"This quarter we announced that we received licenses to operate
in Virginia, West Virginia and Alabama, expanding our presence to 15 states.
Through the first nine-months of the year, our successful expansion
outside of Florida has resulted in
a growth in policy count of 35.6% outside Florida. Supported
by a peer leading independent agency force, Universal has grown
from a leading provider of homeowners insurance in Florida to one of the leading writers of
homeowners insurance nationally. This expansion and top-line growth
in Florida, coupled with the
improvements we have made to our reinsurance program is driving our
strong bottom-line performance."
Third-Quarter 2015 & Recent Highlights
- Net earned premiums grew by $51.9
million, or 55.0%, to $146.2
million.
- Total revenues increased by $53.5
million, or 51.7%, to $157.0
million.
- Net income increased by $9.0
million, or 42.0%, to $30.3
million.
- Diluted EPS grew by $0.23, or
37.7%, to $0.84 per share.
- Paid dividends of $0.12 per
share.
- Announced $10 million share
repurchase program.
- Received Certificates of Authority from Virginia, West
Virginia and Alabama.
Third-Quarter 2015 Results
Net income for the third quarter of 2015 of $30.3 million reflects an improvement across
multiple measures including an increase in direct premiums written,
net premiums written, net earned premiums, net investment income,
commissions, policy fees, other revenues and income before taxes.
The increase in net earned premiums reflects both growth in
policies in force and lower reinsurance costs, including the
elimination of quota share reinsurance effective June 2015.
Stockholders' equity reached an all-time high of $283.0 million as of September 30, 2015 compared to $218.9 million (pro-forma) as of
December 31, 2014.
First Nine-Months 2015 Results
For the first nine months of 2015, the Company's net income was
$77.3 million, an increase of
$25.3 million, or 48.7%, compared to
the same period of 2014. Diluted earnings per share for the
first nine months of 2015 was $2.15,
an increase of $0.67, or 45.3%,
compared to the same period of 2014.
Share Repurchases
On September 2, 2015, the Company
announced that its Board of Directors authorized a share repurchase
program under which the Company may repurchase up to $10 million of its outstanding shares of common
stock through December 31,
2016. As of September 30, 2015,
the Company had repurchased 100,000 shares of its common stock at
an average price of $25.84 per share,
with $7.4 million remaining to be
deployed.
Cash Dividends
On August 31, 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 October 8, 2015 to
shareholders of record on September 23,
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 third quarter 2015 financial results at
approximately 5:00 pm Eastern on
October 29, 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 November 27, 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, Pennsylvania and Minnesota. 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 September 30, 2015.
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS (Unaudited)
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
ASSETS
|
|
2015
|
|
2014
|
|
Cash and cash
equivalents
|
|
$
201,774
|
|
$ 115,397
|
|
Restricted cash and
cash equivalents
|
|
2,635
|
|
2,635
|
|
Fixed maturities, at
fair value
|
|
417,769
|
|
353,949
|
|
Equity securities, at
fair value
|
|
46,627
|
|
19,642
|
|
Short-term
investments, at fair value
|
|
75,023
|
|
49,990
|
|
Investment real
estate, net
|
|
5,820
|
|
—
|
|
Prepaid reinsurance
premiums
|
|
113,240
|
|
190,505
|
|
Reinsurance
recoverable
|
|
36,135
|
|
55,187
|
|
Reinsurance
receivable, net
|
|
166
|
|
7,468
|
|
Premiums receivable,
net
|
|
56,617
|
|
50,987
|
|
Other
receivables
|
|
5,195
|
|
2,763
|
|
Property and
equipment, net
|
|
26,302
|
|
17,254
|
|
Deferred policy
acquisition costs, net
|
|
63,003
|
|
25,660
|
|
Income taxes
recoverable
|
|
10,964
|
|
5,675
|
|
Deferred income tax
asset, net
|
|
12,196
|
|
11,850
|
|
Other
assets
|
|
4,900
|
|
2,812
|
|
Total assets
|
|
