NYSE$UVE

Universal Insurance Holdings Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a GAAP loss and an adjusted loss per share due to Hurricane Ian losses, but direct premiums written increased.

Universal Insurance Holdings reported a GAAP loss per share of $2.36 and an adjusted loss per share of $2.27 for Q3 2022. The results were impacted by $111 million of retained Hurricane Ian losses. Despite the loss, direct premiums written increased by 15.6% year-over-year, driven by growth in both Florida and other states.

  • Diluted GAAP loss per common share was $2.36, and diluted adjusted loss per common share was $2.27.
  • Direct premiums written increased by 15.6% to $500.7 million compared to the prior year quarter.
  • The company repurchased 203,244 shares for $2.4 million.
  • Total capital returned to shareholders was $7.4 million, including a $0.16 per share regular quarterly dividend.

Headline financials

Total Revenue

$313M

Previous: $287M+8.9%
EPS (adj)

-$2.27

Previous: $0.63-460.3%
Direct Premiums Written

$501M

No prior period
Net Expense Ratio

25.5%

Previous: 27.7%-7.9%
Combined Ratio

139.2%

Previous: 98.6%+41.2%
Book Value Per Share

$8.54

No prior period
Policies in Force

872.9K

No prior period
Premiums in Force

$1.83B

No prior period
Capital Expenditures

-$4.39M

Previous: -$4.88M+10.1%
Free Cash Flow

-$76.7M

Previous: $15.3M-601.0%
Net Income

-$72.3M

Previous: $20.2M-458.1%
Operating Income

-$146M

Previous: -$30.6M-378.3%
Gross Profit

-$72.3M

Previous: $42.6M-269.6%
Cash & Equivalents

$307M

Previous: $225M+36.7%
Total Assets

$3.13B

Previous: $2.14B+45.9%

Revenue & EPS history

Universal Insurance · Revenue · Quarterly

$313M

Q3 2022+8.9%vs Q3 2021
Beat estimate in 14 of 15 quarters(93%)
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

Universal Insurance Holdings is in the planning process for the 2023 Atlantic hurricane season.

Tailwinds

  • Almost $400 million of pre-negotiated multi-year capacity below the FHCF attachment point.
  • Approximately $200 million of estimated cost free coverage from the Reinsurance to Assist Policyholders (RAP) program.
  • Projected $150 million from our catastrophe bond.
  • 90% participation in the FHCF.
  • The vast majority of first event 2023 catastrophe reinsurance program will be insulated from open market pricing dynamics.

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 Q3 2022

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro