Universal Reports Second Quarter 2024 Results

Rhea-AI Summary

Universal Insurance Holdings (NYSE: UVE) reported strong Q2 2024 results, with diluted GAAP EPS of $1.21 and adjusted EPS of $1.18. The company achieved an annualized return on average common equity (ROCE) of 37.4% and an adjusted ROCE of 30.5%. Direct premiums written increased by 5.7% to $578.3 million compared to the prior year quarter. Book value per share rose 24.0% year-over-year to $13.79, while adjusted book value per share increased 14.9% to $16.44. The company returned $10.1 million to shareholders, including $5.3 million in share repurchases and a $0.16 per share regular dividend.

Key financial highlights include a 12.0% increase in total revenues to $380.2 million and a 24.0% rise in net income available to common stockholders to $35.4 million. The company saw improvements in its combined ratio, which decreased by 3.2 points to 95.9%, driven by a lower net loss ratio of 70.6%.

Positive

• Diluted GAAP EPS increased 30.1% to $1.21
• Direct premiums written grew 5.7% to $578.3 million
• Book value per share rose 24.0% year-over-year to $13.79
• Total revenues increased 12.0% to $380.2 million
• Net income available to common stockholders grew 24.0% to $35.4 million
• Combined ratio improved by 3.2 points to 95.9%
• Net premiums earned increased 13.7% to $345.0 million
• Net investment income rose to $14.7 million from $11.3 million in the prior year quarter

Negative

• Commissions, policy fees and other revenue decreased 12.7% from the prior year quarter

Insights

Financial Analyst

Universal Insurance Holdings' Q2 2024 results demonstrate solid financial performance and operational improvements. Key highlights include:

• Diluted adjusted EPS of $1.18, up 35.6% year-over-year
• Annualized adjusted ROCE of 30.5%, up 5.2 percentage points
• Direct premiums written of $578.3 million, up 5.7%
• Adjusted book value per share of $16.44, up 14.9%

The company's underwriting performance has improved, with the combined ratio decreasing 3.2 points to 95.9%. This improvement, coupled with higher net investment income, has driven the increase in adjusted operating income margin to 12.8%.

Universal's growth strategy appears to be gaining traction, with policies-in-force increasing year-over-year for the first time since 2021. The 30.1% growth in non-Florida states suggests successful geographic diversification efforts.

The company's capital management remains shareholder-friendly, with $10.1 million returned to shareholders through share repurchases and dividends. However, investors should monitor the impact of future reinsurance costs on profitability, given the expiration of certain reinsurance arrangements.

Insurance Industry Expert

Universal's Q2 results reflect positive trends in the challenging Florida insurance market. The company's ability to increase policies-in-force in Florida for the second consecutive quarter is noteworthy, given the state's ongoing insurance crisis.

The reduction in the ceded premium ratio from 34.5% to 29.7% is significant, indicating improved efficiency in Universal's reinsurance program. However, the expiration of the Reinsurance to Assist Policyholders (RAP) layer and the catastrophe bond may put pressure on future reinsurance costs.

The decrease in the net loss ratio to 70.6% and the stable expense ratio of 25.3% suggest improved underwriting discipline and operational efficiency. The company's mention of "encouraging claims and litigation trends" is particularly positive for a Florida-based insurer, given the state's historically high litigation rates.

Universal's growth in other states (30.1%) outpacing Florida growth (0.9%) indicates a strategic shift towards geographic diversification, which could help mitigate concentration risk in the hurricane-prone Florida market.

While these results are encouraging, investors should remain cautious about potential impacts from future catastrophic events and ongoing challenges in the Florida insurance market.

• Diluted GAAP earnings per common share (EPS) of $1.21; diluted adjusted* EPS of $1.18
• Annualized return on average common equity (“ROCE”) of 37.4%, annualized adjusted* return on average common equity of 30.5%
• Direct premiums written of $578.3 million, up 5.7% from the prior year quarter
• Book value per share of $13.79, up 24.0% year-over-year; adjusted book value per share of $16.44, up 14.9% year-over-year
• Total capital returned to shareholders of $10.1 million, including $5.3 million of share repurchases and a $0.16 per share regular dividend

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)-- Universal Insurance Holdings (NYSE: UVE) (“Universal” or the “Company”) reported second quarter 2024 results.

