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United Insurance coverage Holdings Corp. Experiences Monetary Outcomes for Its Fourth Quarter and 12 months Ended December 31, 2021


Firm to Host Quarterly Convention Name at 5:00 P.M. ET on February 23, 2022

The data on this press launch needs to be learn together with an investor presentation that’s accessible on the Firm’s web site at buyers.upcinsurance.com/Shows.

ST. PETERSBURG, Fla.–(BUSINESS WIRE)–
United Insurance coverage Holdings Corp. (Nasdaq: UIHC)(UPC Insurance coverage or the Firm), a property and casualty insurance coverage holding firm, as we speak reported its monetary outcomes for the fourth quarter and 12 months ended December 31, 2021.

 

($ in hundreds, apart from per share knowledge)

Three Months Ended

 

12 months Ended

December 31,

 

December 31,

 

 

2021

 

 

 

2020

 

 

Change

 

 

2021

 

 

 

2020

 

 

Change

Gross premiums written

$

268,890

 

 

$

316,210

 

 

(15.0

)%

 

$

1,329,445

 

 

$

1,456,863

 

 

(8.7

)%

Gross premiums earned

$

341,886

 

 

$

364,231

 

 

(6.1

)%

 

$

1,408,443

 

 

$

1,406,980

 

 

0.1

%

Web premiums earned

$

145,081

 

 

$

199,844

 

 

(27.4

)%

 

$

589,761

 

 

$

765,663

 

 

(23.0

)%

Complete revenues

$

154,544

 

 

$

241,222

 

 

(35.9

)%

 

$

634,527

 

 

$

846,656

 

 

(25.1

)%

Earnings earlier than earnings tax

$

(6,202

)

 

$

(45,228

)

 

86.3

%

 

$

(83,857

)

 

$

(132,103

)

 

36.5

%

Web loss attributable to UIHC

$

(2,316

)

 

$

(33,933

)

 

93.2

%

 

$

(57,919

)

 

$

(96,454

)

 

40.0

%

Web loss accessible to UIHC widespread stockholders per diluted share

$

(0.05

)

 

$

(0.79

)

 

93.7

%

 

$

(1.35

)

 

$

(2.25

)

 

40.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of web loss to core earnings loss:

 

 

 

 

 

 

 

 

 

 

 

Plus: Non-cash amortization of intangible property

$

811

 

 

$

1,043

 

 

(22.2

)%

 

$

3,555

 

 

$

4,267

 

 

(16.7

)%

Much less: Web realized beneficial properties (losses) on funding portfolio

$

(2,349

)

 

$

41,732

 

 

NM

 

 

$

3,567

 

 

$

66,691

 

 

(94.7

)%

Much less: Unrealized beneficial properties (losses) on fairness securities

$

1,528

 

 

$

(10,106

)

 

NM

 

 

$

3,237

 

 

$

(27,562

)

 

NM

 

Much less: Web tax affect (1)

$

343

 

 

$

(6,422

)

 

NM

 

 

$

(682

)

 

$

(7,321

)

 

90.7

%

Core loss (2)

$

(1,027

)

 

$

(58,094

)

 

98.2

%

 

$

(60,486

)

 

$

(123,995

)

 

51.2

%

Core loss per diluted share (2)

$

(0.02

)

 

$

(1.35

)

 

98.5

%

 

$

(1.41

)

 

$

(2.89

)

 

51.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Guide worth per share

 

 

 

 

 

 

$

7.20

 

 

$

9.19

 

 

(21.7

)%

NM = Not Significant

(1)

With the intention to reconcile web loss to the core loss measures, the Firm included the tax affect of all changes utilizing the 21% company federal tax charge.

(2)

Core earnings (loss), and core earnings (loss) per diluted share, each of that are measures that aren’t primarily based on GAAP, are reconciled above to web earnings (loss) and web earnings (loss) per diluted share, respectively, probably the most immediately comparable GAAP measures. Further data concerning non-GAAP monetary measures offered on this press launch could be discovered within the “Definitions of Non-GAAP Measures” part, under.

“Ends in the fourth quarter display our persevering with transition 12 months, being the second consecutive quarter over quarter and 12 months over 12 months enchancment in working outcomes,” mentioned Dan Peed, CEO of UPC Insurance coverage. “Within the second half of 2021, we continued to see escalating charge will increase compound and start to earn their manner by means of our portfolio. Our business strains portfolio is performing properly and rising strongly. The Private Strains portfolio footprint and publicity ranges are shrinking rapidly, together with energetic publicity administration and danger choice, in addition to the sale of renewal rights in Georgia, North Carolina and South Carolina. With these strategic modifications, we’re nearing our focused aim of a good stability of Industrial and Private strains enterprise, properly forward of our three-year timeline. Going ahead, we plan to proceed our give attention to underwriting execution together with charge will increase, danger choice and publicity administration, all anticipated to drive a return to underwriting profitability in 2022 and goal returns on fairness in 2023.”

Return on Fairness and Core Return on Fairness

The calculations of the Firm’s return on fairness and core return on fairness are proven under.

