Firm to Host Quarterly Convention Name at 5:00 P.M. ET on November 11, 2021
The knowledge on this press launch must be learn along side an investor presentation that’s obtainable on our 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, in the present day reported its monetary outcomes for the third quarter ended September 30, 2021.
|
($ in hundreds, apart from per share knowledge) |
Three Months Ended |
|
9 Months Ended |
|||||||||||||||||||||||||
|
September 30, |
|
September 30, |
||||||||||||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
Change |
|
2021 |
|
|
2020 |
|
|
Change |
|||||||||||||
|
Gross premiums written |
$ |
322,493 |
|
|
|
$ |
365,819 |
|
|
|
(11.8 |
) |
% |
|
$ |
1,060,555 |
|
|
|
$ |
1,140,653 |
|
|
|
(7.0 |
) |
% |
|
|
Gross premiums earned |
$ |
353,461 |
|
|
|
$ |
353,991 |
|
|
|
(0.1 |
) |
% |
|
$ |
1,066,557 |
|
|
|
$ |
1,042,749 |
|
|
|
2.3 |
|
% |
|
|
Internet premiums earned |
$ |
153,271 |
|
|
|
$ |
188,741 |
|
|
|
(18.8 |
) |
% |
|
$ |
444,680 |
|
|
|
$ |
565,819 |
|
|
|
(21.4 |
) |
% |
|
|
Whole revenues |
$ |
162,740 |
|
|
|
$ |
212,733 |
|
|
|
(23.5 |
) |
% |
|
$ |
479,983 |
|
|
|
$ |
605,434 |
|
|
|
(20.7 |
) |
% |
|
|
Earnings earlier than earnings tax |
$ |
(18,600 |
) |
|
|
$ |
(100,553 |
) |
|
|
81.5 |
|
% |
|
$ |
(77,655 |
) |
|
|
$ |
(86,875 |
) |
|
|
10.6 |
|
% |
|
|
Internet loss attributable to UIHC |
$ |
(14,322 |
) |
|
|
$ |
(74,072 |
) |
|
|
80.6 |
|
% |
|
$ |
(55,603 |
) |
|
|
$ |
(62,521 |
) |
|
|
11.1 |
|
% |
|
|
Internet loss obtainable to UIHC frequent stockholders per diluted share |
$ |
(0.33 |
) |
|
|
$ |
(1.73 |
) |
|
|
80.9 |
|
% |
|
$ |
(1.29 |
) |
|
|
$ |
(1.46 |
) |
|
|
11.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Reconciliation of internet loss to core earnings loss: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Plus: Non-cash amortization of intangible property |
$ |
812 |
|
|
|
$ |
1,043 |
|
|
|
(22.1 |
) |
% |
|
$ |
2,744 |
|
|
|
$ |
3,224 |
|
|
|
(14.9 |
) |
% |
|
|
Much less: Internet realized positive aspects on funding portfolio |
$ |
5,537 |
|
|
|
$ |
24,968 |
|
|
|
(77.8 |
) |
% |
|
$ |
5,916 |
|
|
|
$ |
24,959 |
|
|
|
(76.3 |
) |
% |
|
|
Much less: Unrealized positive aspects (losses) on fairness securities |
$ |
(3,293 |
) |
|
|
$ |
(11,552 |
) |
|
|
71.5 |
|
% |
|
$ |
1,709 |
|
|
|
$ |
(17,456 |
) |
|
|
NM |
|
|
|
|
Much less: Internet tax affect (1) |
$ |
(301 |
) |
|
|
$ |
(2,598 |
) |
|
|
88.4 |
|
% |
|
$ |
(1,025 |
) |
|
|
$ |
(898 |
) |
|
|
(14.1 |
|
)% |
|
|
Core loss (2) |
$ |
(15,453 |
) |
|
|
$ |
(83,847 |
) |
|
|
81.6 |
|
% |
|
$ |
(59,459 |
) |
|
|
$ |
(65,902 |
) |
|
|
9.8 |
|
% |
|
|
Core loss per diluted share (2) |
$ |
(0.36 |
) |
|
|
$ |
(1.95 |
) |
|
|
81.6 |
|
% |
|
$ |
(1.38 |
) |
|
|
$ |
(1.54 |
) |
|
|
10.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
E-book worth per share |
|
|
|
|
|
|
$ |
7.42 |
|
|
|
$ |
10.54 |
|
|
|
(29.6 |
) |
% |
|||||||||
NM = Not Significant
(1) With a purpose to reconcile internet loss to the core loss measures, we 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 based mostly on GAAP, are reconciled above to internet earnings (loss) and internet earnings (loss) per diluted share, respectively, probably the most immediately comparable GAAP measures. Further info concerning non-GAAP monetary measures introduced on this press launch will be discovered within the “Definitions of Non-GAAP Measures” part, beneath.
