UVE - Earnings call transcript Q3 2021 | Universal Insurance Holdings, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the UVE Third Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions].

As a reminder, this conference call is being corded. to of conference Relations. Corporate like Luther, to now President Vice Strategy would turn over the Rob I and Investor

Rob Luther

you, earnings everyone. our morning, yesterday. and our Thank on discussion Welcome third which results, to XXXX we reported quarter good

me call Steve is Frank with Officer; Donaghy, Officer. Chief Financial On Executive and today the Chief Wilcox,

Before and measures. non-GAAP please today's may discussion note begin, financial we contain statements forward-looking

assumptions, those actual involve statements results statements. risks from differ materially that cause Forward-looking and could to uncertainties

press website, release non-GAAP which SEC's turn I'll the release. UVE's and For SEC the measures of to more see over reconciliation financial it information, the all and are GAAP press comparable With Investors is filings, please that, of on to A you. website. section at included Steve, on measures quarterly available in of our universalinsuranceholdings.com, the

Steve Donaghy

morning, Good Rob. everyone. Thanks,

Our of execution and improvements. demonstrate third disciplined our multi-year yesterday results growth quarter priorities including operational continued reported strategic

earned driven premiums direct book. growth third in rate the earning the Florida primary Our in by was through XX% primarily of quarter increases

force now more underwriting Florida while flat than in primary increases XX rate past policies the over continuing for have total in with to year-over-year. shape simultaneously filed risk XX% our in We relatively months,

lower lower expense from business Our were expenses and management agency controls, employee continued including commissions, gains. productivity

to walk to the I'd Frank like quarter. financial lower results were turn return in equity over highlighted our accruals, to addition executive In these results. annualized to compensation average by a on XX.X% through it Frank? now

Frank Wilcox

Steve. Thanks,

regards in fair and value on was and on extraordinary in securities earned and gains improved investment million were basis for in rate on year year's LAE decreased adjusted X.X an quarter the realized majority the ratio. operating focus we're The the our Adjusted the to premiums and weather are events in today related reminder, in X.X any capital realized to revenue the lower year the We on of remarks. offset we of $XXX.X quarter. premiums the discussions current other net earned gain by a loss excludes primary the and investments the expense of gains reinvestment quarter and renew. the reinstatement X.X quarters as ended recognize a improvement a a points X.X%, a net yields in are basis book benefits to gain in operating saw unrealized to Both gain direct quarter of investment prior basis, quarter. $XX.X for XX% states ratio sale in improvement through strengthening at non-GAAP net decreases subsequent losses continued $X.XX his by by XX.X increases primarily a that the position partially expense. EPS the adjusted and to income unrealized the exclude in for million from development, commissions. points current a on In Direct our $X.X third points of and as impact portfolio, costs on the portfolio million our XXXX prior reinsurance On with and realized ratio for XX% led versus to due interest the mentioned from up improved Steve Florida by basis and EPS higher a the million total third combined to million On deployment. policies driven decreased basis non-GAAP was income in $X.XX a down quarter also efficiencies quarter driven in $X.X premiums of expense adjusted earning on ratio the XX.X% and income, operating and of XX.X%. ratio XX.X the investments effects the third reserve decrease As fourth lower for on by on driven points improvement GAAP The quarter. result a realized surplus.

repurchased cost current share through company the share XXX,XXX as Board stock, of common August shares to the of quarterly business XXXX quarter, has The X, and of September million the company's million. aggregate an declared at as $X.X program XXXX $XX.X On close XXXX. of on XXXX. XX, XX, a the dividend XXXX, approximately August Directors repurchase on During X, X, was November remaining runs record of paid of cash authorization which $X.XX of shareholders of per July

for and like equity exceed we XXXX. yesterday, release for on our non-GAAP events and extraordinary we both claims assumes of business in weather return It $X guidance a range a also for now the plan, assumes increased the average equity open With XX%. I'd and cost. flat EPS still our in the expect XX% between operator are to our and loss line to We EPS. guidance between The no maintaining to If mentioned that, XXXX. and of As adjusting market GAAP events weather from adjusted a benefit expect GAAP $X.XX questions. ask see

Operator

[Operator comes first Sandler. question Shimp our Piper from And the Tom Instructions] of line with

Your is Please open. go line ahead.

