Company to Host Quarterly Conference Call at 5:00 P.M. ET on May 8,
2018
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--
United Insurance Holdings Corp. (Nasdaq:UIHC)(UPC Insurance or
the Company), a property and casualty insurance holding company, today
reported its financial results for the first quarter ended March 31,
2018.
|
($ in thousands, except for per share data)
|
| Three Months Ended |
| |
| March 31, |
|
|
| | 2018 |
| 2017 | | Change |
|
Gross premiums written
| |
$
|
|
279,617
| | |
$
|
|
168,842
| | |
|
65.6
|
%
|
|
Gross premiums earned
| |
$
| |
278,950
| | |
$
| |
182,065
| | | |
53.2
|
%
|
|
Net premiums earned
| |
$
| |
162,675
| | |
$
| |
107,183
| | | |
51.8
|
%
|
|
Total revenues
| |
$
| |
180,127
| | |
$
| |
122,633
| | | |
46.9
|
%
|
|
Earnings before income tax
| |
$
| |
11,716
| | |
$
| |
5,938
| | | |
97.3
|
%
|
|
Net income
| |
$
| |
8,369
| | |
$
| |
3,899
| | | |
114.6
|
%
|
|
Net income per diluted share
| |
$
| |
0.20
| | |
$
| |
0.18
| | | |
11.1
|
%
|
| | | | | | |
|
|
Reconciliation of net income to core income:
| | | | | | | |
|
Plus: Non-cash amortization of intangible assets
| |
$
| |
9,825
| | |
$
| |
1,354
| | | |
625.6
|
%
|
|
Less: Realized gains (losses) on investment portfolio
| |
$
| |
211
| | |
$
| |
(351
|
)
| | |
160.1
|
%
|
|
Less: Unrealized losses on equity securities
| |
$
| |
(2,444
|
)
| |
$
| |
—
| | | |
100.0
|
%
|
|
Less: Net tax impact(1) | |
$
| |
3,445
| | |
$
| |
585
| | | |
488.4
|
%
|
|
Core income(2) | |
$
| |
16,982
| | |
$
| |
5,019
| | | |
238.4
|
%
|
|
Core income per diluted share(2) | |
$
| |
0.40
| | |
$
| |
0.23
| | | |
73.9
|
%
|
| | | | | | |
|
|
Book value per share
| |
$
| |
12.52
| | |
$
| |
11.37
| | | |
10.1
|
%
|
| (1) |
|
In order to reconcile the net income to the core income measure, we
included the tax impact of all adjustments using the effective rate
at the end of each period.
|
| (2) | |
Core income and core income per diluted share, measures that are
not based on GAAP, are reconciled above to net income and net
income per diluted share, respectively, the most directly
comparable GAAP measures. Additional information regarding
non-GAAP financial measures presented in this press release can be
found in the "Definitions of Non-GAAP Measures"
section, below.
|
|
|
"UPC is off to a strong start in 2018," said John Forney, President &
CEO of UPC Insurance. "Despite a lot of catastrophe activity in our
geographic footprint, we grew premium-in-force by 3% in the quarter to
almost $1.1 billion and produced solid bottom line results. I'm proud of
the work our team is doing to drive sustainable growth and
profitability."
Return on Equity and Core Return on Equity
Return on equity is a ratio the Company calculates by dividing
annualized net income for the trailing three months by the average
stockholders' equity for the trailing twelve months. Core return on
equity (see calculation below) is a ratio calculated using non-GAAP
measures. It is calculated by dividing the annualized core income for
the trailing three months by the average stockholders’ equity for the
trailing twelve months. Core income is an after-tax non-GAAP measure
that is calculated by excluding from net income the effect of non-cash
amortization of intangible assets, unrealized gains or losses on the
Company's equity security investments and realized gains or losses on
the Company's investment portfolio. In the opinion of the Company’s
management, core income, core income per share and core return on equity
are meaningful indicators to investors of the Company's underwriting and
operating results, since the excluded items are not necessarily
indicative of operating trends. Internally, the Company’s management
uses core income, core income per share and core return on equity to
evaluate performance against historical results and establish financial
targets on a consolidated basis. The table above reconciles core income
to net income, the most directly comparable GAAP measure.
