FORT LAUDERDALE, Fla.,
May 2, 2016 /PRNewswire/ -- Universal
Insurance Holdings, Inc. (NYSE: UVE) today reported record first
quarter net income of $25.2 million,
an increase of 13.0%, or $2.9
million, over the same quarter in 2015. Diluted
earnings per share (EPS) were $0.71
for the first quarter of 2016, an increase of 14.5%, or
$0.09 per share, over the same
quarter in 2015.
"I am very pleased with our outstanding first quarter results,
which we achieved notwithstanding the most active severe weather
experienced in the first quarter in Florida in company history," said Sean P. Downes, Universal's Chairman and Chief
Executive Officer. "Our record performance in the quarter
highlights the strength of our underwriting standards, our claims
handling ability and the high quality of our book of business. We
continued to execute well on our key strategic initiatives,
including further progress on our geographic expansion efforts as
we wrote our first homeowners insurance policy in Michigan and received certificates of
authority from New York and New
Jersey. We enter the second quarter with a robust financial
position and confidence in our underlying growth prospects and will
continue to maintain our focus on writing high quality,
rate-adequate organic business to drive increasing value for
Universal shareholders."
First-Quarter 2016 & Recent Highlights
- Net earned premiums grew by $58.1
million, or 61.6%, to $152.4
million.
- Total revenues increased by $60.6
million, or 58.4%, to $164.4
million.
- Net income increased by $2.9
million, or 13.0%, to $25.2
million.
- Diluted EPS grew by $0.09, or
14.5%, to $0.71 per share.
- Paid dividends of $0.14 per
share.
- Received Certificates of Authority from New York and New
Jersey.
- Wrote our first policy in Michigan.
- Launched beta test of Universal Direct®, a Direct-to-Consumer
online platform for homeowners insurance and wrote our first policy
on Universal Direct®.
First-Quarter 2016 Results
Net income for the first quarter of 2016 of $25.2 million reflects an improvement across all
revenue measures. The increase in net earned premiums includes both
organic growth in policies in force and lower reinsurance costs,
including the elimination of quota share reinsurance arrangements
effective June 2015.
Earned premiums, total revenues, net income and diluted EPS were
higher than any other first quarter in the Company's history.
Net income was offset by $8.5
million beyond originally projected pre-tax net losses and
loss adjustment expenses attributable to first quarter weather
events in Florida. These losses
and loss adjustment expenses were incremental to amounts provided
for in the underlying loss ratio based on historical experience for
such events.
Losses and loss adjustment expenses as a percentage of net
earned premiums increased 7.8 percentage points resulting in a net
loss ratio of 43.4% for the first quarter, compared to 35.6% for
the same period last year. The key driver of this increase was the
severe weather events in the first quarter of 2016.
Stockholders' equity reached an all-time high of $314.3 million as of March
31, 2016 compared to $293.1
million as of December 31, 2015. Book value per
common share also reached an all-time high of $9.03 as March 31,
2016 compared to $8.34 as of
December 31, 2015.
Cash Dividends
On January 14, 2016, the Company
announced that its Board of Directors had declared an increased
cash dividend of $0.14 per share of
common stock, up $0.02 from the
$0.12 per share paid during the past
four quarters, and that the Board expected to declare and pay a
proposed regular quarterly dividend during fiscal year 2016 of
$0.14 per share. Payment was made on
March 2, 2016 to shareholders of
record on February 18,
2016.
On April 13, 2016, the Company
announced that its Board of Directors had declared a cash dividend
of $0.14 per share of common stock to
be paid on July 5, 2016 to
shareholders of record on June 15, 2016.
Conference Call
Members of the Universal management team will host a conference
call on Tuesday, May 3, 2016 at
10:00 AM ET to discuss the first
quarter 2016 financial results. Following prepared
remarks, management will conduct a question and answer
session.
The call will be accessible by dialing toll free at (888)
887-7180 or toll at (270) 823-1518 (using the Conference I.D.:
97089515). A replay of the call can be accessed toll free at
(855) 859-2056 or toll at (404) 537-3406 (using the Conference
I.D.: 97089515).
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, Minnesota and Michigan. 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, 2015.