($ in hundreds)

Three Months Ended

 

12 months Ended

December 31,

 

December 31,

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Web loss attributable to UIHC

$

(2,316

)

 

$

(33,933

)

 

$

(57,919

)

 

$

(96,454

)

Return on fairness primarily based on GAAP web loss attributable to UIHC (1)

 

(2.7

)%

 

 

(28.4

)%

 

 

(16.9

)%

 

 

(20.2

)%

 

 

 

 

 

 

 

 

Core loss

$

(1,027

)

 

$

(58,094

)

 

$

(60,486

)

 

$

(123,995

)

Core return on fairness (1)(2)

 

(1.2

)%

 

 

(48.7

)%

 

 

(17.6

)%

 

 

(26.0

)%

(1)

Return on fairness for the three months and 12 months ended December 31, 2021 and 2020 is calculated on an annualized foundation by dividing the web loss or core loss for the interval by the typical stockholders’ fairness for the trailing twelve months.

(2)

Core return on fairness, a measure that isn’t primarily based on GAAP, is calculated primarily based on core earnings (loss), which is reconciled on the primary web page of this press launch to web earnings (loss), probably the most immediately comparable GAAP measure. Further data concerning non-GAAP monetary measures offered on this press launch could be discovered within the “Definitions of Non-GAAP Measures” part, under.

Mixed Ratio and Underlying Ratio

The calculations of the Firm’s mixed ratio and underlying mixed ratio are proven under.

($ in hundreds)

Three Months Ended

 

12 months Ended

December 31,

 

December 31,

 

2021

 

 

2020

 

 

Change

 

2021

 

 

2020

 

 

Change

Loss ratio, web(1)

58.9

%

 

92.6

%

 

(33.7) pts

 

71.6

%

 

79.4

%

 

(7.8) pts

Expense ratio, web(2)

50.2

%

 

49.5

%

 

0.7 pts

 

48.7

%

 

47.1

%

 

1.6 pts

Mixed ratio (CR)(3)

109.1

%

 

142.1

%

 

(33.0) pts

 

120.3

%

 

126.5

%

 

(6.2) pts

Impact of present 12 months disaster losses on CR

8.6

%

 

53.9

%

 

(45.3) pts

 

19.3

%

 

38.5

%

 

(19.2) pts

Impact of prior 12 months unfavorable (favorable) improvement on CR

(2.4

)%

 

(0.3

)%

 

(2.1) pts

 

4.7

%

 

(0.9

)%

 

5.6 pts

Underlying mixed ratio(4)

102.9

%

 

88.5

%

 

14.4 pts

 

96.3

%

 

88.9

%

 

7.4 pts

(1)

Loss ratio, web is calculated as losses and loss adjustment bills (LAE), web of losses ceded to reinsurers, relative to web premiums earned.

(2)

 

Expense ratio, web is calculated because the sum of all working bills much less curiosity expense relative to web premiums earned.

(3)

Mixed ratio is the sum of the loss ratio, web and expense ratio, web.

(4)

Underlying mixed ratio, a measure that isn’t primarily based on GAAP, is reconciled above to the mixed ratio, probably the most immediately comparable GAAP measure. Further data concerning non-GAAP monetary measures offered on this press launch could be discovered within the “Definitions of Non-GAAP Measures” part, under.

Quarterly Monetary Outcomes

Web loss attributable to the Firm for the fourth quarter of 2021 was $2.3 million, or $0.05 per diluted share, in comparison with $33.9 million, or $0.79 per diluted share, for the fourth quarter of 2020. The lower in web loss was primarily pushed by a lower in loss and LAE expense for the quarter. This was pushed by the Firm’s resolution to decrease the retention associated to its Core Disaster reinsurance program for the 2021-2022 hurricane season coupled with a decrease frequency of catastrophic climate exercise when in comparison with the fourth quarter of 2020 and a rise in ceded losses to the Firm’s quota share reinsurance program. This was partially offset by a lower in income, pushed by decreased gross written premiums as described under. As well as, the Firm skilled elevated ceded premium earned because of the modifications to the Firm’s quota share reinsurance agreements described under, in addition to a lower in realized funding beneficial properties in 2021.

The Firm’s whole gross written premium decreased by $47.3 million, or 15.0%, to $268.9 million for the fourth quarter of 2021, from $316.2 million for the fourth quarter of 2020. This lower was pushed primarily by a decline in written premiums throughout the private strains enterprise, as a result of underwriting actions taken by the Firm on the finish of 2020 and all through 2021, in addition to the transition of the Northeast enterprise to Owners Selection Property & Casualty Insurance coverage Firm, Inc. (HCPCI) within the fourth quarter of 2021. As well as, the Firm skilled a lower in assumed premiums as a result of termination of a contract which included business property enterprise assumed from unaffiliated insurers. The breakdown of the quarter-over-quarter modifications in each direct written and assumed premiums by area and gross written premium by line of enterprise are proven within the desk under.

($ in hundreds)

 

Three Months Ended

December 31,

 

 

 

 

 

 

 

2021

 

 

2020

 

Change $

 

Change %

Direct Written and Assumed Premium by Area (1)

 

 

 

 

 

 

 

 

Florida

 

$

190,220

 

$

181,115

 

$

9,105

 

 

5.0

%

Gulf

 

 

41,983

 

 

57,461

 

 

(15,478

)

 

(26.9

)

Northeast

 

 

19,741

 

 

43,699

 

 

(23,958

)

 

(54.8

)

Southeast

 

 

16,834

 

 

27,587

 

 

(10,753

)

 

(39.0

)

Complete direct written premium by area

 

 

268,778

 

 

309,862

 

 

(41,084

)

 

(13.3

)

Assumed premium (2)

 

 

112

 

 

6,348

 

 

(6,236

)

 

(98.2

)

Complete gross written premium by area

 

$

268,890

 

$

316,210

 

$

(47,320

)

 

(15.0

)%

 

 

 

 

 

 

 

 

 

