NYSE$UVE

Universal Insurance Holdings Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Universal Insurance reported mixed results for Q4 2022, with increased revenues but a high combined ratio.

Universal Insurance Holdings reported a net income of $25.1 million for Q4 2022, compared to a net loss of $48.1 million in the prior year quarter. Total revenues increased by 12.9% to $330.4 million. The net combined ratio was 101.4%, down from 131.4% in the prior year quarter.

  • Diluted GAAP EPS was $0.82, while adjusted EPS was $0.72.
  • Book value per share increased to $9.47, up 10.9% from Q3 2022.
  • Net combined ratio improved to 101.4%, a decrease from 131.4% in the prior year quarter.
  • Direct premiums written rose to $416.1 million, a 4.2% increase year-over-year.

Headline financials

Total Revenue

$330M

Previous: $293M+12.9%
EPS (adj)

$0.72

Previous: -$1.53+147.1%
Direct Premiums Written

$416M

Previous: $399M+4.2%
Book Value Per Share

$9.47

Previous: $13.76-31.2%
Capital Expenditures

$511K

Previous: $2.35M-78.2%
Free Cash Flow

$101M

Previous: -$41.9M+340.4%
Net Income

$25.1M

Previous: -$48.1M+152.2%
Operating Income

$34.5M

Previous: -$64.5M+153.5%
Gross Profit

$330M

Previous: $293M+12.9%
Cash & Equivalents

$389M

Previous: $251M+55.2%
Total Assets

$2.89B

Previous: $2.06B+40.6%
Stock-Based Comp

$4.73M

Previous: $5.82M-18.7%

Revenue & EPS history

Universal Insurance · Revenue · Quarterly

$330M

Q4 2022+12.9%vs Q4 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

The company did not provide specific forward guidance in this earnings report. However, the CEO expressed confidence that the legislative reforms would restore the health of the market over the long term.

Tailwinds

  • Meaningful reforms passed at the recent special legislative session.
  • Elimination of one-way attorney fees and assignment-of-benefits.
  • Shortening the claims filing deadline to one year.
  • Taking steps to reduce the competitiveness of Citizens.
  • Differentiated business model, solid balance sheet and strong reinsurer relationships.

Headwinds

  • Florida homeowners insurance market has faced significant challenges.
  • It will take time for the reforms to benefit results.
  • Higher reinsurance pricing.
  • Higher reinsurance costs associated with the increase in insured values.
  • Lower policies in force.

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 Q4 2022

Historical avgQ4 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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