|
($ in thousands)
|
|
|
| Three Months Ended |
| | | March 31, |
| | | | 2018 |
| 2017 |
|
Net income
| | | |
$
|
|
8,369
| | |
$
|
|
3,899
| |
|
Return on equity based on GAAP net income (loss) (1) | | | |
6.4
|
%
| |
6.2
|
%
|
| | | | | |
|
|
Core income
| | | |
$
| |
16,982
| | |
$
| |
5,019
| |
|
Core return on equity (1) | | | |
13.2
|
%
| |
8.2
|
%
|
| (1) |
|
Return on equity for the three months ended March 31, 2018 and 2017
is calculated on an annualized basis.
|
|
|
Combined Ratio and Underlying Ratio
The calculations of the Company's combined ratio and underlying combined
ratio are shown below.
|
($ in thousands)
|
|
|
| Three Months Ended |
| | | March 31, |
| | | | 2018 |
| 2017 |
| Change |
|
Loss ratio, net(1) | | | |
|
47.5
|
%
| |
|
59.1
|
%
| |
|
(11.6
|
) pts
|
|
Expense ratio, net(2) | | | |
|
54.6
|
%
| |
|
49.1
|
%
| |
|
5.5
|
pts
|
|
Combined ratio (CR)(3) | | | | |
102.1
|
%
| | |
108.2
|
%
| | |
(6.1
|
) pts
|
|
Effect of current year catastrophe losses on CR
| | | | |
3.8
|
%
| | |
9.9
|
%
| | |
(6.1
|
) pts
|
|
Effect of prior year unfavorable (favorable) development on CR
| | | | |
(0.4
|
)%
| | |
(0.5
|
)%
| | |
0.1
|
pts
|
|
Effect of ceding commission income on CR
| | | |
|
6.3
|
%
| |
|
7.9
|
%
| |
|
(1.6
|
) pts
|
|
Underlying combined ratio(4)(5) | | | | |
92.4
|
%
| | |
90.9
|
%
| | |
1.5
|
pts
|
| (1) |
|
Loss ratio, net is calculated as losses and loss adjustment expenses
(LAE), net of losses ceded to reinsurers, relative to net premiums
earned.
|
| (2) | |
Expense ratio, net is calculated as the sum of all operating
expenses less interest expense relative to net premiums earned.
|
| (3) | |
Combined ratio is the sum of the loss ratio, net and expense ratio,
net.
|
| (4) | |
Underlying combined ratio, a measure that is not based on GAAP, is
reconciled above to the combined ratio, the most directly
comparable GAAP measure. Additional information regarding non-GAAP
financial measures presented in this press release can be found in
the "Definitions of Non-GAAP Measures" section,
below.
|
| (5) | |
Included in both the expense ratio and the combined ratio are $9.8
million for the three months ended March 31, 2018 and $1.4 million
for the three months ended March 31, 2017 of merger professional
fees and amortization expense predominately associated with the AmCo
Holding Company (AmCo) merger in the second quarter of 2017.
Excluding these additional expenses, the Company would have reported
underlying combined ratios of 86.3% for the three months ended March
31, 2018 and 89.7% for the three months ended March 31, 2017.
|
|
|
Quarterly Financial Results
Net income for the first quarter of 2018 was $8.4 million, or $0.20 per
diluted share, compared to net income of $3.9 million, or $0.18 per
diluted share, for the first quarter of 2017. The increase in net income
was primarily due to the lower catastrophe and non-catastrophe loss
ratios for the first quarter of 2018 compared to the first quarter of
2017.