Gross Written Premium by Line of Enterprise

 

 

 

 

 

 

 

 

Private property

 

$

175,058

 

$

228,940

 

$

(53,882

)

 

(23.5

)%

Industrial property

 

 

93,832

 

 

87,270

 

 

6,562

 

 

7.5

%

Complete gross written premium by line of enterprise

 

$

268,890

 

$

316,210

 

$

(47,320

)

 

(15.0

)%

(1)

“Gulf” is comprised of Louisiana and Texas in 2021 and Hawaii, Louisiana, and Texas in 2020; “Northeast” is comprised of Connecticut, Massachusetts, New Jersey, New York and Rhode Island; and “Southeast” is comprised of Georgia, North Carolina and South Carolina. As of December 1, 2021, the Firm is now not writing in Connecticut or Rhode Island because the insurance policies have transitioned to HCPCI.

(2)

Assumed premium written for 2021 and 2020 primarily included business property enterprise assumed from unaffiliated insurers.

Loss and LAE decreased by $99.6 million, or 53.8%, to $85.5 million for the fourth quarter of 2021, from $185.1 million for the fourth quarter of 2020. Loss and LAE expense as a proportion of web earned premiums decreased 33.7 factors to 58.9% for the fourth quarter of 2021, in comparison with 92.6% for the fourth quarter of 2020. Excluding disaster losses and reserve improvement, the Firm’s gross underlying loss and LAE ratio for the fourth quarter of 2021 would have been 22.4%, a rise of 0.9 factors from 21.5% in the course of the fourth quarter of 2020.

Coverage acquisition prices decreased by $21.3 million, or 32.4%, to $44.5 million for the fourth quarter of 2021, from $65.8 million for the fourth quarter of 2020 primarily as a result of a rise in ceding fee earnings associated to the Firm’s quota share reinsurance agreements. As well as, there was a lower in bills incurred, resembling premium taxes and agent fee bills, which fluctuate together with the quarter over quarter lower in written premium. This was partially offset by elevated exterior administration charges incurred in the course of the fourth quarter of 2021 because of an elevated quantity of economic written premium.

Working and underwriting bills remained comparatively flat, reducing by $0.6 million, or 4.1%, to $14.1 million for the fourth quarter of 2021, from $14.7 million for the fourth quarter of 2020

Common and administrative bills decreased by $4.1 million, or 22.3%, to $14.3 million for the fourth quarter of 2021, from $18.4 million for the fourth quarter of 2020, primarily as a result of a rise within the allocation of claims adjuster payroll associated prices to loss & LAE from common and administrative bills in 2021. As well as, the Firm skilled a lower in consulting bills and decreased amortization expense associated to sure intangible property which had been absolutely amortized throughout 2021.

12 months to Date Monetary Outcomes

Web loss attributable to the Firm for the 12 months ended December 31, 2021 was $57.9 million, or $1.35 per diluted share, in comparison with $96.5 million, or $2.25 per diluted share, for the 12 months ended December 31, 2020. The lower in web losses was primarily pushed by a lower in loss and LAE expense for the 12 months. This was pushed by the Firm’s resolution to decrease the retention associated to its Core Disaster reinsurance program for the 2021-2022 hurricane season coupled with a decrease frequency of catastrophic climate exercise when in comparison with 2020 and a rise in ceded losses to the Firm’s quota share reinsurance program. This was partially offset by a lower in income, pushed by decreased gross written premiums as described under. As well as, the Firm skilled elevated ceded premium earned because of the modifications to the Firm’s quota share reinsurance agreements described under, in addition to a lower in realized funding beneficial properties in 2021.

The Firm’s whole gross written premium decreased by $127.4 million, or 8.7%, to $1.3 billion for the 12 months ended December 31, 2021 from $1.5 billion for the 12 months ended December 31, 2020, pushed primarily by a decline in written premiums throughout the private strains enterprise, as a result of underwriting actions taken by the Firm on the finish of 2020 and all through 2021. As well as, the Firm skilled a lower in assumed premiums as a result of termination of a contract which included business property enterprise assumed from unaffiliated insurers. The breakdown of the year-over-year modifications in each direct written and assumed premiums by area and gross written premium by line of enterprise are proven within the desk under.

($ in hundreds)

 

12 months Ended December 31,

 

 

 

 

 

 

 

2021

 

 

2020

 

Change $

 

Change %

Direct Written and Assumed Premium by Area (1)

 

 

 

 

 

 

 

 

Florida

 

$

852,711

 

$

829,777

 

$

22,934

 

 

2.8

%

Gulf

 

 

225,013

 

 

258,064

 

 

(33,051

)

 

(12.8

)

Northeast

 

 

158,217

 

 

197,556

 

 

(39,339

)

 

(19.9

)

Southeast

 

 

93,188

 

 

126,161

 

 

(32,973

)

 

(26.1

)

Complete direct written premium by area

 

 

1,329,129

 

 

1,411,558

 

 

(82,429

)

 

(5.8

)%

Assumed premium (2)

 

 

316

 

 

45,305

 

 

(44,989

)

 

(99.3

)

Complete gross written premium by area

 

$

1,329,445

 

$

1,456,863

 

$

(127,418

)

 

(8.7

)%

 

 

 

 

 

 

 

 

 

Gross Written Premium by Line of Enterprise

 

 

 

 

 

 

 

 

Private property

 

$

907,207

 

$

1,063,599

 

$

(156,392

)

 

(14.7

)%

Industrial property

 

 

422,238

 

 

393,264

 

 

28,974

 

 

7.4

 

Complete gross written premium by line of enterprise

 

$

1,329,445

 

$

1,456,863

 

$

(127,418

)

 

(8.7

)%

(1)

“Gulf” is comprised of Louisiana and Texas in 2021 and Hawaii, Louisiana, and Texas in 2020; “Northeast” is comprised of Connecticut, Massachusetts, New Jersey, New York and Rhode Island; and “Southeast” is comprised of Georgia, North Carolina and South Carolina. As of December 1, 2021, the Firm is now not writing in Connecticut or Rhode Island because the insurance policies have transitioned to HCPCI.

