Universal Reports Third Quarter 2023 Results

Rhea-AI Summary

Universal Insurance Holdings reports Q3 2023 results with a loss per common share of $0.20 and direct premiums written up 6.3% from prior year quarter. Book value per share increased 21.0% year-over-year. The company repurchased 894 thousand shares for $12.3 million. Total capital returned to shareholders of $17.2 million.

Positive

• Direct premiums written increased by 6.3% from the prior year quarter.
• Book value per share increased by 21.0% year-over-year.
• The company repurchased 894 thousand shares for $12.3 million.
• Total capital returned to shareholders of $17.2 million.

Negative

• Loss per common share of $0.20.
• Net combined ratio of 110.7%, down 28.5 points from the prior year quarter.
• Net loss available to common stockholders was $5.9 million, compared to a loss of $72.3 million in the prior year quarter.
• Adjusted net loss available to common stockholders was $4.6 million, compared to a loss of $69.4 million in the prior year quarter.

• Loss per common share of $0.20; adjusted* loss per common share of $0.16
• Direct premiums written of $532.0 million, up 6.3% from the prior year quarter
• Net combined ratio of 110.7%, down 28.5 points from the prior year quarter
• Book value per share of $10.33, up 21.0% year-over-year; adjusted book value per share of $14.00, up 13.5% year-over-year
• Repurchased approximately 894 thousand shares for $12.3 million. Total capital returned to shareholders of $17.2 million, including $0.16 per share regular quarterly dividend

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)-- Universal Insurance Holdings (NYSE: UVE) (“Universal” or the “Company”) reported third quarter 2023 results.

“The third quarter benefited from strong and improving underlying trends and I’m optimistic as I look forward,” said Stephen J. Donaghy, Chief Executive Officer. “During the quarter, Hurricane Idalia made Florida landfall, and, as always, we were there immediately to assist our policyholders in their time of need. The storm’s severity appears considerably smaller than initially anticipated and is comfortably absorbed within our retention. We continue to enhance our best-in-class claims infrastructure, which together with our reinsurance capabilities, serves to differentiate us from our peers. As we look forward, we are more confident in the Florida market, which is our largest geography, and have started to slowly increase new business in additional territories.”

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

Quarterly Financial Results
Summary Financial Results
($thousands, except per share data)	Three Months Ended September 30,												Nine Months Ended September 30,
		2023				2022			Change					2023				2022			Change
GAAP comparison
Total revenues	$	360,048			$	312,810			15.1	%			$	1,016,126			$	892,298			13.9	%
Operating income (loss)	$	(6,246	)		$	(91,607	)		(93.2	)%			$	67,349			$	(55,117	)		NM
Operating income (loss) margin		(1.7	)%			(29.3	)%		27.6 pts					6.6	%			(6.2	)%		NM
Net income (loss) available to common stockholders	$	(5,918	)		$	(72,278	)		(91.8	)%			$	46,816			$	(47,376	)		NM
Diluted earnings (loss) per common share	$	(0.20	)		$	(2.36	)		(91.5	)%			$	1.54			$	(1.54	)		NM
Annualized ROCE		(7.4	)%		NM*				NM					21.2	%			(18.3	)%		NM
Book value per share, end of period	$	10.33			$	8.54			21.0	%				10.33			$	8.54			21.0	%
Non-GAAP comparison1
Core revenue	$	361,764			$	316,668			14.2	%			$	1,015,060			$	909,103			11.7	%
Adjusted operating income (loss)	$	(4,530	)		$	(87,749	)		(94.8	)%			$	66,283			$	(38,312	)		NM
Adjusted operating income (loss) margin		(1.3	)%			(27.7	)%		26.4 pts					6.5	%			(4.2	)%		NM
Adjusted net income (loss) available to common stockholders	$	(4,624	)		$	(69,369	)		(93.3	)%			$	46,012			$	(34,705	)		NM
Adjusted diluted earnings (loss) per common share	$	(0.16	)		$	(2.27	)		(93.0	)%			$	1.51			$	(1.12	)		NM
Annualized adjusted ROCE		(4.4	)%		NM*				NM					15.4	%			(11.1	)%		NM
Adjusted book value per share, end of period	$	14.00			$	12.33			13.5	%			$	14.00			$	12.33			13.5	%
Underwriting Summary
Premiums:
Premiums in force	$	1,914,493			$	1,833,034			4.4	%			$	1,914,493			$	1,833,034			4.4	%
Policies in force		807,553				872,926			(7.5	)%				807,553				872,926			(7.5	)%
Direct premiums written	$	531,988			$	500,677			6.3	%			$	1,489,216			$	1,429,685			4.2	%
Direct premiums earned	$	474,311			$	452,450			4.8	%			$	1,393,003			$	1,295,858			7.5	%
Ceded premiums earned	$	(143,271	)		$	(161,819	)		(11.5	)%			$	(476,465	)		$	(459,102	)		3.8	%
Ceded premium ratio		30.2	%			35.8	%		(5.6) pts					34.2	%			35.4	%		(1.2) pts
Net premiums earned	$	331,040			$	290,631			13.9	%			$	916,538			$	836,756			9.5	%
Net ratios:
Loss ratio		87.0	%			113.7	%		(26.7) pts					78.3	%			85.5	%		(7.2) pts
Expense ratio		23.7	%			25.5	%		(1.8) pts					25.2	%			27.7	%		(2.5) pts
Combined ratio		110.7	%			139.2	%		(28.5) pts					103.5	%			113.2	%		(9.7) 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) of equity securities. 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) of equity securities.
*Not meaningful, as it implies full first event hurricane retentions in the first two quarters of 2022, which in actuality were hurricane free, and it similarly implies a full first event retention in the fourth quarter of 2022, which would instead be subject to a smaller subsequent event retention on a consolidated basis.