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

“In the quarter, we delivered a solid 30.5% annualized adjusted return on common equity and 35.6% adjusted diluted EPS growth year-over-year,” said Stephen J. Donaghy, Chief Executive Officer. “Results were driven by strong underwriting performance and we continue to see encouraging claims and litigation trends. Florida policies in force increased sequentially for the second quarter in a row and overall policies-in-force increased year-over-year for the first time since 2021. As we mentioned previously, we completed the placement of our 2024-2025 reinsurance renewal for our insurance entities. We’re very pleased with the outcome of the program and the support we received from our longstanding reinsurance partners and from new partners as well. Importantly, despite having substantially more demand for private market reinsurance following the expirations of the Reinsurance to Assist Policyholders (RAP) layer and our catastrophe bond, the overall cost of our program was only up modestly.”

Quarterly Financial Results

Summary Financial Results

($ thousands, except per share data)	Three Months Ended June 30,												Six Months Ended June 30,
	2024				2023				Change				2024				2023				Change
GAAP comparison
Total revenues	$	380,214			$	339,570			12.0	%			$	748,173			$	656,078			14.0	%
Operating income	$	49,528			$	39,168			26.5	%			$	98,634			$	73,595			34.0	%
Operating income margin		13.0	%			11.5	%		1.5 pts					13.2	%			11.2	%		2.0 pts
Net income available to common stockholders	$	35,414			$	28,564			24.0	%			$	69,068			$	52,734			31.0	%
Diluted earnings per common share	$	1.21			$	0.93			30.1	%			$	2.35			$	1.72			36.6	%
Annualized ROCE		37.4	%			34.8	%		2.6 pts					37.6	%			33.9	%		3.7 pts
Book value per share, end of period	$	13.79			$	11.12			24.0	%			$	13.79			$	11.12			24.0	%
Non-GAAP comparison1
Core revenue	$	379,170			$	336,957			12.5	%			$	744,100			$	653,296			13.9	%
Adjusted operating income	$	48,484			$	36,555			32.6	%			$	94,561			$	70,813			33.5	%
Adjusted operating income margin		12.8	%			10.8	%		2.0 pts					12.7	%			10.8	%		1.9 pts
Adjusted net income available to common stockholders	$	34,627			$	26,594			30.2	%			$	65,997			$	50,636			30.3	%
Adjusted diluted earnings per common share	$	1.18			$	0.87			35.6	%			$	2.25			$	1.65			36.4	%
Annualized adjusted ROCE		30.5	%			25.3	%		5.2 pts					30.0	%			24.7	%		5.3 pts
Adjusted book value per share, end of period	$	16.44			$	14.31			14.9	%			$	16.44			$	14.31			14.9	%
Underwriting Summary
Premiums:
Premiums in force	$	1,999,705			$	1,879,053			6.4	%			$	1,999,705			$	1,879,053			6.4	%
Policies in force		833,433				809,685			2.9	%				833,433				809,685			2.9	%
Direct premiums written	$	578,267			$	547,126			5.7	%			$	1,024,446			$	957,228			7.0	%
Direct premiums earned	$	490,649			$	463,324			5.9	%			$	972,721			$	918,692			5.9	%
Ceded premiums earned	$	(145,691	)		$	(160,050	)		(9.0	)%			$	(293,738	)		$	(333,194	)		(11.8	)%
Ceded premium ratio		29.7	%			34.5	%		(4.8) pts					30.2	%			36.3	%		(6.1) pts
Net premiums earned	$	344,958			$	303,274			13.7	%			$	678,983			$	585,498			16.0	%
Net ratios:
Loss ratio		70.6	%			73.8	%		(3.2) pts					71.2	%			73.4	%		(2.2) pts
Expense ratio		25.3	%			25.3	%		— pts					24.5	%			26.1	%		(1.6) pts
Combined ratio		95.9	%			99.1	%		(3.2) pts					95.7	%			99.5	%		(3.8) pts
1 Reconciliation of GAAP to non-GAAP financial measures are provided in the attached tables. Adjusted net income available to common stockholders, adjusted diluted earnings 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 excludes the items above and interest and amortization of debt issuance costs. Adjusted book value per share excludes accumulated other comprehensive income, net of taxes. Adjusted ROCE is calculated by dividing annualized adjusted net income 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 Income and Adjusted Net Income

Net income available to common stockholders was $35.4 million, up from $28.6 million in the prior year quarter, and adjusted net income available to common stockholders was $34.6 million, up from $26.6 million in the prior year quarter. The increase in adjusted net income available to common stockholders mostly stems from higher underwriting and net investment income.

