Universal Insurance Holdings (NYSE: UVE) (“Universal” or the “Company”) reported third quarter 2024 results.
*Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.
“Our hearts and thoughts go out to those impacted by recent disasters, including Hurricanes Debbie and Helene in the third quarter and Hurricane Milton in the fourth quarter,” said Stephen J. Donaghy, Chief Executive Officer. “We’ve been through many hurricanes in our nearly three-decade history, arming us with the requisite experience to quickly and efficiently get policyholders back on their feet. Our substantial reinsurance protection and the strong reinsurance relationships that we’ve built over many years provide us with the financial resilience to weather both high frequency and high severity storm seasons. As we’ve previously disclosed, our consolidated retention drops for subsequent events and we expect a smaller financial impact from weather in the fourth quarter, inclusive of Hurricane Milton. Non-catastrophe underwriting trends continue to improve and we’re highly encouraged as we look ahead.
On a separate note, we opened for business in Wisconsin at the beginning of the month, our 19th state. We’re excited to offer our insurance products there, as we continue to expand to new markets, diversifying our book of business and growing our addressable market.”
Quarterly Financial Results
Summary Financial Results
($thousands, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||
GAAP comparison | ||||||||||||||||||||
Total revenues | $ | 387,554 | $ | 360,048 | 7.6% | $ | 1,135,727 | $ | 1,016,126 | 11.8% | ||||||||||
Operating income (loss) | $ | (16,504 | ) | $ | (6,246 | ) | 164.2% | $ | 82,130 | $ | 67,349 | 21.9% | ||||||||
Operating income (loss) margin | (4.3 | )% | (1.7 | )% | (2.6) pts | 7.2 | % | 6.6 | % | 0.6 pts | ||||||||||
Net income (loss) available to common stockholders | $ | (16,166 | ) | $ | (5,918 | ) | 173.2% | $ | 52,902 | $ | 46,816 | 13.0% | ||||||||
Diluted earnings (loss) per common share | $ | (0.57 | ) | $ | (0.20 | ) | 185.0% | $ | 1.80 | $ | 1.54 | 16.9% | ||||||||
Annualized ROCE | (16.3 | )% | (7.4 | )% | (8.9) pts | 19.0 | % | 21.2 | % | (2.2) pts | ||||||||||
Book value per share, end of period | $ | 14.15 | $ | 10.33 | 37.0% | $ | 14.15 | $ | 10.33 | 37.0% | ||||||||||
Non-GAAP comparison1 | ||||||||||||||||||||
Core revenue | $ | 381,401 | $ | 361,764 | 5.4% | $ | 1,125,501 | $ | 1,015,060 | 10.9% | ||||||||||
Adjusted operating income (loss) | $ | (22,657 | ) | $ | (4,530 | ) | 400.2% | $ | 71,904 | $ | 66,283 | 8.5% | ||||||||
Adjusted operating income (loss) margin | (5.9 | )% | (1.3 | )% | (4.6) pts | 6.4 | % | 6.5 | % | (0.1) pts | ||||||||||
Adjusted net income (loss) available to common stockholders | $ | (20,805 | ) | $ | (4,624 | ) | 349.9% | $ | 45,192 | $ | 46,012 | (1.8)% | ||||||||
Adjusted diluted earnings (loss) per common share | $ | (0.73 | ) | $ | (0.16 | ) | 356.3% | $ | 1.54 | $ | 1.51 | 2.0% | ||||||||
Annualized adjusted ROCE | (18.3 | )% | (4.4 | )% | (13.9) pts | 14.1 | % | 15.4 | % | (1.3) pts | ||||||||||
Adjusted book value per share, end of period | $ | 15.76 | $ | 14.00 | 12.6% | $ | 15.76 | $ | 14.00 | 12.6% | ||||||||||
Underwriting Summary | ||||||||||||||||||||
Premiums: | ||||||||||||||||||||
Premiums in force | $ | 2,046,310 | $ | 1,914,493 | 6.9% | $ | 2,046,310 | $ | 1,914,493 | 6.9% | ||||||||||
Policies in force | 844,539 | 807,553 | 4.6% | 844,539 | 807,553 | 4.6% | ||||||||||||||
Direct premiums written | $ | 574,351 | $ | 531,988 | 8.0% | $ | 1,598,797 | $ | 1,489,216 | 7.4% | ||||||||||