“The third quarter was an energetic hurricane quarter leading to a modest loss, a lot diminished from final 12 months and in keeping with expectations for this persevering with transition 12 months,” stated Dan Peed, CEO of UPC Insurance coverage. “Over the past 12 months we considerably diminished our gross and internet disaster exposures, which resulted in a materially diminished hurricane loss for the third quarter. We proceed to take steps to enhance our underlying profitability together with rising charges, sturdy publicity administration and improved threat choice methods, as we stay up for a return to a robust underwriting revenue.”
Return on Fairness and Core Return on Fairness
The calculations of the Firm’s return on fairness and core return on fairness are proven beneath.
|
($ in hundreds) |
Three Months Ended |
|
9 Months Ended |
||||||||||||||||
|
September 30, |
|
September 30, |
|||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
Internet loss attributable to UIHC |
$ |
(14,322 |
) |
|
|
$ |
(74,072 |
) |
|
|
$ |
(55,603 |
) |
|
|
$ |
(62,521 |
) |
|
|
Return on fairness based mostly on GAAP internet loss attributable to UIHC (1) |
(15.8 |
) |
% |
|
(58.6 |
) |
% |
|
(20.4 |
) |
% |
|
(16.5 |
) |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Core loss |
$ |
(15,453 |
) |
|
$ |
(83,847 |
) |
|
|
$ |
(59,459 |
) |
|
|
$ |
(65,902 |
) |
|
|
|
Core return on fairness (1)(2) |
(17.0 |
) |
% |
|
(66.3 |
) |
% |
|
(21.8 |
) |
% |
|
(17.4 |
) |
% |
||||
(1) Return on fairness for the three and nine-months ended September 30, 2021 and 2020 is calculated on an annualized foundation by dividing the web loss or core loss for the interval by the common stockholders’ fairness for the trailing twelve months.
(2) Core return on fairness, a measure that’s not based mostly on GAAP, is calculated based mostly on core earnings (loss), which is reconciled on the primary web page of this press launch to internet earnings (loss), probably the most immediately comparable GAAP measure. Further info concerning non-GAAP monetary measures introduced on this press launch will be discovered within the “Definitions of Non-GAAP Measures” part, beneath.
Mixed Ratio and Underlying Ratio
The calculations of the Firm’s mixed ratio and underlying mixed ratio are proven beneath.
|
($ in hundreds) |
Three Months Ended |
|
9 Months Ended |
||||||||||||||||||
|
September 30, |
|
September 30, |
|||||||||||||||||||
|
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
||||||||||
|
Loss ratio, internet(1) |
67.1 |
% |
|
115.8 |
|
% |
|
(48.7 |
) |
pts |
|
75.7 |
% |
|
74.8 |
|
% |
|
0.9 |
|
pts |
|
Expense ratio, internet(2) |
49.8 |
% |
|
49.0 |
|
% |
|
0.8 |
|
pts |
|
48.2 |
% |
|
46.3 |
|
% |
|
1.9 |
|
pts |
|
Mixed ratio (CR)(3) |
116.9 |
% |
|
164.8 |
|
% |
|
(47.9 |
) |
pts |
|
123.9 |
% |
|
121.1 |
|
% |
|
2.8 |
|
pts |
|
Impact of present 12 months disaster losses on CR |
24.1 |
% |
|
74.2 |
|
% |
|
(50.1 |
) |
pts |
|
22.8 |
% |
|
33.0 |
|
% |
|
(10.2 |
) |
pts |
|
Impact of prior 12 months unfavorable (favorable) growth on CR |
1.3 |
% |
|
(2.2 |
) |
% |
|
3.5 |
|
pts |
|
7.0 |
% |
|
(1.1 |
) |
% |
|
8.1 |
|
pts |
|
Underlying mixed ratio(4) |
91.5 |
% |
|
92.8 |
|
% |
|
(1.3 |
) |
pts |
|
94.1 |
% |
|
89.2 |
|
% |
|
4.9 |
|
pts |
(1) Loss ratio, internet is calculated as losses and loss adjustment bills (LAE), internet of losses ceded to reinsurers, relative to internet premiums earned.
(2) Expense ratio, internet is calculated because the sum of all working bills much less curiosity expense relative to internet premiums earned.
(3) Mixed ratio is the sum of the loss ratio, internet and expense ratio, internet.
(4) Underlying mixed ratio, a measure that’s not based mostly on GAAP, is reconciled above to the mixed ratio, probably the most immediately comparable GAAP measure. Further info concerning non-GAAP monetary measures introduced on this press launch will be discovered within the “Definitions of Non-GAAP Measures” part, beneath.
Quarterly Monetary Outcomes
Internet loss attributable to the Firm for the third quarter of 2021 was $14.3 million, or $0.33 per diluted share, in comparison with $74.1 million, or $1.73 per diluted share, for the third quarter of 2020. The rise in earnings 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 third 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 elevated ceded premium earned on account of the modifications to the Firm’s quota share reinsurance agreements described beneath.
