- Earnings call transcript Q3 2022

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Operator

Greetings, welcome to the United Insurance Holdings Corp.

Third Quarter 2022 Financial Results Conference Call and Webcast. At this time, all participants are in listen-only mode. Please note, conference is being recorded. It's now my pleasure to turn the call over to Karin Daly, Vice President with the Equity Group. Karin. ahead, go Please

Karin Daly

following and broadcast everyone. at available be XX replay Kevin, also www.upcinsurance.com. Insurance made will days approximately for this on available call. good you, UPC afternoon, has A the Thank its website

earnings Additionally, in and company's the of the presentation of release you section copies can website. find UPC's Investors

to be Bradford the Peed; like estimates, Board will company assumptions and and Chief that Martz. based President company, are and behalf note Financial Chief the Executive on today statements. these believes during that Speaking Bennett made and Chairman of Officer, On of reasonable statements facts The Daniel this Officer, not are statements R. are I'd call forward-looking plans. historical

statements actual or uncertainties could or with actual Factors and if risks results Securities annual or reports materially cause could other found Commission results may on implied prove and most statements. be to inaccurate those Form XX-Q. our on vary However, assumptions by the quarterly the XX-K estimates, Factors the expressed Form arise, our if section that materially or the report Exchange recent of US differ from plans subsequent in forward-looking in the Risk forward-looking filings in underlying

pleasure or as update on turn revise required made, the and any by Peed. Forward-looking statements. of except to the Dan? statements to Mr. which Daniel forward-looking speak that, as no call undertake applicable only date they my it's obligation are over law, to With we

Daniel Peed

of planning specific lines of will then our commercial CEO of in difference Martz call. the continue provide and was impact joining to by Thanks personal to third rating I'm quarter see core Karin. disappointing and the supplements Insurance Results downgrade Dan These starting page stability our factors highlight the include therefore, grow I'm Brad performance written our and for and the lines loss and Personal Company's Peed, Insurance us and of more third on for Insurance. loss retention overview activities premium. UPC with levels premium Chairman more renewal the issued $XX.X some an investor our Please Demotech million. between and offer our a UPC information. financial earnings gross numbers. of lines for rating. thanks businesses. Kroll five Key of Company's Hello, UPC quarter of

Another was our on out significant than seeded increased XX reinsurance decreasing. spend cat net premium our the decreases which therefore and factor coming are of earned faster increases placement, premium exposures

XX% in year prior the driven year by values of in third since about large we we the $XX.X total driven down, prior premium an result. non-cat of total lines with outpaces decrease accident the the strengthening significant allowance quarter, in force increased claims driving operations. personal our against write-down on to excessive down goodwill reflecting losses down have These losses. year downsize reserves the are compounded policies results Florida DTA, continue valuation losses earned the wrote inflation litigation This personal our decrease current portfolio and lines, of poor the in While is In second XX.X%. by the XXXX, severity our in million and the quarter beginning approximately return and with down

was to written larger third million premium book. the year-to-date lines million. losses. grow of when demonstrate increase increased with cat earned an insurance and value. Core increasing also rate Results commercial XX.X% earnings XX.X% In quarter and year-to-date. in combining We third combined American Insurance quarter of of income Coastal commercial for premium a net with anticipation the our lines for the power the our business the reinsurance strong ratio average costs. despite XX.X% plus drive In XX% lines million are the with quarter Ian continue net earned than rate $X.X profit and personal rate to of $XX continues $XX.X lift for average The Company, an Hurricane to rate underlying

increases and over achieving are to insurance rate XQ, XX% exposure. and strong P&L improving value, reducing improving averaging We terms,

We also year experienced third the of prior million $X.X $X.X million favorable in commercial year-to-date lives quarter for our development and business.

Coastal decided the regulators of outcomes different state runoff. have November and To businesses, and the Rating ratings Xst and in our in accomplish financial commercial continuing Insurance Financial quarter, lines both as Louisiana. Florida beginning Xst, late policies as to lines will early plans New businesses result Demotech. Given Louisiana. XXXX we of Stability withdrawal Texas, generally by non-renewals and loss in York, UPC UPC offer the personal in Demotech Florida, lines in core strength plans lines our These as and are of third both very personal physically and the Kroll and January and been in Interborough approved each American to and In between Company, we Insurance in and into and retaining as this, Company. filed put we non-renew Interborough the Texas, personal and renewals

net of announced, In Company's quarter business is previously de risk lines loss premium. ratings, increased significant lines core spend, loss evaluate change. personal of personal year portfolio, due write prior and Insurance a we development, headwind integral options UPC all to the we reinsurance reflecting drives to to for off from personal poor company. our in performance loans. in summary, financial personal decrease goodwill stability in A a our of disappointing continue quarter our lines earned reflected the continue of third As divest which lots to

quarter perform Florida continues of hit a despite one hurricanes well worst to to Our business the profit recent commercial in with history. lines in the

skeptical activity over market, to Martz. headwinds to the future, hard catastrophe Florida We With expect elevated Florida capital levels. and that, I'll it turn by a excessive continued market the reinsurance and Brad remain for foreseeable due recently and to created hard litigation

