Company to Host Quarterly Conference Call at
5:00 P.M. ET on May 15, 2023
The information in this press release should
be read in conjunction with an investor presentation that is
available on the Company's website at
investors.upcinsurance.com/Presentations.
United Insurance Holdings Corp. (Nasdaq: UIHC) ("UIHC" or "the
Company"), a property and casualty insurance holding company, today
reported its financial results for the first quarter ended March
31, 2023. On February 27, 2023, the Florida Department of Financial
Services was appointed as receiver of the Company's former
subsidiary, United Property and Casualty Insurance Company ("UPC").
As such, prior year financial results have been recast to reflect
the activity of UPC within discontinued operations.
($ in thousands, except for per share
data)
Three Months Ended
March 31,
2023
2022
Change
Gross premiums written
$
187,123
$
142,414
31.4 %
Gross premiums earned
$
144,476
$
122,733
17.7 %
Net premiums earned
$
87,324
$
57,746
51.2 %
Total revenues
$
104,047
$
117,361
(11.3) %
Earnings from continuing operations,
before income tax
$
40,428
$
5,627
618.5 %
Income (loss) from discontinued
operations, net of tax
$
230,305
$
(37,904)
NM
Consolidated net income (loss)
attributable to UIHC
$
260,878
$
(33,172)
NM
Net income (loss) available to UIHC
stockholders per diluted share
Continuing Operations
$
0.70
$
0.11
536.4 %
Discontinued Operations
5.29
(0.88)
NM
Total
$
5.99
$
(0.77)
NM
Reconciliation of net income (loss) to
core income (loss):
Plus: Non-cash amortization of intangible
assets
$
812
$
812
— %
Less: Income (loss) from discontinued
operations, net of tax
$
230,305
$
(37,904)
NM
Less: Net realized gains (losses) on
investment portfolio
$
(83)
$
37
NM
Less: Unrealized gains (losses) on equity
securities
$
474
$
(770)
NM
Less: Net tax impact (1)
$
88
$
324
(72.8) %
Core income (loss) (2)
$
30,906
$
5,953
419.2 %
Core income (loss) per diluted share
(2)
$
0.71
$
0.14
407.1 %
Book value per share
$
1.93
$
(4.21)
145.8 %
NM = Not Meaningful
(1) In order to reconcile net income (loss) to the core income
(loss) measures, the Company included the tax impact of all
adjustments using the 21% corporate federal tax rate.
(2) Core loss, and core loss per diluted share, both of which
are measures that are not based on GAAP, are reconciled above to
net income (loss) and net income (loss) per diluted share,
respectively, the most directly comparable GAAP measures.
Additional information regarding non-GAAP financial measures
presented in this press release can be found in the "Definitions
of Non-GAAP Measures" section, below.
"Our commercial lines portfolio written in our subsidiary
American Coastal Insurance Company continued to perform very well,
which is reflected within the Net Income from Continuing Operations
for the current period ended March 31, 2023," said Dan Peed, Chief
Executive Officer. "We believe these results are sustainable in the
near and intermediate terms given the hard market conditions in
Florida and reflect our transition to a commercial specialty
insurer."
Return on Equity and Core Return on Equity
The calculations of the Company's return on equity and core
return on equity are shown below.
($ in thousands)
Three Months Ended
March 31,
2023
2022
Income from continuing operations, net of
tax
$
30,573
$
4,647
Return on equity based on GAAP earnings
from continuing operations, net of tax (1)
198.5 %
5.8 %
Income (loss) from discontinued
operations, net of tax
$
230,305
$
(37,904)
Return on equity based on GAAP income
(loss) from discontinued operations, net of tax (1)
NM
(47.6) %
Consolidated net income (loss)
attributable to UIHC
$
260,878
$
(33,172)
Return on equity based on GAAP net income
(loss) attributable to UIHC (1)
NM
(41.7) %
Core income (loss)
$
30,906
$
5,953
Core return on equity (1)(2)
200.6 %
7.5 %
(1) Return on equity for the three months ended March 31, 2023
and 2022 is calculated on an annualized basis by dividing the net
income (loss) or core income (loss) for the period by the average
stockholders' equity for the trailing twelve months.