The Firm’s complete gross written premium decreased by $43.3 million, or 11.8%, to $322.5 million for the third quarter of 2021, from $365.8 million for the third quarter of 2020. This lower was pushed primarily by a decline in written premiums throughout the private strains enterprise, as a consequence of underwriting actions taken by the Firm on the finish of 2020. As well as, the Firm skilled a lower in assumed premiums because of the termination of a contract which included business property enterprise assumed from unaffiliated insurers. The breakdown of the quarter-over-quarter modifications in each direct written and assumed premiums by area and gross written premium by line of enterprise are proven within the desk beneath.
|
($ in hundreds) |
|
Three Months Ended |
|
|
|
|
|||||||||||
|
|
|
2021 |
|
2020 |
|
Change $ |
|
Change % |
|||||||||
|
Direct Written and Assumed Premium by Area (1) |
|
|
|
|
|
|
|
|
|||||||||
|
Florida |
|
$ |
185,178 |
|
|
$ |
191,858 |
|
|
$ |
(6,680 |
) |
|
|
(3.5 |
) |
% |
|
Gulf |
|
62,757 |
|
|
73,804 |
|
|
(11,047 |
) |
|
|
(15.0 |
) |
|
|||
|
Northeast |
|
49,982 |
|
|
55,871 |
|
|
(5,889 |
) |
|
|
(10.5 |
) |
|
|||
|
Southeast |
|
24,464 |
|
|
36,496 |
|
|
(12,032 |
) |
|
|
(33.0 |
) |
|
|||
|
Whole direct written premium by area |
|
322,381 |
|
|
358,029 |
|
|
(35,648 |
) |
|
|
(10.0 |
) |
|
|||
|
Assumed premium (2) |
|
112 |
|
|
7,790 |
|
|
(7,678 |
) |
|
|
(98.6 |
) |
|
|||
|
Whole gross written premium by area |
|
$ |
322,493 |
|
|
$ |
365,819 |
|
|
$ |
(43,326 |
) |
|
|
(11.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Gross Written Premium by Line of Enterprise |
|
|
|
|
|
|
|
|
|||||||||
|
Private property |
|
$ |
258,109 |
|
|
$ |
302,078 |
|
|
$ |
(43,969 |
) |
|
|
(14.6 |
) |
% |
|
Business property |
|
64,384 |
|
|
63,741 |
|
|
643 |
|
|
|
1.0 |
|
|
|||
|
Whole gross written premium by line of enterprise |
|
$ |
322,493 |
|
|
$ |
365,819 |
|
|
$ |
(43,326 |
) |
|
|
(11.8 |
) |
% |
(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.
(2) Assumed premium written for 2021 and 2020 primarily included business property enterprise assumed from unaffiliated insurers.
Loss and LAE decreased by $115.9 million, or 53.0%, to $102.8 million for the third quarter of 2021, from $218.7 million for the third quarter of 2020. Loss and LAE expense as a share of internet earned premiums decreased 48.7 factors to 67.1% for the third quarter of 2021, in comparison with 115.8% for the third quarter of 2020. Excluding disaster losses and reserve growth, the Firm’s gross underlying loss and LAE ratio for the third quarter of 2021 would have been 18.1%, a lower of 5.3 factors from 23.4% throughout the third quarter of 2020.
Coverage acquisition prices decreased by $11.8 million, or 20.1%, to $46.9 million for the third quarter of 2021, from $58.7 million for the third quarter of 2020 primarily as a consequence 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 along side the amount of non-public strains premium written which decreased quarter over quarter. This was partially offset by elevated exterior administration charges incurred throughout the third quarter of 2021 on account of an elevated quantity of economic written premium.
Working and underwriting bills remained comparatively flat, reducing by $0.9 million, or 6.2%, to $15.4 million for the third quarter of 2021, from $14.5 million for the third quarter of 2020
Normal and administrative bills decreased by $5.3 million, or 27.6%, to $13.9 million for the third quarter of 2021, from $19.2 million for the third quarter of 2020, primarily as a consequence of a rise within the allocation of claims adjuster payroll associated prices to loss & LAE from normal and administrative bills in 2021. As well as, throughout the third quarter of 2020, the Firm incurred bills associated to the discontinuation of plans to construct new headquarters, an expense which is non-recurring in 2021.
Mixed Ratio Evaluation
The calculations of the Firm’s loss ratios and underlying loss ratios are proven beneath.
