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Universal Insurance Holdings Reports Fourth Quarter 2021 Results

  • 4Q21 direct premiums earned up 11.5%; FY21 up 14.4% driven by primary rate increases
  • 4Q21 diluted GAAP earnings per share (EPS) of $(1.54), non-GAAP adjusted EPS1 of $(1.53) predominantly driven by inflationary trends
  • FY21 diluted GAAP EPS of $0.65, non-GAAP adjusted EPS1 of $0.61
  • Clovered.com, our digital agency subsidiary surpassed $40 million in placed premiums in 2021
  • 4Q21 completed private placement of $100 million senior unsecured notes

Universal Insurance Holdings (NYSE: UVE) (the “Company”) reported fourth quarter and full year 2021 results.

1 Excludes net realized and unrealized gains and losses on investments as well as extraordinary reinstatement premiums and associated commissions (“non-GAAP adjusted EPS”). Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.

“We ended the year with a record of approximately $1.7 billion of premiums in force and a return on average equity of 4.6%, despite the accelerated inflationary trends we announced on February 10th, which resulted in the Company increasing reserves,” said Stephen J. Donaghy, Chief Executive Officer. “Additionally, Clovered.com, our digital agency subsidiary surpassed $40 million in placed premiums during 2021. The lion’s share of our approved rate filings for UPCIC in Florida over the past several quarters for new and renewal business are now effective. We continue to sharpen our pencils on our 2022 Florida primary rate filing in the coming months and are hitting the ground running on our reinsurance renewal, with over 77% of capacity on our first event All States tower already secured. We look forward to continuing to focus on resiliency through this cycle and are monitoring closely the actions in the Florida legislature in regards to several bills, including SB1728, SB1402 and SB186, amongst others.”

Summary Financial Results

($thousands, except per share data)

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

2021

 

 

 

2020

 

 

Change

 

 

 

2021

 

 

 

2020

 

 

Change

(GAAP comparison)

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

292,659

 

 

$

273,126

 

 

7.2

%

 

 

$

1,121,851

 

 

$

1,072,770

 

 

4.6

%

Income (loss) before income taxes

 

(64,461

)

 

 

(26,999

)

 

(138.8

) %

 

 

 

28,413

 

 

 

24,231

 

 

17.3

%

Income (loss) before income taxes margin

 

(22.0

) %

 

 

(9.9

) %

 

(12.1) pts

 

 

 

2.5

%

 

 

2.3

%

 

20 bps

Diluted EPS

 

(1.54

)

 

 

(0.57

)

 

(170.2

) %

 

 

 

0.65

 

 

 

0.60

 

 

8.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average equity (ROE)

 

(41.6

) %

 

 

(15.4

) %

 

(26.2) pts

 

 

 

4.6

%

 

 

4.1

%

 

50 bps

Book value per share, end of period

 

13.76

 

 

 

14.43

 

 

(4.6

) %

 

 

 

13.76

 

 

 

14.43

 

 

(4.6

) %

 

 

 

 

 

 

 

 

 

 

 

 

 

(Non-GAAP comparison)2

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

 

(63,433

)

 

 

(38,227

)

 

(65.9

) %

 

 

 

27,205

 

 

 

(39,044

)

 

NM

Adjusted EPS

 

(1.53

)

 

 

(0.84

)

 

(82.1

) %

 

 

 

0.61

 

 

 

(0.90

)

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Reconciliation of GAAP to non-GAAP financial measures are provided in the attached tables. Adjusted operating income excludes net realized and unrealized gains and losses on investments, interest expense, and extraordinary reinstatement premiums and associated commissions. Non-GAAP adjusted EPS excludes net realized and unrealized gains and losses on investments, as well as extraordinary reinstatement premiums and associated commissions.

NM = Not Meaningful

Total revenue grew 7.2% for the quarter and 4.6% for the year, driven primarily by growth in net premiums earned from primary rate increases, partially offset, primarily by lower policies-in-force, and lower realized gains on the investment portfolio, and increased reinsurance costs. GAAP diluted EPS and non-GAAP adjusted EPS results for the quarter and the year benefited from continued primary rate increases earnings-in, but were predominantly impacted by strengthening of reserves due to inflationary trends and a reduction in realized gains on the investment portfolio when compared to the prior year period.

