Q3 2024 Universal Insurance Holdings Inc Earnings Call Transcript
Key Points
- Universal Insurance Holdings Inc (UVE) reported a 5.4% year-over-year increase in core revenue, driven by higher net premiums earned, net investment income, and commission revenue.
- Direct premiums written increased by 8% from the prior year quarter, with significant growth of 32.9% in states outside Florida.
- The company has expanded its operations to Wisconsin, marking its 19th state, which diversifies its book of business and grows its addressable market.
- Universal Insurance Holdings Inc (UVE) has substantial reinsurance protection and strong reinsurance relationships, providing financial resilience against high-frequency and high-severity storm seasons.
- The company repurchased 226,000 shares at an aggregate cost of $4.4 million, indicating a commitment to returning value to shareholders.
- The adjusted loss per common share increased to $0.73 from $0.16 in the prior year quarter, primarily due to lower underwriting income.
- The net combined ratio rose to 116.9%, up 6.2 points compared to the prior year quarter, reflecting higher net loss and expense ratios.
- The net loss ratio increased by 4.7 points to 91.7%, mainly due to higher weather losses from hurricane Helene.
- The net expense ratio rose by 1.5 points to 25.2%, driven by higher policy acquisition costs and operating costs.
- The company faces significant financial impacts from recent hurricanes, with estimated losses ranging between $600 million and $900 million.
Good morning, ladies and gentlemen and welcome to Universal's third quarter, 2024 earnings conference call. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Arash Soleimani, Chief Strategy Officer.
Good morning. Thank you for joining us today. Welcome to our quarterly earnings call on the call with me today are Steve Donaghy, Chief Executive Officer and Frank Wilcox Chief Financial Officer. Before we begin, please note today's discussion may contain forward-looking statements and non-GAAP financial measures, forward-looking statements involve assumptions, risks and uncertainties that could cause actual results to differ materially from those statements. For more information, please see the press release on Universal's sec filings, all of which are available on the investors section of our website at Universal Insurance Holdings dotcom and on the SECs website, a reconciliation of non-GAAP financial measures to comparable GAAP measures
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
