UVE Universal Insurance Holdings Inc

• Diluted GAAP earnings per common share (EPS) of $0.68; diluted adjusted* EPS of $0.43
• Annualized return on average common equity (“ROCE”) of 24.9%, annualized adjusted* ROCE of 12.4%
• Direct premiums written of $432.6 million, up 4.0% from the prior year quarter
• Book value per share of $11.78, up 24.4% year-over-year; adjusted book value per share of $14.34, up 11.2% year-over-year
• Total capital returned to shareholders of $12.3 million, including $3.6 million of share repurchases, a $0.16 per share regular dividend and a $0.13 per share special dividend

Universal Insurance Holdings (NYSE: UVE) (“Universal” or the “Company”) reported fourth quarter and full year 2023 results.

“We closed out both the fourth quarter and full year with double-digit adjusted returns on common equity and I believe that even stronger results are firmly in our future,” said Stephen J. Donaghy, Chief Executive Officer. “2023 was a transformative year for us and our significant efforts position us for meaningful success in the new legislative environment. We’ve added a buffer to our loss picks and bolstered reserves for years that predate elimination of one way attorney fees and assignment of benefits to what I view as the most conservative level in our history. Importantly, we did this because we wanted to place the past in the rearview mirror and shift our focus to the future. In 2023, we took yet another step toward the future by commuting Hurricane Irma, the largest and most significant storm in our history, with the Florida Hurricane Catastrophe Fund.”

“Now that we’re past the one year anniversary date of the 2022 special legislative session and all new and renewal policies are subject to the new legislation, the impact of the reforms is becoming clearer - claims trends across the board are improving, including reductions in total claims, represented claims, assigned claims and daily claims. Our first event 2024-2025 reinsurance tower is already 90% secured and we’ve negotiated additional multi-year capacity for the future. Given our size, scale, independent agency and reinsurer relationships and the recent steps we’ve taken, we’re particularly well positioned to succeed in the revamped Florida environment.”

* Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.

Summary Financial Results

 

($thousands, except per share data)

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

2023

 

 

 

2022

 

 

Change

 

 

 

2023

 

 

2022

 

Change

GAAP comparison

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

375,456

 

 

$

330,360

 

 

13.7

%

 

 

$

1,391,582

 

 

$

1,222,658

 

 

13.8

%

Operating income (loss)

$

27,531

 

 

$

34,479

 

 

(20.2

) %

 

 

$

94,880

 

 

$

(20,638

)

 

NM

 

Operating income (loss) margin

 

7.3

%

 

 

10.4

%

 

(3.1) pts

 

 

 

6.8

%

 

 

(1.7

) %

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) available to common stockholders

$

19,997

 

 

$

25,109

 

 

(20.4

) %

 

 

$

66,813

 

 

$

(22,267

)

 

NM

 

Diluted earnings (loss) per common share

$

0.68

 

 

$

0.82

 

 

(17.1

) %

 

 

$

2.22

 

 

$

(0.72

)

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized ROCE

 

24.9

%

 

 

36.6

%

 

(11.7) pts

 

 

 

21.2

%

 

 

(6.2

) %

 

NM

 

Book value per share, end of period

$

11.78

 

 

$

9.47

 

 

24.4

%

 

 

 

11.78

 

 

$

9.47

 

 

24.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP comparison1

 

 

 

 

 

 

 

 

 

 

 

 

Core revenue

$

365,705

 

 

$

326,352

 

 

12.1

%

 

 

$

1,380,765

 

 

$

1,235,455

 

 

11.8

%

Adjusted operating income (loss)

$

17,780

 

 

$

30,471

 

 

(41.6

) %

 

 

$

84,063

 

 

$

(7,841

)

 

NM

 

Adjusted operating income (loss) margin

 

4.9

%

 

 

9.3

%

 

(4.4) pts

 

 

 

6.1

%

 

 

(0.6

) %

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss) available to common stockholders

$

12,645

 

 

$

22,087

 

 

(42.7

) %

 

 

$

58,657

 

 