Revenues

Revenue was $380.2 million, up 12.0% from the prior year quarter and core revenue was $379.2 million, up 12.5% from the prior year quarter. The increase in core revenue primarily stems from higher net premiums earned and net investment income, partly offset by lower commission revenue.

Direct premiums written were $578.3 million, up 5.7% from the prior year quarter. The increase stems from 0.9% growth in Florida and 30.1% growth in other states. Overall growth mostly reflects higher rates, inflation adjustments and higher policies in force.

Direct premiums earned were $490.6 million, up 5.9% from the prior year quarter. The increase stems from direct premiums written growth over the past twelve months.

The ceded premium ratio was 29.7%, down from 34.5% in the prior year quarter. The decrease primarily reflects efficiencies associated with the 2023-2024 reinsurance program, which was in place through May 31, 2024, including the benefits of the Reinsurance to Assist Policyholders (RAP) layer and multi-year reinsurance, partly offset by a modestly higher ceded premium ratio associated with the 2024-2025 reinsurance program, which incepted on June 1, 2024.

Net premiums earned were $345.0 million, up 13.7% from the prior year quarter. The increase is primarily attributable to higher direct premiums earned and a lower ceded premium ratio, as described above.

Net investment income was $14.7 million, up from $11.3 million in the prior year quarter. The increase primarily stems from higher fixed income reinvestment yields and higher yields on cash.

Commissions, policy fees and other revenue were $19.6 million, down 12.7% from the prior year quarter. The decrease primarily reflects commissions earned on Hurricane Ian related reinstatement premiums in the prior year quarter.

Margins

The operating income margin was 13.0%, up from an operating income margin of 11.5% in the prior year quarter. The adjusted operating income margin was 12.8%, up from an adjusted operating income margin of 10.8% in the prior year quarter. The higher adjusted operating income margin primarily reflects a lower net combined ratio and higher net investment income, partly offset by lower commission revenue.

The net loss ratio was 70.6%, down 3.2 points compared to the prior year quarter. The decrease primarily reflects higher net premiums earned associated with lower reinsurance costs in the current year quarter and a lack of reserve development in the current year quarter.

The net expense ratio was 25.3%, unchanged from the prior year quarter.

The net combined ratio was 95.9%, down 3.2 points compared to the prior year quarter. The decrease reflects a lower net loss ratio, as described above.

Capital Deployment

During the second quarter, the Company repurchased approximately 274 thousand shares at an aggregate cost of $5.3 million. The Company’s current share repurchase authorization program has approximately $14.7 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, July 26, 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/BI717d7ee869b64db08f781e3de2dccf31. 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 and adjusted operating income 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 (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 June 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)
		June 30,				December 31,
		2024				2023
ASSETS:
Invested Assets
Fixed maturities, at fair value		$	1,215,630			$	1,064,330
Equity securities, at fair value			75,834				80,495
Other investments, at fair value			10,434				10,434
Investment real estate, net			5,523				5,525
Total invested assets			1,307,421				1,160,784
Cash and cash equivalents			283,264				397,306
Restricted cash and cash equivalents			68,635				2,635
Prepaid reinsurance premiums			575,620				236,254
Reinsurance recoverable			130,900				219,102
Premiums receivable, net			87,169				77,064
Property and equipment, net			49,306				47,628
Deferred policy acquisition costs			117,144				109,985
Goodwill			2,319				2,319
Other assets			56,757				63,484
TOTAL ASSETS		$	2,678,535			$	2,316,561
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Unpaid losses and loss adjustment expenses		$	344,648			$	510,117
Unearned premiums			1,042,283				990,559
Advance premium			73,402				48,660
Reinsurance payable, net			648,961				191,850
Long-term debt, net			101,625				102,006
Other liabilities			74,379				132,072
Total liabilities			2,285,298				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 - 18,785 and 18,303			(270,542	)			(260,779	)
Additional paid-in capital			118,795				115,086
Accumulated other comprehensive income (loss), net of taxes			(75,718	)			(74,172	)
Retained earnings			620,230				560,690
Total stockholders' equity			393,237				341,297
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,678,535			$	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 28,513 and 28,966 shares.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands)
		Three Months Ended									Six Months Ended
		June 30,									June 30,
		2024				2023					2024				2023
REVENUES
Net premiums earned		$	344,958			$	303,274				$	678,983			$	585,498
Net investment income			14,660				11,282					28,183				21,980
Net realized gains (losses) on investments			(311	)			882					(388	)			94
Net change in unrealized gains (losses) on investments			1,355				1,731					4,461				2,688
Commission revenue			11,679				14,986					22,712				32,268
Policy fees			5,576				5,384					9,981				9,551
Other revenue			2,297				2,031					4,241				3,999
Total revenues			380,214				339,570					748,173				656,078
EXPENSES
Losses and loss adjustment expenses			243,572				223,727					483,759				429,881
Policy acquisition costs			56,615				52,006					111,435				103,697
Other operating expenses			30,499				24,669					54,345				48,905
Total operating costs and expenses			330,686				300,402					649,539				582,483
Interest and amortization of debt issuance costs			1,623				1,629					3,245				3,265
Income before income tax expense			47,905				37,539					95,389				70,330
Income tax expense			12,489				8,973					26,316				17,591
NET INCOME		$	35,416			$	28,566				$	69,073			$	52,739

