Yahoo Finance Universal Insurance Holdings Inc (UVE) Q1 2024 Earnings Call Transcript Highlights: Strong ...
Adjusted Return on Common Equity: 29.4% annualized.
Adjusted Diluted EPS Growth: 35.4% year-over-year.
Adjusted Diluted EPS: $1.07, up from $0.79 in the prior-year quarter.
Core Revenue: $364.9 million, up 15.4% year-over-year.
Direct Premiums Written: $446.2 million, up 8.8% from the prior-year quarter.
Direct Premiums Earned: $482.1 million, up 5.9% from the prior-year quarter.
Net Premiums Earned: $334 million, up 18.4% from the prior-year quarter.
Net Combined Ratio: 95.5%, down 4.5 points from the prior-year quarter.
Net Loss Ratio: 71.9%, down 1.2 points from the prior-year quarter.
Net Expense Ratio: 23.6%, improved by 3.3 points from the prior-year quarter.
Share Repurchase: 208,000 shares at $4.1 million.
Quarterly Dividend: $0.16 per share, payable on May 17, 2024.
Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the competitive environment in Florida, particularly regarding pricing and market entries? A: Stephen Donaghy, CEO, noted an increase in market entrants and continued competition from Citizens. He emphasized Universal's strategic market choices and confidence in their agency force. Despite seeing some competitive actions they choose not to follow, Universal has improved retention and feels positive about their positioning.
Q: With the tort reform, is there an expectation of regulatory pressure on pricing? How does this impact policy affordability in Florida? A: Stephen Donaghy, CEO, acknowledged the complexity of balancing rate adjustments with tort reform impacts. He highlighted that Universal took a conservative approach to rate requests in anticipation of tort reform benefits and will continue to evaluate rates to align with market and regulatory developments. He also noted no undue regulatory pressures currently.
Q: Was there any net prior year development recognized in Q1? A: Frank Wilcox, CFO, confirmed there was no significant net prior year development in the first quarter, describing it as negligible.
Q: Regarding the fully supported and secured reinsurance program, does it assume a similar GAAP retention as last year? A: Stephen Donaghy, CEO, confirmed consistency with the previous year's reinsurance program in terms of GAAP retention, emphasizing that this approach was appropriate based on cost and capital utilization considerations.
Q: Can you provide insights into the financial performance this quarter? A: Frank Wilcox, CFO, reported a significant increase in adjusted diluted earnings per share and core revenue growth, driven by higher net premiums earned and net investment income. He highlighted an 8.8% increase in direct premiums written and a lower net combined ratio, which improved due to lower net loss and expense ratios.
Q: What are the plans for share repurchases and dividends? A: Frank Wilcox, CFO, mentioned that during the first quarter, the company repurchased approximately 208,000 shares and declared a quarterly cash dividend, with about $20 million remaining in the share repurchase authorization program.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