$

(12,618

)

 

NM

 

Adjusted diluted earnings (loss) per common share

$

0.43

 

 

$

0.72

 

 

(40.3

) %

 

 

$

1.95

 

 

$

(0.41

)

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized adjusted ROCE

 

12.4

%

 

 

23.1

%

 

(10.7) pts

 

 

 

14.7

%

 

 

(3.0

) %

 

NM

 

Adjusted book value per share, end of period

$

14.34

 

 

$

12.89

 

 

11.2

%

 

 

$

14.34

 

 

$

12.89

 

 

11.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting Summary

 

 

 

 

 

 

 

 

 

 

 

 

Premiums:

 

 

 

 

 

 

 

 

 

 

 

 

Premiums in force

$

1,934,369

 

 

$

1,856,339

 

 

4.2

%

 

 

$

1,934,369

 

 

$

1,856,339

 

 

4.2

%

Policies in force

 

809,932

 

 

 

848,856

 

 

(4.6

) %

 

 

 

809,932

 

 

 

848,856

 

 

(4.6

) %

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums written

$

432,617

 

 

$

416,101

 

 

4.0

%

 

 

$

1,921,833

 

 

$

1,845,786

 

 

4.1

%

Direct premiums earned

$

482,126

 

 

$

463,843

 

 

3.9

%

 

 

$

1,875,129

 

 

$

1,759,701

 

 

6.6

%

Ceded premiums earned

$

(146,728

)

 

$

(171,973

)

 

(14.7

) %

 

 

$

(623,193

)

 

$

(631,075

)

 

(1.2

) %

Ceded premium ratio

 

30.4

%

 

 

37.1

%

 

(6.7) pts

 

 

 

33.2

%

 

 

35.9

%

 

(2.7) pts

Net premiums earned

$

335,398

 

 

$

291,870

 

 

14.9

%

 

 

$

1,251,936

 

 

$

1,128,626

 

 

10.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Loss ratio

 

81.9

%

 

 

76.3

%

 

5.6 pts

 

 

 

79.3

%

 

 

83.2

%

 

(3.9) pts

Expense ratio

 

21.8

%

 

 

25.1

%

 

(3.3) pts

 

 

 

24.3

%

 

 

27.0

%

 

(2.7) pts

Combined ratio

 

103.7

%

 

 

101.4

%

 

2.3 pts

 

 

 

103.6

%

 

 

110.2

%

 

(6.6) pts

1 Reconciliation of GAAP to non-GAAP financial measures are provided in the attached tables. Adjusted net income available to common stockholders, adjusted diluted earnings per common share and core revenue exclude net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities. Adjusted operating income excludes the items above and interest and amortization of debt issuance costs. Adjusted book value per share excludes accumulated other comprehensive income, net of taxes. Adjusted ROCE is calculated by dividing annualized adjusted net income available to common stockholders by average adjusted book value per share, with the denominator further excluding current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities.

Quarterly Financial Results:

Net Income and Adjusted Net Income

Net income available to common stockholders was $20.0 million, down from net income of $25.1 million in the prior year quarter, and adjusted net income available to common stockholders was $12.6 million, down from adjusted net income of $22.1 million in the prior year quarter. The decrease in adjusted net income mostly stems from a higher net loss ratio and lower commission revenue, partly offset by a lower net expense ratio and higher net investment income.

Revenues

Revenue was $375.5 million, up 13.7% from the prior year quarter and core revenue was $365.7 million, up 12.1% from the prior year quarter. The increase in core revenue primarily stems from higher net premiums earned and net investment income, partly offset by lower commission revenue.

Direct premiums written were $432.6 million, up 4.0% from the prior year quarter. The increase stems from 0.6% growth in Florida and 18.6% growth in other states. Overall growth reflects rate increases, partly offset by lower policies in force.

Direct premiums earned were $482.1 million, up 3.9% from the prior year quarter. The increase stems from rate-driven direct premiums written growth over the past twelve months.

