UVE Universal Insurance Holdings Inc

• Loss per common share of $0.57; adjusted* loss per common share of $0.73
• Direct premiums written of $574.4 million, up 8.0% from the prior year quarter
• Book value per share of $14.15, up 37.0% year-over-year; adjusted book value per share of $15.76, up 12.6% year-over-year
• Total capital returned to shareholders of $9.1 million, including $4.4 million of share repurchases and a $0.16 per share regular dividend

Universal Insurance Holdings (NYSE: UVE) (“Universal” or the “Company”) reported third quarter 2024 results.

*Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.

“Our hearts and thoughts go out to those impacted by recent disasters, including Hurricanes Debbie and Helene in the third quarter and Hurricane Milton in the fourth quarter,” said Stephen J. Donaghy, Chief Executive Officer. “We’ve been through many hurricanes in our nearly three-decade history, arming us with the requisite experience to quickly and efficiently get policyholders back on their feet. Our substantial reinsurance protection and the strong reinsurance relationships that we’ve built over many years provide us with the financial resilience to weather both high frequency and high severity storm seasons. As we’ve previously disclosed, our consolidated retention drops for subsequent events and we expect a smaller financial impact from weather in the fourth quarter, inclusive of Hurricane Milton. Non-catastrophe underwriting trends continue to improve and we’re highly encouraged as we look ahead.

On a separate note, we opened for business in Wisconsin at the beginning of the month, our 19th state. We’re excited to offer our insurance products there, as we continue to expand to new markets, diversifying our book of business and growing our addressable market.”

Quarterly Financial Results

Summary Financial Results

($thousands, except per share data)

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

Change

 

 

 

2024

 

 

 

2023

 

 

Change

GAAP comparison

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

387,554

 

 

$

360,048

 

 

7.6%

 

 

$

1,135,727

 

 

$

1,016,126

 

 

11.8%

Operating income (loss)

$

(16,504

)

 

$

(6,246

)

 

164.2%

 

 

$

82,130

 

 

$

67,349

 

 

21.9%

Operating income (loss) margin

 

(4.3

)%

 

 

(1.7

)%

 

(2.6) pts

 

 

 

7.2

%

 

 

6.6

%

 

0.6 pts

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) available to common stockholders

$

(16,166

)

 

$

(5,918

)

 

173.2%

 

 

$

52,902

 

 

$

46,816

 

 

13.0%

Diluted earnings (loss) per common share

$

(0.57

)

 

$

(0.20

)

 

185.0%

 

 

$

1.80

 

 

$

1.54

 

 

16.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized ROCE

 

(16.3

)%

 

 

(7.4

)%

 

(8.9) pts

 

 

 

19.0

%

 

 

21.2

%

 

(2.2) pts

Book value per share, end of period

$

14.15

 

 

$

10.33

 

 

37.0%

 

 

$

14.15

 

 

$

10.33

 

 

37.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP comparison1

 

 

 

 

 

 

 

 

 

 

 

 

Core revenue

$

381,401

 

 

$

361,764

 

 

5.4%

 

 

$

1,125,501

 

 

$

1,015,060

 

 

10.9%

Adjusted operating income (loss)

$

(22,657

)

 

$

(4,530

)

 

400.2%

 

 

$

71,904

 

 

$

66,283

 

 

8.5%

Adjusted operating income (loss) margin

 

(5.9

)%

 

 

(1.3

)%

 

(4.6) pts

 

 

 

6.4

%

 

 

6.5

%

 

(0.1) pts

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss) available to common stockholders

$

(20,805

)

 

$

(4,624

)

 

349.9%

 

 

$

45,192

 

 

$

46,012

 

 

(1.8)%

Adjusted diluted earnings (loss) per common share

$

(0.73

)

 

$

(0.16

)

 

356.3%

 

 

$

1.54

 

 

$

1.51

 

 

2.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized adjusted ROCE

 

(18.3

)%

 

 

(4.4

)%

 

(13.9) pts

 

 

 

14.1

%

 

 

