Company to Host Quarterly Conference Call at 10:00 A.M. on August 9,
2012
Financial and Operational Highlights
-
Second quarter 2012 net income of $3.0 million, or $0.29 per share
-
Year-to-date 2012 net income of $7.7 million, or $0.75 per share
-
Second quarter 2012 gross premiums written increased 19% to $77.9
million
-
Homeowners policies in force totaling 114,800 at June 30, 2012
-
Cash and investment holdings of $219.5 million at June 30, 2012
-
Book value per share of $6.09 at June 30, 2012
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--
United Insurance Holdings Corp. (OTCBB: UIHC)(United or the
Company), a property and casualty insurance holding company, today
reported its financial results for the quarter ended June 30, 2012.
2012 Second Quarter
The Company reported net income for the second quarter of $3.0 million,
or $0.29 per share, compared to net income of $89 thousand, or $0.01 per
share, during the same period of last year. Net premiums earned
increased to $29.7 million from $22.3 million for the second quarter of
2012. Net investment income, realized gains and other revenues increased
to $1.8 million for the quarter compared to $1.7 million in the prior
year quarter.
Losses and loss adjustment expenses increased to $13.0 million for the
quarter from $12.6 million during the same period of last year. Policy
acquisition costs increased to $8.9 million from $7.2 million for the
second quarter of 2012. Operating expenses increased to $1.8 million
from $1.5 million during the same period of last year. General and
administrative expenses increased to $2.3 million from $2.1 million for
the second quarter.
2012 Year-to-Date
For the year-to-date period, net income was $7.7 million, or $0.75 per
share, compared to net income of $1.2 million, or $0.12 per diluted
share for the same period last year. The Company's net premiums earned
increased to $57.5 million, from $41.4 million during the same period of
last year. Net investment income and other revenues increased to $3.6
million for the year-to-date period from $3.1 million during the same
period of last year.
Losses and adjusting expenses increased to $22.5 million, from $21.0
million, while policy acquisition costs increased to $17.1 million from
$13.7 million for the same period last year. Operating expenses
increased to $3.2 million from $2.8 million during the same period of
last year.
Balance Sheet Highlights
United's cash and investment holdings totaled $219.5 million at June 30,
2012, compared to $165.9 million at December 31, 2011. United's cash and
investment holdings consist primarily of investments in high-quality
money market instruments, U.S. Government and agency securities and
high-quality corporate debt. Fixed maturities represented approximately
97% of United's total investments at June 30, 2012, and December 31,
2011.
Management Comments
John Forney, Chief Executive Officer of United, stated, “This was a good
quarter for United. We grew our business in Florida while maintaining
strong underwriting discipline as reflected in our favorable loss
ratios. At the same time, our efforts in Massachusetts, Rhode Island and
South Carolina are beginning to bear fruit, and this policy growth will
provide us helpful geographic diversification. These favorable trends
aided our risk management team in completing a very successful
reinsurance placement this quarter that provides United with even deeper
coverage from catastrophe losses than in prior years. Overall, we are
well-positioned for this hurricane season, and poised to continue
profitable growth as we execute our focused strategy in the coming
quarters.”
Conference Call Details |
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Date and Time: |
| August 9, 2012 - 10:00 A.M. ET |
|
|
Participant Dial-In: | |
(United States): 877-407-0782
|
| |
(International): 201-689-8567
|
| |
|
Webcast: | |
To listen to the live webcast, please go to www.upcic.com(Events and Presentations) and click on the conference call
link, or go to: http://www.investorcalendar.com/IC/CEPage.asp?ID=169262.
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About United Insurance Holdings Corp.
Founded in 1999, United Property and Casualty Insurance Company, a
subsidiary of United Insurance Holdings Corp., writes and services
property and casualty insurance in Florida, South Carolina,
Massachusetts and Rhode Island. From its headquarters in St. Petersburg,
United's team of dedicated employees manages a completely integrated
insurance company, including sales, underwriting, customer service and
claims. The Company distributes its homeowners, dwelling fire and flood
products through many agency groups and conducts business through four
wholly-owned subsidiaries. Homeowners insurance constitutes the majority
of United's premiums and policies.