|
($ in hundreds) |
Three Months Ended |
|
9 Months Ended |
||||||||||||||||||||||||
|
September 30, |
|
September 30, |
|||||||||||||||||||||||||
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
|||||||||||||||||
|
Loss and LAE |
$ |
102,769 |
|
|
$ |
218,652 |
|
|
|
$ |
(115,883 |
) |
|
|
$ |
336,614 |
|
|
$ |
423,182 |
|
|
|
$ |
(86,568 |
) |
|
|
% of Gross earned premiums |
29.1 |
% |
|
61.8 |
|
% |
|
(32.7 |
) |
pts |
|
31.6 |
% |
|
40.6 |
|
% |
|
(9.0 |
) |
pts |
||||||
|
% of Internet earned premiums |
67.1 |
% |
|
115.8 |
|
% |
|
(48.7 |
) |
pts |
|
75.7 |
% |
|
74.8 |
|
% |
|
0.9 |
|
pts |
||||||
|
Much less: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Present 12 months disaster losses |
$ |
37,003 |
|
|
$ |
140,002 |
|
|
|
$ |
(102,999 |
) |
|
|
$ |
101,225 |
|
|
$ |
186,919 |
|
|
|
$ |
(85,694 |
) |
|
|
Prior 12 months reserve unfavorable (favorable) growth |
1,947 |
|
|
(4,213 |
) |
|
|
6,160 |
|
|
|
31,344 |
|
|
(6,165 |
) |
|
|
37,509 |
|
|
||||||
|
Underlying loss and LAE (1) |
$ |
63,819 |
|
|
$ |
82,863 |
|
|
|
$ |
(19,044 |
) |
|
|
$ |
204,045 |
|
|
$ |
242,428 |
|
|
|
$ |
(38,383 |
) |
|
|
% of Gross earned premiums |
18.1 |
% |
|
23.4 |
|
% |
|
(5.3 |
) |
pts |
|
19.1 |
% |
|
23.2 |
|
% |
|
(4.1 |
) |
pts |
||||||
|
% of Internet earned premiums |
41.6 |
% |
|
43.9 |
|
% |
|
(2.3 |
) |
pts |
|
45.9 |
% |
|
42.8 |
|
% |
|
3.1 |
|
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 info concerning non-GAAP monetary measures introduced on this press launch will be discovered within the “Definitions of Non-GAAP Measures” part, beneath.
The calculations of the Firm’s expense ratios are proven beneath.
|
($ in hundreds) |
Three Months Ended |
|
9 Months Ended |
||||||||||||||||||||||
|
September 30, |
|
September 30, |
|||||||||||||||||||||||
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
|||||||||||||||
|
Coverage acquisition prices |
$ |
46,925 |
|
|
$ |
58,735 |
|
|
$ |
(11,810 |
) |
|
|
$ |
129,073 |
|
|
$ |
170,183 |
|
|
$ |
(41,110 |
) |
|
|
Working and underwriting |
15,429 |
|
|
14,483 |
|
|
946 |
|
|
|
42,133 |
|
|
38,164 |
|
|
3,969 |
|
|
||||||
|
Normal and administrative |
13,940 |
|
|
19,224 |
|
|
(5,284 |
) |
|
|
42,934 |
|
|
53,646 |
|
|
(10,712 |
) |
|
||||||
|
Whole Working Bills |
$ |
76,294 |
|
|
$ |
92,442 |
|
|
$ |
(16,148 |
) |
|
|
$ |
214,140 |
|
|
$ |
261,993 |
|
|
$ |
(47,853 |
) |
|
|
% of Gross earned premiums |
21.6 |
% |
|
26.1 |
% |
|
(4.5 |
) |
pts |
|
20.1 |
% |
|
25.1 |
% |
|
(5.0 |
) |
pts |
||||||
|
% of Internet earned premiums |
49.8 |
% |
|
49.0 |
% |
|
0.8 |
|
pts |
|
48.2 |
% |
|
46.3 |
% |
|
1.9 |
|
pts |
||||||
Reinsurance Prices as a Share of Gross Earned Premium
Reinsurance prices as a share of gross earned premium for the three months ended September 30, 2021 and 2020 have been as follows:
|
|
2021 |
|
2020 |
||
|
Non-at-Danger |
(0.8) |
% |
|
(2.2) |
% |
|
Quota Share |
(23.9) |
% |
|
(13.6) |
% |
|
All Different |
(31.9) |
% |
|
(30.9) |
% |
|
Whole Ceding Ratio |
(56.6) |
% |
|
(46.7) |
% |
The rise on this ratio was pushed by a number of modifications made to the Firm’s present quota share agreements efficient December 31, 2020 and June 1, 2021. These modifications embrace extending protection to incorporate American Coastal Insurance coverage Firm on the 15% quota share settlement, in addition to rising the cession share by 8%. As well as, the Firm entered right into a quota share settlement with Householders Selection Property & Casualty Insurance coverage Firm, Inc. (HCPIC) efficient December 31, 2020 via Could 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 HCPIC 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 HCPIC and 50% to TypTap. Lastly, the Firm’s 7.5% quota share settlement efficient in 2020 expired on Could 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 threat if the named storm season is as energetic because the 2020-2021 season. Mixed with elevated prices related to the 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 $1.2 billion at September 30, 2021. The Firm’s money and funding holdings include investments in U.S. authorities and company securities, company debt and 100% funding grade cash market devices. Fastened maturities represented roughly 93.9% of complete investments at September 30, 2021, in comparison with 94.5% at December 31, 2020. At September 30, 2021, our mounted maturity investments had a modified period of 4.0 years, in comparison with 4.1 years at December 31, 2020.