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES SHARE AND PER SHARE INFORMATION (in thousands, except per share data)
		Three Months Ended									Six Months Ended
		June 30,									June 30,
		2024				2023					2024				2023
Weighted average common shares outstanding - basic			28,600				30,265					28,734				30,323
Weighted average common shares outstanding - diluted			29,308				30,659					29,369				30,633
Shares outstanding, end of period			28,513				30,080					28,513				30,080
Basic earnings per common share		$	1.24			$	0.94				$	2.40			$	1.74
Diluted earnings per common share		$	1.21			$	0.93				$	2.35			$	1.72
Cash dividend declared per common share		$	0.16			$	0.16				$	0.32			$	0.32
Book value per share, end of period		$	13.79			$	11.12				$	13.79			$	11.12
Annualized return on average common equity (ROCE)			37.4	%			34.8	%				37.6	%			33.9	%

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION (in thousands, except for Policies In Force data)
		Three Months Ended									Six Months Ended
		June 30,									June 30,
		2024				2023					2024				2023
Premiums
Direct premiums written - Florida		$	461,018			$	456,984				$	815,843			$	794,349
Direct premiums written - Other States			117,249				90,142					208,603				162,879
Direct premiums written - Total		$	578,267			$	547,126				$	1,024,446			$	957,228
Direct premiums earned		$	490,649			$	463,324				$	972,721			$	918,692
Net premiums earned		$	344,958			$	303,274				$	678,983			$	585,498
Underwriting Ratios - Net
Loss and loss adjustment expense ratio			70.6	%			73.8	%				71.2	%			73.4	%
General and administrative expense ratio			25.3	%			25.3	%				24.5	%			26.1	%
Policy acquisition cost ratio			16.4	%			17.2	%				16.4	%			17.7	%
Other operating expense ratio			8.9	%			8.1	%				8.1	%			8.4	%
Combined ratio			95.9	%			99.1	%				95.7	%			99.5	%

		As of
		June 30,
		2024				2023
Policies in force
Florida			572,860				576,407
Other States			260,573				233,278
Total			833,433				809,685
Premiums in force
Florida		$	1,597,080			$	1,549,410
Other States			402,625				329,643
Total		$	1,999,705			$	1,879,053
Total Insured Value
Florida		$	188,408,742			$	192,324,456
Other States			149,623,623				126,539,944
Total		$	338,032,365			$	318,864,400

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									Six Months Ended
	June 30,									June 30,
	2024				2023					2024				2023
GAAP revenue	$	380,214			$	339,570				$	748,173			$	656,078
less: Net realized gains (losses) on investments		(311	)			882					(388	)			94
less: Net change in unrealized gains (losses) on investments		1,355				1,731					4,461				2,688
Core revenue	$	379,170			$	336,957				$	744,100			$	653,296

GAAP operating income to adjusted operating income
	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2024				2023					2024				2023
GAAP income before income tax expense	$	47,905			$	37,539				$	95,389			$	70,330
add: Interest and amortization of debt issuance costs		1,623				1,629					3,245				3,265
GAAP operating income		49,528				39,168					98,634				73,595
less: Net realized gains (losses) on investments		(311	)			882					(388	)			94
less: Net change in unrealized gains (losses) on investments		1,355				1,731					4,461				2,688
Adjusted operating income	$	48,484			$	36,555				$	94,561			$	70,813