(2) Core return on equity, a measure that is not based on GAAP,
is calculated based on core income (loss), which is reconciled on
the first page of this press release to net income (loss), the most
directly comparable GAAP measure. Additional information regarding
non-GAAP financial measures presented in this press release can be
found in the "Definitions of Non-GAAP Measures" section
below.
Combined Ratio and Underlying Ratio
The calculations of the Company's combined ratio and underlying
combined ratio on a consolidated basis and attributable to both the
Company's personal lines and commercial residential property and
casualty insurance policies (commercial lines) operating segments
are shown below.
($ in thousands)
Three Months Ended
March 31,
2023
2022
Change
Consolidated
Loss ratio, net(1)
21.9 %
56.3 %
(34.4) pts
Expense ratio, net(2)
48.6 %
135.4 %
(86.8) pts
Combined ratio (CR)(3)
70.5 %
191.7 %
(121.2) pts
Effect of current year catastrophe losses
on CR
3.5 %
11.4 %
(7.9) pts
Effect of prior year unfavorable
(favorable) development on CR
(3.6) %
(5.3) %
1.7 pts
Underlying combined ratio(4)
70.6 %
185.6 %
(115.0) pts
Personal Lines
Loss ratio, net(1)
59.7 %
149.6 %
(89.9) pts
Expense ratio, net(2)
163.2 %
468.3 %
(305.1) pts
Combined ratio (CR)(3)
222.9 %
617.9 %
(395.0) pts
Effect of current year catastrophe losses
on CR
11.2 %
28.0 %
(16.8) pts
Effect of prior year unfavorable
(favorable) development on CR
(4.6) %
(10.2) %
5.6 pts
Underlying combined ratio(4)
216.3 %
600.1 %
(383.8) pts
Commercial Lines
Loss ratio, net(1)
17.7 %
31.1 %
(13.4) pts
Expense ratio, net(2)
35.6 %
44.2 %
(8.6) pts
Combined ratio (CR)(3)
53.3 %
75.3 %
(22.0) pts
Effect of current year catastrophe losses
on CR
2.7 %
6.8 %
(4.1) pts
Effect of prior year favorable development
on CR
(3.5) %
(4.0) %
0.5 pts
Underlying combined ratio(5)
54.1 %
72.5 %
(18.4) pts
(1) Loss ratio, net is calculated as losses and loss adjustment
expenses (LAE), net of losses ceded to reinsurers, relative to net
premiums earned.
(2) Expense ratio, net is calculated as the sum of all operating
expenses less interest expense relative to net premiums earned.
(3) Combined ratio is the sum of the loss ratio, net and expense
ratio, net.
(4) Underlying combined ratio, a measure that is not based on
GAAP, is reconciled above to the combined ratio, the most directly
comparable GAAP measure. Additional information regarding non-GAAP
financial measures presented in this press release can be found in
the "Definitions of Non-GAAP Measures" section, below.
Combined Ratio Analysis
The calculations of the Company's loss ratios and underlying
loss ratios are shown below.
($ in thousands)
Three Months Ended
March 31,
2023
2022
Change
Loss and LAE
$
19,073
$
32,518
$
(13,445)
% of Gross earned premiums
13.3 %
26.5 %
(13.2) pts
% of Net earned premiums
21.9 %
56.3 %
(34.4) pts
Less:
Current year catastrophe losses
$
3,071
$
6,555
$
(3,484)
Prior year reserve unfavorable (favorable)
development
(3,165)
(3,064)
(101)
Underlying loss and LAE (1)
$
19,167
$
29,027
$
(9,860)
% of Gross earned premiums
13.3 %
23.7 %
(10.4) pts
% of Net earned premiums
21.9 %
50.3 %
(28.4) pts
(1) Underlying loss and LAE is a non-GAAP financial measure and
is reconciled above to loss and LAE, the most directly comparable
GAAP measure. Additional information regarding non-GAAP financial
measures presented in this press release can be found in the
"Definitions of Non-GAAP Measures" section, below.
The calculations of the Company's expense ratios are shown
below.