$ 1,078,366
|
|
$ 911,774
|
|
|
|
|
|
|
LIABILITIES,
CONTINGENTLY REDEEMABLE COMMON STOCK AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
Unpaid losses and
loss adjustment expenses
|
|
$
101,059
|
|
$ 134,353
|
|
Unearned
premiums
|
|
463,651
|
|
395,748
|
|
Advance
premium
|
|
26,029
|
|
17,919
|
|
Accounts
payable
|
|
1,582
|
|
4,121
|
|
Book
overdraft
|
|
3,728
|
|
5,924
|
|
Payable for
securities purchased
|
|
7,937
|
|
—
|
|
Reinsurance payable,
net
|
|
125,427
|
|
66,066
|
|
Income taxes
payable
|
|
—
|
|
1,799
|
|
Dividends payable to
shareholders
|
|
4,287
|
|
—
|
|
Other liabilities and
accrued expenses
|
|
37,388
|
|
36,318
|
|
Long-term
debt
|
|
24,324
|
|
30,610
|
|
Total liabilities
|
|
795,412
|
|
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 - 45,595 and
43,769
|
|
|
|
|
|
Outstanding shares - 35,628
and 34,102
|
|
|
|
|
|
Treasury shares, at
cost - 9,967 and 9,667
|
|
(69,818)
|
|
(62,153)
|
|
Additional paid-in
capital
|
|
67,845
|
|
40,987
|
|
Accumulated other
comprehensive income (loss), net of taxes
|
|
(2,515)
|
|
(1,835)
|
|
Retained
earnings
|
|
286,986
|
|
222,469
|
|
Total stockholders' equity
|
|
282,954
|
|
199,916
|
|
Total liabilities, contingently redeemable
common stock
and stockholders' equity
|
|
$ 1,078,366
|
|
$ 911,774
|
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
|
Direct premiums
written
|
|
$ 222,572
|
|
$ 195,435
|
|
Ceded premiums
written
|
|
(71,150)
|
|
(103,492)
|
|
Net premiums
written
|
|
151,422
|
|
91,943
|
|
Change in net
unearned premiums
|
|
(5,269)
|
|
2,345
|
|
Premiums earned,
net
|
|
146,153
|
|
94,288
|
|
Net investment income
(expense)
|
|
1,307
|
|
644
|
|
Net realized gains (losses)
on investments
|
|
11
|
|
501
|
|
Commission
revenue
|
|
4,115
|
|
3,123
|
|
Policy fees
|
|
3,820
|
|
3,416
|
|
Other revenue
|
|
1,637
|
|
1,528
|
|
Total premiums earned
and other revenues
|
|
157,043
|
|
103,500
|
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
|
Losses and loss adjustment
expenses
|
|
53,854
|
|
34,181
|
|
General and administrative
expenses
|
|
55,289
|
|
32,167
|
|
Total operating costs
and expenses
|
|
109,143
|
|
66,348
|
|
INCOME BEFORE INCOME
TAXES
|
|
47,900
|
|
37,152
|
|
Income tax
expense
|
|
17,602
|
|
15,811
|
|
NET INCOME
|
|
$ 30,298
|
|
$ 21,341
|
|
Basic earnings per
common share
|
|
$
0.87
|
|
$
0.64
|
|
Weighted average
common shares outstanding - Basic
|
|
34,911
|
|
33,432
|
|
Fully diluted
earnings per common share
|
|
$
0.84
|
|
$
0.61
|
|
Weighted average
common shares outstanding - Diluted
|
|
35,999
|
|
34,812
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
|
Direct premiums
written
|
|
$ 684,147
|
|
$ 607,361
|
|
Ceded premiums
written
|
|
(185,578)
|
|
(301,624)
|
|
Net premiums
written
|
|
498,569
|
|
305,737
|
|
Change in net
unearned premiums
|
|
(145,168)
|
|
(74,280)
|
|
Premiums earned,
net
|
|
353,401
|
|
231,457
|
|
Net investment income
(expense)
|
|
3,376
|
|
1,574
|
|
Net realized gains (losses)
on investments
|
|
292
|
|
5,353
|
|
Commission
revenue
|
|
10,757
|
|
10,882
|
|
Policy fees
|
|
12,003
|
|
10,827
|
|
Other revenue
|
|
4,614
|
|
4,701
|
|
Total premiums earned
and other revenues
|
|
384,443
|
|
264,794
|
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
|
Losses and loss adjustment
expenses
|
|
127,148
|
|
88,685
|
|
General and administrative
expenses
|
|
130,152
|
|
85,431
|
|
Total operating costs
and expenses
|
|
257,300
|
|
174,116
|
|
INCOME BEFORE INCOME
TAXES
|
|
127,143
|
|
90,678
|
|
Income tax
expense
|
|
49,811
|
|
38,662
|
|
NET INCOME
|
|
$ 77,332
|
|
$ 52,016
|
|
Basic earnings per
common share
|
|
$
2.22
|
|
$
1.55
|
|
Weighted average
common shares outstanding - Basic
|
|
34,837
|
|
33,607
|
|
Fully diluted
earnings per common share
|
|
$
2.15
|
|
$
1.48
|
|
Weighted average
common shares outstanding - Diluted
|
|
35,918
|
|
35,097
|
|
Cash dividend
declared per common share
|
|
$
0.36
|
|
$
0.30
|
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-another-record-quarter-for-third-quarter-2015-300169103.html
SOURCE Universal Insurance Holdings, Inc.