Direct premiums earned | $ | 507,745 | $ | 474,311 | 7.0% | $ | 1,480,466 | $ | 1,393,003 | 6.3% | ||||||||||
Ceded premiums earned | $ | (162,009 | ) | $ | (143,271 | ) | 13.1% | $ | (455,747 | ) | $ | (476,465 | ) | (4.3)% | ||||||
Ceded premium ratio | 31.9 | % | 30.2 | % | 1.7 pts | 30.8 | % | 34.2 | % | (3.4) pts | ||||||||||
Net premiums earned | $ | 345,736 | $ | 331,040 | 4.4% | $ | 1,024,719 | $ | 916,538 | 11.8% | ||||||||||
Net ratios: | ||||||||||||||||||||
Loss ratio | 91.7 | % | 87.0 | % | 4.7 pts | 78.1 | % | 78.3 | % | (0.2) pts | ||||||||||
Expense ratio | 25.2 | % | 23.7 | % | 1.5 pts | 24.7 | % | 25.2 | % | (0.5) pts | ||||||||||
Combined ratio | 116.9 | % | 110.7 | % | 6.2 pts | 102.8 | % | 103.5 | % | (0.7) pts | ||||||||||
1 Reconciliation of GAAP to non-GAAP financial measures are provided in the attached tables. Adjusted net income (loss) available to common stockholders, adjusted diluted earnings (loss) per common share and core revenue exclude net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. Adjusted operating income (loss) excludes the items above and interest and amortization of debt issuance costs. Adjusted book value per share excludes accumulated other comprehensive income (loss), net of taxes. Adjusted ROCE is calculated by dividing annualized adjusted net income (loss) 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) on investments. | ||||||||||||||||||||
Net Loss and Adjusted Net Loss
Net loss available to common stockholders was $16.2 million, compared to a net loss of $5.9 million in the prior year quarter, and adjusted net loss available to common stockholders was $20.8 million, compared to an adjusted net loss of $4.6 million in the prior year quarter. The higher adjusted net loss available to common stockholders mostly stems from lower underwriting income, partly offset by higher net investment income and commission revenue.
Revenues
Revenue was $387.6 million, up 7.6% from the prior year quarter and core revenue was $381.4 million, up 5.4% from the prior year quarter. The increase in core revenue primarily stems from higher net premiums earned, net investment income and commission revenue.
Direct premiums written were $574.4 million, up 8.0% from the prior year quarter. The increase stems from 2.1% growth in Florida and 32.9% growth in other states. Overall growth mostly reflects higher policies in force, higher rates and inflation adjustments.
Direct premiums earned were $507.7 million, up 7.0% from the prior year quarter. The increase stems from direct premiums written growth over the past twelve months.
The ceded premium ratio was 31.9%, up from 30.2% in the prior year quarter. The increase primarily reflects replacement of the Reinsurance to Assist Policyholders (RAP) layer, which was provided by the state of Florida, with private market coverage.
Net premiums earned were $345.7 million, up 4.4% from the prior year quarter. The increase is primarily attributable to higher direct premiums earned, partly offset by a higher ceded premium ratio, as described above.
Net investment income was $15.4 million, up from $12.8 million in the prior year quarter. The increase primarily stems from higher fixed income reinvestment yields and higher invested assets.
Commissions, policy fees and other revenue were $20.3 million, up 12.7% from the prior year quarter. The increase primarily reflects replacement of the RAP layer with private market coverage and replacement of the catastrophe bond with traditional reinsurance coverage in the 2024-2025 program.