The ceded premium ratio was 30.4%, down from 37.1%, in the prior year quarter. The decrease primarily reflects efficiencies associated with the 2023-2024 reinsurance program, the inclusion of Hurricane Ian related reinstatement premiums in the prior year quarter and direct premiums earned growth associated with primary rate increases, partly offset by higher private market reinsurance pricing and higher reinsurance costs associated with an increase in home values.

Net premiums earned were $335.4 million, up 14.9% from the prior year quarter. The increase is primarily attributable to higher direct premiums earned and a lower ceded premium ratio, as described above.

Net investment income was $13.7 million, up from $10.4 million in the prior year quarter. The increase primarily stems from higher reinvestment yields and higher yields on cash.

Commissions, policy fees and other revenue were $16.6 million, down 31.0% from the prior year quarter. The decrease primarily reflects lower reinsurance brokerage commissions associated with lower ceded premiums and the inclusion of Hurricane Ian related reinstatement premiums in the prior year quarter.

Margins

The operating income margin was 7.3%, down from an operating income margin of 10.4% in the prior year quarter. The adjusted operating income margin was 4.9%, down from an adjusted operating income margin of 9.3% in the prior year quarter. The lower adjusted operating income margin primarily reflects a higher net combined ratio and lower commission revenue, partly offset by higher net investment income.

The net loss ratio was 81.9%, up 5.6 points compared to the prior year quarter. The increase primarily reflects a higher calendar year loss pick.

The net expense ratio was 21.8%, down 3.3 points from 25.1% in the prior year quarter. The reduction primarily reflects lower renewal commission rates paid to distribution partners.

The net combined ratio was 103.7%, up 2.3 points compared to the prior year quarter. The increase reflects a higher net loss ratio and a lower net expense ratio, as described above.

Capital Deployment

During the fourth quarter, the Company repurchased approximately 223 thousand shares at an aggregate cost of $3.6 million. The Company’s current share repurchase authorization program has $4.1 million remaining.

On February 8, 2024, the Board of Directors declared a regular quarterly cash dividend of 16 cents per share of common stock, payable March 15, 2024 to shareholders of record as of the close of business on March 8, 2024.

Conference Call and Webcast

• Friday, February 23, 2024 at 10:00 a.m. ET
• Investors and other interested parties may listen to the call by accessing the online, real-time webcast at universalinsuranceholdings.com/investors or by registering in advance via teleconference at https://register.vevent.com/register/BI089faa181b7e43dbb7d5fdae69aef3bf. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. An online replay of the call will be available at universalinsuranceholdings.com/investors shortly after the investor call concludes.

About Universal

Universal Insurance Holdings, Inc. (NYSE: UVE) is a holding company providing 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 provide insurance products in the United States through both our appointed independent agents and our direct online distribution channels, primarily in Florida. Learn more at universalinsuranceholdings.com.

Non-GAAP Financial Measures and Key Performance Indicators

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission (“SEC”), including core revenue, adjusted net income attributable to common stockholders and diluted adjusted earnings (loss) per common share, which exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities. Adjusted operating income and adjusted operating income margin exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities and interest and amortization of debt issuance costs. Adjusted common stockholders’ equity and adjusted book value per share exclude accumulated other comprehensive income (AOCI), net of taxes. Adjusted return on common equity excludes after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities from the numerator and AOCI, net of taxes, and current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities from the denominator. A “non-GAAP financial measure” is generally defined as a numerical measure of a company’s historical or future performance that excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”). UVE management believes that these non-GAAP financial measures are meaningful, as they allow investors to evaluate underlying revenue and profitability trends and enhance comparability across periods. When considered together with the GAAP financial measures, management believes these metrics provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. UVE management also believes that these non-GAAP financial measures enhance the ability of investors to analyze UVE’s business trends and to understand UVE’s operational performance. UVE’s management utilizes these non-GAAP financial measures as guides in long-term planning. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures presented in accordance with GAAP. For more information regarding our key performance indicators, please refer to the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Key Performance Indicators” in our forthcoming Annual Report on Form 10-K for the year ended December 31, 2023.