(2)

Assumed premium written for 2021 and 2020 primarily included business property enterprise assumed from unaffiliated insurers.

Loss and LAE decreased by $186.2 million, or 30.6%, to $422.1 million for the 12 months ended December 31, 2021, from $608.3 million for the 12 months ended December 31, 2020. Loss and LAE expense as a proportion of web earned premiums decreased 7.8 factors to 71.6% for the 12 months ended December 31, 2021, in comparison with 79.4% for the 12 months ended December 31, 2020. Excluding disaster losses and reserve improvement, the Firm’s gross underlying loss and LAE ratio for the 12 months would have been 19.9%, a lower of two.9 factors from 22.8% in the course of the 12 months ended December 31, 2020.

Coverage acquisition prices decreased by $62.4 million, or 26.4%, to $173.6 million for the 12 months ended December 31, 2021, from $236.0 million for the 12 months ended December 31, 2020. The first driver of the lower in expense was a rise in ceding fee earnings associated to the Firm’s quota share reinsurance agreements. As well as, there was a lower in bills incurred, resembling premium taxes and agent fee bills, which fluctuate together with the 12 months over 12 months lower in written premium. This was partially offset by elevated exterior administration charges incurred throughout 2021 as the results of an elevated quantity of economic written premium 12 months over 12 months.

Working and underwriting bills elevated by $3.4 million, or 6.4%, to $56.3 million for the 12 months ended December 31, 2021, from $52.9 million for the 12 months ended December 31, 2020, primarily as a result of elevated bills associated to the Firm’s funding in expertise. This was partially offset by decreased agent incentive prices in 2021 because the Firm has discontinued its agent incentive program. The Firm additionally skilled decreases in journey bills as a result of lack of firm journey throughout 2021 because of the continued results of the coronavirus pandemic and reduces in workplace overhead bills in 2021 pushed by the Firm’s shift to a distant work setting for the 12 months.

Common and administrative bills decreased by $14.9 million, or 20.7%, to $57.2 million for the 12 months ended December 31, 2021, from $72.1 million for the 12 months ended December 31, 2020, primarily as a result of a rise within the allocation of claims adjustment payroll associated prices to loss & LAE from common and administrative bills in 2021. As well as, in 2020 the Firm incurred bills associated to the discontinuation of plans to construct new headquarters, an expense which is non-recurring in 2021.

Mixed Ratio Evaluation

The calculations of the Firm’s loss ratios and underlying loss ratios are proven under.

($ in hundreds)

Three Months Ended

 

12 months Ended

December 31,

 

December 31,

 

2021

 

 

 

2020

 

 

Change

 

 

2021

 

 

 

2020

 

 

Change

Loss and LAE

$

85,520

 

 

$

185,134

 

 

$

(99,614

)

 

$

422,134

 

 

$

608,316

 

 

$

(186,182

)

% of Gross earned premiums

 

25.0

%

 

 

50.8

%

 

(25.8

) pts

 

 

30.0

%

 

 

43.2

%

 

(13.2

) pts

% of Web earned premiums

 

58.9

%

 

 

92.6

%

 

(33.7

) pts

 

 

71.6

%

 

 

79.4

%

 

(7.8

) pts

Much less:

 

 

 

 

 

 

 

 

 

 

 

Present 12 months disaster losses

$

12,515

 

 

$

107,618

 

 

$

(95,103

)

 

$

113,740

 

 

$

294,537

 

 

$

(180,797

)

Prior 12 months reserve unfavorable (favorable) improvement

 

(3,488

)

 

 

(621

)

 

 

(2,867

)

 

 

27,856

 

 

 

(6,786

)

 

 

34,642

 

Underlying loss and LAE (1)

$

76,493

 

 

$

78,137

 

 

$

(1,644

)

 

$

280,538

 

 

$

320,565

 

 

$

(40,027

)

% of Gross earned premiums

 

22.4

%

 

 

21.5

%

 

0.9

pts

 

 

19.9

%

 

 

22.8

%

 

(2.9

) pts

% of Web earned premiums

 

52.7

%

 

 

39.1

%

 

13.6

pts

 

 

47.6

%

 

 

41.8

%

 

5.8

pts

(1)

Underlying loss and LAE is a non-GAAP monetary measure and is reconciled above to loss and LAE, probably the most immediately comparable GAAP measure. Further data concerning non-GAAP monetary measures offered on this press launch could be discovered within the “Definitions of Non-GAAP Measures” part, under.

The calculations of the Firm’s expense ratios are proven under.