E-book Worth Evaluation
E-book worth per frequent share decreased 19.3% from $9.19 at December 31, 2020, to $7.42 at September 30, 2021. Underlying guide worth per frequent share decreased 16.4% from $8.96 at December 31, 2020 to $7.49 at September 30, 2021. A lower within the Firm’s retained earnings as the results of a internet loss for the 9 months ended September 30, 2021 drove the lower in our guide worth per share. As proven within the desk beneath, eradicating the impact of AOCI will increase the Firm’s guide worth per frequent share, because the Firm skilled unfavorable market situations for the 9 months ended September 30, 2021.
|
($ in hundreds, apart from share and per share knowledge) |
|
September 30, |
|
December 31, |
||||
|
|
|
|
||||||
|
E-book Worth per Share |
|
|
|
|
||||
|
Numerator: |
|
|
|
|
||||
|
Frequent stockholders’ fairness attributable to UIHC |
|
$ |
320,411 |
|
|
$ |
395,753 |
|
|
Denominator: |
|
|
|
|
||||
|
Whole Shares Excellent |
|
43,207,390 |
|
|
43,075,877 |
|
||
|
E-book Worth Per Frequent Share |
|
$ |
7.42 |
|
|
$ |
9.19 |
|
|
|
|
|
|
|
||||
|
E-book Worth per Share, Excluding the Affect of Gathered Different Complete Earnings (AOCI) |
|
|
|
|
||||
|
Numerator: |
|
|
|
|
||||
|
Frequent stockholders’ fairness attributable to UIHC |
|
$ |
320,411 |
|
|
$ |
395,753 |
|
|
Much less: Gathered different complete earnings (loss) |
|
(3,006 |
) |
|
9,693 |
|
||
|
Stockholders’ Fairness, excluding AOCI |
|
$ |
323,417 |
|
|
$ |
386,060 |
|
|
Denominator: |
|
|
|
|
||||
|
Whole Shares Excellent |
|
43,207,390 |
|
|
43,075,877 |
|
||
|
Underlying E-book Worth Per Frequent Share(1) |
|
$ |
7.49 |
|
|
$ |
8.96 |
|
(1) Underlying guide worth per frequent share is a non-GAAP monetary measure and is reconciled above to guide worth per frequent share, probably the most immediately comparable GAAP measure. Further info concerning non-GAAP monetary measures introduced on this press launch will be discovered within the “Definitions of Non-GAAP Measures” part, beneath.
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 could differ from these utilized by different firms and subsequently comparability could also be restricted.
Internet earnings (loss) excluding the consequences of amortization of intangible property, realized positive aspects (losses) and unrealized positive aspects (losses) on fairness securities, internet of tax (core earnings (loss)) is a non-GAAP measure that’s computed by including amortization, internet of tax, to internet earnings and subtracting realized positive aspects (losses) on the Firm’s funding portfolio, internet of tax, and unrealized positive aspects (losses) on the Firm’s fairness securities, internet of tax, from internet earnings. Amortization expense is expounded to the amortization of intangible property acquired via mergers and, subsequently, the expense doesn’t come up via regular operations. Funding portfolio positive aspects (losses) and unrealized fairness safety positive aspects (losses) differ unbiased of the Firm’s operations. The Firm believes it’s helpful for buyers to judge these parts each individually and within the combination when reviewing the Firm’s efficiency. Essentially the most immediately comparable GAAP measure is internet earnings. The core earnings measure shouldn’t be thought of an alternative choice to internet earnings and doesn’t mirror 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 common stockholders’ fairness for the trailing twelve months (or one quarter of such common, within the case of quarterly durations). Core earnings is an after-tax non-GAAP measure that’s calculated by excluding from internet earnings the impact of non-cash amortization of intangible property, unrealized positive aspects or losses on the Firm’s fairness safety investments and internet realized positive aspects 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 gadgets aren’t essentially indicative of working traits. Internally, the Firm’s administration makes use of core earnings, core earnings per share and core return on fairness to judge efficiency in opposition to historic outcomes and set up monetary targets on a consolidated foundation. Essentially the most immediately comparable GAAP measure is return on fairness. The core return on fairness measure shouldn’t be thought of an alternative choice to return on fairness and doesn’t mirror the general profitability of the Firm’s enterprise.
Mixed ratio excluding the consequences of present 12 months disaster losses and prior 12 months reserve growth (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 growth from the mixed ratio. The Firm believes that this ratio is helpful to buyers, and it’s utilized by administration to spotlight the traits within the Firm’s enterprise which may be obscured by present 12 months disaster losses and prior 12 months growth. Present 12 months disaster losses trigger the Firm’s loss traits to differ considerably between durations on account of their frequency of incidence and severity and might have a big affect on the mixed ratio. Prior 12 months growth is attributable to sudden loss growth on historic reserves. The Firm believes it’s helpful for buyers to judge these parts each individually and within the combination when reviewing the Firm’s efficiency. Essentially the most immediately comparable GAAP measure is the mixed ratio. The underlying mixed ratio shouldn’t be thought of as an alternative choice to the mixed ratio and doesn’t mirror the general profitability of the Firm’s enterprise.
