Earnings call transcript Q4 2022

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Operator

Greetings and welcome to the United Insurance Holdings Corp. Fourth Quarter and Full Year 2022 Earnings Conference Call and Webcast. At this time, all participants are in listen-only mode. Please note this conference is being recorded.

I will now turn the conference call over to Karin Daly United Insurance Holdings Corp. Vice the and Group. representative Relations President Equity at Investor

You Karin. may begin

Karin Daly

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

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

Chief Speaking Daniel Peed; R. Chief Executive today Officer, Martz. will be Bradford President Chairman Financial and of Bennett the Board and Officer, and

that believes the statements are reasonable of I'd are company, plans. call are to note based and during behalf that made On not forward-looking like this statements. these on facts historical assumptions The estimates, company statements

these or inaccurate, differ forward-looking results if forward-looking could assumptions other implied the statements. from arise, underlying statements or expressed those by actual However, materially prove the in or risks estimates, plans if or uncertainties

to that recent and and US materially reports XX-Q. differ may actual be Commission the on subsequent section Exchange their cause in Factors Factors in with Form Securities Form XX-K company's report Risk on on could filings results quarterly the found annual the most

as any only applicable undertakes of law, obligation company date or they are on speak made required and the statements Forward-looking no update to by forward-looking which statements. except revise as the

pleasure that, may Daniel Peed. begin. call With Dan, my to over it's you the turn to Mr.

Daniel Peed

at well provide our tower. lines on corporate will touch on on overview the I'm our to as cat business. Dan call. Thanks, and Karin. our operating as planning results Hello and continuing CEO Holdings Brad and focus results thanks on Martz personal our Peed, lines; information Chairman I'm reinsurance Corp. United for commercial then in quarter some earnings withdrawal us fourth activities joining then of from Insurance the UIHC,

two years, we've personal Over the been business. UPC's lines exiting last

in of we states and renewal and end plan at of of Florida, announced in rights August York. of withdrawal southeast Louisiana northeast First end in then personal XXXX, sale XXXX, lines rights finally, renewal the Texas, of remaining the the XXXX; the the the of UPC of sale the of through the at New the in

time, severe and this other Florida to in which Throughout we regulators. of losses hurricanes due worked we with and combined amended OIR prohibited incurred our our with withdrawal emergency Ian In the Nicole, plan non-renewals. orders mid-November closely

In early including the replacement some administrative a carrier continue requirement could for entered of our we December, policyholders. offer into supervision OIR, with looking a or policies that to for all

company and policyholders approval be agreement event policy, effective Brad's subsequent a an Office with Regulation, in the of with As Slide XXXX, to of Insurance Insurance into at described X, which offer remarks. least the we further entered will XX,XXX replacement February a

on which year-end And Due the reinsurance Florida loss Department the loss limits in of estimate in Financial available. to United the placed Ian receivership P&C Insurance UPC Hurricane XX, resulted review, Company was our from UPC our gross February, exceeding increased, in Ian February Services. with

of resulting more Brad will financials. we Insurance describe deconsolidated have as and supplement investor United Holdings provide help to unaudited forma XX December financials in pro the provided the Corp. information

Results operations Insurance as release our out ongoing business as commercial the of Coastal to written the well to like I'd our investor in in in earnings are lines now personal American Company. lines commercial turn supplement. lines and for broken

of description brief a for First, the metrics commercial lines. underwriting

by XX% to over We ratio per continue the year. to premium PML reduce

peak reduce to XXXX. are We by executing season XX% PML to hurricane XX% plan on between exposure our

'XXs. increased in the accelerate in year-over-year from X.X% XX% up remained even rate rates QX further continued the to highest over hurricane The XXXX. years to was building X.X% and to been average -- The in risk-adjusted though valuation was the average retention average XX% across The the XX in up portfolio in they've year-over-year. and XX% deductible rates

I'd but further quarter and are indicators our fourth $X.X Results described the the and Pre-tax our point for XX.X%. Gross lines million, $XX.X written supplement year for in out $XXX were Pre-tax release in million earnings for million. year. business. key performance earnings like million, XX.X%. million investor was commercial to have up excluding for the the quarter Gross XXXX, been premium earnings Ian for losses, up was premium written would $XXX $XX.X

for underlying favorable losses of hit with cat including The XX.X% of hurricanes of was X.X% development the a combined for one underlying of of ratio X.X% the ratio combined the quarter with ever ratio cat XX.X%. year The reflects an Ian, most The costly ratio underlying an Hurricane and combined losses. year ratio combined prior for and to reflects XX% was prior underlying XX.X% combined XX.X% favorable The development XX.X%. combined ratio year Florida.