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2016
|
|
2015
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
Direct premiums
written
|
|
$ 227,973
|
|
$ 211,605
|
Ceded premiums
written
|
|
(74,059)
|
|
(106,497)
|
Net premiums
written
|
|
153,914
|
|
105,108
|
Change in net
unearned premium
|
|
(1,466)
|
|
(10,748)
|
Premiums earned,
net
|
|
152,448
|
|
94,360
|
Net investment income
(expense)
|
|
1,605
|
|
862
|
Net realized gains (losses)
on investments
|
|
667
|
|
171
|
Commission
revenue
|
|
4,113
|
|
3,168
|
Policy fees
|
|
4,114
|
|
3,832
|
Other revenue
|
|
1,499
|
|
1,417
|
Total premiums earned
and other revenues
|
|
164,446
|
|
103,810
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
Losses and loss adjustment
expenses
|
|
66,117
|
|
33,590
|
General and administrative
expenses
|
|
57,230
|
|
32,197
|
Total operating costs
and expenses
|
|
123,347
|
|
65,787
|
INCOME BEFORE INCOME
TAXES
|
|
41,099
|
|
38,023
|
Income tax
expense
|
|
15,873
|
|
15,693
|
NET INCOME
|
|
$ 25,226
|
|
$ 22,330
|
Basic earnings per
common share
|
|
$
0.73
|
|
$
0.65
|
Weighted average
common shares outstanding - Basic
|
|
34,527
|
|
34,578
|
Fully diluted
earnings per common share
|
|
$
0.71
|
|
$
0.62
|
Weighted average
common shares outstanding - Diluted
|
|
35,594
|
|
36,081
|
Cash dividend
declared per common share
|
|
$
0.14
|
|
$
0.12
|
|
|
|
|
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
ASSETS
|
|
2016
|
|
2015
|
Cash and cash
equivalents
|
|
$
160,034
|
|
$ 197,014
|
Restricted cash and
cash equivalents
|
|
2,635
|
|
2,635
|
Fixed maturities, at
fair value
|
|
488,725
|
|
416,083
|
Equity securities, at
fair value
|
|
31,754
|
|
42,214
|
Short-term
investments, at fair value
|
|
12,505
|
|
25,021
|
Investment real
estate, net
|
|
8,110
|
|
6,117
|
Prepaid reinsurance
premiums
|
|
119,927
|
|
114,673
|
Reinsurance
recoverable
|
|
17,162
|
|
22,853
|
Reinsurance
receivable, net
|
|
186
|
|
353
|
Premiums receivable,
net
|
|
54,719
|
|
50,980
|
Other
receivables
|
|
21,754
|
|
4,626
|
Property and
equipment, net
|
|
28,070
|
|
27,065
|
Deferred policy
acquisition costs, net
|
|
61,158
|
|
60,019
|
Income taxes
recoverable
|
|
5,420
|
|
5,420
|
Deferred income tax
asset, net
|
|
11,840
|
|
13,912
|
Other
assets
|
|
4,997
|
|
4,563
|
Total assets
|
|
$ 1,028,996
|
|
$ 993,548
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Unpaid losses and
loss adjustment expenses
|
|
$
84,975
|
|
$
98,840
|
Unearned
premiums
|
|
449,086
|
|
442,366
|
Advance
premium
|
|
32,289
|
|
24,813
|
Accounts
payable
|
|
3,894
|
|
378
|
Reinsurance payable,
net
|
|
75,446
|
|
73,585
|
Income taxes
payable
|
|
17,383
|
|
—
|
Other liabilities and
accrued expenses
|
|
28,549
|
|
36,424
|
Long-term
debt
|
|
23,077
|
|
24,050
|
Total liabilities
|
|
714,699
|
|
700,456
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
Cumulative
convertible preferred stock, $.01 par value
|
|
—
|
|
—
|
Authorized shares -
1,000
|
|
|
|
|
Issued shares - 10 and
10
|
|
|
|
|
Outstanding shares -
10 and 10
|
|
|
|
|
Minimum liquidation
preference, $9.99 and $9.99 per share
|
|
|
|
|
Common stock, $.01
par value
|
|
453
|
|
455
|
Authorized shares -
55,000
|
|
|
|
|
Issued shares - 45,315
and 45,525
|
|
|
|
|
Outstanding shares -
34,800 and 35,110
|
|
|
|
|
Treasury shares, at
cost - 10,515 and 10,415
|
|
(82,676)
|
|
(80,802)
|
Additional paid-in
capital
|
|
70,280
|
|
70,789
|
Accumulated other
comprehensive income (loss), net of taxes
|
|
(725)
|
|
(4,006)
|
Retained
earnings
|
|
326,965
|
|
306,656
|
Total stockholders' equity
|
|
314,297
|
|
293,092
|
Total liabilities, contingently redeemable
common stock
and stockholders' equity
|
|
$ 1,028,996
|
|
$ 993,548
|
|
|
|
|
|
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-2016-financial-results-300261128.html
SOURCE Universal Insurance Holdings, Inc.