Underwriting

($thousands, except policies in force)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

2021

 

 

 

2020

 

 

Change

 

 

 

2021

 

 

 

2020

 

 

Change

Policies in force (as of end of period)

 

943,593

 

 

 

984,830

 

 

(4.2

)%

 

 

 

943,593

 

 

 

984,830

 

 

(4.2

)%

Premiums in force (as of end of period)

$

1,679,822

 

 

$

1,519,949

 

 

10.5

%

 

 

$

1,679,822

 

 

$

1,519,949

 

 

10.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums written

 

399,327

 

 

 

368,823

 

 

8.3

%

 

 

 

1,671,252

 

 

 

1,517,479

 

 

10.1

%

Direct premiums earned

 

417,817

 

 

 

374,825

 

 

11.5

%

 

 

 

1,596,618

 

 

 

1,395,623

 

 

14.4

%

Net premiums earned

 

271,332

 

 

 

242,173

 

 

12.0

%

 

 

 

1,035,463

 

 

 

923,563

 

 

12.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense ratio3

 

28.1

%

 

 

27.3

%

 

80 bps

 

 

 

30.2

%

 

 

31.4

%

 

(1.2) pts

Loss & LAE ratio

 

103.3

%

 

 

96.7

%

 

6.6 pts

 

 

 

75.3

%

 

 

82.2

%

 

(6.9) pts

Combined ratio

 

131.4

%

 

 

124.0

%

 

7.4 pts

 

 

 

105.5

%

 

 

113.6

%

 

(8.1) pts

 

 

 

 

 

 

 

 

 

 

 

 

 

3 Expense ratio excludes interest expense.

Direct premiums earned were up 11.5% for the quarter, and 14.4% for the year, led by primary rate increases in Florida and other states, while policies-in-force declined 4.2% as a result of continuing to shape our underwriting risks.

On the expense side, the combined ratio increased 7.4 points for the quarter driven primarily by strengthening reserves for the full accident year 2021 as a result of inflationary pressures and increased reinsurance costs impact on the ratio. For the full year, the combined ratio improved 8.1 points as a result of decreased weather events in 2021, lower prior years’ adverse reserve development, and continued business expense management.

  • The expense ratio increased 50 basis points on a direct premiums earned basis for the quarter. For the year, the expense ratio improved 1.2 points on a direct premiums earned basis due to business expense management, including a reduction in agent commissions, advertising, and lower executive compensation, as well as primary rate increases impact on the ratio.
  • The net loss and loss adjustment expense ratio increased 6.6 points for the quarter, but improved 6.9 points for the year. Quarterly and full year drivers for 2021 include:
    • Core losses of $216.0 million for the quarter ($134.5 million in 4Q20) and $696.8 million for the year ($538.5 million in 2020) resulted in a 15.8 point increase on a direct premiums earned basis for the quarter and a 5.0 point increase for the year, primarily driven by accruing incremental reserves as a result of materials, labor, and social inflation. On a net basis, core losses increased 24.0 points for the quarter and 9.0 points for the year.
    • A 21.1 point net improvement for the quarter and a 14.9 point net improvement for the year related to weather events being more in line with plan.
    • Net prior years’ adverse reserve development of $36.5 million for the quarter ($23.4 million in 4Q20) and $54.5 million for the year ($58.3 million in 2020) resulted in a 3.7 point net increase for the quarter and a 1.0 point net improvement for the year. The net prior years’ adverse reserve development for the year was primarily driven by Non-CAT claims, and to a lesser extent Hurricane Irma related claims.

Services

($thousands)

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

2021

 

 

2020

 

Change

 

 

 

2021

 

 

2020

 

Change

Commission revenue

$

11,245

 

$

9,393

 

19.7

%

 

 

$

41,649

 

$

33,163

 

25.6

%

Policy fees

 

4,892

 

 

5,520

 

(11.4

) %

 

 

 

22,713

 

 

23,773

 

(4.5

) %

Other revenue

 

1,769

 

 

1,972

 

(10.3

) %

 

 

 

7,631

 

 

8,501

 

(10.2

) %

Total

$

17,906

 

$

16,885

 

6.0

%

 

 

$

71,993

 

$

65,437

 

10.0

%

Total services revenue increased 6.0% for the quarter and 10.0% for the full year. The increases were driven by commission revenue earned on ceded premiums, partially offset by a decrease in policies fees due to a decrease in volume and other revenue.