($ in thousands)
Three Months Ended
March 31,
2023
2022
Change
Policy acquisition costs
$
26,927
$
52,152
$
(25,225)
Operating and underwriting
5,651
10,603
(4,952)
General and administrative
9,837
15,435
(5,598)
Total Operating Expenses
$
42,415
$
78,190
$
(35,775)
% of Gross earned premiums
29.4 %
63.7 %
(34.3) pts
% of Net earned premiums
48.6 %
135.4 %
(86.8) pts
Quarterly Financial Results
Net income attributable to the Company for the first quarter of
2023 was $260.9 million, or $5.99 per diluted share, compared to a
net loss of $33.2 million, or $0.77 per diluted share, for the
first quarter of 2022. Drivers of the net income from continuing
operations during the first quarter of 2023 include increased gross
premiums earned, decreased loss and LAE driven by decreased
non-catastrophe losses, and decreases across policy acquisition
costs, operating and underwriting expenses and general and
administrative expenses. In addition to continuing operations, we
recognized income from discontinued operations of $230.3 million,
driven by the deconsolidation of UPC.
The Company's total gross written premium increased by $44.7
million, or 31.4%, to $187.1 million for the first quarter of 2023,
from $142.4 million for the first quarter of 2022. This increase
was driven primarily by an increase in our commercial premiums
written, as we focus on transitioning towards a specialty
commercial lines underwriter. The breakdown of the
quarter-over-quarter changes in both direct written and assumed
premiums by state and gross written premium by line of business are
shown in the table below.
($ in thousands)
Three Months Ended
March 31,
2023
2022
Change $
Change %
Direct Written and Assumed Premium by
State (1)
Florida
$
176,611
$
125,764
$
50,847
40.4 %
Texas
(9)
1,986
(1,995)
(100.5)
New York
10,482
14,450
(3,968)
(27.5)
South Carolina
—
93
(93)
(100.0)
Total direct written premium by state
187,084
142,293
44,791
31.5
Assumed premium (2)
39
121
(82)
(67.8)
Total gross written premium by state
$
187,123
$
142,414
$
44,709
31.4 %
Gross Written Premium by Line of
Business
Commercial property
$
176,641
$
127,964
$
48,677
38.0 %
Personal property
10,482
14,450
(3,968)
(27.5)
Total gross written premium by line of
business
$
187,123
$
142,414
$
44,709
31.4 %
(1) We are no longer writing in Texas or South Carolina as of
May 31, 2022.
(2) Assumed premium written for 2023 and 2022 primarily included
commercial property business assumed from unaffiliated
insurers.
Loss and LAE decreased by $13.4 million, or 41.2%, to $19.1
million for the first quarter of 2023, from $32.5 million for the
first quarter of 2022. Loss and LAE expense as a percentage of net
earned premiums decreased 34.4 points to 21.9% for the first
quarter of 2023, compared to 56.3% for the first quarter of 2022.
Excluding catastrophe losses and reserve development, the Company's
gross underlying loss and LAE ratio for the first quarter of 2023
would have been 13.3%, a decrease of 10.4 points from 23.7% during
the first quarter of 2022.
Policy acquisition costs decreased by $25.3 million, or 48.5%,
to $26.9 million for the first quarter of 2023, from $52.2 million
for the first quarter of 2022, primarily due to decreases in agent
commissions and policy administration fees, which fluctuate in
conjunction with the quarter-over-quarter decrease in personal
lines gross written premium. This was partially offset by an
increase in external management fees incurred related to our
commercial lines gross written premium during the first quarter of
2023, driven by increased written premium quarter-over-quarter.
Operating and underwriting expenses decreased by $4.9 million,
or 46.2%, to $5.7 million for the first quarter of 2023, from $10.6
million for the first quarter of 2022, primarily due to decreased
investments in technology and decreased underwriting expenses as
the result of the decrease in personal lines premiums shown in the
table above.
General and administrative expenses decreased by $5.6 million,
or 36.4%, to $9.8 million for the first quarter of 2023, from $15.4
million for the first quarter of 2022, driven by a decrease in
salary related expenses attributable to decreased headcount
quarter-over-quarter.