Tom Shimp

past the first know us months more positive guys. than can the you bill I your how now are is up on negative there additionally, litigation expected. morning, insurance to still thoughts Good effective bill We're more but of property that it's be a aspects or initially impacting trends ending are date you the reform. Florida early, and give guys few of

Steve Donaghy

Tom, morning, good Steve Donaghy.

legislation. cautiously several continue they The legislation which is we outer You their move the enabled very adjusting, attorneys a And of use we scale vein to reasons. our past. ARM request term I of know, prepare adjusting internal to us and responding the in the are optimistic other in have quickly the for in the to way think didn't forced to side our ARM, think in that comment, I initial the

organized to settle which gives past. window a the fairly them is claim exist And some in the pressure and more there it they didn't So to us be proceed. on how

see result of that we legislation. So a as the positive

to side recoveries past at they more it fact needs be a We the and the also fee to that look see the in forces in eventually didn't their them achievable settlement past. the way other their that they win realize a to have if not court in been they request usually to and larger go not and is that fair achievable has in

year the years that's out. for is So feel good it. after request also those are two feel other settled aspects we on and We cash the claim two be of the is funds favorable, - about will that tail

that beginning to decline would year-over-year we'll well is those get [case Clyde] as across to benefit. So we point points, I state. as see the the also

the So well, I at to at AOB legislation point. and fair from this a that's think indicator continues us look and XXXX serve to state the

sorry we're but for long try the going to to So for enough answer, cover you.

Tom Shimp

great. That's

or some us holding So past on the avoid downstream is storms from available year and could the company give to serious fortunate most Maybe an company. update the to of been the two. you has capital adequacy what

Florida addition, through states. update thoughts test to that on both your growth as there quarter other just maybe both in some in fell I you're and In and an capital know appetite thinking updated third because how those and the dynamics. Maybe of it relates

Frank Wilcox

Frank. this Good morning, is Tom,

that that news we capital. through mean increase growing premium UPCIC the premium demands top-line I And are in rate for good So, that's, is increases.

capital the needs. continue we to So support

to that, the up accident addition we've XX%, approach capital. the demands loss by year current increasing puts of conservative In more which to also pick taken on

XX October. infused of we August. the in So month the million cash of of month And in

OIR surplus, as as infuse of the end XX count you which to similar that did process of approval of with we will the million, at year. also through what We an through X/XX the go

insurance holding is the which we support number have to continues to So as continue one priority. the believe to Company capacity entities, the

Steve Donaghy

to And about other Tom, relative and states. rate your I the would add, question

hyper-focused We are and risk point. at this rate on

in, some to feel rate others rate though in. our to where we we what well in and internal want for to willing has relative as manner profitability codes we've business we're cetera, zip we in didn't to we willing we territories, adequate where in was certain and take to So as write pulled et states, us where it And analyze a served continue growth. model back to take adequate grow the

more flow policy So, rate books. a but perspective, from the to a overall on temporary through a it but continues on basis count growth continues

Tom Shimp

you Okay, sometimes then statement. become investors these great. And it - maybe XX% then the In release, increase and into written income me. takes said think rate past income and in time increases just rate Florida over press eventually one to the more active, I from the months, forget earned XX for it

should results. leading help maybe the So we to about of think timing through, underlying think think we how you these rate increases, could improved us

Steve Donaghy

Yeah.

is rate Tom So that it's it. up by business our pick always months laggard on The asked within XX good across you a a this. really

through. flowing So while is the rate

We recent approved several deal XX.X% for to hard most market states, rate within in a through beginning the with QX and really new is continue will flow that just to is business renewal. affect very across Florida, but

in to UPCIC. a So continue manner throughout investor XX will would the understand take that favorable rate - we a next savvy could months at

Operator

any back showing no to Instructions] for And closing time. Steve I remarks. would [Operator to turn like I'm questions over it further at this

Steve Donaghy

agents you you. Yes, day. support our continued to stakeholders all Universal wish thank great I'd and like a and associates, our consumers I all their of of for Thank

Operator

conclude the conference. program. you for thank Ladies This and gentlemen, today's participating does in

now You Everyone great day. a disconnect. may have

Universal Insurance (UVE) 28 Oct 212021 Q3 Earnings call transcript