Margins
The operating loss margin was 4.3%, compared to an operating loss margin of 1.7% in the prior year quarter. The adjusted operating loss margin was 5.9%, compared to an adjusted operating loss margin of 1.3% in the prior year quarter. The higher adjusted operating loss margin primarily reflects a higher net combined ratio, partly offset by higher net investment income and commission revenue.
The net loss ratio was 91.7%, up 4.7 points compared to the prior year quarter. The increase primarily reflects higher weather losses, mostly from Hurricane Helene, partly offset by more favorable prior year reserve development.
The net expense ratio was 25.2%, up 1.5 points from 23.7% in the prior year quarter. The increase was primarily driven by higher policy acquisition costs associated with growth outside Florida and higher other operating costs.
The net combined ratio was 116.9%, up 6.2 points compared to the prior year quarter. The increase reflects higher net loss and expense ratios, as described above.
Capital Deployment
During the third quarter, the Company repurchased approximately 226 thousand shares at an aggregate cost of $4.4 million. The Company’s current share repurchase authorization program has approximately $10.3 million remaining.
On July 11, 2024, the Board of Directors declared a quarterly cash dividend of 16 cents per share of common stock, payable on August 9, 2024, to shareholders of record as of the close of business on August 2, 2024.
Conference Call and Webcast
- Friday, October 25, 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/BI790e26e2fbb842a28dbb61116474c3ae. 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 soon 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 or get an insurance quote at Clovered.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) on investments. Adjusted operating income (loss) and adjusted operating income (loss) margin exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) on investments and interest and amortization of debt issuance costs. Adjusted common stockholders’ equity and adjusted book value per share exclude accumulated other comprehensive income (loss) (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) on investments 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) on investments 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.
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) | ||||||||
September 30, | December 31, | |||||||
2024 | 2023 | |||||||
ASSETS: | ||||||||
Invested Assets | ||||||||
Fixed maturities, at fair value | $ | 1,276,732 | $ | 1,064,330 | ||||
Equity securities, at fair value | 79,470 | 80,495 | ||||||
Other investments, at fair value | 12,248 | 10,434 | ||||||
Investment real estate, net | 5,618 | 5,525 | ||||||
Total invested assets | 1,374,068 | 1,160,784 | ||||||
Cash and cash equivalents | 333,678 | 397,306 | ||||||
Restricted cash and cash equivalents | 68,635 | 2,635 | ||||||
Prepaid reinsurance premiums | 418,834 | 236,254 | ||||||
Reinsurance recoverable | 130,124 | 219,102 | ||||||
Premiums receivable, net | 92,400 | 77,064 | ||||||
Property and equipment, net | 49,358 | 47,628 | ||||||
Deferred policy acquisition costs | 125,305 | 109,985 | ||||||
Goodwill | 2,319 | 2,319 | ||||||
Other assets | 55,797 | 63,484 | ||||||
TOTAL ASSETS | $ | 2,650,518 | $ | 2,316,561 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
LIABILITIES: | ||||||||