GAAP operating income margin to adjusted operating income margin
	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2024				2023					2024				2023
GAAP operating income (a)	$	49,528			$	39,168				$	98,634			$	73,595
GAAP revenue (b)		380,214				339,570					748,173				656,078
GAAP operating income margin (a÷b)		13.0	%			11.5	%				13.2	%			11.2	%
Adjusted operating income (c)		48,484				36,555					94,561				70,813
Core revenue (d)		379,170				336,957					744,100				653,296
Adjusted operating income margin (c÷d)		12.8	%			10.8	%				12.7	%			10.8	%

GAAP net income (NI) to adjusted NI available to common stockholders
	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2024				2023					2024				2023
GAAP NI	$	35,416			$	28,566				$	69,073			$	52,739
less: Preferred dividends		2				2					5				5
GAAP NI available to common stockholders (e)		35,414				28,564					69,068				52,734
less: Net realized gains (losses) on investments		(311	)			882					(388	)			94
less: Net change in unrealized gains (losses) on investments		1,355				1,731					4,461				2,688
add: Income tax effect on above adjustments		257				643					1,002				684
Adjusted NI available to common stockholders (f)	$	34,627			$	26,594				$	65,997			$	50,636
Weighted average diluted common shares outstanding (g)		29,308				30,659					29,369				30,633
Diluted earnings per common share (e÷g)	$	1.21			$	0.93				$	2.35			$	1.72
Diluted adjusted earnings per common share (f÷g)	$	1.18			$	0.87				$	2.25			$	1.65

GAAP stockholders’ equity to adjusted common stockholders’ equity
	As of
	June 30,				June 30,					December 31,
	2024				2023					2023
GAAP stockholders’ equity	$	393,237			$	334,672				$	341,297
less: Preferred equity		100				100					100
Common stockholders’ equity (h)		393,137				334,572					341,197
less: Accumulated other comprehensive (loss), net of taxes		(75,718	)			(95,857	)				(74,172	)
Adjusted common stockholders’ equity (i)	$	468,855			$	430,429				$	415,369
Common shares outstanding (j)		28,513				30,080					28,966
Book value per common share (h÷j)	$	13.79			$	11.12				$	11.78
Adjusted book value per common share (i÷j)	$	16.44			$	14.31				$	14.34

GAAP return on common equity (ROCE) to adjusted ROCE
	Three Months Ended									Six Months Ended									Year Ended
	June 30,									June 30,									December 31,
	2024				2023					2024				2023					2023
Actual or Annualized NI available to common stockholders (k)	$	141,656			$	114,256				$	138,136			$	105,468				$	66,813
Average common stockholders’ equity (l)		378,851				328,139					367,167				311,184					314,497
ROCE (k÷l)		37.4	%			34.8	%				37.6	%			33.9	%				21.2	%
Annualized adjusted NI available to common stockholders (m)	$	138,508			$	106,376				$	131,994			$	101,272				$	58,657
Adjusted average common stockholders’ equity4 (n)		454,673				420,078					440,577				409,955					399,396
Adjusted ROCE (m÷n)		30.5	%			25.3	%				30.0	%			24.7	%				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/20240725830739/en/

Investors/Media:

Arash Soleimani, CFA, CPA, CPCU, ARe

Chief Strategy Officer

954-804-8874

asoleimani@universalproperty.com

Source: Universal Insurance Holdings

FAQ

What was Universal Insurance Holdings' (UVE) diluted GAAP EPS for Q2 2024?

Universal Insurance Holdings (UVE) reported a diluted GAAP EPS of $1.21 for Q2 2024.

How much did Universal Insurance Holdings' (UVE) direct premiums written grow in Q2 2024?

Universal Insurance Holdings' (UVE) direct premiums written grew by 5.7% to $578.3 million in Q2 2024 compared to the prior year quarter.

What was Universal Insurance Holdings' (UVE) combined ratio for Q2 2024?

Universal Insurance Holdings' (UVE) combined ratio for Q2 2024 was 95.9%, an improvement of 3.2 points compared to the prior year quarter.

How much capital did Universal Insurance Holdings (UVE) return to shareholders in Q2 2024?

Universal Insurance Holdings (UVE) returned $10.1 million to shareholders in Q2 2024, including $5.3 million in share repurchases and a $0.16 per share regular dividend.