UVE - Earnings call 3 2023 | Universal Insurance Holdings, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to Universal's Third Quarter 2023 Earnings Conference Call.

As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Arash Soleimani, Chief Strategy Officer.

Arash Soleimani

Good morning. Thank you for joining us today. earnings quarterly our to call. Welcome

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

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

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

Universal's website. universalinsuranceholdings.com on For section the and press of more and of all our the see filing, information, at on Investors SEC's the which please website release SEC are available

comparable to be GAAP is reconciliation website of measures A release also financial the in can at press found measures quarterly non-GAAP included Universal's universalinsuranceholdings.com. and on

With to Steve. that, call I'll turn the over

Stephen Donaghy

Arash. Thanks, everyone. Good morning,

The improving look underlying third as and I from forward. optimistic quarter strong trends, and benefited I'm

there of During in and our Hurricane the Florida initially The smaller within need. landfall, our quarter, retention. made to were their immediately policyholders Idalia time we severity comfortably absorbed anticipated and, than appears storm is considerably assist always, as

our reinsurance which, enhance structure, best-in-class and to to our from serves continue us capabilities, We peers. claims our with together differentiate

we more is we increase the business have and in in are to new started confident forward, largest geography, which additional our market, territories. Florida As look slowly

third the with Florida commutations Irma we efficient, future transactions these and given Catastrophe as look completed of Hurricane and we the as partial for storms quarter, recent ahead, predictable legislation. with expect pleased Fund, the among other the reinsurers more have to we Hurricane private to storms commutation We're In benefits well. of behind be us,

our it over financial walk to results. turn Frank Frank? through I'll to

Frank Wilcox

year investment $XXX.X growth Core loss $X.XX primarily with and adjusted investment common net higher morning. and mostly $X.XX premiums Good higher to net was from year-over-year, up in quarter. per million income. an earned net stems improvement share income. Steve. XX.X% income loss from common of per of underwriting stemming The revenue was share Thanks, Adjusted the prior compared

and in including million, XX.X% States. months. Overall year direct in XX Direct million, partially were premiums growth quarter, X.X% over Direct force. last growth prior increases, reflecting growth growth policies reflects up the written from Other up X.X% the earned lower written prior the rate premiums Florida premiums quarter, were $XXX from year by rate-driven in X.X% offset $XXX.X

up The Net net is were primarily the points prior premiums year year ceded million, loss The direct quarter. premiums decrease XX.X% net and XX.X ratios. to combined higher XXX.X%, $XXX was from a earned increase ratio premium quarter. reflects compared and attributable earned ratio. lower down the to The prior lower expense

primarily the quarter, XX.X was year ratio improved lower from year commission rates The to lower consolidated ratio quarter, XX% prior loss ratio, decrease to by net prior distribution partners. XX.X% compared with losses. weather-related attributable to to year compared loss The paid current the net stemming the points points primarily renewal lower down accident net X.X expense a reflecting

During repurchased close on of August on of declared XXXX, an shareholders share Board XX, XXXX. of the as The $XX.X of XX, cash record a third aggregate $X.XX share stock payable million authorization of July approximately XXX,XXX shares Directors at company XXXX, currently of quarter, the per X, to $X.X company of dividend On the repurchase the has remaining. million. quarterly of common cost August business

ask to said, that line With for the like to questions. I'd the operator open

Operator

of question, first [Operator comes Nick Partners. And with our moment please. line for & Instructions] One Dowling it Iacoviello from the

Nicolas Iacoviello

in what Idalia were losses the off, net the first from Just quarter?

Stephen Donaghy

$XX net well million not a coverage Idalia at ]. we we $XX the above which Nick, hit to [ specialty do point, [ And company's yes, retention. within our this set million ] loss expect at is ex

Nicolas Iacoviello

that $XX be you above plan? other weather that only Or there -- be what million, you the they that well? are would as would Got classify events that it. saw as And

Stephen Donaghy

the $XX And consolidated, in or area that they're events like were quarter. in probably $XX we another separately. reported of the other But of a million none them would were of million. have magnitude There

Nicolas Iacoviello

and Got in you related quarter of it. year And gross could then these development prior just to maybe a much net the comment I and commutations. how on incurred that the quantify the are commutations? guess

Stephen Donaghy

Yes. Nick. We schedule the on going that year knew we Irma commuting Sure, were state question. out and this just in QX based by Florida. to other storms of Great the be of laid

the we -- directly from all end adjusting created Alder, that So handles course, of adjusting. the an of accrual that our 'XX, and our at at benefits which organization is

to aware, run-up in average. to we released as kind in we Nick, created area particularly reimburse funds the state know, for we commutation, computation. typically on the And by So an Irma, are UPCIC accrual on X%. took you And of into of the logically we for accrual as LAE you reimbursement was LAE the is account. the the XX% that XX% got reimbursement XXXX, the that And to in as that

going another had were need. a -- $X.X knew Irma, certain we commutation million for $XX around $X.X for to up and we we million, put million funds about So was amount some of the We which Sally.

total the prepared would not have that had hit, for we them end at 'XX. through accrual been were those of the the So

Nicolas Iacoviello

Okay.