Investments

($thousands)

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

2021

 

 

 

2020

 

Change

 

 

 

2021

 

 

 

2020

 

Change

Net investment income

$

3,894

 

 

$

2,823

 

37.9

%

 

 

$

12,535

 

 

$

20,393

 

(38.5

) %

Realized gains (losses)

 

535

 

 

 

9,058

 

(94.1

) %

 

 

 

5,892

 

 

 

63,352

 

(90.7

) %

Unrealized gains (losses)

 

(1,008

)

 

 

2,187

 

NM

 

 

 

(4,032

)

 

 

25

 

NM

NM = Not Meaningful

Net investment income increased 37.9% for the quarter, primarily due to higher levels of invested assets. For the full year, net investment income decreased 38.5% as well as a significant decline in realized gains for the quarter and full year. The declines are the result of the sale, and subsequent reinvestment at lower yields, of a majority of securities in the portfolio that were in an unrealized gain position in the third and fourth quarters of 2020 to recognize the fair value benefits in surplus. Unrealized losses for the quarter and for the full year were driven by market fluctuations in invested assets resulting in an unfavorable outcome for the quarter and the full year.

Capital Deployment

For the full year, the Company repurchased approximately 117 thousand shares at an aggregate cost of $1.6 million. The Company’s current share repurchase authorization program has $17.8 million remaining as of December 31, 2021 and runs through November 3, 2022.

During the fourth quarter the Board of Directors declared a quarterly regular and special cash dividend, together totaling 29 cents per share of common stock, which was paid on December 17, 2021, to shareholders of record as of the close of business on December 10, 2021. This marked more than 10 consecutive years declaring a fourth quarter special dividend. The 29 cents per share dividend consists of a regular quarterly cash dividend of 16 cents per share and a special cash dividend of 13 cents per share, bringing the total regular and special dividends declared in 2021 to 77 cents per share.

Guidance

Universal initiated the following guidance for fiscal 2022:

  • GAAP and Non-GAAP Adjusted EPS in a range of $1.80 - $2.20 (assuming no extraordinary weather events in 2022)
  • Annualized return on average equity in a range of 12.5% - 15.0%

Conference Call and Webcast

  • Friday, February 25, 2022 at 9:00 a.m. ET
  • U.S. Dial-in Number: (855) 752-6647
  • International: (503) 343-6667
  • Participant code: 7899332
  • Listen to live webcast: UniversalInsuranceHoldings.com
  • Replay of the call will be available on the UVE website and by phone at (855) 859-2056 or internationally at (404) 537-3406 using the participant code: 7899332 through March 12, 2022

About Universal Insurance Holdings, Inc.

Universal Insurance Holdings (UVE) is a holding company offering property and casualty insurance and value-added insurance services. We develop, market, and write insurance products for consumers predominantly in the personal residential homeowners lines of business and perform substantially all other insurance-related services for our primary insurance entities, including risk management, claims management and distribution. We sell insurance products through both our appointed independent agents and through our direct online distribution channels in the United States across 19 states (primarily Florida). Learn more at UniversalInsuranceHoldings.com.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission (“SEC”), including adjusted earnings per diluted share, which excludes the impact of the net realized and unrealized gains and losses on investments as well as extraordinary reinstatement premiums and associated commissions. Extraordinary reinstatement premiums are not covered by reinstatement premium protection and attach just below the Florida Hurricane Catastrophe Fund (“FHCF”) reinsurance layer. Adjusted operating income excludes the impact of the net realized and unrealized gains and losses on investments, as well as interest expense and extraordinary reinstatement premiums and associated commissions. A “non-GAAP financial measure” is generally defined as a numerical measure of a company’s historical or future performance that excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”). UVE management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. UVE management also believes that these non-GAAP financial measures enhance the ability of investors to analyze UVE’s business trends and to understand UVE’s performance. UVE’s management utilizes these non-GAAP financial measures as guides in long-term planning. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures presented in accordance with GAAP. For more information regarding our key performance indicators, please refer to the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Key Performance Indicators” in our forthcoming Annual Report on Form 10-K for the year ended December 31, 2021.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “will,” “plan,” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, including those risks and uncertainties described under the heading “Risk Factors” and “Liquidity and Capital Resources” in our 2021 Annual Report on Form 10-K, and supplemented in our subsequent Quarterly Reports on Form 10-Q. Future results could differ materially from those described, and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information regarding risk factors that could affect the Company’s operations and future results, refer to the Company’s reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K and the most recent quarterly reports on Form 10-Q.