The Company's total gross written premium increased by $110.8 million,
or 65.6%, to $279.6 million for the first quarter of 2018 from $168.8
million for the first quarter of 2017, primarily reflecting the
Company's merger with AmCo in the second quarter of 2017, as well as
organic growth in new and renewal business generated in all regions. The
breakdown of the quarter-over-quarter changes in both direct written and
assumed premiums by region and gross written premium by line of business
are shown in the table below.
|
| Three Months Ended |
| |
|
($ in thousands)
| | March 31, | | |
| | 2018 |
| 2017 | | Change $ |
| Change % |
| Direct Written and Assumed Premium by Region (1) | | | | | | | |
| |
| Florida | |
$
|
|
157,952
| | |
$
|
|
75,364
| | |
$
|
|
82,588
| | | |
109.6
|
%
|
|
Gulf
| |
44,797
| | |
40,778
| | |
4,019
| | | |
9.9
| |
|
Northeast
| |
34,892
| | |
31,137
| | |
3,755
| | | |
12.1
| |
|
Southeast
| |
22,887
|
| |
20,192
|
| |
2,695
|
| |
|
13.3
|
|
|
Total direct written premium by region
| |
260,528
| | |
167,471
| | |
93,057
| | | |
55.6
|
%
|
|
Assumed premium (2) | |
19,089
|
| |
1,371
|
| |
17,718
|
| |
|
1,292.3
|
|
|
Total gross written premium by region
| |
$
|
|
279,617
|
| |
$
|
|
168,842
|
| |
$
|
|
110,775
|
| |
|
65.6
|
%
|
| | | | | | | | |
|
| Gross Written Premium by Line of Business | | | | | | | | | |
|
Personal property
| |
$
| |
183,713
| | |
$
| |
164,873
| | |
$
| |
18,840
| | | |
11.4
|
%
|
|
Commercial property
| |
95,904
|
| |
3,969
|
| |
91,935
|
| |
|
2,316.3
|
|
|
Total gross written premium by line of business
| |
$
|
|
279,617
|
| |
$
|
|
168,842
|
| |
$
|
|
110,775
|
| |
|
65.6
|
%
|
| (1) |
|
"Gulf" is comprised of Hawaii, Louisiana and Texas; "Northeast" is
comprised of Connecticut, Massachusetts, New Jersey, New York and
Rhode Island; and "Southeast" is comprised of Georgia, North
Carolina and South Carolina.
|
| (2) | |
Assumed premium written for 2018 is primarily commercial property
business assumed from unaffiliated insurers.
|
|
|
Loss and loss adjustment expense (LAE) increased by $13.9 million, or
22.0%, to $77.2 million for the first quarter of 2018 from $63.3 million
for the first quarter of 2017. Loss and LAE expense as a percentage of
net earned premiums decreased 11.6 points to 47.5% for the first quarter
of 2018, compared to 59.1% for the same period last year. Excluding
catastrophe losses and reserve development, the Company's gross
underlying loss and LAE ratio for the first quarter of 2018 would have
been 25.7%, a decrease of 3.5 points from 29.2% during the first quarter
of 2017.
Policy acquisition costs increased by $21.7 million, or 61.2%, to $57.1
million for the first quarter of 2018 from $35.4 million for the first
quarter of 2017. The primary driver of the increase in costs was the
managing general agent fees related to AmCo commercial premiums. The
remaining change was the result of policy acquisition costs varying
directly with changes in gross premiums earned and were generally
consistent with the Company's growth in premium production and higher
average market commission rates outside of Florida.
Operating and underwriting expenses increased by $2.4 million, or 41.7%,
to $8.3 million for the first quarter of 2018 from $5.9 million for the
first quarter of 2017, primarily due to increased costs related to
incurred expenses for software tools, agent incentive costs,
underwriting services and assessments.
General and administrative expenses increased by $12.0 million, or
105.8%, to $23.3 million for the first quarter of 2018 from $11.3
million for the first quarter of 2017, primarily due to amortization
costs related to the merger with AmCo during the second quarter of 2017
and salary expense related to increased claims personnel.
