NYSE$UVE

Universal Insurance Holdings Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported a decrease in net income and an increase in direct premiums written, driven by rate increases and portfolio optimization.

Universal Insurance Holdings reported mixed results for Q2 2022. While direct premiums written increased by 12.4%, driven by growth in Florida and other states, net income decreased significantly. The company's adjusted return on equity remained strong at 12.8%.

  • Diluted GAAP earnings per share were $0.24, and adjusted EPS was $0.47.
  • Annualized return on average common equity was 7.7%, with an adjusted ROCE of 12.8%.
  • Direct premiums written increased by 12.4% year-over-year to $532.5 million.
  • The company repurchased 282,552 shares for $3.5 million and returned a total of $8.5 million to shareholders, including a $0.16 per share dividend.

Headline financials

Total Revenue

$292M

Previous: $279M+4.6%
EPS (adj)

$0.47

Previous: $0.65-27.7%
Direct Premiums Written

$533M

Previous: $474M+12.4%
Net Expense Ratio

28.6%

No prior period
Combined Ratio

100.9%

Previous: 97.3%+3.7%
Annualized ROCE

7.7%

No prior period
Policies in Force

894.6K

No prior period
Premiums in Force

$1.77B

No prior period
Capital Expenditures

-$3.79M

Previous: -$3.02M-25.4%
Free Cash Flow

$3.58M

Previous: $18.9M-81.1%
Net Income

$7.37M

Previous: $21.9M-66.4%
Operating Income

-$41.5M

Previous: -$26.4M-57.1%
Gross Profit

$37.8M

Previous: $55.5M-31.9%
Cash & Equivalents

$317M

Previous: $286M+10.6%
Total Assets

$2.38B

Previous: $2.34B+1.8%

Revenue & EPS history

Universal Insurance · Revenue · Quarterly

$292M

Q2 2022+4.6%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Universal Insurance · $16.1M total across 3 segments · Q2 2020

  • Commission Revenue
    $7.76M
  • Policy Fees
    $6.55M
  • Other Revenue
    $1.81M

Forward guidance

The Company is maintaining its guidance for 2022 (assuming no further extraordinary weather events):

Tailwinds

  • Adjusted EPS in a range of $1.80 - $2.20
  • Annualized adjusted ROCE in a range of 12.5% - 15.0%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.5%

Avg return

Earnings day

+3.4%

Avg return

5 days after

+4.4%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+22.0%

Q4 2023

Best reaction

-21.4%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.0%-5.3%-10.3%
Q4 2025+2.8%+13.9%+5.5%
Q3 2025+11.3%+9.8%+16.5%
Q2 2025-3.1%+0.5%+4.2%
Q1 2025+1.0%+3.6%+12.4%
Q4 2024+9.3%+8.5%+13.8%
Q3 2024-2.0%+2.4%+16.6%
Q2 2024-1.6%+4.0%+8.4%
Q1 2024-3.6%-3.7%-3.4%
Q4 2023+22.0%+18.6%+14.2%
Q3 2023-0.7%+10.3%+18.5%
Q2 2023-5.2%-2.8%-18.7%
Q1 2023-17.0%-13.1%-19.0%
Q4 2022+21.5%+56.1%+47.4%
Q3 2022+1.9%+5.4%+12.8%
Q2 2022+6.8%+6.5%+7.1%
Q1 2022+4.1%+4.2%+5.7%
Q4 2021-3.1%-25.8%-29.0%
Q3 2021+7.6%+8.5%+13.4%
Q2 2021+5.7%+4.9%+9.4%
Q1 2021+2.1%+6.3%+3.8%
Q4 2020+5.2%+3.7%+6.0%
Q3 2020-21.4%-11.6%+4.4%
Q2 2020+2.8%+3.2%+9.9%
Q1 2020+4.4%+1.3%+6.8%
Q4 2019-0.7%+8.3%-22.6%
Q3 2019-7.3%-5.8%-0.5%
Q2 2019-0.4%+5.3%-0.6%
Q1 2019+0.0%-1.1%-5.8%
Q4 2018-15.4%-18.7%-20.0%
Q3 2018-8.3%-8.6%-7.3%
Q2 2018+11.4%+17.5%+20.3%
Q1 2018+3.5%+2.0%+10.3%
Q4 2017+6.9%+3.4%+8.6%
Q3 2017+7.9%+8.5%+10.9%
Q2 2017+0.6%+2.8%-4.2%
Q1 2017+13.8%+13.8%+8.7%
Q4 2016+4.8%+4.2%-8.6%
Q3 2016-5.0%-7.2%+15.6%
Q2 2016+5.4%+3.3%+15.9%
Q1 2016-1.4%
Q4 2015+5.9%
Q3 2015-12.0%
Q2 2015+8.5%
Q1 2015+3.9%
Q4 2014+11.5%
Q3 2014+13.5%
Q2 2014+4.4%
Q1 2014-14.4%
Q4 2013+5.4%
Q3 2013+0.5%
Q2 2013+6.3%
Q1 2013+4.4%
Q4 2012+4.0%
Q3 2012+3.4%
Q2 2012+1.5%
Q1 2011-0.3%
Q1 2012+2.1%
Q4 2011-11.9%
Q4 2009-11.9%
Q3 2010-10.9%
Q3 2011-10.9%
Q2 2010-10.2%
Q4 2010-10.2%
Q2 2011-10.2%

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