UVE - Earnings call 4 2023 | Universal Insurance Holdings, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to Universal's Fourth 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. Please go ahead.

Arash Soleimani

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

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

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

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

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

Stephen Donaghy

out meaningful that success year benefits and and for was Thanks, as years a future. the picks for our both stronger a Arash. that Good reserves the with We've what one-way significant our of year efforts conservative adjusted fees equity, common view most and fourth our are in to full level morning, I on believe results XXXX transformative returns even closed We in double-digit and bolstered and quarter our added firmly us, position I legislative buffer attorney assignment to environment. elimination the loss for history. of predate us new in everyone.

our In the to the future. to significant Hurricane Hurricane past toward in history, the in commuting the the and we another the our Fund. we Florida place and we Irma, did this focus wanted with most by Catastrophe because Importantly, rearview mirror took storm future shift largest step XXXX, yet

Claims the XXXX subject claims, across anniversary session the are total claims. X-year the and all including legislation, daily the becoming impact legislative improving, board past special of to claims, the renewal clear. and in is and policies reforms claims, we're date reductions of represented trends new assigned that the are new Now

we've and capacity the XX% reinsurance is for XXXX-XXXX tower event negotiated first future. additional already secured, Our multiyear

taken, particularly to scale, Florida Given positioned we results. succeed are our through to Frank agency and size, over relationships and turn revamped walk to reinsurer we've financial well our it the steps Frank? independent environment. I'll recent the in

Frank Wilcox

growth premium Adjusted from diluted points net share X.X to net net $XXX.X a X.X% higher last per Thanks, rates earnings lower to was renewal of primarily growth Direct the up year-over-year, million common lower year-over-year, Overall, year written partially increase XX.X% points net points increase attributable per million expense share diluted higher adjusted a stemming year-over-year, year-over-year reflecting investment earned up The loss quarter. from by mostly ratio were lower and increases distribution written direct a reflects to XX.X% net ratio were by ratio earned The pick. net year earnings primarily partially growth and up higher the attributable The lower prior $X.XX million, by net states. a up over with prior $X.XX, loss income. growth lower policies down $XXX.X Florida premiums stems in quarter. million, and in quarter, lower rate-driven morning. in year XXX.X%, up commission of including year higher higher the $XXX.X with primarily of common was prior XX.X% earned calendar loss other paid X.X commission from ratio XX.X% was by ratio. a offset improved and loss X% and X.X% the rate Good net premiums ratio The prior months. partially XX Steve. net partners. premiums The expense premiums offset X.X ratio premiums a up XX.X% lower offset premiums growth were decrease primarily is net $XXX.X the quarter. revenue Net reflects higher commission compared from revenue, from investment revenue. Direct year and increase reflecting earned expense income, combined Core in was ceded the ratio. The force. to

line During approximately the shares cash X, to On of $X.XX The quarter, the common With the operator shareholders $X.X XXXX. of per March fourth regular the quarterly March cost of declared close authorization questions. Board business current to open $X.X an at of the aggregate the million. of million of dividend as of payable stock ask to repurchased remaining. company record company's X, that, has repurchase XXXX, share share for a XX, on Directors February XXX,XXX program like XXXX, I'd

Operator

Newsome Our first Paul from with question Instructions] Sandler. comes Piper [Operator

Jon Paul Newsome

I take talk step a or and was maybe maybe could step hoping growth back outlook for the about premium you forward perspective.

factors, expect areas with, sort got number a growth. You've the some you in still we a rate factors obviously, we're how those obviously, of should thinking cross-currents to shrinking over some the years? my effectively at that to rate. stop company the next changes other But of will premium and And I you talk of in of think point, don't kind affect mind know about major about if effect. offset positive just couple mix as of Can them

Stephen Donaghy

question. for Yes. the Paul, thanks

of changes the a on we lot and analyze end impact went we 'XX, at has we the into look an legislation successful things that effect that do. of and analyze at As

retention book of X.X% had and more So That's we is XX%, increase premium improved indication stable. to our across in business the 'XX, implemented has our had Floridians book. and company and the of to positive we impacts that a several approximately a in

predicated to those look are the future, prior experience. on rate the increases XX we months As