Personal Lines Operating Segment Highlights
Pre-tax earnings attributable to the Company's personal lines
operating segment totaled $4.7 million for the first quarter of
2023 compared to a pre-tax loss of $4.7 million for the first
quarter of 2022. Drivers of the quarter-over-quarter increase in
pre-tax earnings include: a decrease in policy acquisition costs of
$33.7 million, driven by decreased agent commissions and policy
administration fees, a decrease in loss and LAE incurred of $13.2
million due to decreased non-catastrophe losses. The Company also
experienced decreased operating expenses of $4.0 million driven by
decreased investments in technology and underwriting expenses, and
decreased general and administrative costs of $5.8 million, driven
by decreased salary related expenses. These decreased expenses can
be attributed to the Company's shift towards becoming a specialty
commercial lines underwriter, resulting in reduced exposure, and
lower costs associated with the servicing of this business.
Commercial Lines Operating Segment Highlights
Pre-tax earnings attributable to the Company's commercial lines
operating segment totaled $38.9 million for the first quarter of
2023 compared to $11.6 million for the first quarter of 2022. This
increase can be attributed to increased gross written premiums of
$48.7 million, as the Company transitions towards becoming a
specialty commercial lines underwriter.
This increased premium was partially offset by increased policy
acquisition costs of $8.5 million, driven by increases in external
management fees as a result of the increased premiums. Operating
and underwriting and general and administrative expenses remained
relatively flat, with a net decrease of $579 thousand experienced
quarter-over-quarter.
Reinsurance Costs as a Percentage of Gross Earned
Premium
Reinsurance costs as a percentage of gross earned premium in the
first quarter of 2023 and 2022 were as follows:
2023
2022
Non-at-Risk
(0.5) %
(0.6) %
Quota Share
(6.1) %
(15.6) %
All Other
(33.0) %
(36.8) %
Total Ceding Ratio
(39.6) %
(53.0) %
Ceded premiums earned related to the Company's quota share
reinsurance contracts decreased quarter-over-quarter driven by the
non-renewal of external quota share contracts that provided
coverage to ACIC in 2022.
Ceded premiums earned related to the Company's catastrophe
program decreased, driven by the need for less coverage for the
2022-2023 treaty year for the reduction in the geographic footprint
and exposure, as well as the change from a cascading aggregate
structure to an occurrence-based structure for the Company's
2022-2023 program.
Reinsurance costs as a percentage of gross earned premium in the
first quarter of 2023 and 2022 for the Company's personal lines and
commercial lines operating segments were as follows:
Personal
Commercial
2023
2022
2023
2022
Non-at-Risk
(1.6) %
(1.2) %
(0.4) %
(0.5) %
Quota Share
— %
— %
(6.7) %
(17.8) %
All Other
(28.8) %
(18.2) %
(33.3) %
(39.4) %
Total Ceding Ratio
(30.4) %
(19.4) %
(40.4) %
(57.7) %
Investment Portfolio Highlights
The Company's cash, restricted cash and investment holdings
increased from $340.9 million at December 31, 2022 to $372.7
million at March 31, 2023. The Company's cash and investment
holdings consist of investments in U.S. government and agency
securities, corporate debt and investment grade money market
instruments. Fixed maturities represented approximately 91.4% of
total investments at both March 31, 2023 and December 31, 2022. The
Company's fixed maturity investments had a modified duration of 4.0
years at both March 31, 2023 and December 31, 2022.
Book Value Analysis
Book value per common share increased 145.9% from $(4.21) at
December 31, 2022, to $1.93 at March 31, 2023. Underlying book
value per common share increased 172.2% from $(3.49) at December
31, 2022 to $2.52 at March 31, 2023. A increase in the Company's
retained earnings as the result of net income from both continuing
and discontinued operations in the first quarter of 2023 drove the
increase in the Company's book value per share. As shown in the
table below, removing the effect of AOCI increases the Company's
book value per common share, as the Company has experienced
unfavorable capital market conditions resulting in an accumulated
other comprehensive loss position at March 31, 2023.