Forward-Looking Statements
Statements in this press release that are not historical facts are
forward-looking statements that are subject to certain risks and
uncertainties that could cause actual events and results to differ
materially from those discussed herein. Without limiting the generality
of the foregoing, words such as “may,” “will,” “expect,” “believe,”
“anticipate,” “intend,” “could,” “would,” “estimate,” “or “continue” or
the other negative variations thereof or comparable terminology are
intended to identify forward-looking statements. The forward-looking
statements in this press release include statements regarding: the
impact of the additional rate increases, and the expansion into other
states. The risks and uncertainties that could cause our actual results
to differ from those expressed or implied herein include, without
limitation, the success of the Company's marketing initiatives,
inflation and other changes in economic conditions (including changes in
interest rates and financial markets); the impact of new Federal and
State regulations that affect the property and casualty insurance
market; the costs of reinsurance and the collectibility of reinsurance,
assessments charged by various governmental agencies; pricing
competition and other initiatives by competitors; our ability to obtain
regulatory approval for requested rate changes, and the timing thereof;
legislative and regulatory developments; the outcome of litigation
pending against us, including the terms of any settlements; risks
related to the nature of our business; dependence on investment income
and the composition of our investment portfolio; the adequacy of our
liability for losses and loss adjustment expense; insurance agents;
claims experience; ratings by industry services; catastrophe losses;
reliance on key personnel; weather conditions (including the severity
and frequency of storms, hurricanes, tornadoes and hail); changes in
loss trends; acts of war and terrorist activities; court decisions and
trends in litigation, and health care; and other matters described from
time to time by us in our filings with the Securities and Exchange
Commission, including, but not limited to, the Company's Annual Report
on Form 10-K for the year ended December 31, 2011. In addition,
investors should be aware that generally accepted accounting principles
prescribe when a company may reserve for particular risks, including
litigation exposures. Accordingly, results for a given reporting period
could be significantly affected if and when a reserve is established for
a major contingency. Reported results may therefore, appear to be
volatile in certain accounting periods. The Company undertakes no
obligations to update, change or revise any forward-looking statement,
whether as a result of new information, additional or subsequent
developments or otherwise.
|
|
Consolidated Statements of Income In thousands, except share and per share amounts |
|
|
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| | 2012 |
| 2011 |
| 2012 |
| 2011 |
|
REVENUE:
| | | | | | | | |
|
Gross premiums written
| |
$
|
77,928
| | |
$
|
65,296
| | |
$
|
135,924
| | |
$
|
116,071
| |
|
Increase in gross unearned premiums
| |
(23,479
|
)
| |
(21,037
|
)
| |
(30,799
|
)
| |
(31,446
|
)
|
|
Gross premiums earned
| |
54,449
| | |
44,259
| | |
105,125
| | |
84,625
| |
|
Ceded premiums earned
| |
(24,727
|
)
| |
(21,960
|
)
| |
(47,613
|
)
| |
(43,218
|
)
|
|
Net premiums earned
| |
$
|
29,722
| | |
$
|
22,299
| | |
57,512
| | |
41,407
| |
|
Net investment income
| |
777
| | |
700
| | |
1,524
| | |
1,234
| |
|
Net realized gains
| |
37
| | |
112
| | |
118
| | |
112
| |
|
Other revenue
| |
1,028
|
| |
884
|
| |
1,913
|
| |
1,710
|
|
|
Total revenue
| |
$
|
31,564
| | |
$
|
23,995
| | |
61,067
| | |
44,463
| |
|
EXPENSES:
| | | | | | | | |
|
Losses and loss adjustment expenses
| |
12,969
| | |
12,601
| | |
22,451
| | |
20,985
| |
|
Policy acquisition costs
| |
8,878
| | |
7,181
| | |
17,131