Forward-Looking Statements

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,” “will,” “plan,” 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, including those risks and uncertainties described under the heading “Risk Factors” and “Liquidity and Capital Resources” in our 2023 Annual Report on Form 10-K, and supplemented in our subsequent Quarterly Reports on Form 10-Q. Future results could differ materially from those described, and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. 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 the Company’s Annual Report on Form 10-K and the most recent quarterly reports on Form 10-Q.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except per share data)

 

 

 

December 31,

 

December 31,

 

 

 

2023

 

 

 

2022

 

ASSETS

 

 

 

 

Invested Assets

 

 

 

 

Fixed maturities, at fair value

 

$

1,064,330

 

 

$

1,014,626

 

Equity securities, at fair value

 

 

80,495

 

 

 

85,469

 

Other investments, at fair value

 

 

10,434

 

 

 

—

 

Investment real estate, net

 

 

5,525

 

 

 

5,711

 

Total invested assets

 

 

1,160,784

 

 

 

1,105,806

 

Cash and cash equivalents

 

 

397,306

 

 

 

388,706

 

Restricted cash and cash equivalents

 

 

2,635

 

 

 

2,635

 

Prepaid reinsurance premiums

 

 

236,254

 

 

 

282,427

 

Reinsurance recoverable

 

 

219,102

 

 

 

808,850

 

Premiums receivable, net

 

 

77,064

 

 

 

69,574

 

Property and equipment, net

 

 

47,628

 

 

 

51,404

 

Deferred policy acquisition costs

 

 

109,985

 

 

 

103,654

 

Goodwill

 

 

2,319

 

 

 

2,319

 

Other assets

 

 

63,484

 

 

 

74,779

 

TOTAL ASSETS

 

$

2,316,561

 

 

$

2,890,154

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

LIABILITIES:

 

 

 

 

Unpaid losses and loss adjustment expenses

 

$

510,117

 

 

$

1,038,790

 

Unearned premiums

 

 

990,559

 

 

 

943,854

 

Advance premium

 

 

48,660

 

 

 

54,964

 

Reinsurance payable, net

 

 

191,850

 

 

 

384,504

 

Long-term debt, net

 

 

102,006

 

 

 

102,769

 

Other liabilities

 

 

132,072

 

 

 

77,377

 

Total liabilities

 

 

1,975,264

 

 

 

2,602,258

 

STOCKHOLDERS' EQUITY:

 

 

 

 

Cumulative convertible preferred stock ($0.01 par value)2

 

 

—

 

 

 

—

 

Common stock ($0.01 par value)3

 

 

472

 

 

 

472

 

Treasury shares, at cost - 18,303 and 16,790

 

 

(260,779

)

 

 

(238,758

)

Additional paid-in capital

 

 

115,086

 

 

 

112,509

 

Accumulated other comprehensive income (loss), net of taxes

 

 

(74,172

)

 

 

(103,782

)

Retained earnings

 

 

560,690

 

 

 

517,455

 

Total stockholders' equity

 

 

341,297

 

 

 

287,896

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,316,561

 

 

$

2,890,154

 

 

 

 

 

 

Notes:

 

 

 

 

2 Cumulative convertible preferred stock ($0.01 par value): Authorized - 1,000 shares; Issued - 10 and 10 shares; Outstanding - 10 and 10 shares; Minimum liquidation preference - $9.99 and $9.99 per share.

3 Common stock ($0.01 par value): Authorized - 55,000 shares; Issued - 47,269 and 47,179 shares; Outstanding - 28,966 and 30,389 shares.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)

(in thousands)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

REVENUES

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

335,398

 

 

$

291,870

 

 

$

1,251,936

 

 

$

1,128,626

 

Net investment income

 

 

13,714

 

 

 

10,448

 

 

 

48,449

 

 

 

25,785

 

Net realized gains (losses) on investments

 

 

(892

)

 

 

723

 

 

 

(1,229

)

 

 

348

 

Net change in unrealized gains (losses) on investments

 