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except per share data)

 

 

 

December 31,

 

December 31,

 

 

 

2021

 

 

 

2020

 

ASSETS

 

 

 

 

Invested Assets

 

 

 

 

Fixed maturities, at fair value

 

$

1,040,455

 

 

$

819,861

 

Equity securities, at fair value

 

 

47,334

 

 

 

84,887

 

Investment real estate, net

 

 

5,891

 

 

 

15,176

 

Total invested assets

 

 

1,093,680

 

 

 

919,924

 

Cash and cash equivalents

 

 

250,508

 

 

 

167,156

 

Restricted cash and cash equivalents

 

 

2,635

 

 

 

12,715

 

Prepaid reinsurance premiums

 

 

240,993

 

 

 

215,723

 

Reinsurance recoverable

 

 

185,589

 

 

 

160,417

 

Premiums receivable, net

 

 

64,923

 

 

 

66,883

 

Property and equipment, net

 

 

53,682

 

 

 

53,572

 

Deferred policy acquisition costs

 

 

108,822

 

 

 

110,614

 

Goodwill

 

 

2,319

 

 

 

2,319

 

Other assets

 

 

52,990

 

 

 

49,418

 

TOTAL ASSETS

 

$

2,056,141

 

 

$

1,758,741

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

LIABILITIES:

 

 

 

 

Unpaid losses and loss adjustment expenses

 

$

346,216

 

 

$

322,465

 

Unearned premiums

 

 

857,769

 

 

 

783,135

 

Advance premium

 

 

53,694

 

 

 

49,562

 

Reinsurance payable, net

 

 

188,662

 

 

 

10,312

 

Long-term debt, net

 

 

103,676

 

 

 

8,456

 

Other liabilities

 

 

76,422

 

 

 

135,549

 

Total liabilities

 

 

1,626,439

 

 

 

1,309,479

 

STOCKHOLDERS' EQUITY:

 

 

 

 

Cumulative convertible preferred stock ($0.01 par value)4

 

 

 

 

 

 

Common stock ($0.01 par value)5

 

 

470

 

 

 

468

 

Treasury shares, at cost - 15,797 and 15,680

 

 

(227,115

)

 

 

(225,506

)

Additional paid-in capital

 

 

108,202

 

 

 

103,445

 

Accumulated other comprehensive income (loss), net of taxes

 

 

(15,568

)

 

 

3,343

 

Retained earnings

 

 

563,713

 

 

 

567,512

 

Total stockholders' equity

 

 

429,702

 

 

 

449,262

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,056,141

 

 

$

1,758,741

 

 

 

 

 

 

Notes:

 

 

 

 

4 Cumulative convertible preferred stock ($0.01 par value): Authorized - 1,000 shares; Issued - 10 and 10 shares; Outstanding - 10 and 10 shares; Minimum liquidation preference - $9.99 and $9.99 per share.

5 Common stock ($0.01 par value): Authorized - 55,000 shares; Issued - 47,018 and 46,817 shares; Outstanding - 31,221 and 31,137 shares.

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)

(in thousands)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

 

2020

 

 

 

 

2021

 

 

 

2020

REVENUES

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

271,332

 

 

$

242,173

 

 

 

$

1,035,463

 

 

$

923,563

Net investment income

 

 

3,894

 

 

 

2,823

 

 

 

 

12,535

 

 

 

20,393

Net realized gains (losses) on sale of investments

 

 

535

 

 

 

9,058

 

 

 

 

5,892

 

 

 

63,352

Net change in unrealized gains (losses) of equity securities

 

 

(1,008

)

 

 

2,187

 

 

 

 

(4,032

)

 

 

25

Commission revenue

 

 

11,245

 

 

 

9,393

 

 

 

 

41,649

 

 

 

33,163

Policy fees

 

 

4,892

 

 

 

5,520

 

 

 

 

22,713

 

 

 

23,773

Other revenue

 

 

1,769

 

 

 

1,972

 

 

 

 

7,631

 

 

 

8,501

Total revenues

 

 

292,659

 

 

 

273,126

 

 

 

 

1,121,851

 

 

 

1,072,770

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

280,440

 

 

 

233,940

 

 

 

 

779,205

 

 

 

758,810

Policy acquisition costs

 

 

55,880

 

 

 

52,120

 

 

 

 

226,167

 

 

 

199,102

Other operating expenses

 

 

20,245

 

 

 

14,048

 

 

 

 

87,414

 

 

 

90,525

Interest expense

 

 

555

 

 

 

17

 

 

 

 

652

 

 

 

102

Total expenses

 

 

357,120

 

 

 

300,125

 