15.4

%

 

(1.3) pts

Adjusted book value per share, end of period

$

15.76

 

 

$

14.00

 

 

12.6%

 

 

$

15.76

 

 

$

14.00

 

 

12.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting Summary

 

 

 

 

 

 

 

 

 

 

 

 

Premiums:

 

 

 

 

 

 

 

 

 

 

 

 

Premiums in force

$

2,046,310

 

 

$

1,914,493

 

 

6.9%

 

 

$

2,046,310

 

 

$

1,914,493

 

 

6.9%

Policies in force

 

844,539

 

 

 

807,553

 

 

4.6%

 

 

 

844,539

 

 

 

807,553

 

 

4.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums written

$

574,351

 

 

$

531,988

 

 

8.0%

 

 

$

1,598,797

 

 

$

1,489,216

 

 

7.4%

Direct premiums earned

$

507,745

 

 

$

474,311

 

 

7.0%

 

 

$

1,480,466

 

 

$

1,393,003

 

 

6.3%

Ceded premiums earned

$

(162,009

)

 

$

(143,271

)

 

13.1%

 

 

$

(455,747

)

 

$

(476,465

)

 

(4.3)%

Ceded premium ratio

 

31.9

%

 

 

30.2

%

 

1.7 pts

 

 

 

30.8

%

 

 

34.2

%

 

(3.4) pts

Net premiums earned

$

345,736

 

 

$

331,040

 

 

4.4%

 

 

$

1,024,719

 

 

$

916,538

 

 

11.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Loss ratio

 

91.7

%

 

 

87.0

%

 

4.7 pts

 

 

 

78.1

%

 

 

78.3

%

 

(0.2) pts

Expense ratio

 

25.2

%

 

 

23.7

%

 

1.5 pts

 

 

 

24.7

%

 

 

25.2

%

 

(0.5) pts

Combined ratio

 

116.9

%

 

 

110.7

%

 

6.2 pts

 

 

 

102.8

%

 

 

103.5

%

 

(0.7) pts

1 Reconciliation of GAAP to non-GAAP financial measures are provided in the attached tables. Adjusted net income (loss) available to common stockholders, adjusted diluted earnings (loss) per common share and core revenue exclude net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. Adjusted operating income (loss) excludes the items above and interest and amortization of debt issuance costs. Adjusted book value per share excludes accumulated other comprehensive income (loss), net of taxes. Adjusted ROCE is calculated by dividing annualized adjusted net income (loss) available to common stockholders by average adjusted book value per share, with the denominator further excluding current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments.

Net Loss and Adjusted Net Loss

Net loss available to common stockholders was $16.2 million, compared to a net loss of $5.9 million in the prior year quarter, and adjusted net loss available to common stockholders was $20.8 million, compared to an adjusted net loss of $4.6 million in the prior year quarter. The higher adjusted net loss available to common stockholders mostly stems from lower underwriting income, partly offset by higher net investment income and commission revenue.

Revenues

Revenue was $387.6 million, up 7.6% from the prior year quarter and core revenue was $381.4 million, up 5.4% from the prior year quarter. The increase in core revenue primarily stems from higher net premiums earned, net investment income and commission revenue.

Direct premiums written were $574.4 million, up 8.0% from the prior year quarter. The increase stems from 2.1% growth in Florida and 32.9% growth in other states. Overall growth mostly reflects higher policies in force, higher rates and inflation adjustments.

Direct premiums earned were $507.7 million, up 7.0% from the prior year quarter. The increase stems from direct premiums written growth over the past twelve months.

The ceded premium ratio was 31.9%, up from 30.2% in the prior year quarter. The increase primarily reflects replacement of the Reinsurance to Assist Policyholders (RAP) layer, which was provided by the state of Florida, with private market coverage.

Net premiums earned were $345.7 million, up 4.4% from the prior year quarter. The increase is primarily attributable to higher direct premiums earned, partly offset by a higher ceded premium ratio, as described above.