We were resulted policyholders receivership quarter other developments of separation disappointed with financial working of support in and that P&C United deeply the to fourth and the runoff with diligently the ultimately complete UPC. services

strong Forward, lines American historical performance expect of will the we specialty Coastal. are we a mostly reflect business, commercial which

to a to portfolio a since able inception an underwriting yield to expected XX combined continuing American an losses the ago. the XX%, while Coastal with is catastrophe track high-quality absorb portfolio proven has designed be years below record underlying With its profit. ratio Florida

The Florida as XXXX harder been over has than XX cat was market and hard and it it XXXX, remains years. significantly is in in as

of hard market challenges, creates to creates be pricing both future. reinsurers and least excellent foreseeable including improve to I placements, to portfolio. insurers for conditions cat quality the at and also expect the continue this opportunities the it reinsurance While for these

Brad that turn it over to With I'll Martz.

Bennett Bradford Martz

our but performance. you, presentation, hello. press Form release, information Thank XX-K for This company's investor to to everyone regarding our results President Brad the Martz, review and and and UIHC. more of is Dan encourage CFO review pleased the I'm financial

million of $X the or of the of a share compared $X.X in and core or million December XXXX a a net core share $X.XX share $XXX.X $X.XX included year $X.XX of million ending XXst, loss quarter GAAP loss a last The loss versus $X.XX million or $XXX or share a year. a to net prior loss a

expense increase the loss presentation of for million loss results The reserve in net investor $XX.X four quarter our million Page year adjustment of align companies for $XXX.X non-cat included prior fully retained re-estimation and and driven across and our and at significant of net with loss to losses actuarial ultimate and primarily both all year-over-year cat all catastrophe year-end. development. its liabilities firm losses by UIHC accident independent of summarizes a years was

strengthening commercial down as as were about $XX still Page it of to breaks incur losses investor that related five million did $X lines. despite presentation of approximately of reserve non-cat mentioned. lines million but losses, worth our our net and Dan was indicates in segment well year results most our as But catastrophes incurred personal losses accident current for profitable by of

$XXX related Our for PCS on to included cat development quarter loss and fourth of net million current Ian Hurricane reinsurance. accident approximately million from net million and the approximately for $X Nicole events year Hurricane $XX

loss September United moved also specifically billion Insurance to year-end at $X Ian P&C or former exhaust Property to our & causing gross from Hurricane all billion known Casualty from $X.XX Our Ian. for XXth its at protection as UPC Company estimated affiliate United reinsurance

February as United put its Florida result of and the policyholder surplus receivership it of into P&C's XXst Services a December Department XXth, net with effective losses Financial was retained exceeded XXXX. As

runoff bring to for, anyone lines it of While process was be our business. hoping this does otherwise was personal what underwriter not clearly was for closure the and to a likely result primary challenging long

UIHC its be and statements and consolidated end entity of P&C's consolidated United XXXX. of UIHC's basically ownership at divested from receivership control means financial this has the February will

like have showing seven looked UIHC's forma pro Pages if UIHC results our its from information investor of results what at eight and would presentation deconsolidated UPC include year-end.

look without to Commercial forward subject is change shows just XX-K this will with P&C filed, going make unaudited and our sense until UIHC While American numbers is and of our Coastal does and United Lines. Personal in help company Interboro in it information Insurance Form Lines year-end what like

core placed shows catastrophe the Catastrophe Coastal. of for American for X $XXX in Coastal's program during our still segment XX%. increasing reinsurance million Lines force million remaining our the After Fund to Coastal investor had American limit $XXX from Page loss Hurricane at quarter, Florida still over presentation Ian XXXX-XXXX of American Commercial the

that more American we exhausted, periods. exposure under in American incurred on a resulting in until XX% hurricane favorable that the adverse will million Florida to Coastal's means it's future come Ian loss This but $XXX co-participation catastrophe development net and development is in limit actually Coastal losses believe likely has future fund reducing

American limit reinsurance million the subsequent approximately aggregate $XXX protection remaining is Coastal's for Ian. context remaining nice events which regarding after immediately provides

Company. February entered Dan completed X, with As mentioned Insurance Slide effective a transaction and we

services flow resulted in with in intellectual some to earned expected fee servicing purchase Insurance gross this policies with premiums This an wholly-owned for of and of United salaries X% by equal data people provide MGA plus transaction fee and system-related help technology of such renewed agreement the service with and in property income UPC cash exchange to and Slide Management, leveraging asset the is which will This realize to by expenses. costs associated periods. our future reimbursement business as income unrestricted our

including of As year premium approximately to of loss after incurred million acquisition year future that assets held well the that to at of $XX million nonrecurring no be as also intangible periods end, several deferred PNC's related charges value events a earned UIHC portfolio, longer as related unearned will million United costs not fourth $X $XX in disposal the any investment end. result the a a of occurring United in write-down quarter impairment PNC's

there results in still finally and from arrived. QX PNC's of be will our business stability believe included era Well a some January we United February from of noise profitability XXXX has and new

Financial before fully cat separate completed stage this on of business renewal at X this risks of June our primary working The to getting with Florida or our Services year. reinsurance the Department continuing entail core and

for remarks your thank interest and our UIHC. we concludes That you in prepared continued

Daniel Peed

Thank you.

may You disconnect. now

AMERICAN COASTAL INSURANCE (ACIC) 2 Mar 232022 Q4 Earnings call transcript