($ in thousands, except for share and per
share data)
March 31, 2023
December 31, 2022
Book Value per Share
Numerator:
Common stockholders' equity attributable
to UIHC
$
83,488
$
(182,039)
Denominator:
Total Shares Outstanding
43,274,359
43,280,173
Book Value Per Common Share
$
1.93
$
(4.21)
Book Value per Share, Excluding the
Impact of Accumulated Other Comprehensive Income (AOCI)
Numerator:
Common stockholders' equity attributable
to UIHC
$
83,488
$
(182,039)
Less: Accumulated other comprehensive
loss
(25,629)
(30,947)
Stockholders' Equity, excluding AOCI
$
109,117
$
(151,092)
Denominator:
Total Shares Outstanding
43,274,359
43,280,173
Underlying Book Value Per Common
Share(1)
$
2.52
$
(3.49)
(1) Underlying book value per common share is a non-GAAP
financial measure and is reconciled above to book value per common
share, the most directly comparable GAAP measure. Additional
information regarding non-GAAP financial measures presented in this
press release can be found in the "Definitions of Non-GAAP
Measures" section below.
Conference Call Details
Date and Time:
May 15, 2023 - 5:00 P.M. ET
Participant Dial-In:
(United States): 877-445-9755
(International): 201-493-6744
Webcast:
To listen to the live webcast, please go
to http://investors.upcinsurance.com and click on the conference
call link at the top
of the page or go to:
https://event.webcasts.com/starthere.jsp?ei=1611651&tp_key=0f9fd0672f
An archive of the webcast will be
available for a limited period of time thereafter.
Presentation:
The information in this press release should be read in
conjunction with an investor presentation that is available on the
Company's website at investors.upcinsurance.com/Presentations.
About United Insurance Holdings Corp.
Founded in 1999, United Insurance Holdings Corp. is an insurance
holding company that sources, writes and services personal and
commercial residential property and casualty insurance policies
using a group of wholly owned insurance subsidiaries through a
variety of distribution channels.
Definitions of Non-GAAP Measures
The Company believes that investors' understanding of UIHC's
performance is enhanced by the Company's disclosure of the
following non-GAAP measures. The Company's methods for calculating
these measures may differ from those used by other companies and
therefore comparability may be limited.
Net income (loss) excluding the effects of amortization of
intangible assets, income (loss) from discontinued operations,
realized gains (losses) and unrealized gains (losses) on equity
securities, net of tax (core income (loss)) is a non-GAAP
measure that is computed by adding amortization, net of tax, to net
income (loss) and subtracting income (loss) from discontinued
operations, net of tax, realized gains (losses) on the Company's
investment portfolio, net of tax, and unrealized gains (losses) on
the Company's equity securities, net of tax, from net income
(loss). Amortization expense is related to the amortization of
intangible assets acquired, including goodwill, through mergers
and, therefore, the expense does not arise through normal
operations. Investment portfolio gains (losses) and unrealized
equity security gains (losses) vary independent of the Company's
operations. The Company believes it is useful for investors to
evaluate these components both separately and in the aggregate when
reviewing the Company's performance. The most directly comparable
GAAP measure is net income (loss). The core income (loss) measure
should not be considered a substitute for net income (loss) and
does not reflect the overall profitability of the Company's
business.
Core return on equity is a non-GAAP ratio calculated
using non-GAAP measures. It is calculated by dividing the core
income (loss) for the period by the average stockholders’ equity
for the trailing twelve months (or one quarter of such average, in
the case of quarterly periods). Core income (loss) is an after-tax
non-GAAP measure that is calculated by excluding from net income
(loss) the effect of income (loss) from discontinued operations,
net of tax, non-cash amortization of intangible assets, including
goodwill, unrealized gains or losses on the Company's equity
security investments and net realized gains or losses on the
Company's investment portfolio. In the opinion of the Company’s
management, core income (loss), core income (loss) per share and
core return on equity are meaningful indicators to investors of the
Company's underwriting and operating results, since the excluded
items are not necessarily indicative of operating trends.
Internally, the Company’s management uses core income (loss), core
income (loss) per share and core return on equity to evaluate
performance against historical results and establish financial
targets on a consolidated basis. The most directly comparable GAAP
measure is return on equity. The core return on equity measure
should not be considered a substitute for return on equity and does
not reflect the overall profitability of the Company's
business.