Net investment income was $15.4 million, up from $12.8 million in the prior year quarter. The increase primarily stems from higher fixed income reinvestment yields and higher invested assets.

Commissions, policy fees and other revenue were $20.3 million, up 12.7% from the prior year quarter. The increase primarily reflects replacement of the RAP layer with private market coverage and replacement of the catastrophe bond with traditional reinsurance coverage in the 2024-2025 program.

Margins

The operating loss margin was 4.3%, compared to an operating loss margin of 1.7% in the prior year quarter. The adjusted operating loss margin was 5.9%, compared to an adjusted operating loss margin of 1.3% in the prior year quarter. The higher adjusted operating loss margin primarily reflects a higher net combined ratio, partly offset by higher net investment income and commission revenue.

The net loss ratio was 91.7%, up 4.7 points compared to the prior year quarter. The increase primarily reflects higher weather losses, mostly from Hurricane Helene, partly offset by more favorable prior year reserve development.

The net expense ratio was 25.2%, up 1.5 points from 23.7% in the prior year quarter. The increase was primarily driven by higher policy acquisition costs associated with growth outside Florida and higher other operating costs.

The net combined ratio was 116.9%, up 6.2 points compared to the prior year quarter. The increase reflects higher net loss and expense ratios, as described above.

Capital Deployment

During the third quarter, the Company repurchased approximately 226 thousand shares at an aggregate cost of $4.4 million. The Company’s current share repurchase authorization program has approximately $10.3 million remaining.

On July 11, 2024, the Board of Directors declared a quarterly cash dividend of 16 cents per share of common stock, payable on August 9, 2024, to shareholders of record as of the close of business on August 2, 2024.

Conference Call and Webcast

• Friday, October 25, 2024 at 10:00 a.m. ET
• Investors and other interested parties may listen to the call by accessing the online, real-time webcast at universalinsuranceholdings.com/investors or by registering in advance via teleconference at https://register.vevent.com/register/BI790e26e2fbb842a28dbb61116474c3ae. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. An online replay of the call will be available at universalinsuranceholdings.com/investors soon after the investor call concludes.

About Universal

Universal Insurance Holdings, Inc. (NYSE: UVE) is a holding company providing property and casualty insurance and value-added insurance services. We develop, market, and write insurance products for consumers predominantly in the personal residential homeowners lines of business and perform substantially all other insurance-related services for our primary insurance entities, including risk management, claims management and distribution. We provide insurance products in the United States through both our appointed independent agents and our direct online distribution channels, primarily in Florida. Learn more at universalinsuranceholdings.com or get an insurance quote at Clovered.com.

Non-GAAP Financial Measures and Key Performance Indicators

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission (“SEC”), including core revenue, adjusted net income attributable to common stockholders and diluted adjusted earnings (loss) per common share, which exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. Adjusted operating income (loss) and adjusted operating income (loss) margin exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) on investments and interest and amortization of debt issuance costs. Adjusted common stockholders’ equity and adjusted book value per share exclude accumulated other comprehensive income (loss) (AOCI), net of taxes. Adjusted return on common equity excludes after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments from the numerator and AOCI, net of taxes, and current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments from the denominator. A “non-GAAP financial measure” is generally defined as a numerical measure of a company’s historical or future performance that excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”). UVE management believes that these non-GAAP financial measures are meaningful, as they allow investors to evaluate underlying revenue and profitability trends and enhance comparability across periods. When considered together with the GAAP financial measures, management believes these metrics provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. UVE management also believes that these non-GAAP financial measures enhance the ability of investors to analyze UVE’s business trends and to understand UVE’s operational performance. UVE’s management utilizes these non-GAAP financial measures as guides in long-term planning. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures presented in accordance with GAAP. For more information regarding our key performance indicators, please refer to the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Key Performance Indicators” in our forthcoming Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “will,” “plan,” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, including those risks and uncertainties described under the heading “Risk Factors” and “Liquidity and Capital Resources” in our 2023 Annual Report on Form 10-K, and supplemented in our subsequent Quarterly Reports on Form 10-Q. Future results could differ materially from those described, and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information regarding risk factors that could affect the Company’s operations and future results, refer to the Company’s reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K and the most recent quarterly reports on Form 10-Q.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except per share data)