Unpaid losses and loss adjustment expenses | $ | 460,437 | $ | 510,117 | ||||
Unearned premiums | 1,108,890 | 990,559 | ||||||
Advance premium | 71,700 | 48,660 | ||||||
Reinsurance payable, net | 420,282 | 191,850 | ||||||
Long-term debt, net | 101,434 | 102,006 | ||||||
Other liabilities | 87,530 | 132,072 | ||||||
Total liabilities | 2,250,273 | 1,975,264 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Cumulative convertible preferred stock ($0.01 par value)2 | — | — | ||||||
Common stock ($0.01 par value)3 | 472 | 472 | ||||||
Treasury shares, at cost - 19,012 and 18,303 | (274,977 | ) | (260,779 | ) | ||||
Additional paid-in capital | 121,003 | 115,086 | ||||||
Accumulated other comprehensive income (loss), net of taxes | (45,593 | ) | (74,172 | ) | ||||
Retained earnings | 599,340 | 560,690 | ||||||
Total stockholders' equity | 400,245 | 341,297 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,650,518 | $ | 2,316,561 | ||||
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 - 47,298 and 47,269 shares; Outstanding 28,286 and 28,966 shares. | ||||||||
UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
REVENUES | |||||||||||||||||
Net premiums earned | $ | 345,736 | $ | 331,040 | $ | 1,024,719 | $ | 916,538 | |||||||||
Net investment income | 15,406 | 12,755 | 43,589 | 34,735 | |||||||||||||
Net realized gains (losses) on investments | (1,146 | ) | (431 | ) | (1,534 | ) | (337 | ) | |||||||||
Net change in unrealized gains (losses) on investments | 7,299 | (1,285 | ) | 11,760 | 1,403 | ||||||||||||
Commission revenue | 12,959 | 10,830 | 35,671 | 43,098 | |||||||||||||
Policy fees | 5,194 | 5,111 | 15,175 | 14,662 | |||||||||||||
Other revenue | 2,106 | 2,028 | 6,347 | 6,027 | |||||||||||||
Total revenues | 387,554 | 360,048 | 1,135,727 | 1,016,126 | |||||||||||||
EXPENSES | |||||||||||||||||
Losses and loss adjustment expenses | 316,955 | 287,972 | 800,714 | 717,853 | |||||||||||||
Policy acquisition costs | 58,665 | 53,180 | 170,100 | 156,877 | |||||||||||||
Other operating expenses | 28,438 | 25,142 | 82,783 | 74,047 | |||||||||||||
Total operating costs and expenses | 404,058 | 366,294 | 1,053,597 | 948,777 | |||||||||||||
Interest and amortization of debt issuance costs | 1,619 | 1,631 | 4,864 | 4,896 | |||||||||||||
Income (loss) before income tax expense (benefit) | (18,123 | ) | (7,877 | ) | 77,266 | 62,453 | |||||||||||
Income tax expense (benefit) | (1,960 | ) | (1,962 | ) | 24,356 | 15,629 | |||||||||||
NET INCOME (LOSS) | $ | (16,163 | ) | $ | (5,915 | ) | $ | 52,910 | $ | 46,824 | |||||||
UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES SHARE AND PER SHARE INFORMATION (in thousands, except per share data) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
Weighted average common shares outstanding - basic | 28,355 | 29,617 | 28,607 | 30,087 | |||||||||||||
Weighted average common shares outstanding - diluted | 28,355 | 29,617 | 29,317 | 30,378 | |||||||||||||
Shares outstanding, end of period | 28,286 | 29,186 | 28,286 | 29,186 | |||||||||||||
Basic earnings (loss) per common share | $ | (0.57 | ) | $ | (0.20 | ) | $ | 1.85 | $ | 1.56 | |||||||
Diluted earnings (loss) per common share | $ | (0.57 | ) | $ | (0.20 | ) | $ | 1.80 | $ | 1.54 | |||||||
Cash dividend declared per common share | $ | 0.16 | $ | 0.16 | $ | 0.48 | $ | 0.48 | |||||||||
Book value per share, end of period | $ | 14.15 | $ | 10.33 | $ | 14.15 | $ | 10.33 | |||||||||