($ in hundreds)

Three Months Ended

 

12 months Ended

December 31,

 

December 31,

 

2021

 

 

 

2020

 

 

Change

 

 

2021

 

 

 

2020

 

 

Change

Coverage acquisition prices

$

44,501

 

 

$

65,819

 

 

$

(21,318

)

 

$

173,574

 

 

$

236,002

 

 

$

(62,428

)

Working and underwriting

 

14,124

 

 

 

14,712

 

 

 

(588

)

 

 

56,257

 

 

 

52,876

 

 

 

3,381

 

Common and administrative

 

14,278

 

 

 

18,411

 

 

 

(4,133

)

 

 

57,212

 

 

 

72,057

 

 

 

(14,845

)

Complete Working Bills

$

72,903

 

 

$

98,942

 

 

$

(26,039

)

 

$

287,043

 

 

$

360,935

 

 

$

(73,892

)

% of Gross earned premiums

 

21.3

%

 

 

27.2

%

 

(5.9

) pts

 

 

20.4

%

 

 

25.7

%

 

(5.3

) pts

% of Web earned premiums

 

50.2

%

 

 

49.5

%

 

0.7

pts

 

 

48.7

%

 

 

47.1

%

 

1.6

pts

Reinsurance Prices as a Share of Gross Earned Premium

Reinsurance prices as a proportion of gross earned premium within the fourth quarter of 2021 and 2020 had been as follows:

 

2021

 

 

2020

 

Non-at-Danger

(2.2

) %

 

(3.0

) %

Quota Share

(23.2

) %

 

(13.6

) %

All Different

(32.2

) %

 

(28.5

) %

Complete Ceding Ratio

(57.6

) %

 

(45.1

) %

The rise on this ratio was pushed by a number of modifications made to the Firm’s current quota share agreements efficient December 31, 2020 and June 1, 2021. These modifications embody extending protection to incorporate American Coastal Insurance coverage Firm on the 15% quota share settlement in place that beforehand supplied protection to Household Safety Insurance coverage Firm, Inc. and United Property & Casualty Insurance coverage Firm, in addition to growing the cession proportion by 8%. As well as, the Firm entered right into a quota share settlement with HCPCI efficient December 31, 2020, by means of Might 31, 2021, which supplied 69.5% reinsurance protection on in-force, new and renewal insurance policies in Connecticut, Massachusetts, New Jersey, and Rhode Island.

Efficient June 1, 2021, the Firm entered into a brand new quota share reinsurance settlement with HCPCI and TypTap Insurance coverage Firm (TypTap), which gives 100% reinsurance protection on in-force, new and renewal insurance policies in Connecticut, Massachusetts, New Jersey, and Rhode Island. The cession of those insurance policies is 50% to HCPCI and 50% to TypTap. Lastly, the Firm’s 7.5% quota share settlement efficient in 2020 expired on Might 31, 2021 and was not renewed.

Along with the modifications within the Firm’s quota share agreements, the Firm additionally diminished the retention quantities associated to their disaster extra of loss reinsurance program for the 2021-2022 season, leading to increased ceded premiums 12 months over 12 months however much less danger if the named storm season would have been as energetic because the 2020-2021 season. Mixed with elevated prices related to all different perils disaster settlement, these modifications have resulted in will increase to the Firm’s ceding ratio quarter over quarter.

Funding Portfolio Highlights

The Firm’s money, restricted money and funding holdings decreased from $1.3 billion at December 31, 2020 to $1.0 billion at December 31, 2021. The Firm’s money and funding holdings encompass investments in U.S. authorities and company securities, company debt and 100% funding grade cash market devices. Fastened maturities represented roughly 92.2% of whole investments at December 31, 2021, in comparison with 94.5% at December 31, 2020. At December 31, 2021, the Firm’s fastened maturity investments had a modified length of 4.0 years, in comparison with 4.1 years at December 31, 2020.

At December 31, 2021, the Firm’s fastened maturity funding holdings decreased by $276,409,000, or 29.4% from December 31, 2020, so as to fulfill the Firm’s liquidity necessities in the course of the fourth quarter of 2021.

Guide Worth Evaluation

Guide worth per widespread share decreased 21.7% from $9.19 at December 31, 2020, to $7.20 at December 31, 2021. Underlying ebook worth per widespread share decreased 18.0% from $8.96 at December 31, 2020 to $7.35 at December 31, 2021. A lower within the Firm’s retained earnings as the results of a web loss in 2021 drove the lower within the Firm’s ebook worth per share. As proven within the desk under, eradicating the impact of AOCI will increase the Firm’s ebook worth per widespread share, because the Firm skilled unfavorable market circumstances for the twelve months ended December 31, 2021.

($ in hundreds, apart from share and per share knowledge)

 

December 31,

2021

 

December 31,

2020

 

 

 

Guide Worth per Share

 

 

 

 

Numerator:

 

 

 

 

Widespread stockholders’ fairness attributable to UIHC

 

$

312,406

 

 

$

395,753

Denominator:

 

 

 

 

Complete Shares Excellent

 

 

43,370,442

 

 

 

43,075,877

Guide Worth Per Widespread Share

 

$

7.20

 

 

$

9.19

 

 

 

 

 

Guide Worth per Share, Excluding the Influence of Gathered Different Complete Earnings (AOCI)

 

 

 

 

Numerator:

 

 

 

 

Widespread stockholders’ fairness attributable to UIHC

 

$

312,406

 

 

$

395,753

Much less: Gathered different complete earnings (loss)

 

 

(6,531

)

 

 

9,693

Stockholders’ Fairness, excluding AOCI

 

$

318,937

 

 

$

386,060

Denominator:

 

 

 

 

Complete Shares Excellent

 

 

43,370,442

 

 

 

43,075,877

Underlying Guide Worth Per Widespread Share(1)

 

$

7.35

 

 

$

8.96

(1)

Underlying ebook worth per widespread share is a non-GAAP monetary measure and is reconciled above to ebook worth per widespread share, probably the most immediately comparable GAAP measure. Further data concerning non-GAAP monetary measures offered on this press launch could be discovered within the “Definitions of Non-GAAP Measures” part, under.