Internet loss and LAE excluding the consequences of present 12 months disaster losses and prior 12 months reserve growth (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 growth from internet loss and LAE. The Firm makes use of underlying loss and LAE figures to investigate the Firm’s loss traits which may be impacted by present 12 months disaster losses and prior 12 months growth on the Firm’s reserves. As mentioned beforehand, these two gadgets can have a big affect on the Firm’s loss traits in a given interval. The Firm believes it’s helpful for buyers to judge these parts each individually and within the combination when reviewing the Firm’s efficiency. Essentially the most immediately comparable GAAP measure is internet loss and LAE. The underlying loss and LAE measure shouldn’t be thought of an alternative choice to internet loss and LAE and doesn’t mirror the general profitability of the Firm’s enterprise.
E-book worth per frequent share, excluding the affect of amassed different complete earnings (underlying guide worth per frequent share), is a non-GAAP measure that’s computed by dividing frequent stockholders’ fairness after excluding amassed different complete earnings, by complete frequent shares excellent plus dilutive potential frequent shares excellent. The Firm makes use of the pattern in guide worth per frequent share, excluding the affect of amassed different complete earnings, along side guide worth per frequent share to determine and analyze the change in internet price attributable to administration efforts between durations. The Firm believes this non-GAAP measure is helpful to buyers as a result of it eliminates the impact of rates of interest that may fluctuate considerably from interval to interval and are typically pushed by financial and monetary elements that aren’t influenced by administration. E-book worth per frequent share is probably the most immediately comparable GAAP measure. E-book worth per frequent share, excluding the affect of amassed different complete earnings, shouldn’t be thought of an alternative choice to guide worth per frequent share and doesn’t mirror the recorded internet price of the Firm’s enterprise.
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 via a wide range of distribution channels. The Firm at present writes insurance policies in Florida, Georgia, Louisiana, New York, North Carolina, South Carolina, and Texas. The Firm additionally writes insurance policies in Connecticut, Massachusetts, New Jersey, and Rhode Island the place renewal rights have been bought and all premiums and losses are ceded. From its headquarters in St. Petersburg, UPC Insurance coverage’s group of devoted professionals manages a totally 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 info are “forward-looking statements” that anticipate outcomes based mostly on our estimates, assumptions and plans and are topic to uncertainty. These statements are made topic to the safe-harbor provisions of the Personal Securities Litigation Reform Act of 1995. These forward-looking statements don’t relate strictly to historic or present info and could also be recognized by their use of phrases resembling “could,” “will,” “anticipate,” “endeavor,” “venture,” “consider,” “plan,” “anticipate,” “intend,” “may,” “would,” “estimate” or “proceed” or the detrimental variations thereof or comparable terminology. We consider these statements are based mostly on cheap estimates, assumptions and plans. Nonetheless, 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 communicated in these forward-looking statements. Elements that might trigger precise outcomes to vary materially from these expressed in, or implied by, the forward-looking statements could also be present in our filings with the U.S. Securities and Alternate Fee, together with the “Danger Elements” part in our most up-to-date Annual Report on Type 10-Okay and subsequent Quarterly Studies on Type 10-Q. Ahead-looking statements converse solely as of the date on which they’re made, and, besides as required by relevant legislation, we undertake no obligation to replace or revise any forward-looking assertion.
