Universal Insurance Holdings Declares Cash Dividend of 16 Cents per Share and Estimates 2021 Accident Year Strengthening and Prior Years' Development
February 10 2022 - 4:15PM
Business Wire
- Declared a quarterly cash dividend of 16 cents per share
- Inflationary pressures driving enhanced conservatism in current
and prior years’ reserves
- All capital raised in the fourth quarter remains at the parent
company to support growth
Universal Insurance Holdings, Inc. (NYSE: UVE) announced today
that its Board of Directors has declared a quarterly cash dividend
of 16 cents per share of common stock, payable March 17, 2022, to
shareholders of record as of the close of business on March 10,
2022.
In addition, as a result of taking a more conservative
inflationary stance, the Company estimates 2021 accident year
strengthening of reserves in the fourth quarter of $30.7 million on
an after-tax, net basis, and $21.5 million in weather above plan on
an after-tax, net basis. Lastly, the Company estimates catastrophe
and non-catastrophe related prior years' adverse development of
$27.9 million on an after-tax, net basis. In total, the Company
expects a fourth quarter 2021 net impact of approximately $80.1
million after-tax (contributing 10.1 points to the full year
combined ratio).
"As the second half of 2021 has matured, we have seen the
effects of inflationary pressures, which we are addressing through
our primary rate increases and current year reserve strengthening
on attritional claims and PCS events, as well as on prior years'
claims," said Stephen J. Donaghy, Chief Executive Officer. "These
actions to combat inflationary and social pressures have resulted
in substantial positive strides on our reserve position over the
past 24 months. We remain positive on the recent legislative
actions taken in Florida and continue to hold all of the capital we
raised during the fourth quarter at the parent company level to
continue to support growth."
About Universal Insurance Holdings, Inc.
Universal Insurance Holdings (UVE) is a holding company offering
property and casualty insurance and value-added insurance services.
We develop, market, and write insurance products for consumers
predominantly in the personal residential homeowners lines of
business and perform substantially all other insurance-related
services for our primary insurance entities, including risk
management, claims management and distribution. We sell insurance
products through both our appointed independent agents and through
our direct online distribution channels in the United States across
19 states (primarily Florida). Learn more at
UniversalInsuranceHoldings.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220210005214/en/
Investor Relations Contact: Rob Luther, 954-892-6487 VP,
Corporate Development, Strategy & IR
rluther@universalproperty.com
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