Definitions of Non-GAAP Measures

The Firm believes that buyers’ understanding of UPC Insurance coverage’s efficiency is enhanced by the Firm’s disclosure of the next non-GAAP measures. The Firm’s strategies for calculating these measures might differ from these utilized by different firms and due to this fact comparability could also be restricted.

Web earnings (loss) excluding the results of amortization of intangible property, realized beneficial properties (losses) and unrealized beneficial properties (losses) on fairness securities, web of tax (core earnings (loss)) is a non-GAAP measure that’s computed by including amortization, web of tax, to web earnings and subtracting realized beneficial properties (losses) on the Firm’s funding portfolio, web of tax, and unrealized beneficial properties (losses) on the Firm’s fairness securities, web of tax, from web earnings. Amortization expense is expounded to the amortization of intangible property acquired by means of mergers and, due to this fact, the expense doesn’t come up by means of regular operations. Funding portfolio beneficial properties (losses) and unrealized fairness safety beneficial properties (losses) differ impartial of the Firm’s operations. The Firm believes it’s helpful for buyers to judge these elements each individually and within the combination when reviewing the Firm’s efficiency. Probably the most immediately comparable GAAP measure is web earnings. The core earnings measure shouldn’t be thought of an alternative to web earnings and doesn’t replicate the general profitability of the Firm’s enterprise.

Core return on fairness is a non-GAAP ratio calculated utilizing non-GAAP measures. It’s calculated by dividing the core earnings for the interval by the typical stockholders’ fairness for the trailing twelve months (or one quarter of such common, within the case of quarterly intervals). Core earnings is an after-tax non-GAAP measure that’s calculated by excluding from web earnings the impact of non-cash amortization of intangible property, unrealized beneficial properties or losses on the Firm’s fairness safety investments and web realized beneficial properties or losses on the Firm’s funding portfolio. Within the opinion of the Firm’s administration, core earnings, core earnings per share and core return on fairness are significant indicators to buyers of the Firm’s underwriting and working outcomes, because the excluded objects aren’t essentially indicative of working tendencies. Internally, the Firm’s administration makes use of core earnings, core earnings per share and core return on fairness to judge efficiency towards historic outcomes and set up monetary targets on a consolidated foundation. Probably the most immediately comparable GAAP measure is return on fairness. The core return on fairness measure shouldn’t be thought of an alternative to return on fairness and doesn’t replicate the general profitability of the Firm’s enterprise.

Mixed ratio excluding the results of present 12 months disaster losses and prior 12 months reserve improvement (underlying mixed ratio) is a non-GAAP measure, that’s computed by subtracting the impact of present 12 months disaster losses and prior 12 months improvement from the mixed ratio. The Firm believes that this ratio is beneficial to buyers, and it’s utilized by administration to spotlight the tendencies within the Firm’s enterprise which may be obscured by present 12 months disaster losses and prior 12 months improvement. Present 12 months disaster losses trigger the Firm’s loss tendencies to differ considerably between intervals because of their frequency of incidence and severity and may have a big affect on the mixed ratio. Prior 12 months improvement is brought on by surprising loss improvement on historic reserves. The Firm believes it’s helpful for buyers to judge these elements each individually and within the combination when reviewing the Firm’s efficiency. Probably the most immediately comparable GAAP measure is the mixed ratio. The underlying mixed ratio shouldn’t be thought of as an alternative to the mixed ratio and doesn’t replicate the general profitability of the Firm’s enterprise.

Web loss and LAE excluding the results of present 12 months disaster losses and prior 12 months reserve improvement (underlying loss and LAE) is a non-GAAP measure that’s computed by subtracting the impact of present 12 months disaster losses and prior 12 months reserve improvement from web loss and LAE. The Firm makes use of underlying loss and LAE figures to investigate the Firm’s loss tendencies which may be impacted by present 12 months disaster losses and prior 12 months improvement on the Firm’s reserves. As mentioned beforehand, these two objects can have a big affect on the Firm’s loss tendencies in a given interval. The Firm believes it’s helpful for buyers to judge these elements each individually and within the combination when reviewing the Firm’s efficiency. Probably the most immediately comparable GAAP measure is web loss and LAE. The underlying loss and LAE measure shouldn’t be thought of an alternative to web loss and LAE and doesn’t replicate the general profitability of the Firm’s enterprise.

Guide worth per widespread share, excluding the affect of gathered different complete earnings (underlying ebook worth per widespread share), is a non-GAAP measure that’s computed by dividing widespread stockholders’ fairness after excluding gathered different complete earnings, by whole widespread shares excellent plus dilutive potential widespread shares excellent. The Firm makes use of the development in ebook worth per widespread share, excluding the affect of gathered different complete earnings, together with ebook worth per widespread share to establish and analyze the change in web value attributable to administration efforts between intervals. The Firm believes this non-GAAP measure is beneficial to buyers as a result of it eliminates the impact of rates of interest that may fluctuate considerably from interval to interval and are usually pushed by financial and monetary elements that aren’t influenced by administration. Guide worth per widespread share is probably the most immediately comparable GAAP measure. Guide worth per widespread share, excluding the affect of gathered different complete earnings, shouldn’t be thought of an alternative to ebook worth per widespread share and doesn’t replicate the recorded web value of the Firm’s enterprise.