 

 

 

1,093,438

 

 

 

1,048,539

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax expense

 

 

(64,461

)

 

 

(26,999

)

 

 

 

28,413

 

 

 

24,231

Income tax expense (benefit)

 

 

(16,336

)

 

 

(9,324

)

 

 

 

8,006

 

 

 

5,126

NET INCOME (LOSS)

 

$

(48,125

)

 

$

(17,675

)

 

 

$

20,407

 

 

$

19,105

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SHARE AND PER SHARE INFORMATION

(in thousands, except per share data)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

2021

 

2020

 

 

2021

 

2020

Weighted average common shares outstanding - basic

 

 

31,177

 

 

 

31,193

 

 

 

 

31,218

 

 

 

31,884

 

Weighted average common shares outstanding - diluted

 

 

31,177

 

 

 

31,295

 

 

 

 

31,307

 

 

 

31,972

 

Shares outstanding, end of period

 

 

31,221

 

 

 

31,137

 

 

 

 

31,221

 

 

 

31,137

 

Basic earnings (loss) per common share

 

$

(1.54

)

 

$

(0.57

)

 

 

$

0.65

 

 

$

0.60

 

Diluted earnings (loss) per common share

 

$

(1.54

)

 

$

(0.57

)

 

 

$

0.65

 

 

$

0.60

 

Cash dividend declared per common share

 

$

0.29

 

 

$

0.29

 

 

 

$

0.77

 

 

$

0.77

 

Book value per share, end of period

 

$

13.76

 

 

$

14.43

 

 

 

$

13.76

 

 

$

14.43

 

Annualized return on average equity (ROE)

 

 

(41.6

) %

 

 

(15.4

) %

 

 

 

4.6

%

 

 

4.1

%

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION

(in thousands, except for Policies In-Force data)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

 

2020

 

 

 

 

2021

 

 

 

2020

 

Premiums

 

 

 

 

 

 

 

 

 

Direct premiums written - Florida

 

$

326,138

 

 

$

302,552

 

 

 

$

1,388,318

 

 

$

1,250,748

 

Direct premiums written - Other States

 

 

73,189

 

 

 

66,271

 

 

 

 

282,934

 

 

 

266,731

 

Direct premiums written - Total

 

$

399,327

 

 

$

368,823

 

 

 

$

1,671,252

 

 

$

1,517,479

 

Direct premiums earned

 

$

417,817

 

 

$

374,825

 

 

 

$

1,596,618

 

 

$

1,395,623

 

Net premiums earned

 

$

271,332

 

 

$

242,173

 

 

 

$

1,035,463

 

 

$

923,563

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios - Net

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense ratio

 

 

103.3

%

 

 

96.7

%

 

 

 

75.3

%

 

 

82.2

%

General and administrative expense ratio6

 

 

28.1

%

 

 

27.3

%

 

 

 

30.2

%

 

 

31.4

%

Policy acquisition cost ratio

 

 

20.6

%

 

 

21.5

%

 

 

 

21.8

%

 

 

21.6

%

Other operating expense ratio6

 

 

7.5

%

 

 

5.8

%

 

 

 

8.4

%

 

 

9.8

%

Combined ratio

 

 

131.4

%

 

 

124.0

%

 

 

 

105.5

%

 

 

113.6

%

 

 

 

 

 

 

 

 

 

 

Other Items

 

 

 

 

 

 

 

 

 

(Favorable)/Unfavorable prior year reserve development

 

$

36,467

 

 

$

23,433

 

 

 

$

54,450

 

 

$

58,337

 

Points on the loss and loss adjustment expense ratio

 

13.4 pts

 

9.7 pts

 

 

5.3 pts

 

6.3 pts

6 Expense ratio excludes interest expense.

 

 

As of

 

 

December 31,

 

 

 

2021

 

 

2020

Policies in force

 

 

 

 

Florida

 

 

695,533

 

 

728,211

Other States

 

 

248,060

 

 

256,619

Total

 

 

943,593

 

 

984,830

 

 

 

 

 

Premiums in force

 

 

 

 

Florida

 

$

1,395,476

 

$

1,252,916

Other States

 

 

284,346

 

 

267,033

Total

 

 

1,679,822

 

 

1,519,949

 

 

 

 

 

Total Insured Value

 

 

 

 

Florida

 

$

203,062,948

 

$

192,504,430

Other States

 

 

117,835,486

 

 

109,976,625

Total

 

 

320,898,434

 

 