 

10,643

 

 

 

3,285

 

 

 

12,046

 

 

 

(13,145

)

Commission revenue

 

 

10,960

 

 

 

18,011

 

 

 

54,058

 

 

 

53,168

 

Policy fees

 

 

4,219

 

 

 

4,191

 

 

 

18,881

 

 

 

20,182

 

Other revenue

 

 

1,414

 

 

 

1,832

 

 

 

7,441

 

 

 

7,694

 

Total revenues

 

 

375,456

 

 

 

330,360

 

 

 

1,391,582

 

 

 

1,222,658

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

274,783

 

 

 

222,545

 

 

 

992,636

 

 

 

938,399

 

Policy acquisition costs

 

 

51,134

 

 

 

50,827

 

 

 

208,011

 

 

 

214,259

 

Other operating expenses

 

 

22,008

 

 

 

22,509

 

 

 

96,055

 

 

 

90,638

 

Total operating costs and expenses

 

 

347,925

 

 

 

295,881

 

 

 

1,296,702

 

 

 

1,243,296

 

Interest and amortization of debt issuance costs

 

 

1,635

 

 

 

1,640

 

 

 

6,531

 

 

 

6,609

 

Income (loss) before income tax expense (benefit)

 

 

25,896

 

 

 

32,839

 

 

 

88,349

 

 

 

(27,247

)

Income tax expense (benefit)

 

 

5,897

 

 

 

7,728

 

 

 

21,526

 

 

 

(4,990

)

NET INCOME (LOSS)

 

$

19,999

 

 

$

25,111

 

 

$

66,823

 

 

$

(22,257

)

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SHARE AND PER SHARE INFORMATION

(in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

Twelve Months Ended

 

 

December 31,

 

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

Weighted average common shares outstanding - basic

 

 

29,064

 

 

 

30,434

 

 

 

 

 

29,829

 

 

 

30,751

 

Weighted average common shares outstanding - diluted

 

 

29,487

 

 

 

30,535

 

 

 

 

 

30,147

 

 

 

30,751

 

Shares outstanding, end of period

 

 

28,966

 

 

 

30,389

 

 

 

 

 

28,966

 

 

 

30,389

 

Basic earnings (loss) per common share

 

$

0.69

 

 

$

0.83

 

 

 

 

$

2.24

 

 

$

(0.72

)

Diluted earnings (loss) per common share

 

$

0.68

 

 

$

0.82

 

 

 

 

$

2.22

 

 

$

(0.72

)

Cash dividend declared per common share

 

$

0.29

 

 

$

0.29

 

 

 

 

$

0.77

 

 

$

0.77

 

Book value per share, end of period

 

$

11.78

 

 

$

9.47

 

 

 

 

$

11.78

 

 

$

9.47

 

Annualized return on average common equity (ROCE)

 

 

24.9

%

 

 

36.6

%

 

 

 

 

21.2

%

 

 

(6.2

) %

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION

(in thousands, except for Policies In-Force data)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

Premiums

 

 

 

 

 

 

 

 

 

Direct premiums written - Florida

 

$

339,902

 

 

$

337,950

 

 

 

$

1,565,197

 

 

$

1,538,143

 

Direct premiums written - Other States

 

 

92,715

 

 

 

78,151

 

 

 

 

356,636

 

 

 

307,643

 

Direct premiums written - Total

 

$

432,617

 

 

$

416,101

 

 

 

$

1,921,833

 

 

$

1,845,786

 

Direct premiums earned

 

$

482,126

 

 

$

463,843

 

 

 

$

1,875,129

 

 

$

1,759,701

 

Net premiums earned

 

$

335,398

 

 

$

291,870

 

 

 

$

1,251,936

 

 

$

1,128,626

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios - Net

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense ratio

 

 

81.9

%

 

 

76.3

%

 

 

 

79.3

%

 

 

83.2

%

General and administrative expense ratio

 

 

21.8

%

 

 

25.1

%

 

 

 

24.3

%

 

 

27.0

%

Policy acquisition cost ratio

 