Combined Ratio Analysis
The calculations of the Company's loss ratios and underlying loss ratios
are shown below.
|
($ in thousands)
|
| Three Months Ended |
| March 31, |
| 2018 |
| 2017 |
| Change |
|
Loss and LAE
| |
$
|
|
77,246
| | |
$
|
|
63,333
| | |
$
|
|
13,913
| |
|
% of Gross earned premiums
| |
27.7
|
%
| |
34.8
|
%
| |
(7.1
|
) pts
|
|
% of Net earned premiums
| |
47.5
|
%
| |
59.1
|
%
| |
(11.6
|
) pts
|
|
Less:
| | | | | | |
|
Current year catastrophe losses
| |
$
| |
6,317
| | |
$
| |
10,612
| | |
$
| |
(4,295
|
)
|
|
Prior year reserve unfavorable (favorable) development
| |
(681
|
)
| |
(526
|
)
| |
(155
|
)
|
Underlying Loss and LAE (1) | |
$
| |
71,610
| | |
$
| |
53,247
| | |
$
| |
18,363
| |
|
% of Gross earned premiums
| |
25.7
|
%
| |
29.2
|
%
| |
(3.5
|
) pts
|
|
% of Net earned premiums
| |
44.0
|
%
| |
49.7
|
%
| |
(5.7
|
) pts
|
| (1) |
|
Underlying Loss and LAE is a non-GAAP financial measure and is
reconciled above to Net Loss and LAE, the most directly comparable
GAAP measure. Additional information regarding non-GAAP financial
measures presented in this press release can be found in the
"Definitions of Non-GAAP Measures" section, below.
|
|
|
The calculations of the Company's expense ratio and underlying expense
ratios are shown below.
|
($ in thousands)
|
| Three Months Ended |
| March 31, |
| 2018 |
| 2017 |
| Change |
|
Policy acquisition costs
| |
$
|
|
57,135
| | |
$
|
|
35,436
| | |
$
|
|
21,699
| |
|
Operating and underwriting
| |
8,318
| | |
5,872
| | |
2,446
| |
|
General and administrative
| |
23,325
|
| |
11,333
|
| |
11,992
|
|
|
Total Operating Expenses
| |
$
| |
88,778
| | |
$
| |
52,641
| | |
$
| |
36,137
| |
|
% of Gross earned premiums
| |
31.8
|
%
| |
28.9
|
%
| |
2.9
|
pts
|
|
% of Net earned premiums
| |
54.6
|
%
| |
49.1
|
%
| |
5.5
|
pts
|
|
Less:
| | | | | | |
|
Ceding commission income
| |
$
| |
10,299
| | |
$
| |
8,428
| | |
$
| |
1,871
| |
|
Non-cash amortization of intangibles
| |
9,825
|
| |
1,354
|
| |
8,471
|
|
Underlying Expense (1) | |
$
| |
68,654
| | |
$
| |
42,859
| | |
$
| |
25,795
| |
|
% of Gross earned premiums
| |
24.6
|
%
| |
23.5
|
%
| |
1.1
|
pts
|
|
% of Net earned premiums
| |
42.2
|
%
| |
40.0
|
%
| |
2.2
|
pts
|
| (1) |
|
Underlying Expense is a non-GAAP financial measure and is reconciled
above to total operating expenses, the most directly comparable GAAP
measure. Additional information regarding non-GAAP financial
measures presented in this press release can be found in the
"Definitions of Non-GAAP Measures" section, below.
|
|
|
Reinsurance Costs as a % of Earned Premium
Excluding the Company's flood business, for which it cedes 100% of the
risk of loss, reinsurance costs in the first quarter of 2018 were 39.9%
of gross premiums earned, compared to 38.6% of gross premiums earned for
the first quarter of 2017. The increase in this ratio was driven
primarily by the costs related to the inclusion of AmCo's commercial
property exposures in our 2017-18 combined catastrophe reinsurance
program.
