UVE - Earnings call transcript Q1 2024 | Universal Insurance Holdings, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to Universal's First Quarter 2024 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 on press of more and of all our the see filings 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, growth on everyone. return common strong a equity and year-over-year. quarter, diluted was share including Good XX.X% XX.X% per adjusted morning, a annualized adjusted It earnings

profitable sequentially the that model. force non-underwriting policies including to were our by a accelerated across business are our following which previous differentiated complemented growth as Results operations, written solid underwriting was is initiatives. Direct our in stabilizing premiums testament underwriting board,

pleased fully XXXX I'm entities added is through coverage, XXXX, completion program us XXXX and XXXX, season reinsurers We've our as our of our now renewal taking of for partners. new panel and secured reinsurance financially long-term additional insurance secured. the also our multiyear announce have strong to hurricane supported to the existing

at cost details This the specific were coverage and consistent typically Program end team reinsurance we'll do. with as year. provide we reflects achievement expectations, the diligence and our of planning throughout our and May of the

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

Frank Wilcox

million and revenue investment with income, by offset commission up the offset of XX.X% investment year underwriting from earned diluted from stems revenue. and stemming partially Adjusted partially earnings was net in quarter. lower morning. from common year-over-year by lower net higher net prior premiums mostly per Core was up revenue. primarily Good commission Steve. $X.XX, higher share Thanks, growth $XXX.X The income increase $X.XX

prior inflation direct higher X.X% Direct were states. the growth rate-driven the Florida year quarter policies quarter reflects were force. stabilizing in $XXX.X in from and including million, written the written and up rates, last $XXX.X XX.X% adjustments premiums year reflecting XX growth earned Direct prior million, mostly over premiums X.X% from up other months. growth premiums in growth X.X% Overall

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

X.X improved economies XX.X% earned The premiums reinsurance to compared net and points scale. higher quarter, year the costs expense ratio associated lower the net current prior reflecting in year by of primarily with

program has aggregate The of authorization $XX remaining. current During XXX,XXX approximately the the company at approximately first cost share repurchased $X.X shares million million. company's an repurchase quarter,

quarterly shareholders to Directors XXXX. XX, May the of business close On XXXX, record stock of payable XX, a of May of April the cash common on $X.XX Board XX, of share XXXX, of per as declared on dividend

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

Operator

Piper question Paul Newsome from of comes line first Sandler. [Operator the Instructions] Our of

Jon Paul Newsome

or And in competitive from out point what and are could quarter. a you be this on was environment, folks whether I or to thoughts at they rapidly changing come particularly about little Florida. competitive hoping talk perspective. a not pricing on Congrats bit really the very a seems in

Stephen Donaghy

question. the market. into seeing coming the for We're thanks entrants Paul, Yes. more

a see to as competitive carrier in state. continue the We Citizens

are where additional profitable. markets particular of on lean ones the to XXXX. we at continue feel we We've are opened that think I we end open,

we And very insured. as always force carrier a it's their books combination that's business well of rate we ability Universal's and in. as of business From the confident where in support sit perspective, agency with think a feels our coming to today rate. feel good And I they're

I So our the we're markets relationships, our think us opening serving well. rates are that and

we From elsewhere, a we competitive so about we people say. don't that feel perspective, business do, see doing some to to going bad don't and things want the

book We as don't retention to answer if anything you and specific if we more now. about I anything through flowing feel improve also quarter-over-quarter, our know well you that, be seen further, have have good that like. happy right than but the

Jon Paul Newsome

I helpful but because and tough hold year, on maybe you of I coming, then it's of the you're But in been on reform a tort pricing and so regulatory will -- talk thoughts said time. you this next. a heard interesting. such things that's No, long hear for pressure long that that group part not for

the pressure for it building reform. Where an sort do in see that offset you of for conversation? you tort fall Do

You about on may do impact concerns the just regulators of have to policies want and sales talk being the people the the Florida affordability hear about what that in do.

Stephen Donaghy

question, Yes. There's Paul. a lot unpacked, in that

to perspective, think the rates an are segments the high. issue E&S across I affordability certain and that state the continue of right now market is to extremely market an of from Florida go where

analysis result and rate coming the do we right at a shareholders XXXX. ourselves, thing. for for even try as as we insurers, was rate our kicking our we less for book. took just rate for what our our traditionally off at tort best And do and good the submitted We through felt as we get when market, the looked final take and the in indication and reform We're about figures 'XX, and -- of we'll for the what's that a in, look request speak try we and a because

a go I they the think further? about has think with far? that. you little gone and so. Florida a Did of state good done have job they reform When the talk appreciative don't of very pressures, I Perhaps. tort we're Could too

we don't nobody there's think try we'll we're in this undue those calling So thing. getting anything do or say, all and so look suggesting into -- that as measures and future, at account point. feel not the But to any pressure, I us the right take to we

Operator

Our comes Dowling. the Iacoviello line next question of Nick of from

Nicolas Iacoviello

first there was Nice wondering, prior any just off, year net in quarter. was I development recognized QX?

Frank Wilcox

on Nothing on basis, a net a negligible direct.

Nicolas Iacoviello

May, the year? I Does a and we'll as towards currently the on similar supported get know program it. that Got on fully retention more of the end secured. details assume placed just comment I being wondering last GAAP was reinsurance program the but

Stephen Donaghy

of that thing was Nick, as capital last from utilization based to on we though the feel the yes, cost And the Yes, use that do consistent with to right you're the [indiscernible] referring would year. and parent. be

So yes.

Operator

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

Stephen Donaghy

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

Operator

for conference. Thank participation This program. today's you your the in does conclude

You may now disconnect.

Universal Insurance (UVE) 26 Apr 242024 Q1 Earnings call transcript