|
Consolidated Statements of Complete Earnings (Loss) |
||||||||||||||||||||
|
In hundreds, besides share and per share quantities |
||||||||||||||||||||
|
|
|
Three Months Ended |
|
9 Months Ended |
||||||||||||||||
|
|
|
September 30, |
|
September 30, |
||||||||||||||||
|
2021 |
2020 |
2021 |
2020 |
|||||||||||||||||
|
REVENUE: |
|
|
|
|
|
|
|
|
||||||||||||
|
Gross premiums written |
|
$ |
322,493 |
|
|
|
$ |
365,819 |
|
|
|
$ |
1,060,555 |
|
|
|
$ |
1,140,653 |
|
|
|
Change in gross unearned premiums |
|
30,968 |
|
|
|
(11,828 |
) |
|
|
6,002 |
|
|
|
(97,904 |
) |
|
||||
|
Gross premiums earned |
|
353,461 |
|
|
|
353,991 |
|
|
|
1,066,557 |
|
|
|
1,042,749 |
|
|
||||
|
Ceded premiums earned |
|
(200,190 |
) |
|
|
(165,250 |
) |
|
|
(621,877 |
) |
|
|
(476,930 |
) |
|
||||
|
Internet premiums earned |
|
153,271 |
|
|
|
188,741 |
|
|
|
444,680 |
|
|
|
565,819 |
|
|
||||
|
Internet funding earnings |
|
3,471 |
|
|
|
6,010 |
|
|
|
10,737 |
|
|
|
18,834 |
|
|
||||
|
Internet realized funding positive aspects |
|
5,537 |
|
|
|
24,968 |
|
|
|
5,916 |
|
|
|
24,959 |
|
|
||||
|
Internet unrealized positive aspects (losses) on fairness securities |
|
(3,293 |
) |
|
|
(11,552 |
) |
|
|
1,709 |
|
|
|
(17,456 |
) |
|
||||
|
Different income |
|
3,754 |
|
|
|
4,566 |
|
|
|
16,941 |
|
|
|
13,278 |
|
|
||||
|
Whole revenues |
|
$ |
162,740 |
|
|
|
$ |
212,733 |
|
|
|
$ |
479,983 |
|
|
|
$ |
605,434 |
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
||||||||||||
|
Losses and loss adjustment bills |
|
102,769 |
|
|
|
218,652 |
|
|
|
336,614 |
|
|
|
423,182 |
|
|
||||
|
Coverage acquisition prices |
|
46,925 |
|
|
|
58,735 |
|
|
|
129,073 |
|
|
|
170,183 |
|
|
||||
|
Working bills |
|
15,429 |
|
|
|
14,483 |
|
|
|
42,133 |
|
|
|
38,164 |
|
|
||||
|
Normal and administrative bills |
|
13,940 |
|
|
|
19,224 |
|
|
|
42,934 |
|
|
|
53,646 |
|
|
||||
|
Curiosity expense |
|
2,378 |
|
|
|
2,210 |
|
|
|
7,010 |
|
|
|
7,194 |
|
|
||||
|
Whole bills |
|
181,441 |
|
|
|
313,304 |
|
|
|
557,764 |
|
|
|
692,369 |
|
|
||||
|
Loss earlier than different earnings |
|
(18,701 |
) |
|
|
(100,571 |
) |
|
|
(77,781 |
) |
|
|
(86,935 |
) |
|
||||
|
Different earnings |
|
101 |
|
|
|
18 |
|
|
|
126 |
|
|
|
60 |
|
|
||||
|
Loss earlier than earnings taxes |
|
(18,600 |
) |
|
|
(100,553 |
) |
|
|
(77,655 |
) |
|
|
(86,875 |
) |
|
||||
|
Profit for earnings taxes |
|
(3,482 |
) |
|
|
(26,685 |
) |
|
|
(20,656 |
) |
|
|
(24,933 |
) |
|
||||
|
Internet Loss |
|
$ |
(15,118 |
) |
|
|
$ |
(73,868 |
) |
|
|
$ |
(56,999 |
) |
|
|
$ |
(61,942 |
) |
|
|
Much less: Internet earnings (loss) attributable to noncontrolling pursuits |
|
(796 |
) |
|
|
204 |
|
|
|
(1,396 |
) |
|
|
579 |
|
|
||||
|
Internet Loss attributable to UIHC |
|
$ |
(14,322 |
) |
|
|
$ |
(74,072 |
) |
|
|
$ |
(55,603 |
) |
|
|
$ |
(62,521 |
) |
|
|
OTHER COMPREHENSIVE LOSS: |
|
|
|
|
|
|
|
|
||||||||||||
|
Change in internet unrealized positive aspects (losses) on investments |
|
2,401 |
|
|
|
27,884 |
|
|
|
(11,096 |
) |
|
|
52,106 |
|
|
||||
|
Reclassification adjustment for internet realized funding positive aspects |
|
(5,537 |
) |
|
|
(24,968 |
) |
|
|
(5,916 |
) |
|
|
(24,959 |
) |
|
||||
|
Earnings tax profit (expense) associated to gadgets of different complete loss |
|
744 |
|
|
|
(707 |
) |
|
|
4,108 |
|
|
|
(6,582 |
) |
|
||||
|
Whole complete loss |
|
$ |
(17,510 |
) |
|
|
$ |
(71,659 |
) |
|
|
$ |
(69,903 |
) |
|
|
$ |
(41,377 |
) |
|
|
Much less: Complete earnings (loss) attributable to noncontrolling pursuits |
|
(844 |
) |
|
|
208 |
|
|
|
(1,601 |
) |
|
|
731 |
|
|
||||
|
Complete loss attributable to UIHC |
|
$ |
(16,666 |
) |
|
|
$ |
(71,867 |
) |
|
|
$ |
(68,302 |
) |
|
|
$ |
(42,108 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Weighted common shares excellent |
|
|
|
|
|
|
|
|
||||||||||||
