FORT LAUDERDALE, Fla.,
July 28, 2016 /PRNewswire/
-- Universal Insurance Holdings, Inc. (NYSE: UVE) today
reported record quarterly net income of $33.6 million, an increase of 36.2%, or
$8.9 million, over the same quarter
in 2015. Diluted earnings per share (EPS) were $0.94 for the second quarter of 2016, an increase
of 36.2%, or $0.25 per share, over
the same quarter in 2015.
"Our record second quarter results reflect the strength of our
integrated business model and consistent operational execution
across the company," said Sean P.
Downes, Universal's Chairman and Chief Executive Officer.
"We are pleased with our continued geographic expansion efforts,
with our recent launch in Alabama
marking the thirteenth state of operation for Universal Property
& Casualty Insurance Company. The early results from our
Direct-to-Consumer online platform, Universal DirectSM,
that is now available in five states with the recent additions of
South Carolina and Indiana have been extremely positive, and we
are encouraged by the future prospects of this innovative source of
organic business. As we move forward into the second half of
the year, we are confident in our positioning and ability to
generate profitable growth and value creation for all
shareholders."
Second-Quarter 2016 & Recent Highlights
- Net earned premiums grew by $43.6
million, or 38.6%, to $156.5
million.
- Total revenues increased by $46.2
million, or 37.4%, to $169.8
million.
- Net income increased by $8.9
million, or 36.2%, to $33.6
million.
- Diluted EPS grew by $0.25, or
36.2%, to $0.94 per share.
- Declared dividend of $0.14 per
share.
- Completed our 2016-2017 reinsurance programs.
- Wrote our first policy in Alabama.
- Expanded Universal DirectSM, a Direct-to-Consumer
online platform for homeowners insurance, into five states.
Second-Quarter 2016 Results
Net income for the second quarter of 2016 of $33.6 million reflects an improvement in multiple
revenue measures. The increase in net earned premiums includes both
organic growth in policies in force and the elimination of quota
share reinsurance arrangements effective June 2015.
Earned premiums, total revenues, net income and diluted EPS were
higher than any other quarter in the Company's history.
Stockholders' equity reached an all-time high of $351.4 million as of June
30, 2016 compared to $293.1
million as of December 31, 2015. Book value per
common share also reached an all-time high of $10.02 as June 30,
2016 compared to $8.34 as of
December 31, 2015.
Share Repurchases
On June 13, 2016, the Company
announced the completion of a $10
million share repurchase program with 527,107 shares
repurchased at an average price of $18.93 per share on the open market pursuant to
the Board authorized share repurchase program announced on
November 19, 2015.
The Company also announced that its Board of Directors
authorized a new share repurchase program under which the Company
may repurchase up to $20 million of
its outstanding shares of common stock through December 31, 2017. Pursuant to this program,
the Company has repurchased 25,000 shares of its common stock at an
average price of $19.42 per share,
with $19.5 million remaining to be
deployed.
Cash Dividends
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,
which was 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 Thursday, July 28, 2016 at
4:45 PM ET to discuss the second
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.:
52662993). A live audio webcast of the call will also be
accessible on the Universal Insurance website at
www.universalinsuranceholdings.com. 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.: 52662993), and will be available
through August 12, 2016.
About Universal Insurance Holdings, Inc.
Universal
Insurance Holdings, Inc., with its wholly-owned subsidiaries, is a
vertically integrated insurance 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 operations in North Carolina, South Carolina, Hawaii, Georgia, Massachusetts, Maryland, Delaware, Indiana, Pennsylvania, Minnesota, Michigan and Alabama. 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 by 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
|
|
|
June 30,
|
|
|
2016
|
|
2015
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
Direct premiums
written
|
|
$
271,921
|
|
$
249,971
|
Ceded premiums
written
|
|
(72,874)
|
|
(7,933)
|
Net premiums
written
|
|
199,047
|
|
242,038
|
Change in net
unearned premiums
|
|
(42,586)
|
|
(129,150)
|
Premiums earned,