| | |
13,725
| |
|
Operating expenses
| |
1,757
| | |
1,503
| | |
3,190
| | |
2,800
| |
|
General and administrative expenses
| |
2,300
| | |
2,054
| | |
5,093
| | |
4,417
| |
|
Interest expense
| |
129
|
| |
157
|
| |
212
|
| |
311
|
|
|
Total expenses
| |
$
|
26,033
| | |
$
|
23,496
| | |
48,077
| | |
42,238
| |
|
Income before other expenses
| |
5,531
| | |
499
| | |
12,990
| | |
2,225
| |
|
Other expenses
| |
293
|
| |
279
|
| |
269
|
| |
279
|
|
|
Income before income taxes
| |
$
|
5,238
| | |
$
|
220
| | |
12,721
| | |
1,946
| |
|
Provision for income taxes
| |
2,247
|
| |
131
|
| |
4,982
|
| |
733
|
|
|
Net income
| |
$
|
2,991
|
| |
$
|
89
|
| |
$
|
7,739
|
| |
$
|
1,213
|
|
|
OTHER COMPREHENSIVE INCOME:
| | | | | | | | |
|
Change in net unrealized gain on investments
| |
650
| | |
1,091
| | |
1,284
| | |
1,029
| |
|
Reclassification adjustment for net realized investment gains
| |
(37
|
)
| |
(112
|
)
| |
(118
|
)
| |
(112
|
)
|
|
Reclassification adjustment for note impairment
| |
316
| | |
—
| | |
316
| | |
—
| |
|
Income tax expense related to items of other comprehensive income
| |
(359
|
)
| |
(377
|
)
| |
(572
|
)
| |
(354
|
)
|
|
Total comprehensive income
| |
$
|
3,561
|
| |
$
|
691
|
| |
$
|
8,649
|
| |
$
|
1,776
|
|
| | | | | | | |
|
|
Weighted average shares outstanding
| | | | | | | | |
|
Basic and Diluted
| |
10,361,849
|
| |
10,473,717
|
| |
10,361,849
|
| |
10,523,548
|
|
| | | | | | | |
|
|
Earnings per share
| | | | | | | | |
|
Basic and Diluted
| |
$
|
0.29
|
| |
$
|
0.01
|
| |
$
|
0.75
|
| |
$
|
0.12
|
|
| | | | | | | |
|
|
Dividends declared per share
| |
$
|
—
|
| |
$
|
—
|
| |
$
|
0.05
|
| |
$
|
—
|
|
|
|
|
|
Consolidated Balance Sheets In thousands |
|
|
|
| June 30, 2012 |
| December 31,
2011 |
|
ASSETS
| | (Unaudited) | | |
|
Investments available for sale, at fair value:
| | | | |
|
Fixed maturities (amortized cost of $118,373 and $116,863,
respectively)
| |
$
|
123,277
| | |
$
|
120,378
| |
|
Equity securities (adjusted cost of $3,406 and $3,284, respectively)
| |
3,794
| | |
3,581
| |
|
Other long-term investments
| |
300
|
| |
300
|
|
|
Total investments
| |
$
|
127,371
| | |
$
|
124,259
| |
|
Cash and cash equivalents
| |
92,130
| | |
41,639
| |
|
Accrued investment income
| |
983
| | |
986
| |
|
Premiums receivable, net of allowances for credit losses of $86 and
$77, respectively
| |
17,938
| | |
11,205
| |
|
Reinsurance recoverable on paid and unpaid losses
| |
3,470
| | |
4,458
| |
|
Prepaid reinsurance premiums
| |
103,834
| | |
40,968
| |
|
Deferred policy acquisition costs
| |
16,779
| | |
12,324
| |
|
Other assets
| |
3,524
|
| |
4,376
|
|
|
Total Assets
| |
$
|
366,029
|
| |
$
|
240,215
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
| | | | |
|
Liabilities:
| | | | |
|
Unpaid losses and loss adjustment expenses
| |
$
|
33,150
| | |
$
|
33,600
| |
|
Unearned premiums
| |
130,929
| | |
100,130
| |
|
Reinsurance payable
| |
106,263
| | |
16,571
| |
|
Other liabilities
| |
16,095
| | |
17,866
| |
|
Notes payable
| |
16,471
|
| |
17,059
|
|
|
Total Liabilities
| |
$
|
302,908
|
| |
$
|
185,226
|
|
|
Commitments and contingencies
| | | | |
|
Stockholders' Equity:
| | | | |
|
Common stock, $0.0001 par value; 50,000,000 shares authorized;
10,573,932 issued; 10,361,849 outstanding
| |
1
| | |
1
| |
|
Additional paid-in capital
| |
75
| | |
75
| |
|
Treasury shares, at cost; 212,083 shares
| |
(431
|
)
| |
(431
|
)
|
|
Accumulated other comprehensive income
| |
3,252
| | |
2,341
| |
|
Retained earnings
| |
60,224
|
| |
53,003
|
|
|
Total Stockholders' Equity
| |
$
|
63,121
|
| |
$
|
54,989
|
|
|
Total Liabilities and Stockholders' Equity
| |
$
|
366,029
|
| |
$
|
240,215
|
|
United Insurance Holdings Corp.
John Rohloff, 727-895-7737
Interim
Chief Financial Officer
jrohloff@upcic.com
or
INVESTOR
RELATIONS:
The Equity Group
Adam Prior, 212-836-9606
Vice
President
aprior@equityny.com
or
Terry
Downs, 212-836-9615
Account Executive
tdowns@equityny.com
Source: United Insurance Holdings Corp.