Investment Portfolio Highlights
The Company's cash and investment holdings remained consistent at $1.1
billion at March 31, 2018 compared to $1.1 billion at December 31, 2017.
UPC Insurance's cash and investment holdings consist of investments in
U.S. Government and agency securities, corporate debt and 100%
investment grade money market instruments. Fixed maturities represented
approximately 88.2% of total investments at March 31, 2018 compared to
89.3% at December 31, 2017. At both March 31, 2018 and December 31,
2017, the modified duration was 3.9 years.
Book Value Analysis
Book value per share decreased (0.4)% from $12.56 at December 31, 2017
to $12.52 at March 31, 2018, and underlying book value per share
increased 3.0% from $12.35 at December 31, 2017 to $12.72 at March 31,
2018. A decrease in the Company's retained earnings drove the decrease
in our book value per share. Removing the effect of the decrease in
accumulated other comprehensive income, as shown in the table below,
also impacted our underlying book value per share.
|
($ in thousands, except for per share data)
|
| March 31, |
| December 31, |
| | 2018 | | 2017 |
| Book Value per Share | | | | |
|
Numerator:
| | | | |
|
Common stockholders' equity
| |
$
|
|
|
535,080
|
| |
$
|
|
537,125
|
|
|
Denominator:
| | | | |
|
Total Shares Outstanding
| |
42,745,937
|
| |
42,753,054
|
|
|
Book Value Per Common Share
| |
$
|
|
|
12.52
|
| |
$
|
|
12.56
|
|
| | | |
|
| Book Value per Share, Excluding the Impact of Accumulated Other
Comprehensive Income (AOCI) | | | | |
|
Numerator:
| | | | |
|
Common stockholders' equity
| |
$
|
|
|
535,080
| | |
$
|
|
537,125
| |
|
Accumulated other comprehensive income
| |
(8,451
|
)
| |
9,221
|
|
|
Stockholders' Equity, excluding AOCI
| |
$
|
|
|
543,531
|
| |
$
|
|
527,904
|
|
|
Denominator:
| | | | |
|
Total Shares Outstanding
| |
42,745,937
|
| |
42,753,054
|
|
|
Underlying Book Value Per Common Share(1) | |
$
|
|
|
12.72
|
| |
$
|
|
12.35
|
|
| (1) |
|
Underlying book value per common share is a non-GAAP financial
measure and is reconciled above to book value per common share,
the most directly comparable GAAP measure. Additional information
regarding non-GAAP financial measures presented in this press
release can be found in the "Definitions of Non-GAAP Measures"
section, below.
|
|
|
Quarterly Cash Dividend
The Company announced that its Board of Directors declared a $0.06 per
share quarterly cash dividend payable on May 29, 2018, to stockholders
of record on May 22, 2018.
Definitions of Non-GAAP Measures
We believe that investors' understanding of UPC Insurance's performance
is enhanced by our disclosure of the following non-GAAP measures. Our
methods for calculating these measures may differ from those used by
other companies and therefore comparability may be limited.
Combined ratio excluding the effects of current year catastrophe
losses, prior year reserve development and ceding commission income
earned (underlying combined ratio) is a non-GAAP ratio, which is
computed by subtracting the effect of current year catastrophe losses,
prior year development, and ceding commission income earned related to
the Company's quota share reinsurance agreement from the combined ratio.
The Company believes that this ratio is useful to investors and it is
used by management to reveal the trends in the Company's business that
may be obscured by current year catastrophe losses, losses from lines in
run-off, prior year development, and ceding commission income earned.
Current year catastrophe losses cause the Company's loss trends to vary
significantly between periods as a result of their incidence of
occurrence and magnitude, and can have a significant impact on the
combined ratio. Prior year development is caused by unexpected loss
development on historical reserves. Ceding commission income compensates
the Company for expenses it incurs in generating the premium ceded under
the Company's quota share reinsurance agreement. The Company believes it
is useful for investors to evaluate these components separately and in
the aggregate when reviewing the Company's performance. The most direct
comparable GAAP measure is the combined ratio. The underlying combined
ratio should not be considered as a substitute for the combined ratio
and does not reflect the overall profitability of the Company's business.