Convention Name Particulars


About UPC Insurance coverage

Based in 1999, UPC Insurance coverage is an insurance coverage holding firm that sources, writes and providers private and business residential property and casualty insurance coverage insurance policies utilizing a bunch of wholly owned insurance coverage subsidiaries and one majority owned insurance coverage subsidiary by means of quite a lot of distribution channels. The Firm at the moment writes insurance policies in Florida, Louisiana, New York, and Texas. The Firm additionally writes insurance policies in Georgia, South Carolina, North Carolina, and Massachusetts the place renewal rights have been offered and all premiums and losses are ceded. From its headquarters in St. Petersburg, UPC Insurance coverage’s staff of devoted professionals manages a very built-in insurance coverage firm, together with gross sales, underwriting, customer support and claims.


Ahead-Wanting Statements

Statements made on this press launch, or on the convention name recognized above, and in any other case, that aren’t historic details are “forward-looking statements”. The Firm believes these statements are primarily based on cheap estimates, assumptions and plans. Nevertheless, if the estimates, assumptions, or plans underlying the forward-looking statements show inaccurate or if different dangers or uncertainties come up, precise outcomes may differ materially from these expressed in, or implied by, the forward-looking statements. These statements are made topic to the safe-harbor provisions of the Non-public Securities Litigation Reform Act of 1995. These forward-looking statements don’t relate strictly to historic or present details and could also be recognized by their use of phrases resembling “might,” “will,” “anticipate,” “endeavor,” “undertaking,” “imagine,” “plan,” “anticipate,” “intend,” “may,” “would,” “estimate” or “proceed” or the damaging variations thereof or comparable terminology. Components that might trigger precise outcomes to vary materially could also be discovered within the Firm’s filings with the U.S. Securities and Change Fee, within the “Danger Components” part within the Firm’s most up-to-date Annual Report on Kind 10-Ok and subsequent Quarterly Experiences on Kind 10-Q. Ahead-looking statements communicate solely as of the date on which they’re made, and, besides as required by relevant legislation, the Firm undertakes no obligation to replace or revise any forward-looking statements.

 

Consolidated Statements of Complete Loss

In hundreds, besides share and per share quantities

 

 

 

Three Months Ended

 

12 months Ended

 

 

December 31,

 

December 31,

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

REVENUE:

 

 

 

 

 

 

 

 

Gross premiums written

 

$

268,890

 

 

$

316,210

 

 

$

1,329,445

 

 

$

1,456,863

 

Change in gross unearned premiums

 

 

72,996

 

 

 

48,021

 

 

 

78,998

 

 

 

(49,883

)

Gross premiums earned

 

 

341,886

 

 

 

364,231

 

 

 

1,408,443

 

 

 

1,406,980

 

Ceded premiums earned

 

 

(196,805

)

 

 

(164,387

)

 

 

(818,682

)

 

 

(641,317

)

Web premiums earned

 

 

145,081

 

 

 

199,844

 

 

 

589,761

 

 

 

765,663

 

Web funding earnings

 

 

3,035

 

 

 

5,291

 

 

 

13,772

 

 

 

24,125

 

Web realized funding beneficial properties (losses)

 

 

(2,349

)

 

 

41,732

 

 

 

3,567

 

 

 

66,691

 

Web unrealized beneficial properties (losses) on fairness securities

 

 

1,528

 

 

 

(10,106

)

 

 

3,237

 

 

 

(27,562

)

Different income

 

 

7,249

 

 

 

4,461

 

 

 

24,190

 

 

 

17,739

 

Complete revenues

 

$

154,544

 

 

$

241,222

 

 

$

634,527

 

 

$

846,656

 

EXPENSES:

 

 

 

 

 

 

 

 

Losses and loss adjustment bills

 

 

85,520

 

 

 

185,134

 

 

 

422,134

 

 

 

608,316

 

Coverage acquisition prices

 

 

44,501

 

 

 

65,819

 

 

 

173,574

 

 

 

236,002

 

Working bills

 

 

14,124

 

 

 

14,712

 

 

 

56,257

 

 

 

52,876

 

Common and administrative bills

 

 

14,278

 

 

 

18,411

 

 

 

57,212

 

 

 

72,057

 

Curiosity expense

 

 

2,381

 

 

 

2,388

 

 

 

9,391

 

 

 

9,582

 

Complete bills

 

 

160,804

 

 

 

286,464

 

 

 

718,568

 

 

 

978,833

 

Loss earlier than different earnings

 

 

(6,260

)

 

 

(45,242

)

 

 

(84,041

)

 

 

(132,177

)

Different earnings

 

 

58

 

 

 

14

 

 

 

184

 

 

 

74

 

Loss earlier than earnings taxes

 

 

(6,202

)

 

 

(45,228

)

 

 

(83,857

)

 

 

(132,103

)

Profit for earnings taxes

 

 

(3,333

)

 

 

(11,672

)

 

 

(23,989

)

 

 

(36,605

)

Web Loss

 

$

(2,869

)

 

$

(33,556

)

 

$

(59,868

)

 

$

(95,498

)

Much less: Web earnings (loss) attributable to noncontrolling pursuits

 

 

(553

)

 

 

377

 

 

 

(1,949

)

 

 

956

 

Web Loss attributable to UIHC

 

$

(2,316

)

 

$

(33,933

)

 

$

(57,919

)

 

$

(96,454

)

OTHER COMPREHENSIVE LOSS:

 

 

 

 

 

 

 

 