 

15.2

%

 

 

17.4

%

 

 

 

16.6

%

 

 

19.0

%

Other operating expense ratio

 

 

6.6

%

 

 

7.7

%

 

 

 

7.7

%

 

 

8.0

%

Combined ratio

 

 

103.7

%

 

 

101.4

%

 

 

 

103.6

%

 

 

110.2

%

 

 

As of

 

 

December 31,

 

 

 

2023

 

 

2022

Policies in force

 

 

 

 

Florida

 

 

567,893

 

 

615,796

Other States

 

 

242,039

 

 

233,060

Total

 

 

809,932

 

 

848,856

 

 

 

 

 

Premiums in force

 

 

 

 

Florida

 

$

1,577,210

 

$

1,547,383

Other States

 

 

357,159

 

 

308,956

Total

 

 

1,934,369

 

 

1,856,339

 

 

 

 

 

Total Insured Value

 

 

 

 

Florida

 

$

188,516,949

 

$

201,237,145

Other States

 

 

134,939,758

 

 

121,005,995

Total

 

 

323,456,707

 

 

322,243,140

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except for per share data)

GAAP revenue to core revenue

 

Three Months Ended

 

 

Twelve Months Ended

 

December 31,

 

 

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

GAAP revenue

$

375,456

 

 

$

330,360

 

 

$

1,391,582

 

 

$

1,222,658

 

less: Net realized gains (losses) on investments

 

(892

)

 

 

723

 

 

 

(1,229

)

 

 

348

 

less: Net change in unrealized gains (losses) on investments

 

10,643

 

 

 

3,285

 

 

 

12,046

 

 

 

(13,145

)

Core revenue

$

365,705

 

 

$

326,352

 

 

$

1,380,765

 

 

$

1,235,455

 

GAAP operating income (loss) to adjusted operating income (loss)

 

Three Months Ended

 

 

Twelve Months Ended

 

December 31,

 

 

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

GAAP income (loss) before income tax expense (benefit)

$

25,896

 

 

$

32,839

 

 

$

88,349

 

 

$

(27,247

)

add: Interest and amortization of debt issuance costs

 

1,635

 

 

 

1,640

 

 

 

6,531

 

 

 

6,609

 

GAAP operating income (loss)

 

27,531

 

 

 

34,479

 

 

 

94,880

 

 

 

(20,638

)

less: Net realized gains (losses) on investments

 

(892

)

 

 

723

 

 

 

(1,229

)

 

 

348

 

less: Net change in unrealized gains (losses) on investments

 

10,643

 

 

 

3,285

 

 

 

12,046

 

 

 

(13,145

)

Adjusted operating income (loss)

$

17,780

 

 

$

30,471

 

 

$

84,063

 

 

$

(7,841

)

GAAP operating income (loss) margin to adjusted operating income (loss) margin

 

Three Months Ended

 

 

Twelve Months Ended

 

December 31,

 

 

December 31,

 

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

GAAP operating income (loss) (a)

$

27,531

 

 

$

34,479

 

 

 

$

94,880

 

 

$

(20,638

)

GAAP revenue (b)

 

375,456

 

 

 

330,360

 

 

 

 

1,391,582

 

 

 

1,222,658

 

GAAP operating income (loss) margin (a÷b)

 

7.3

%

 

 

10.4

%

 

 

 

6.8

%

 

 

(1.7

) %

Adjusted operating income (loss) (c)

 

17,780

 

 

 

30,471

 

 

 

 

84,063

 

 

 

(7,841

)

Core revenue (d)

 

365,705

 

 

 

326,352

 

 

 

 

1,380,765

 

 

 

1,235,455

 

Adjusted operating income (loss) margin (c÷d)

 

4.9

%

 

 

9.3

%

 

 

 

6.1

%

 

 

(0.6

) %

GAAP net income (loss) (NI) to adjusted NI (loss) available to common stockholders

 

Three Months Ended

 

 

Twelve Months Ended

 

December 31,

 

 

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

GAAP NI (loss)