Net Loss and LAE excluding the effects of current year catastrophe
losses and prior year reserve development (underlying Loss and LAE)
is a non-GAAP measure which is computed by subtracting the effect of
current year catastrophe losses and prior year reserve development from
net loss and LAE. The Company uses underlying loss and LAE figures to
analyze the Company's loss trends that may be impacted by current year
catastrophe losses and prior year development on the Company's reserves.
As discussed previously, these two items can have a significant impact
on the Company's loss trends in a given period. The Company believes it
is useful for investors to evaluate these components separately and in
the aggregate when reviewing the Company's performance. The most direct
comparable GAAP measure is net loss and LAE. The underlying loss and LAE
measure should not be considered a substitute for net loss and LAE and
does not reflect the overall profitability of the Company's business.
Operating Expenses excluding the effects of ceding commission income
earned, merger expenses, and amortization of intangible assets
(underlying expense) is a non-GAAP measure which is computed by
subtracting ceding income earned related to the Company's quota share
reinsurance agreement, merger expenses and amortization of intangibles.
Ceding commission income compensates the Company for expenses it incurs
in generating the premium ceded under the Company's quota share
reinsurance agreement. Merger expenses are directly related to past
mergers and are not reflective of current period operating performance.
Similarly, amortization expense is related to the amortization of
intangible assets acquired through mergers and therefore the expense
does not arise through normal operations. The Company believes it is
useful for investors to evaluate these components separately and in the
aggregate when reviewing the Company's performance. The most direct
comparable GAAP measure is operating expenses. The underlying expense
measure should not be considered a substitute for the expense ratio and
does not reflect the overall profitability of the Company's business.
Net Income excluding the effects of non-cash amortization of
intangible assets, realized gains (losses) and unrealized gains (losses)
on equity securities, net of tax (core income) is a non-GAAP measure
which is computed by adding amortization, net of tax, to net income and
subtracting realized gains (losses) on our investment portfolio, net of
tax, and unrealized gains (losses) on our equity securities, net of tax,
from net income. Amortization expense is related to the amortization of
intangible assets acquired through merger and therefore the expense does
not arise through normal operations. Investment portfolio gains (losses)
and unrealized equity security gains (losses) vary independent of our
operations. We believe it is useful for investors to evaluate these
components separately and in the aggregate when reviewing our
performance. The most direct comparable GAAP measure is net income. The
core income measure should not be considered a substitute for net income
and does not reflect the overall profitability of our business.
Conference Call Details
Date and Time: |
| May 8, 2018 - 5:00 P.M. ET |
|
|
Participant Dial-In: | |
(United States): 877-407-8829
|
| |
(International): 201-493-6724
|
|
|
Webcast: | |
To listen to the live webcast, please go to www.upcinsurance.com
(Investor Relations - News & Market Data - Event Calendar) and
click on the conference call link, or go to: http://upcinsurance.equisolvewebcast.com/q1-2018.
An archive of the webcast will be available for a limited period
of time thereafter.
|
|
|
About UPC Insurance
Founded in 1999, UPC Insurance is an insurance holding company that
sources, writes and services personal and commercial residential
property and casualty insurance policies using a group of wholly owned
insurance subsidiaries through a variety of distribution channels. The
Company currently writes policies in Connecticut, Florida, Georgia,
Hawaii, Louisiana, Massachusetts, New Jersey, New York, North Carolina,
Rhode Island, South Carolina and Texas, and is licensed to write in
Alabama, Delaware, Maryland, Mississippi, New Hampshire and Virginia.
From its headquarters in St. Petersburg, UPC Insurance's team of
dedicated professionals manages a completely integrated insurance
company, including sales, underwriting, customer service and claims. UPC
Insurance is a company committed to financial stability and solvency.