 

 

 

September 30,

 

December 31,

 

 

 

2024

 

 

 

2023

 

ASSETS:

 

 

 

 

Invested Assets

 

 

 

 

Fixed maturities, at fair value

 

$

1,276,732

 

 

$

1,064,330

 

Equity securities, at fair value

 

 

79,470

 

 

 

80,495

 

Other investments, at fair value

 

 

12,248

 

 

 

10,434

 

Investment real estate, net

 

 

5,618

 

 

 

5,525

 

Total invested assets

 

 

1,374,068

 

 

 

1,160,784

 

Cash and cash equivalents

 

 

333,678

 

 

 

397,306

 

Restricted cash and cash equivalents

 

 

68,635

 

 

 

2,635

 

Prepaid reinsurance premiums

 

 

418,834

 

 

 

236,254

 

Reinsurance recoverable

 

 

130,124

 

 

 

219,102

 

Premiums receivable, net

 

 

92,400

 

 

 

77,064

 

Property and equipment, net

 

 

49,358

 

 

 

47,628

 

Deferred policy acquisition costs

 

 

125,305

 

 

 

109,985

 

Goodwill

 

 

2,319

 

 

 

2,319

 

Other assets

 

 

55,797

 

 

 

63,484

 

TOTAL ASSETS

 

$

2,650,518

 

 

$

2,316,561

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

LIABILITIES:

 

 

 

 

Unpaid losses and loss adjustment expenses

 

$

460,437

 

 

$

510,117

 

Unearned premiums

 

 

1,108,890

 

 

 

990,559

 

Advance premium

 

 

71,700

 

 

 

48,660

 

Reinsurance payable, net

 

 

420,282

 

 

 

191,850

 

Long-term debt, net

 

 

101,434

 

 

 

102,006

 

Other liabilities

 

 

87,530

 

 

 

132,072

 

Total liabilities

 

 

2,250,273

 

 

 

1,975,264

 

STOCKHOLDERS' EQUITY:

 

 

 

 

Cumulative convertible preferred stock ($0.01 par value)2

 

 

—

 

 

 

—

 

Common stock ($0.01 par value)3

 

 

472

 

 

 

472

 

Treasury shares, at cost - 19,012 and 18,303

 

 

(274,977

)

 

 

(260,779

)

Additional paid-in capital

 

 

121,003

 

 

 

115,086

 

Accumulated other comprehensive income (loss), net of taxes

 

 

(45,593

)

 

 

(74,172

)

Retained earnings

 

 

599,340

 

 

 

560,690

 

Total stockholders' equity

 

 

400,245

 

 

 

341,297

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,650,518

 

 

$

2,316,561

 

 

 

 

 

 

Notes:

 

 

 

 

2 Cumulative convertible preferred stock ($0.01 par value): Authorized - 1,000 shares; Issued - 10 and 10 shares; Outstanding - 10 and 10 shares; Minimum liquidation preference - $9.99 and $9.99 per share.

3 Common stock ($0.01 par value): Authorized - 55,000 shares; Issued - 47,298 and 47,269 shares; Outstanding 28,286 and 28,966 shares.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

REVENUES

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

345,736

 

 

$

331,040

 

 

 

$

1,024,719

 

 

$

916,538

 

Net investment income

 

 

15,406

 

 

 

12,755

 

 

 

 

43,589

 

 

 

34,735

 

Net realized gains (losses) on investments

 

 

(1,146

)

 

 

(431

)

 

 

 

(1,534

)

 

 

(337

)

Net change in unrealized gains (losses) on investments

 

 

7,299

 

 

 

(1,285

)

 

 

 

11,760

 

 

 

1,403

 

Commission revenue

 

 

12,959

 

 

 

10,830

 

 

 

 

35,671

 

 

 

43,098

 

Policy fees

 