302,481,055

 

Three Months Ended December 31, 2021

 

Direct

 

Loss

Ratio

 

Ceded

 

Loss

Ratio

 

Net

 

Loss

Ratio

Premiums earned

$

417,817

 

 

 

$

146,485

 

 

 

$

271,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expenses:

 

 

 

 

 

 

 

 

 

 

 

Core losses

$

215,974

 

51.7

%

 

$

1

 

%

 

$

215,973

 

79.6

%

Weather events7

 

28,000

 

6.7

%

 

 

 

%

 

 

28,000

 

10.3

%

Prior years’ reserve development

 

167,802

 

40.2

%

 

 

131,335

 

89.7

%

 

 

36,467

 

13.4

%

Total losses and loss adjustment expenses

$

411,776

 

98.6

%

 

$

131,336

 

89.7

%

 

$

280,440

 

103.3

%

 

 

 

 

 

 

 

 

 

 

 

 

7 Includes only current year weather events beyond those expected.

 

Twelve Months Ended December 31, 2021

 

Direct

 

Loss

Ratio

 

Ceded

 

Loss

Ratio

 

Net

 

Loss

Ratio

Premiums earned

$

1,596,618

 

 

 

$

561,155

 

 

 

$

1,035,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expenses:

 

 

 

 

 

 

 

 

 

 

 

Core losses

$

696,775

 

43.6

%

 

$

20

 

%

 

$

696,755

 

67.3

%

Weather events7

 

28,000

 

1.8

%

 

 

 

%

 

 

28,000

 

2.7

%

Prior years’ reserve development

 

464,669

 

29.1

%

 

 

410,219

 

73.1

%

 

 

54,450

 

5.3

%

Total losses and loss adjustment expenses

$

1,189,444

 

74.5

%

 

$

410,239

 

73.1

%

 

$

779,205

 

75.3

%

 

 

 

 

 

 

 

 

 

 

 

 

7 Includes only current year weather events beyond those expected.

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except for per share data)

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

Guidance

 

December 31,

 

 

December 31,

 

 

Full Year 2022E

 

 

2021

 

 

 

2020

 

 

 

 

2021

 

 

 

2020

 

 

 

 

Income (Loss) Before Income Taxes

$

(64,461

)

 

$

(26,999

)

 

 

$

28,413

 

 

$

24,231

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Net unrealized (gains)/losses on equity securities

 

1,008

 

 

 

(2,187

)

 

 

 

4,032

 

 

 

(25

)

 

 

 

Net realized (gains)/losses on investments

 

(535

)

 

 

(9,058

)

 

 

 

(5,892

)

 

 

(63,352

)

 

 

 

Interest Expense

 

555

 

 

 

17

 

 

 

 

652

 

 

 

102

 

 

 

 

Total Adjustments

 

1,028

 

 

 

(11,228

)

 

 

 

(1,208

)

 

 

(63,275

)

 

 

 

Non-GAAP Adjusted Operating Income (Loss)

$

(63,433

)

 

$

(38,227

)

 

 

$

27,205

 

 

$

(39,044

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Diluted EPS

$

(1.54

)

 

$

(0.57

)

 

 

$

0.65

 

 

$

0.60

 

 

 

$1.80 - $2.20

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Net unrealized (gains)/losses on equity securities

 

0.03

 

 

 

(0.07

)

 

 

 

0.13

 

 

 

 

 

 

 

Net realized (gains)/losses on investments

 

(0.02

)

 

 

(0.29

)

 

 

 

(0.19

)

 

 

(1.98

)

 

 

 

Total Pre-Tax Adjustments

 

0.01

 

 

 

(0.36

)

 

 

 

(0.06

)

 

 

(1.98

)

 

 

 

Income Tax on Above Adjustments

 

 

 

 

0.09

 

 

 

 

0.02

 

 

 

0.48

 

 

 

 

Total Adjustments

 

0.01

 

 

 

(0.27

)

 

 

 

(0.04

)

 

 

(1.50

)

 

 

 

Non-GAAP Adjusted EPS

$

(1.53

)

 

$

(0.84

)

 

 

$

0.61

 

 

$

(0.90

)

 

 

$1.80 - $2.20

8 Includes reinstatement premiums not covered by reinstatement premium protection and related commissions.

 

We continue to sharpen our pencils on our 2022 Florida primary rate filing in the coming months and are hitting the ground running on our reinsurance renewal, with over 77% of capacity on our first event All States tower already secured.

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