I take future the into for 'XX. what extremes to a continue an indication, years as at won't factors we'll say you're insurers future, sometime past some around May flowing our reductions indications if and to the the those hopefully, as possible in passed in And point end 'XX. and be agents. in think taken all was and in take account positive. the I are company we'll result still the would It and would rate. decisions the So But looking some of make our through 'XX book rate well of we've the continue -- the I like see we'll But through best for

Jon Paul Newsome

you both the at on point of where Are grow Florida? want you on and growing count are or in PIF outside PIF to count a a in

Stephen Donaghy

Paul. Yes,

in grew business began release, saw you book last we as of And December, we policies As Florida. to adding beginning our the of Florida outside year well. in

the are as being and identically, behaving future all this in of we are head we very Not coming So is into where new business again, counties so kind laser-focused we careful on from. the profitability territories are in or the environment. state

Jon Paul Newsome

with been reform, loss about the must and could higher conservatism have about there And to tort the then from and to justification of pick the maybe maybe asset that? direction impact Obviously, of it talk of that pick. margin kind we extra expect Could turning those you go but for other you components of some the extra factors. talk the other factors would

Stephen Donaghy

Yes.

be various Florida legislation be went our in we felt prudent as that run was I affect we affect the of extremely because the think, the to book Paul, as company and very it influencers business, through XXXX particular, business, or and didn't wanted all cautious I make cautious the very handle to all to enough going as had to sure dry the business once that policies powder as we until grow forward as again. begin we the And each. well to renewal business look to secure we positioned point of be the

Frank Wilcox

which a our look on to follow for Paul. up relative by And to it's higher ever at than quite basis, been net relative our on they've not or the whether you dollars it's or our in higher counts, that, Yes. on time, the an than reserves they're insured absolute When whether multiple lower value. respects, claim higher just been to in premium average just way, are force. they've some They're

balance our stronger going forward is that feel than we ever been. it's So sheet

Operator

comes next Nic Dowling Our Partners. Iacoviello question from with &

Nicolas Iacoviello

from was and if the just events? development in quarter question, First net any which there so, adverse

Stephen Donaghy

Nic. Yes,

As we our redundancy we went pick. considerable XXXX, loss through had into

look that to decided new affecting our and the add powder in to with take of prior working a that were and after and internal the files external, dry actuaries, legislation any to claims policy. both particular those we place at So the

-- used forward. as be added we redundancy again, added the points the of But and that it kind prior powder to resulted, to way them we will years. mirror dry we X in going due primarily, rearview So put that is the

across all So the 'XX that all, points loss of years. we in prior out it pick took spread and was of X

Nicolas Iacoviello

it. Got

was Just the there claims a quarter? in booked well, curious benefit handling as

Frank Wilcox

I was under quarter. That it negligible believe the $X million. Yes. was for

Nicolas Iacoviello

utilization? captive you just curious for tower XX% on the maybe being the expectation the current in was on release the of event first the Can comment press about talk secured. I

Stephen Donaghy

Nic, part I'm can you repeat that the question? of last sorry.

Nicolas Iacoviello

problem. No

'XX the and participation Just current for captive expectation 'XX the tower? like the in

Stephen Donaghy

where our philosophy used are the reinsurance again, don't think how Yes. have our good in on accomplished at. we in We and past. about will sitting feel XX% we for performed is reinsurance in a we're team, and very we -- Nic, we at market. really now pleased Palmieri change tower, I effort the the year-round with our myself Matt the that The for particular, teams first how captive

worked think as at completed today, in out well very we market continue last I that in for point. rate, company open a and the And it would consider would We we here this year. it But haven't of. at I competitive if comes the lieu sit

Matthew Palmieri

It's proven to be very effective.

Stephen Donaghy

Yes.

Operator

now the turn back closing Donaghy, it remarks. to concludes like Steve I This session. question-and-answer for to would CEO,

Stephen Donaghy

our their a continued our thank Thank agency you. of to insurers, associates, like I'd reinsurance Universal. for and our support stakeholders our our great force, day. of partners, all Have

Operator

participating. today's for you conference call. concludes Thank This

You may now disconnect.

Universal Insurance (UVE) 23 Feb 242023 Q4 Earnings call transcript