 

5,194

 

 

 

5,111

 

 

 

 

15,175

 

 

 

14,662

 

Other revenue

 

 

2,106

 

 

 

2,028

 

 

 

 

6,347

 

 

 

6,027

 

Total revenues

 

 

387,554

 

 

 

360,048

 

 

 

 

1,135,727

 

 

 

1,016,126

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

316,955

 

 

 

287,972

 

 

 

 

800,714

 

 

 

717,853

 

Policy acquisition costs

 

 

58,665

 

 

 

53,180

 

 

 

 

170,100

 

 

 

156,877

 

Other operating expenses

 

 

28,438

 

 

 

25,142

 

 

 

 

82,783

 

 

 

74,047

 

Total operating costs and expenses

 

 

404,058

 

 

 

366,294

 

 

 

 

1,053,597

 

 

 

948,777

 

Interest and amortization of debt issuance costs

 

 

1,619

 

 

 

1,631

 

 

 

 

4,864

 

 

 

4,896

 

Income (loss) before income tax expense (benefit)

 

 

(18,123

)

 

 

(7,877

)

 

 

 

77,266

 

 

 

62,453

 

Income tax expense (benefit)

 

 

(1,960

)

 

 

(1,962

)

 

 

 

24,356

 

 

 

15,629

 

NET INCOME (LOSS)

 

$

(16,163

)

 

$

(5,915

)

 

 

$

52,910

 

 

$

46,824

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SHARE AND PER SHARE INFORMATION

(in thousands, except per share data)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

Weighted average common shares outstanding - basic

 

 

28,355

 

 

 

29,617

 

 

 

 

28,607

 

 

 

30,087

 

Weighted average common shares outstanding - diluted

 

 

28,355

 

 

 

29,617

 

 

 

 

29,317

 

 

 

30,378

 

Shares outstanding, end of period

 

 

28,286

 

 

 

29,186

 

 

 

 

28,286

 

 

 

29,186

 

Basic earnings (loss) per common share

 

$

(0.57

)

 

$

(0.20

)

 

 

$

1.85

 

 

$

1.56

 

Diluted earnings (loss) per common share

 

$

(0.57

)

 

$

(0.20

)

 

 

$

1.80

 

 

$

1.54

 

Cash dividend declared per common share

 

$

0.16

 

 

$

0.16

 

 

 

$

0.48

 

 

$

0.48

 

Book value per share, end of period

 

$

14.15

 

 

$

10.33

 

 

 

$

14.15

 

 

$

10.33

 

Annualized return on average common equity (ROCE)

 

 

(16.3

)%

 

 

(7.4

)%

 

 

 

19.0

%

 

 

21.2

%

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION

(in thousands, except for Policies In Force data)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

Premiums

 

 

 

 

 

 

 

 

 

Direct premiums written - Florida

 

$

440,018

 

 

$

430,946

 

 

 

$

1,255,861

 

 

$

1,225,295

 

Direct premiums written - Other States

 

 

134,333

 

 

 

101,042

 

 

 

 

342,936

 

 

 

263,921

 

Direct premiums written - Total

 

$

574,351

 

 

$

531,988

 

 

 

$

1,598,797

 

 

$

1,489,216

 

Direct premiums earned

 

$

507,745

 

 

$

474,311

 

 

 

$

1,480,466

 

 

$

1,393,003

 

Net premiums earned

 

$

345,736

 

 

$

331,040

 

 

 

$

1,024,719

 

 

$

916,538

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios - Net

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense ratio

 

 

91.7

%

 

 

87.0

%

 

 

 

78.1

%

 

 

78.3

%

General and administrative expense ratio

 

 

25.2

%

 

 

23.7

%

 

 

 

24.7

%

 

 

25.2

%

Policy acquisition cost ratio

 

 

17.0

%

 

 

16.1

%

 

 

 

16.6

%

 

 

17.1

%

Other operating expense ratio

 

 

8.2

%

 

 

7.6

%

 

 

 

8.1

%

 

 