Forward-Looking Statements
Statements made in this press release, or on the conference call
identified above, and otherwise, that are not historical facts are
“forward-looking statements” that anticipate results based on our
estimates, assumptions and plans and are subject to uncertainty.These
statements are made subject to the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements do not relate strictly to historical or current facts and may
be identified by their use of words such as “may,” “will,” “expect,”
"endeavor," "project," “believe,” “anticipate,” “intend,” “could,”
“would,” “estimate” or “continue” or the negative variations thereof or
comparable terminology.We believe these statements are based on
reasonable estimates, assumptions and plans. However, if the estimates,
assumptions or plans underlying the forward-looking statements prove
inaccurate or if other risks or uncertainties arise, actual results
could differ materially from those communicated in these forward-looking
statements. Factors that could cause actual results to differ materially
from those expressed in, or implied by, the forward-looking statements
may be found in our filings with the U.S. Securities and Exchange
Commission, including the “Risk Factors” section in our most recent
Annual Report on Form 10-K and subsequent Quarterly Reports on Form
10-Q. Forward-looking statements speak only as of the date on which they
are made, and, except as required by applicable law, we undertake no
obligation to update or revise any forward-looking statement.
Consolidated Statements of Comprehensive Income |
(unaudited)
|
In thousands, except share and per share amounts |
|
|
|
| Three Months Ended |
| | March 31, |
| | 2018 |
| 2017 |
|
REVENUE:
| | | | |
|
Gross premiums written
| |
$
|
|
279,617
| | |
$
|
|
168,842
| |
|
Change in gross unearned premiums
| |
(667
|
)
| |
13,223
|
|
|
Gross premiums earned
| |
278,950
| | |
182,065
| |
|
Ceded premiums earned
| |
(116,275
|
)
| |
(74,882
|
)
|
|
Net premiums earned
| |
162,675
| | |
107,183
| |
|
Investment income
| |
5,686
| | |
2,951
| |
|
Net realized investment gains (losses)
| |
211
| | |
(351
|
)
|
|
Net unrealized losses on equity securities
| |
(2,444
|
)
| |
—
| |
|
Other revenue
| |
13,999
|
| |
12,850
|
|
Total revenues
| |
$
| |
180,127
| | |
$
| |
122,633
| |
|
EXPENSES:
| | | | |
|
Losses and loss adjustment expenses
| |
77,246
| | |
63,333
| |
|
Policy acquisition costs
| |
57,135
| | |
35,436
| |
|
Operating expenses
| |
8,318
| | |
5,872
| |
|
General and administrative expenses
| |
23,325
| | |
11,333
| |
|
Interest expense
| |
2,458
|
| |
759
|
|
|
Total expenses
| |
168,482
| | |
116,733
| |
|
Income before other income
| |
11,645
| | |
5,900
| |
|
Other income
| |
71
|
| |
38
|
|
|
Income before income taxes
| |
11,716
| | |
5,938
| |
|
Provision for income taxes
| |
3,347
|
| |
2,039
|
|
|
Net income
| |
$
|
|
8,369
|
| |
$
|
|
3,899
|
|
|
OTHER COMPREHENSIVE INCOME:
| | | | |
|
Change in net unrealized gains (losses) on investments
| |
(23,384
|
)
| |
3,731
| |
|
Reclassification adjustment for net realized investment losses
(gains)
| |
(211
|
)
| |
351
| |
|
Income tax benefit (expense) related to items of other comprehensive
income