net
|
|
156,461
|
|
112,888
|
Net investment income
(expense)
|
|
2,142
|
|
1,207
|
Net realized gains (losses)
on investments
|
|
576
|
|
110
|
Commission
revenue
|
|
4,210
|
|
3,474
|
Policy fees
|
|
4,753
|
|
4,352
|
Other revenue
|
|
1,660
|
|
1,560
|
Total premiums earned
and other revenues
|
|
169,802
|
|
123,591
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
Losses and loss adjustment
expenses
|
|
60,083
|
|
39,704
|
General and administrative
expenses
|
|
54,825
|
|
42,667
|
Total operating costs
and expenses
|
|
114,908
|
|
82,371
|
INCOME BEFORE INCOME
TAXES
|
|
54,894
|
|
41,220
|
Income tax
expense
|
|
21,247
|
|
16,516
|
NET INCOME
|
|
$
33,647
|
|
$
24,704
|
Basic earnings per
common share
|
|
$
0.96
|
|
$
0.71
|
Weighted average
common shares outstanding - Basic
|
|
35,062
|
|
35,019
|
Fully diluted
earnings per common share
|
|
$
0.94
|
|
$
0.69
|
Weighted average
common shares outstanding - Diluted
|
|
35,649
|
|
36,002
|
Cash dividend
declared per common share
|
|
$
0.14
|
|
$
0.12
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
June 30,
|
|
|
2016
|
|
2015
|
PREMIUMS EARNED AND
OTHER REVENUES
|
|
|
|
|
Direct premiums
written
|
|
$
499,894
|
|
$
461,576
|
Ceded premiums
written
|
|
(146,933)
|
|
(114,430)
|
Net premiums
written
|
|
352,961
|
|
347,146
|
Change in net
unearned premiums
|
|
(44,052)
|
|
(139,898)
|
Premiums earned,
net
|
|
308,909
|
|
207,248
|
Net investment income
(expense)
|
|
3,747
|
|
2,069
|
Net realized gains (losses)
on investments
|
|
1,243
|
|
281
|
Commission
revenue
|
|
8,323
|
|
6,642
|
Policy fees
|
|
8,867
|
|
8,184
|
Other revenue
|
|
3,159
|
|
2,977
|
Total premiums earned
and other revenues
|
|
334,248
|
|
227,401
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
Losses and loss adjustment
expenses
|
|
126,200
|
|
73,294
|
General and administrative
expenses
|
|
112,055
|
|
74,864
|
Total operating costs
and expenses
|
|
238,255
|
|
148,158
|
INCOME BEFORE INCOME
TAXES
|
|
95,993
|
|
79,243
|
Income tax
expense
|
|
37,120
|
|
32,209
|
NET INCOME
|
|
$
58,873
|
|
$
47,034
|
Basic earnings per
common share
|
|
$
1.69
|
|
$
1.35
|
Weighted average
common shares outstanding - Basic
|
|
34,795
|
|
34,800
|
Fully diluted
earnings per common share
|
|
$
1.65
|
|
$
1.31
|
Weighted average
common shares outstanding - Diluted
|
|
35,575
|
|
35,987
|
Cash dividend
declared per common share
|
|
$
0.28
|
|
$
0.24
|
UNIVERSAL
INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
ASSETS
|
|
2016
|
|
2015
|
Cash and cash
equivalents
|
|
$
215,283
|
|
$
197,014
|
Restricted cash and
cash equivalents
|
|
2,635
|
|
2,635
|
Fixed maturities, at
fair value
|
|
577,810
|
|
416,083
|
Equity securities, at
fair value
|
|
35,543
|
|
42,214
|
Short-term
investments, at fair value
|
|
5,004
|
|
25,021
|
Investment real
estate, net
|
|
8,102
|
|
6,117
|
Prepaid reinsurance
premiums
|
|
122,444
|
|
114,673
|
Reinsurance
recoverable
|
|
6,355
|
|
22,853
|
Premiums receivable,
net
|
|
61,433
|
|
50,980
|
Other
receivables
|
|
6,203
|
|
4,979
|
Property and
equipment, net
|
|
29,706
|
|
27,065
|
Deferred policy
acquisition costs, net
|
|
67,190
|
|
60,019
|
Income taxes
recoverable
|
|
156
|
|
5,420
|
Deferred income tax
asset, net
|
|
6,599
|
|
13,912
|
Other
assets
|
|
5,046
|
|
4,563
|
Total assets
|
|
$
1,149,509
|
|
$
993,548
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Unpaid losses and
loss adjustment expenses
|
|
$
60,144
|
|
$
98,840
|
Unearned
premiums
|
|
494,189
|
|
442,366
|
Advance
premium
|
|
29,589
|
|
24,813
|
Accounts
payable
|
|
2,926
|
|
378
|
Book
overdraft
|
|
539
|
|
—
|
Reinsurance payable,
net
|
|
147,444
|
|
73,585
|
Dividends
payable
|
|
4,912
|
|
—
|
Other liabilities and
accrued expenses
|
|
42,640
|
|
36,424
|
Long-term
debt
|
|
15,763
|
|
24,050
|
Total liabilities
|
|
798,146
|
|
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 - 45,262
and 45,525
|
|
|
|
|
Outstanding shares -
35,064 and 35,110
|
|
|
|
|
Treasury shares, at
cost - 10,198 and 10,415
|
|
(85,399)
|
|
(80,802)
|
Additional paid-in
capital
|
|
78,496
|
|
70,789
|
Accumulated other
comprehensive income (loss), net of taxes
|
|
2,116
|
|
(4,006)
|
Retained
earnings
|
|
355,697
|
|
306,656
|
Total stockholders' equity
|
|
351,363
|
|
293,092
|
Total liabilities and stockholders' equity
|
|
$
1,149,509
|
|
$
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-financial-results-for-the-second-quarter-of-2016-300305894.html
SOURCE Universal Insurance Holdings, Inc.