8.1

%

Combined ratio

 

 

116.9

%

 

 

110.7

%

 

 

 

102.8

%

 

 

103.5

%

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

September 30,

 

 

 

2024

 

 

2023

Policies in force

 

 

 

 

Florida

 

 

570,432

 

 

570,339

Other States

 

 

274,107

 

 

237,214

Total

 

 

844,539

 

 

807,553

 

 

 

 

 

Premiums in force

 

 

 

 

Florida

 

$

1,609,836

 

$

1,571,600

Other States

 

 

436,474

 

 

342,893

Total

 

$

2,046,310

 

$

1,914,493

 

 

 

 

 

Total Insured Value

 

 

 

 

Florida

 

$

187,639,152

 

$

190,299,057

Other States

 

 

160,357,285

 

 

130,281,463

Total

 

$

347,996,437

 

$

320,580,520

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except for per share data)

GAAP revenue to core revenue

 

Three Months Ended

 

 

Nine Months Ended

 

September 30,

 

 

September 30,

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

GAAP revenue

$

387,554

 

 

$

360,048

 

 

 

$

1,135,727

 

 

$

1,016,126

 

less: Net realized gains (losses) on investments

 

(1,146

)

 

 

(431

)

 

 

 

(1,534

)

 

 

(337

)

less: Net change in unrealized gains (losses) on investments

 

7,299

 

 

 

(1,285

)

 

 

 

11,760

 

 

 

1,403

 

Core revenue

$

381,401

 

 

$

361,764

 

 

 

$

1,125,501

 

 

$

1,015,060

 

GAAP operating income (loss) to adjusted operating income (loss)

 

Three Months Ended

 

 

Nine Months Ended

 

September 30,

 

 

September 30,

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

GAAP income (loss) before income tax expense (benefit)

$

(18,123

)

 

$

(7,877

)

 

 

$

77,266

 

 

$

62,453

 

add: Interest and amortization of debt issuance costs

 

1,619

 

 

 

1,631

 

 

 

 

4,864

 

 

 

4,896

 

GAAP operating income (loss)

 

(16,504

)

 

 

(6,246

)

 

 

 

82,130

 

 

 

67,349

 

less: Net realized gains (losses) on investments

 

(1,146

)

 

 

(431

)

 

 

 

(1,534

)

 

 

(337

)

less: Net change in unrealized gains (losses) on investments

 

7,299

 

 

 

(1,285

)

 

 

 

11,760

 

 

 

1,403

 

Adjusted operating income (loss)

$

(22,657

)

 

$

(4,530

)

 

 

$

71,904

 

 

$

66,283

 

GAAP operating income (loss) margin to adjusted operating income (loss) margin

 

Three Months Ended

 

 

Nine Months Ended

 

September 30,

 

 

September 30,

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

GAAP operating income (loss) (a)

$

(16,504

)

 

$

(6,246

)

 

 

$

82,130

 

 

$

67,349

 

GAAP revenue (b)

 

387,554

 

 

 

360,048

 

 

 

 

1,135,727

 

 

 

1,016,126

 

GAAP operating income (loss) margin (a÷b)

 

(4.3

)%

 

 

(1.7

)%

 

 

 

7.2

%

 

 

6.6

%

Adjusted operating income (loss) (c)

 

(22,657

)

 

 

(4,530

)

 

 

 

71,904

 

 

 

66,283

 

Core revenue (d)

 

381,401

 

 

 

361,764

 

 

 

 

1,125,501

 

 

 

1,015,060

 

Adjusted operating income (loss) margin (c÷d)

 

(5.9

)%

 

 

(1.3

)%

 

 

 

6.4

%

 

 

6.5

%

GAAP net income (loss) (NI) to adjusted NI (loss) available to common stockholders

 

Three Months Ended

 

 

Nine Months Ended

 

September 30,

 

 

September 30,

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

GAAP NI (loss)

$

(16,163

)

 

$

(5,915

)

 

 

$

52,910

 

 

$

46,824

 

less: Preferred dividends

 