Change in web unrealized beneficial properties (losses) on investments

 

 

(7,171

)

 

 

12,620

 

 

 

(18,267

)

 

 

64,726

 

Reclassification adjustment for web realized funding losses (beneficial properties)

 

 

2,349

 

 

 

(41,732

)

 

 

(3,567

)

 

 

(66,691

)

Earnings tax profit associated to objects of different complete loss

 

 

1,156

 

 

 

7,084

 

 

 

5,264

 

 

 

502

 

Complete complete loss

 

$

(6,535

)

 

$

(55,584

)

 

$

(76,438

)

 

$

(96,961

)

Much less: Complete earnings (loss) attributable to noncontrolling pursuits

 

 

(694

)

 

 

388

 

 

 

(2,295

)

 

 

1,119

 

Complete loss attributable to UIHC

 

$

(5,841

)

 

$

(55,972

)

 

$

(74,143

)

 

$

(98,080

)

 

 

 

 

 

 

 

 

 

Weighted common shares excellent

 

 

 

 

 

 

 

 

Primary

 

 

42,973,753

 

 

 

42,896,339

 

 

 

42,948,850

 

 

 

42,864,166

 

Diluted

 

 

42,973,753

 

 

 

42,896,339

 

 

 

42,948,850

 

 

 

42,864,166

 

 

 

 

 

 

 

 

 

 

Earnings accessible to UIHC widespread stockholders per share

 

 

 

 

 

 

 

 

Primary

 

$

(0.05

)

 

$

(0.79

)

 

$

(1.35

)

 

$

(2.25

)

Diluted

 

$

(0.05

)

 

$

(0.79

)

 

$

(1.35

)

 

$

(2.25

)

 

 

 

 

 

 

 

 

 

Dividends declared per share

 

$

0.06

 

 

$

0.06

 

 

$

0.24

 

 

$

0.24

 

 

Consolidated Steadiness Sheets

In hundreds, besides share quantities

 

 

 

December 31, 2021

 

December 31, 2020

ASSETS

 

 

 

 

Investments, at honest worth:

 

 

 

 

Fastened maturities, available-for-sale

 

$

663,602

 

 

$

940,011

 

Fairness securities

 

 

37,958

 

 

 

7,445

 

Different investments

 

 

18,006

 

 

 

47,595

 

Complete investments

 

$

719,566

 

 

$

995,051

 

Money and money equivalents

 

 

212,024

 

 

 

239,420

 

Restricted money

 

 

33,254

 

 

 

62,078

 

Accrued funding earnings

 

 

3,296

 

 

 

4,680

 

Property and tools, web

 

 

31,561

 

 

 

34,187

 

Premiums receivable, web

 

 

79,166

 

 

 

87,339

 

Reinsurance recoverable on paid and unpaid losses

 

 

997,120

 

 

 

821,156

 

Ceded unearned premiums

 

 

430,631

 

 

 

384,588

 

Goodwill

 

 

73,045

 

 

 

73,045

 

Deferred coverage acquisition prices

 

 

38,520

 

 

 

74,414

 

Intangible property, web

 

 

18,375

 

 

 

21,930

 

Different property

 

 

62,015

 

 

 

51,053

 

Complete Belongings

 

$

2,698,573

 

 

$

2,848,941

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Liabilities:

 

 

 

 

Unpaid losses and loss adjustment bills

 

$

1,084,450

 

 

$

1,089,966

 

Unearned premiums

 

 

644,940

 

 

 

723,938

 

Reinsurance payable on premiums

 

 

248,625

 

 

 

241,636

 

Funds excellent

 

 

114,524

 

 

 

77,912

 

Accounts payable and accrued bills

 

 

76,258

 

 

 

91,173

 

Working lease legal responsibility

 

 

1,934

 

 

 

2,311

 

Different liabilities

 

 

39,324

 

 

 

46,365

 

Notes payable, web

 

 

156,561

 

 

 

158,041

 

Complete Liabilities

 

$

2,366,616

 

 

$

2,431,342

 

Commitments and contingencies

 

 

 

 

Stockholders’ Fairness:

 

 

 

 

Most well-liked inventory, $0.0001 par worth; 1,000,000 licensed; none issued or excellent

 

 

 

 

 

 

Widespread inventory, $0.0001 par worth; 100,000,000 shares licensed; 43,360,429 and 43,250,731 issued, respectively; 43,370,442 and 43,075,877 excellent, respectively

 

 

4

 

 

 

4

 

Further paid-in capital

 

 

394,268

 

 

 

393,122

 

Treasury shares, at value; 212,083 shares

 

 

(431

)

 

 

(431

)

Gathered different complete earnings (loss)

 

 

(6,531

)

 

 

9,693

 

Retained earnings (deficit)

 

 

(74,904

)

 

 

(6,635

)

Complete stockholders’ fairness attributable to UIHC stockholders

 

$

312,406

 

 

$

395,753

 

Noncontrolling pursuits

 

 

19,551

 

 

 

21,846

 

Complete Stockholders’ Fairness

 

$

331,957

 

 

$

417,599

 

Complete Liabilities and Stockholders’ Fairness

 

$

2,698,573

 

 

$

2,848,941

 

 


United Insurance coverage Holdings Corp.


Jessica Barclay

Deputy CFO

(727) 895-7737 / jstrathman@upcinsurance.com

OR

INVESTOR RELATIONS:


The Fairness Group


Karin Daly

Vice President

(212) 836-9623 / kdaly@equityny.com

Supply: United Insurance coverage Holdings Corp.



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