Combined ratio excluding the effects of current year
catastrophe losses and prior year reserve development (underlying
combined ratio) is a non-GAAP measure, that is computed by
subtracting the effect of current year catastrophe losses and prior
year development from the combined ratio. The Company believes that
this ratio is useful to investors, and it is used by management to
highlight the trends in the Company's business that may be obscured
by current year catastrophe losses and prior year development.
Current year catastrophe losses cause the Company's loss trends to
vary significantly between periods as a result of their frequency
of occurrence and severity and can have a significant impact on the
combined ratio. Prior year development is caused by unexpected loss
development on historical reserves. The Company believes it is
useful for investors to evaluate these components both separately
and in the aggregate when reviewing the Company's performance. The
most directly comparable GAAP measure is the combined ratio. The
underlying combined ratio should not be considered as a substitute
for the combined ratio and does not reflect the overall
profitability of the Company's business.
Net loss and LAE excluding the effects of current year
catastrophe losses and prior year reserve development (underlying
loss and LAE) is a non-GAAP measure that is computed by
subtracting the effect of current year catastrophe losses and prior
year reserve development from net loss and LAE. The Company uses
underlying loss and LAE figures to analyze the Company's loss
trends that may be impacted by current year catastrophe losses and
prior year development on the Company's reserves. As discussed
previously, these two items can have a significant impact on the
Company's loss trends in a given period. The Company believes it is
useful for investors to evaluate these components both separately
and in the aggregate when reviewing the Company's performance. The
most directly comparable GAAP measure is net loss and LAE. The
underlying loss and LAE measure should not be considered a
substitute for net loss and LAE and does not reflect the overall
profitability of the Company's business.
Book value per common share, excluding the impact of
accumulated other comprehensive loss (underlying book value per
common share), is a non-GAAP measure that is computed by
dividing common stockholders' equity after excluding accumulated
other comprehensive income (loss), by total common shares
outstanding plus dilutive potential common shares outstanding. The
Company uses the trend in book value per common share, excluding
the impact of accumulated other comprehensive income (loss), in
conjunction with book value per common share to identify and
analyze the change in net worth attributable to management efforts
between periods. The Company believes this non-GAAP measure is
useful to investors because it eliminates the effect of interest
rates that can fluctuate significantly from period to period and
are generally driven by economic and financial factors that are not
influenced by management. Book value per common share is the most
directly comparable GAAP measure. Book value per common share,
excluding the impact of accumulated other comprehensive income
(loss), should not be considered a substitute for book value per
common share and does not reflect the recorded net worth of the
Company's business.
Forward-Looking Statements
Statements made in this press release, or on the conference call
identified above, and otherwise, that are not historical facts are
“forward-looking statements”. The Company believes these statements
are based on reasonable estimates, assumptions and plans. However,
if the estimates, assumptions, or plans underlying the
forward-looking statements prove inaccurate or if other risks or
uncertainties arise, actual results could differ materially from
those expressed in, or implied by, the forward-looking statements.
These statements are made subject to the safe-harbor provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements do not relate strictly to historical or
current facts and may be identified by their use of words such as
“may,” “will,” “expect,” "endeavor," "project," “believe,” "plan,"
“anticipate,” “intend,” “could,” “would,” “estimate” or “continue”
or the negative variations thereof or comparable terminology.
Factors that could cause actual results to differ materially may be
found in the Company's filings with the U.S. Securities and
Exchange Commission, in the “Risk Factors” section in the Company's
most recent Annual Report on Form 10-K and subsequent Quarterly
Reports on Form 10-Q. Forward-looking statements speak only as of
the date on which they are made, and, except as required by
applicable law, the Company undertakes no obligation to update or
revise any forward-looking statements.