3

 

 

 

3

 

 

 

 

8

 

 

 

8

 

GAAP NI (loss) available to common stockholders (e)

 

(16,166

)

 

 

(5,918

)

 

 

 

52,902

 

 

 

46,816

 

less: Net realized gains (losses) on investments

 

(1,146

)

 

 

(431

)

 

 

 

(1,534

)

 

 

(337

)

less: Net change in unrealized gains (losses) on investments

 

7,299

 

 

 

(1,285

)

 

 

 

11,760

 

 

 

1,403

 

add: Income tax effect on above adjustments

 

1,514

 

 

 

(422

)

 

 

 

2,516

 

 

 

262

 

Adjusted NI (loss) available to common stockholders (f)

$

(20,805

)

 

$

(4,624

)

 

 

$

45,192

 

 

$

46,012

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common shares outstanding (g)

 

28,355

 

 

 

29,617

 

 

 

 

29,317

 

 

 

30,378

 

Diluted earnings (loss) per common share (e÷g)

$

(0.57

)

 

$

(0.20

)

 

 

$

1.80

 

 

$

1.54

 

Diluted adjusted earnings (loss) per common share (f÷g)

$

(0.73

)

 

$

(0.16

)

 

 

$

1.54

 

 

$

1.51

 

GAAP stockholders’ equity to adjusted common stockholders’ equity

 

As of

 

September 30,

 

September 30,

 

 

December 31,

 

 

2024

 

 

 

2023

 

 

 

 

2023

 

GAAP stockholders’ equity

$

400,245

 

 

$

301,502

 

 

 

$

341,297

 

less: Preferred equity

 

100

 

 

 

100

 

 

 

 

100

 

Common stockholders’ equity (h)

 

400,145

 

 

 

301,402

 

 

 

 

341,197

 

less: Accumulated other comprehensive (loss), net of taxes

 

(45,593

)

 

 

(107,115

)

 

 

 

(74,172

)

Adjusted common stockholders’ equity (i)

$

445,738

 

 

$

408,517

 

 

 

$

415,369

 

 

 

 

 

 

 

 

Common shares outstanding (j)

 

28,286

 

 

 

29,186

 

 

 

 

28,966

 

Book value per common share (h÷j)

$

14.15

 

 

$

10.33

 

 

 

$

11.78

 

Adjusted book value per common share (i÷j)

$

15.76

 

 

$

14.00

 

 

 

$

14.34

 

GAAP return on common equity (ROCE) to adjusted ROCE

 

Three Months Ended

 

 

Nine Months Ended

 

 

Year Ended

 

September 30,

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

 

 

 

2023

 

Actual or Annualized NI (loss) available to common stockholders (k)

$

(64,664

)

 

$

(23,672

)

 

 

$

70,536

 

 

$

62,421

 

 

 

$

66,813

 

Average common stockholders’ equity (l)

 

396,641

 

 

 

317,987

 

 

 

 

370,671

 

 

 

294,599

 

 

 

 

314,497

 

ROCE (k÷l)

 

(16.3

)%

 

 

(7.4

)%

 

 

 

19.0

%

 

 

21.2

%

 

 

 

21.2

%

Annualized adjusted NI (loss) available to common stockholders (m)

$

(83,220

)

 

$

(18,496

)

 

 

$

60,256

 

 

$

61,349

 

 

 

$

58,657

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted average common stockholders’ equity4 (n)

 

454,977

 

 

 

420,120

 

 

 

 

426,699

 

 

 

399,646

 

 

 

 

399,396

 

Adjusted ROCE (m÷n)

 

(18.3

)%

 

 

(4.4

)%

 

 

 

14.1

%

 

 

15.4

%

 

 

 

14.7

%

 

 

 

 

 

 

 

 

 

 

 

 

4 Adjusted average common stockholders’ equity excludes current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241024931358/en/

Investors/Media: Arash Soleimani, CFA, CPA, CPCU, ARe Chief Strategy Officer 954-804-8874 asoleimani@universalproperty.com