Annualized return on average common equity (ROCE) | (16.3 | )% | (7.4 | )% | 19.0 | % | 21.2 | % | |||||||||
UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION (in thousands, except for Policies In Force data) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
Premiums | |||||||||||||||||
Direct premiums written - Florida | $ | 440,018 | $ | 430,946 | $ | 1,255,861 | $ | 1,225,295 | |||||||||
Direct premiums written - Other States | 134,333 | 101,042 | 342,936 | 263,921 | |||||||||||||
Direct premiums written - Total | $ | 574,351 | $ | 531,988 | $ | 1,598,797 | $ | 1,489,216 | |||||||||
Direct premiums earned | $ | 507,745 | $ | 474,311 | $ | 1,480,466 | $ | 1,393,003 | |||||||||
Net premiums earned | $ | 345,736 | $ | 331,040 | $ | 1,024,719 | $ | 916,538 | |||||||||
Underwriting Ratios - Net | |||||||||||||||||
Loss and loss adjustment expense ratio | 91.7 | % | 87.0 | % | 78.1 | % | 78.3 | % | |||||||||
General and administrative expense ratio | 25.2 | % | 23.7 | % | 24.7 | % | 25.2 | % | |||||||||
Policy acquisition cost ratio | 17.0 | % | 16.1 | % | 16.6 | % | 17.1 | % | |||||||||
Other operating expense ratio | 8.2 | % | 7.6 | % | 8.1 | % | 8.1 | % | |||||||||
Combined ratio | 116.9 | % | 110.7 | % | 102.8 | % | 103.5 | % | |||||||||
As of | ||||||
September 30, | ||||||
2024 | 2023 | |||||
Policies in force | ||||||
Florida | 570,432 | 570,339 | ||||
Other States | 274,107 | 237,214 | ||||
Total | 844,539 | 807,553 | ||||
Premiums in force | ||||||
Florida | $ | 1,609,836 | $ | 1,571,600 | ||
Other States | 436,474 | 342,893 | ||||
Total | $ | 2,046,310 | $ | 1,914,493 | ||
Total Insured Value | ||||||
Florida | $ | 187,639,152 | $ | 190,299,057 | ||
Other States | 160,357,285 | 130,281,463 | ||||
Total | $ | 347,996,437 | $ | 320,580,520 | ||
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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
GAAP revenue | $ | 387,554 | $ | 360,048 | $ | 1,135,727 | $ | 1,016,126 | ||||||||
less: Net realized gains (losses) on investments | (1,146 | ) | (431 | ) | (1,534 | ) | (337 | ) | ||||||||
less: Net change in unrealized gains (losses) on investments | 7,299 | (1,285 | ) | 11,760 | 1,403 | |||||||||||
Core revenue | $ | 381,401 | $ | 361,764 | $ | 1,125,501 | $ | 1,015,060 | ||||||||
GAAP operating income (loss) to adjusted operating income (loss) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
GAAP income (loss) before income tax expense (benefit) | $ | (18,123 | ) | $ | (7,877 | ) | $ | 77,266 | $ | 62,453 | ||||||
add: Interest and amortization of debt issuance costs | 1,619 | 1,631 | 4,864 | 4,896 | ||||||||||||
GAAP operating income (loss) | (16,504 | ) | (6,246 | ) | 82,130 | 67,349 | ||||||||||
less: Net realized gains (losses) on investments | (1,146 | ) | (431 | ) | (1,534 | ) | (337 | ) | ||||||||
less: Net change in unrealized gains (losses) on investments | 7,299 | (1,285 | ) | 11,760 | 1,403 | |||||||||||
Adjusted operating income (loss) | $ | (22,657 | ) | $ | (4,530 | ) | $ | 71,904 | $ | 66,283 | ||||||
GAAP operating income (loss) margin to adjusted operating income (loss) margin | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
GAAP operating income (loss) (a) | $ | (16,504 | ) | $ | (6,246 | ) | $ | 82,130 | $ | 67,349 | ||||||
GAAP revenue (b) | 387,554 | 360,048 | 1,135,727 | 1,016,126 | ||||||||||||
GAAP operating income (loss) margin (a÷b) | (4.3 | )% | (1.7 | )% | 7.2 | % | 6.6 | % | ||||||||