Consolidated Statements of
Comprehensive Income (Loss)
In thousands, except share and
per share amounts
Three Months Ended
March 31,
2023
2022
REVENUE:
Gross premiums written
$
187,123
$
142,414
Change in gross unearned premiums
(42,647)
(19,681)
Gross premiums earned
144,476
122,733
Ceded premiums earned
(57,152)
(64,987)
Net premiums earned
87,324
57,746
Net investment income
2,589
1,404
Net realized investment gains (losses)
(83)
37
Net unrealized gains (losses) on equity
securities
474
(770)
Management fee income
9,668
50,206
Other revenue
4,075
8,738
Total revenues
$
104,047
$
117,361
EXPENSES:
Losses and loss adjustment expenses
19,073
32,518
Policy acquisition costs
26,927
52,152
Operating expenses
5,651
10,603
General and administrative expenses
9,837
15,435
Interest expense
2,719
2,359
Total expenses
64,207
113,067
Income before other income
39,840
4,294
Other income
588
1,333
Income before income taxes
40,428
5,627
Provision for income taxes
9,855
980
Income from continuing operations, net of
tax
$
30,573
$
4,647
Income (loss) from discontinued
operations, net of tax
230,305
(37,904)
Net income (loss)
$
260,878
$
(33,257)
Less: Net loss attributable to
noncontrolling interests
—
(85)
Net income (loss) attributable to UIHC
$
260,878
$
(33,172)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in net unrealized gains (losses) on
investments
4,231
(27,689)
Reclassification adjustment for net
realized investment losses (gains)
83
1,769
Income tax benefit related to items of
other comprehensive income (loss)
—
6,236
Total comprehensive income (loss)
$
265,192
$
(52,941)
Less: Comprehensive loss attributable to
noncontrolling interests
—
(643)
Comprehensive income (loss) attributable
to UIHC
$
265,192
$
(52,298)
Weighted average shares outstanding
Basic
43,124,825
42,980,691
Diluted
43,574,840
42,980,691
Earnings available to UIHC common
stockholders per share
Basic
Continuing operations
$
0.71
$
0.11
Discontinued operations
5.34
(0.88)
Total
$
6.05
$
(0.77)
Diluted
Continuing operations
$
0.70
$
0.11
Discontinued operations
5.29
(0.88)
Total
$
5.99
$
(0.77)
Dividends declared per share
$
—
$
0.06
Consolidated Balance
Sheets
In thousands, except share
amounts
March 31, 2023
December 31, 2022
ASSETS
Investments, at fair value:
Fixed maturities, available-for-sale
$
210,733
$
204,682
Equity securities
16,181
15,657
Other investments
3,550
3,675
Total investments
$
230,464
$
224,014
Cash and cash equivalents
92,586
70,903
Restricted cash
49,671
45,988
Accrued investment income
1,818
1,605
Property and equipment, net
18,118
19,591
Premiums receivable, net
48,120
39,301
Reinsurance recoverable on paid and unpaid
losses
792,350
796,546
Ceded unearned premiums
65,702
90,496
Goodwill
59,476
59,476
Deferred policy acquisition costs
59,897
60,979
Intangible assets, net
11,758
12,770
Other assets
15,426
3,920
Assets held for disposal
—
1,411,907
Total Assets
$
1,445,386
$
2,837,496
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment
expenses
$
748,365
$
842,958
Unearned premiums
301,625
258,978
Reinsurance payable on premiums
33,908
30,503
Payments outstanding
2,326
2,000
Accounts payable and accrued expenses
89,582
75,374
Operating lease liability
1,412
1,689
Other liabilities
36,242
17,466
Notes payable, net
148,438
148,355
Liabilities held for disposal
—
1,642,212
Total Liabilities
$
1,361,898
$
3,019,535
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.0001 par value;
1,000,000 authorized; none issued or outstanding
—
—
Common stock, $0.0001 par value;
100,000,000 shares authorized; 43,486,442 and 43,492,256 issued,
respectively; 43,274,359 and 43,280,173 outstanding,
respectively
4
4
Additional paid-in capital
395,966
395,631
Treasury shares, at cost; 212,083
shares
(431)
(431)
Accumulated other comprehensive loss
(25,629)
(30,947)
Retained earnings (deficit)
(286,422)
(546,296)
Total Stockholders' Equity
$
83,488
$
(182,039)
Total Liabilities and Stockholders'
Equity
$
1,445,386
$
2,837,496
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230515005606/en/
United Insurance Holdings Corp. Alexander Baty Director
of Financial Reporting (727) 895-7737 / abaty@upcinsurance.com
OR INVESTOR RELATIONS: The Equity Group Karin
Daly Vice President (212) 836-9623 / kdaly@equityny.com
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