|
Fundamental |
|
42,971,535 |
|
|
|
42,893,205 |
|
|
|
42,940,458 |
|
|
|
42,853,364 |
|
|
||||
|
Diluted |
|
42,971,535 |
|
|
|
42,893,205 |
|
|
|
42,940,458 |
|
|
|
42,853,364 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Earnings obtainable to UIHC frequent stockholders per share |
|
|
|
|
|
|
|
|
||||||||||||
|
Fundamental |
|
$ |
(0.33 |
) |
|
|
$ |
(1.73 |
) |
|
|
$ |
(1.29 |
) |
|
|
$ |
(1.46 |
) |
|
|
Diluted |
|
$ |
(0.33 |
) |
|
|
$ |
(1.73 |
) |
|
|
$ |
(1.29 |
) |
|
|
$ |
(1.46 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Dividends declared per share |
|
$ |
0.06 |
|
|
|
$ |
0.06 |
|
|
|
$ |
0.18 |
|
|
|
$ |
0.18 |
|
|
|
Consolidated Steadiness Sheets |
||||||||||
|
In hundreds, besides share quantities |
||||||||||
|
|
|
September 30, 2021 |
|
December 31, 2020 |
||||||
|
ASSETS |
|
|
|
|
||||||
|
Investments, at honest worth: |
|
|
|
|
||||||
|
Fastened maturities, available-for-sale |
|
$ |
884,940 |
|
|
|
$ |
940,011 |
|
|
|
Fairness securities |
|
29,407 |
|
|
|
7,445 |
|
|
||
|
Different investments |
|
27,651 |
|
|
|
47,595 |
|
|
||
|
Whole investments |
|
$ |
941,998 |
|
|
|
$ |
995,051 |
|
|
|
Money and money equivalents |
|
188,275 |
|
|
|
239,420 |
|
|
||
|
Restricted money |
|
32,782 |
|
|
|
62,078 |
|
|
||
|
Accrued funding earnings |
|
3,983 |
|
|
|
4,680 |
|
|
||
|
Property and tools, internet |
|
31,940 |
|
|
|
34,187 |
|
|
||
|
Premiums receivable, internet |
|
63,199 |
|
|
|
87,339 |
|
|
||
|
Reinsurance recoverable on paid and unpaid losses |
|
1,351,731 |
|
|
|
821,156 |
|
|
||
|
Ceded unearned premiums |
|
473,482 |
|
|
|
384,588 |
|
|
||
|
Goodwill |
|
73,045 |
|
|
|
73,045 |
|
|
||
|
Deferred coverage acquisition prices |
|
77,679 |
|
|
|
74,414 |
|
|
||
|
Intangible property, internet |
|
19,186 |
|
|
|
21,930 |
|
|
||
|
Different property |
|
71,286 |
|
|
|
51,053 |
|
|
||
|
Whole Property |
|
$ |
3,328,586 |
|
|
|
$ |
2,848,941 |
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||||
|
Liabilities: |
|
|
|
|
||||||
|
Unpaid losses and loss adjustment bills |
|
$ |
1,509,477 |
|
|
|
$ |
1,089,966 |
|
|
|
Unearned premiums |
|
717,936 |
|
|
|
723,938 |
|
|
||
|
Reinsurance payable on premiums |
|
336,113 |
|
|
|
241,636 |
|
|
||
|
Funds excellent |
|
135,760 |
|
|
|
77,912 |
|
|
||
|
Accounts payable and accrued bills |
|
72,563 |
|
|
|
91,173 |
|
|
||
|
Working lease legal responsibility |
|
2,038 |
|
|
|
2,311 |
|
|
||
|
Different liabilities |
|
56,891 |
|
|
|
46,365 |
|
|
||
|
Notes payable, internet |
|
157,152 |
|
|
|
158,041 |
|
|
||
|
Whole Liabilities |
|
$ |
2,987,930 |
|
|
|
$ |
2,431,342 |
|
|
|
Commitments and contingencies |
|
|
|
|
||||||
|
Stockholders’ Fairness: |
|
|
|
|
||||||
|
Most popular inventory, $0.0001 par worth; 1,000,000 licensed; none issued or excellent |
|
— |
|
|
|
— |
|
|
||
|
Frequent inventory, $0.0001 par worth; 100,000,000 shares licensed; 43,362,943 and 43,250,731 issued, respectively; 43,207,390 and 43,075,877 excellent, respectively |
|
4 |
|
|
|
4 |
|
|
||
|
Further paid-in capital |
|
393,844 |
|
|
|
393,122 |
|
|
||
|
Treasury shares, at value; 212,083 shares |
|
(431 |
) |
|
|
(431 |
) |
|
||
|
Gathered different complete earnings (loss) |
|
(3,006 |
) |
|
|
9,693 |
|
|
||
|
Retained earnings |
|
(70,000 |
) |
|
|
(6,635 |
) |
|
||
|
Whole stockholders’ fairness attributable to UIHC stockholders |
|
$ |
320,411 |
|
|
|
$ |
395,753 |
|
|
|
Noncontrolling pursuits |
|
20,245 |
|
|
|
21,846 |
|
|
||
|
Whole Stockholders’ Fairness |
|
$ |
340,656 |
|
|
|
$ |
417,599 |
|
|
|
Whole Liabilities and Stockholders’ Fairness |
|
$ |
3,328,586 |
|
|
|
$ |
2,848,941 |
|
|
View supply model on businesswire.com:
https://www.businesswire.com/information/dwelling/20211111006094/en/
United Insurance coverage Holdings Corp.
Jessica Strathman
Deputy CFO
(727) 895-7737 / jstrathman@upcinsurance.com
OR
The Fairness Group
Adam Prior
Senior Vice-President
(212) 836-9606 / aprior@equityny.com
Supply: United Insurance coverage Holdings Corp.