Adjusted operating income (loss) (c) | (22,657 | ) | (4,530 | ) | 71,904 | 66,283 | ||||||||||
Core revenue (d) | 381,401 | 361,764 | 1,125,501 | 1,015,060 | ||||||||||||
Adjusted operating income (loss) margin (c÷d) | (5.9 | )% | (1.3 | )% | 6.4 | % | 6.5 | % | ||||||||
GAAP net income (loss) (NI) to adjusted NI (loss) available to common stockholders | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
GAAP NI (loss) | $ | (16,163 | ) | $ | (5,915 | ) | $ | 52,910 | $ | 46,824 | ||||||
less: Preferred dividends | 3 | 3 | 8 | 8 | ||||||||||||
GAAP NI (loss) available to common stockholders (e) | (16,166 | ) | (5,918 | ) | 52,902 | 46,816 | ||||||||||
less: Net realized gains (losses) on investments | (1,146 | ) | (431 | ) | (1,534 | ) | (337 | ) | ||||||||
less: Net change in unrealized gains (losses) on investments | 7,299 | (1,285 | ) | 11,760 | 1,403 | |||||||||||
add: Income tax effect on above adjustments | 1,514 | (422 | ) | 2,516 | 262 | |||||||||||
Adjusted NI (loss) available to common stockholders (f) | $ | (20,805 | ) | $ | (4,624 | ) | $ | 45,192 | $ | 46,012 | ||||||
Weighted average diluted common shares outstanding (g) | 28,355 | 29,617 | 29,317 | 30,378 | ||||||||||||
Diluted earnings (loss) per common share (e÷g) | $ | (0.57 | ) | $ | (0.20 | ) | $ | 1.80 | $ | 1.54 | ||||||
Diluted adjusted earnings (loss) per common share (f÷g) | $ | (0.73 | ) | $ | (0.16 | ) | $ | 1.54 | $ | 1.51 | ||||||
GAAP stockholders’ equity to adjusted common stockholders’ equity | ||||||||||||
As of | ||||||||||||
September 30, | September 30, | December 31, | ||||||||||
2024 | 2023 | 2023 | ||||||||||
GAAP stockholders’ equity | $ | 400,245 | $ | 301,502 | $ | 341,297 | ||||||
less: Preferred equity | 100 | 100 | 100 | |||||||||
Common stockholders’ equity (h) | 400,145 | 301,402 | 341,197 | |||||||||
less: Accumulated other comprehensive (loss), net of taxes | (45,593 | ) | (107,115 | ) | (74,172 | ) | ||||||
Adjusted common stockholders’ equity (i) | $ | 445,738 | $ | 408,517 | $ | 415,369 | ||||||
Common shares outstanding (j) | 28,286 | 29,186 | 28,966 | |||||||||
Book value per common share (h÷j) | $ | 14.15 | $ | 10.33 | $ | 11.78 | ||||||
Adjusted book value per common share (i÷j) | $ | 15.76 | $ | 14.00 | $ | 14.34 | ||||||
GAAP return on common equity (ROCE) to adjusted ROCE | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended | |||||||||||||||||||
September 30, | September 30, | December 31, | |||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2023 | |||||||||||||||||
Actual or Annualized NI (loss) available to common stockholders (k) | $ | (64,664 | ) | $ | (23,672 | ) | $ | 70,536 | $ | 62,421 | $ | 66,813 | |||||||||
Average common stockholders’ equity (l) | 396,641 | 317,987 | 370,671 | 294,599 | 314,497 | ||||||||||||||||
ROCE (k÷l) | (16.3 | )% | (7.4 | )% | 19.0 | % | 21.2 | % | 21.2 | % | |||||||||||
Annualized adjusted NI (loss) available to common stockholders (m) | $ | (83,220 | ) | $ | (18,496 | ) | $ | 60,256 | $ | 61,349 | $ | 58,657 | |||||||||
Adjusted average common stockholders’ equity4 (n) | 454,977 | 420,120 | 426,699 | 399,646 | 399,396 | ||||||||||||||||
Adjusted ROCE (m÷n) | (18.3 | )% | (4.4 | )% | 14.1 | % | 15.4 | % | 14.7 | % | |||||||||||
4 Adjusted average common stockholders’ equity excludes current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. | |||||||||||||||||||||
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