| |
5,923
|
| |
(1,542
|
)
|
|
Total comprehensive income (loss)
| |
$
|
|
(9,303
|
)
| |
$
|
|
6,439
|
|
| | | |
|
|
Weighted average shares outstanding
| | | | |
|
Basic
| |
42,581,939
|
| |
21,471,185
|
|
|
Diluted
| |
42,748,627
|
| |
21,688,733
|
|
| | | |
|
|
Earnings per share
| | | | |
|
Basic
| |
$
|
|
0.20
|
| |
$
|
|
0.18
|
|
|
Diluted
| |
$
|
|
0.20
|
| |
$
|
|
0.18
|
|
| | | |
|
|
Dividends declared per share
| |
$
|
|
0.06
|
| |
$
|
|
0.06
|
|
|
|
Consolidated Balance Sheets |
(unaudited)
|
In thousands, except share amounts |
|
|
|
| March 31, |
| December 31, |
| | 2018 | | 2017 |
|
ASSETS
| | | | |
|
Investments, at fair value:
| | | | |
|
Fixed maturities, available-for-sale
| |
$
|
|
|
787,145
| | |
$
|
|
762,855
| |
|
Equity securities
| |
77,155
| | |
63,295
| |
|
Other investments
| |
8,144
| | |
8,381
| |
|
Portfolio loans
| |
20,000
|
| |
20,000
|
|
|
Total investments
| |
$
|
|
|
892,444
|
| |
$
|
|
854,531
|
|
|
Cash and cash equivalents
| |
216,703
| | |
276,275
| |
|
Accrued investment income
| |
5,488
| | |
5,577
| |
|
Property and equipment, net
| |
17,557
| | |
17,291
| |
|
Premiums receivable, net
| |
79,296
| | |
75,275
| |
|
Reinsurance recoverable on paid and unpaid losses
| |
496,619
| | |
395,774
| |
|
Prepaid reinsurance premiums
| |
127,888
| | |
201,904
| |
| Goodwill | |
73,045
| | |
73,045
| |
|
Deferred policy acquisition costs
| |
108,093
| | |
103,882
| |
|
Intangible assets
| |
35,446
| | |
45,271
| |
|
Other assets
| |
13,814
|
| |
11,096
|
|
|
Total Assets
| |
$
|
|
|
2,066,393
|
| |
$
|
|
2,059,921
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
| | | | |
|
Liabilities:
| | | | |
|
Unpaid losses and loss adjustment expenses
| |
$
| | |
544,249
| | |
$
| |
482,232
| |
|
Unearned premiums
| |
556,540
| | |
555,873
| |
|
Reinsurance payable
| |
86,079
| | |
149,117
| |
|
Payments outstanding
| |
55,119
| | |
41,786
| |
|
Accounts payable and accrued expenses
| |
51,404
| | |
46,594
| |
|
Other liabilities
| |
76,913
| | |
85,830
| |
|
Notes payable
| |
161,009
|
| |
161,364
|
|
|
Total Liabilities
| |
$
|
|
|
1,531,313
|
| |
$
|
|
1,522,796
|
|
|
Commitments and contingencies
| | | | |
|
Stockholders' Equity:
| | | | |
|
Preferred stock, $0.0001 par value; 1,000,000 authorized; none
issued or outstanding
| |
—
| | |
—
| |
|
Common stock, $0.0001 par value; 50,000,000 shares authorized;
42,958,020 and 42,965,137 issued; 42,745,937 and 42,573,054
outstanding, respectively
| |
4
| | |
4
| |
|
Additional paid-in capital
| |
387,631
| | |
387,145
| |
| Treasury shares, at cost; 212,083 shares
| |
(431
|
)
| |
(431
|
)
|
|
Accumulated other comprehensive income
| |
(8,451
|
)
| |
9,221
| |
|
Retained earnings
| |
156,327
|
| |
141,186
|
|
|
Total Stockholders' Equity
| |
$
|
|
|
535,080
|
| |
$
|
|
537,125
|
|
|
Total Liabilities and Stockholders' Equity
| |
$
|
|
|
2,066,393
|
| |
$
|
|
2,059,921
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180508006665/en/
United Insurance Holdings Corp.
Jessica Strathman,
727-895-7737
Director of Financial Reporting
jstrathman@upcinsurance.com
or
INVESTOR
RELATIONS:
The Equity Group
Adam Prior, 212-836-9606
Senior
Vice-President
aprior@equityny.com
Source: United Insurance Holdings Corp.