Bennett Martz

Highlights XX-Q of this is And and you, the and financial for Thank release, review insurance. Form pleased I'm results, press to CFO for regarding share to more the share XXXX GAAP million $XX.X review the UPCS everyone $X.XX also a President encourage net year. to Dan. of $X.XX investor hello, but a company's a marks loss information UPC or ending September a of $XX.X Brad included presentation, XXth, compared net million quarter or last performance. our loss

accident year million net million million retained of development. year page core of or $XX.X that a prior a our On cat share to of four $XX.X loss current core and investor $XX.X million in losses ago. of our reserve presentation $XX.X Our of $X.XX loss share compared $X.XX or a included a highlights loss year core the

a participation. million million Our IBNR cat by EPC year retention loss was of captive return REIT reinsure Coastal quarter. core determinate economic included which was seeded roughly between of by million, The captive's around resulted development Prior and impact older our net segment. from million but losses & during $XX reinsurance reserved excludes downgrade loss Higher retention prior current the Hurricane $XX.X incurred by ears $XX.X by to retained were American of year accident worse Property the driven severity additional upon $XX layer the years replacing net by one to captive program, due a Ian, of premium during cat million on improved The cause to who line our $XX.X elected million a than United REIT. third loss $X Demotech Casualty plus outlook the for accident in excess loss on UPC personal current so premiums to our and accent quarter. reallocation the the of million their related participation million UPC's to $XX losses the accident your our continued from perform expected, ratio $XX.X a

and year. points in $XXX.X demonstrate Seeded year, third million gross loss UPC's lower were loss million, million net exposure $XXX.X our to had adjustment relative to million year-over-year. or ratios. quarter $XXX.X of Gross lines lines rates year about premiums and quota nine XX%. base about of premiums actually commercial we're of the to over $X.X catastrophe income net for favorable XX% in at $XX.X mentioned, included an which exposure losses to XX our $XX.X expense commercial to revenues combined last presentation of net were million written our accident loss in quarter items The premiums XX%. Xst. period. declined added getting comparing of current net due more the due earned XX% Dan increase of $XXX.X and approximately equity approximately of which personal were continue losses securities investor Pages sessions million $XXX.X lines total from Other rate increased development reduction investment June decreased quarter million, XX% through As unrealized both to share favorably and during our that the million $X.X current million yields base. earned lower session And or was from the XX% the and higher than XX current to our prior $XXX,XXX significantly

points of same ratios. XX With the adding year on reserve the development impact prior

an down points for business to million commercial accident of of investor on or we're had This related line XX% inclusive to mentioned, catastrophe quarter Our last underlying Page to continues summarizes on and Dan exclusively our focus the Page Ian, which results underlying improved program. lines segment third loss highlights $XX.X presentation in to by Hurricane over our investor determined of of the is due over year, show of the going forward. prior Hurricane was IBNR six our produced year. LAE Ian loss reinsurance profitable core our impact XX.X%, XX to loss large and $XX.X years. of million, reallocation the to year compared and results exactly net ratio part why five significant as the presentation

Here showing American catastrophe and each P&C. well open of by United market United shared the where as to Ian red as and limit be & lines the dotted American to see is funds estimated private Hurricane Florida in you Casualty, utilization Coastal allocated and to Coastal specific Property will hurricane

is limit top $XX.X fund. X.X million Our And private program, leaving remaining. United catastrophe estimated only about from Florida the reinsurers of of the the near from hurricane P&Cs personal loss lines million

Our Hurricane that the lower aggregate Fund. Catastrophe approximately of estimate Coastal American reinstatement $X.X and has billion have after protection $XX.X American we of lines of million remaining. to commercial specific After majority is million, Hurricane Coastal's premiums Florida remaining loss we much but Ian, is limit $XXX of limit approximately

excess as layer, our [Indiscernible] significant & million United risk runoff reductions new plan needed clearly to going group. our for required. from expenses forward. by monitor a This plan $XX.X X% acquisition developments, regulators of Management underlying Hurricane $XX the decrease million continues decline related UPC's Casualty our million work is Property the is was for a at with estimated participation operating well to or a its event from created in announced million, $XX now second retention driven runoff $X.X agent previously business. year. uncertainty million Given and factor commission adjust and on as $XX costs Ian personal mainly closely over in our expected of viability as of the were or and lower year our

UPC in combined per surplus finally, the share concludes by at group to unrealized million However, $X.XX. attributable book of with And to impacted stockholders for share prepared Rising period. end the to offset expense per $XX.X was of value personal concludes to income $XX. comprehensive quarter led interest reconcile $XX.X charge currently share. changes equity of the significant today's interest losses help million drove approximately in $XXX goodwill Page sheet statutory line million. continued some estimated goodwill and the segment. be of G&A to We that the $XX.X loss declined amortization in of rates this the GAAP presentation accumulated highlights the portfolio valuation of $X.XX your includes other lines impairment a the thank our call. this to due declines with for which investor million, of balance That is UHC policyholder on remarks. to seven this our value approximately our third fixed our -- related you per and

End of Q&A

you. does Thank our That conclude call.

this again You participation. you time thank disconnect at your and lines your may for

AMERICAN COASTAL INSURANCE (ACIC) 10 Nov 222022 Q3 Earnings call transcript