NYSE$UVE

Universal Insurance Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported fourth quarter and full year results, demonstrating resilience and strategic progress.

Universal Insurance Holdings reported a decrease in net income and adjusted net income for Q4 2023 compared to the prior year. However, the company saw growth in direct premiums written and earned, driven by rate increases and expansion in other states. The company is optimistic about the future due to improvements in claims trends and reinsurance arrangements.

  • Diluted GAAP earnings per common share (EPS) was $0.68; diluted adjusted EPS was $0.43.
  • Annualized return on average common equity (ROCE) was 24.9%, annualized adjusted ROCE was 12.4%.
  • Direct premiums written reached $432.6 million, up 4.0% from the prior year quarter.
  • Book value per share was $11.78, up 24.4% year-over-year; adjusted book value per share was $14.34, up 11.2% year-over-year.

Headline financials

Total Revenue

$375M

Previous: $330M+13.7%
EPS (adj)

$0.43

Previous: $0.72-40.3%
Direct Premiums Written

$433M

Previous: $416M+4.0%
Net Expense Ratio

21.8%

No prior period
Net Loss Ratio

81.9%

No prior period
Combined Ratio

103.7%

No prior period
Net Premiums Earned

$335M

No prior period
Net Investment Income

$13.7M

No prior period
Annualized ROCE

24.9%

No prior period
Book Value Per Share

$11.78

Previous: $9.47+24.4%
Policies in Force

809.9K

No prior period
Premiums in Force

$1.93B

No prior period
Total Insured Value

$323B

No prior period
Capital Expenditures

$1.15M

Previous: $511K+125.0%
Net Income

$20M

Previous: $25.1M-20.4%
Operating Income

$27.5M

Previous: $34.5M-20.2%
Gross Profit

$375M

Previous: $330M+13.7%
Stock-Based Comp

$2.92M

Previous: $4.73M-38.3%

Revenue & EPS history

Universal Insurance · Revenue · Quarterly

$375M

Q4 2023+13.7%vs Q4 2022
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 explicit forward guidance in this report. The report focuses on the positive impacts of legislative reforms and improved claims trends.

Tailwinds

  • Claims trends across the board are improving.
  • Reductions in total claims, represented claims, assigned claims and daily claims are observed.
  • First event 2024-2025 reinsurance tower is already 90% secured.
  • Additional multi-year capacity has been negotiated for the future.
  • Company is well positioned to succeed in the revamped Florida environment due to its size, scale, independent agency and reinsurer relationships, and recent steps taken.

Headwinds

  • The company did not provide explicit negative forward guidance in this report.
  • The report focused on past issues and future opportunities rather than specific negative predictions.
  • Previous issues like Hurricane Irma were addressed by commuting with the Florida Hurricane Catastrophe Fund.
  • The company is moving past the one year anniversary date of the 2022 special legislative session.
  • All new and renewal policies are subject to the new legislation.

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 2023

Historical avgQ4 2023

+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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