And I'm make sorry, just that. to sure understanding

what claims or subsidiary adverse basement that's Because and just net consolidated from fully adjustment? excuse a right? the event on -- was basis, that, between just So me,

Frank Wilcox

Yes.

the pointed the at end of these at we Steve anticipation in last participating an commutations. in year, Alder of as up ultimate out, put outcome of accrual So

payments from the [ made. as a prior which effect in reported from in could year, refund it the UPCIC So be replenish Alder, which receive development will those ] current will reserves

Nicolas Iacoviello

similar than billion Got you looks the macro, in billion firms from Hurricane implying that that. you had $XX development, the the amount view a and to it in right, more industry reinsurers like I guess ground-up Ian, Okay. are trending claims one cat But are wondering just level? seems primaries had it what specific I And on lower holding figure. modeling seen losses like guys lower industry I to of at All loss guess. still it. than I'm a the right. losses have terms if that $XX

Stephen Donaghy

leave the We pegged in and that I'm timing, that into the that at $X level going $X event. sticking estimate of the we billion of experts. to we Nick, the much and time sit billion And we we're the industry IBNR that with far thus future. those as there's benefits involved released about taking development Ian number at the hurricane. the to the through things good other here, And even feel in so account

Operator

Paul our Sandler. Piper question, for please. comes Newsome next moment from with line of the One It

Jon Paul Newsome

more in the quarter, a reserve here, negative? impacts little Sorry, to about the a Start I you myself got bit confused talk there, that. positive, just but with could little straighten

Frank Wilcox

Yes.

$XXX.X difference million. million from the So at last versus look the year, when X I the this consolidated the was, difference $XXX Ian which biggest million year-over-year XX% which basis between ended year, ratio 'XX the biggest on was impact net for a you the difference be, the months $XX would think, versus

then, for about versus difference year, the million highlighted changed XX about $X the that. And compares of million loss of storms last That $XX.X points. adjust So million. year the speaking, profits of Steve was impact in ratio million the they XX net development prior the so storm, to claims Alder $XX that course, to And from by $XX.X of million. then that's continues comparatively generated $X.X Ian points

an of bit that the year-over-year. you in little of So impact the would offset away, flush the there. difference biggest that's But storms kind when be a

Jon Paul Newsome

Right.

from about of So and prospectively we ex development -- are reserve at talking that sort adjust all Or maybe well? ex as improvements? that looking cat, if we perspective

Frank Wilcox

accident operational an of all Well, in of and see from trends right in claims coming But -- represented that's a year in, our we of claims, favorable now, mean I of legislation. from the coming standpoint litigated the we benefit the pick. conservative loss being favorable as today, stand number we're claims, here will manifest future lot which number current

the at than the last were far X insurance months of are X than a higher -- year. we months X looking you're entities, when booking to year so of pick we're first the first So this we for larger

Jon Paul Newsome

obviously there. more in the bit pick maybe amount peg Could of a pushing you've enormous is some had way But tort is more about loss reform potential be an thought I there's inflation we to up, why through that benefit of of think -- the with there rate, guess, as in to well, kind peg of down? not there? from that explore that You're no then, claims it? something I little Or guess, is

Stephen Donaghy

as business. I we Paul, entire legislation need to conservative from impacted talked at Well, And we've perspective. the about, still it our of we book -- hasn't a look think,

years. future see think -- developments of future, through flows that we will that lot the as to So believe the a business look I and that we reflected of be very in positive as I book

of And of as things the as see result decision at as quarter the again, forward, in reflects rate you reductions when in And we repurchase look we impacts. the legislation. a our whole look future, optimism result lot lot look as a the a into Florida impacting know, We of potential we business. our of positive a

Jon Paul Newsome

that putting tort I guess increases? I to higher would question actual that XX%-ish impact simplified Is for, the is Or that's just peg have overly is reform? higher at a price the to like imply if even of the way claims than pushing think very fair. it? That look XX%. guess, I why underlying inflation that you're aside

Stephen Donaghy

run going always months year, legislative we optimism think, changes almost in the I XX Well, future. are that a from rate arrears, which we reductions double right? indication had this the again, rate reflected which our was the So the into rate took,

healthy we adjudicate reserves the ensure funds And that have think then to that keep business and our most So in we moving build company in we our plenty the aside. the put conservatism I future. of into to position forward

Operator

comments. will any I the Stephen Donaghy call Thank And queue. I further don't back for the see turn in final questions to you.

Stephen Donaghy

Universal. like all and stakeholders consumers, Thank you, continued their our Have agency to I'd Appreciate it. of our of associates, great force our support for weekend. Carmen. a thank

Operator

disconnect. you we And you for that, now participation. your with And thank may

Universal Insurance (UVE) 27 Oct 232023 Q3 Earnings call transcript