$

19,999

 

 

$

25,111

 

 

$

66,823

 

 

$

(22,257

)

less: Preferred dividends

 

2

 

 

 

2

 

 

 

10

 

 

 

10

 

GAAP NI (loss) available to common stockholders (e)

 

19,997

 

 

 

25,109

 

 

 

66,813

 

 

 

(22,267

)

less: Net realized gains (losses) on investments

 

(892

)

 

 

723

 

 

 

(1,229

)

 

 

348

 

less: Net change in unrealized gains (losses) on investments

 

10,643

 

 

 

3,285

 

 

 

12,046

 

 

 

(13,145

)

add: Income tax effect on above adjustments

 

2,399

 

 

 

986

 

 

 

2,661

 

 

 

(3,148

)

Adjusted NI (loss) available to common stockholders (f)

$

12,645

 

 

$

22,087

 

 

$

58,657

 

 

$

(12,618

)

 

 

 

 

 

 

 

 

 

Weighted average diluted common shares outstanding (g)

 

29,487

 

 

 

30,535

 

 

 

30,147

 

 

 

30,751

 

Diluted earnings (loss) per common share (e÷g)

$

0.68

 

 

$

0.82

 

 

$

2.22

 

 

$

(0.72

)

Diluted adjusted earnings (loss) per common share (f÷g)

$

0.43

 

 

$

0.72

 

 

$

1.95

 

 

$

(0.41

)

GAAP stockholders’ equity to adjusted common stockholders’ equity

 

As of

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

2023

 

 

 

 

2022

 

 

 

 

2021

 

GAAP stockholders’ equity

$

341,297

 

 

 

$

287,896

 

 

 

$

429,702

 

less: Preferred equity

 

100

 

 

 

 

100

 

 

 

 

100

 

Common stockholders’ equity (h)

 

341,197

 

 

 

 

287,796

 

 

 

 

429,602

 

less: Accumulated other comprehensive (loss), net of taxes

 

(74,172

)

 

 

 

(103,782

)

 

 

 

(15,568

)

Adjusted common stockholders’ equity (i)

$

415,369

 

 

 

$

391,578

 

 

 

$

445,170

 

 

 

 

 

 

 

 

 

Common shares outstanding (j)

 

28,966

 

 

 

 

30,389

 

 

 

 

31,221

 

Book value per common share (h÷j)

$

11.78

 

 

 

$

9.47

 

 

 

$

13.76

 

Adjusted book value per common share (i÷j)

$

14.34

 

 

 

$

12.89

 

 

 

$

14.26

 

GAAP return on common equity (ROCE) to adjusted ROCE

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

December 31,

 

 

December 31,

 

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

 

 

2021

 

Actual or Annualized NI (loss) attributable to common stockholders (k)

$

79,988

 

 

$

100,436

 

 

 

$

66,813

 

 

$

(22,267

)

 

$

20,397

 

Average common stockholders’ equity (l)

 

321,300

 

 

 

274,167

 

 

 

 

314,497

 

 

 

358,699

 

 

 

439,382

 

ROCE (k÷l)

 

24.9

%

 

 

36.6

%

 

 

 

21.2

%

 

 

(6.2

) %

 

 

4.6

%

Annualized adjusted NI (loss) attributable to common stockholders (m)

$

50,580

 

 

$

88,348

 

 

 

$

58,657

 

 

$

(12,618

)

 

$

18,959

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted average common stockholders’ equity4 (n)

 

408,267

 

 

 

382,379

 

 

 

 

399,396

 

 

 

423,199

 

 

 

444,776

 

Adjusted ROCE (m÷n)

 

12.4

%

 

 

23.1

%

 

 

 

14.7

%

 

 

(3.0

) %

 

 

4.3

%

 

 

 

 

 

 

 

 

 

 

 

4 Adjusted average common stockholders’ equity excludes current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240222181297/en/

Investors: Arash Soleimani, CFA, CPA, CPCU, ARe Chief Strategy Officer 954-804-8874 asoleimani@universalproperty.com