Net Income and Adjusted Net Income

Net loss available to common stockholders was $5.9 million, compared to a loss of $72.3 million in the prior year quarter, and adjusted net loss available to common stockholders was $4.6 million, compared to a loss of $69.4 million in the prior year quarter. The improvement in adjusted net loss available to common stockholders mostly stems from better underwriting income and net investment income.

Revenues

Revenue was $360.0 million, up 15.1% from the prior year quarter and core revenue was $361.8 million, up 14.2% 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 $532.0 million, up 6.3% from the prior year quarter. The increase stems from 4.4% growth in Florida and 14.7% growth in other states. Overall growth reflects rate increases, partly offset by lower policies in force.

Direct premiums earned were $474.3 million, up 4.8% from the prior year quarter. The increase stems from rate-driven direct premiums written growth over the past twelve months.

The ceded premium ratio was 30.2%, down from 35.8% in the prior year quarter. The decrease primarily reflects efficiencies associated with the 2023-2024 reinsurance program and direct premiums earned growth associated with primary rate increases, partly offset by higher reinsurance pricing and higher reinsurance costs associated with an increase in home values.

Net premiums earned were $331.0 million, up 13.9% 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 $12.8 million, up from $6.1 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 $18.0 million, down 10.0% from the prior year quarter. The decrease primarily reflects the difference in pricing and structure associated with our reinsurance program when compared to the prior year and a decline in policy fees associated with lower policies in force.

Margins

The GAAP operating loss margin was 1.7%, compared to a GAAP operating loss margin of 29.3% in the prior year quarter and the adjusted operating loss margin was 1.3%, compared to an adjusted operating loss margin of 27.7% in the prior year quarter. The improvement in the adjusted operating loss margin primarily reflects a lower net combined ratio and higher net investment income.

The net loss ratio was 87.0%, down 26.7 points compared to the prior year quarter. The decrease reflects a lower current accident year net loss ratio, primarily stemming from lower weather-related losses.

The net expense ratio was 23.7%, down 1.8 points from 25.5% in the prior year quarter. The reduction primarily reflects lower renewal commission rates paid to distribution partners.

The net combined ratio was 110.7%, down 28.5 points compared to the prior year quarter. The decrease reflects lower net loss and expense ratios, as described above.

Capital Deployment

During the third quarter, the Company repurchased approximately 894 thousand shares at an aggregate cost of $12.3 million. The Company currently has $7.8 million of share repurchase authorization remaining.

On July 20, 2023, the Board of Directors declared a quarterly cash dividend of 16 cents per share of common stock, payable on August 11, 2023, to shareholders of record as of the close of business on August 4, 2023.

Conference Call and Webcast

• Friday, October 27, 2023 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/BIcde2db8d22eb43b9be5e115c575ebeb9. 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 through both our appointed independent agents and through our direct online distribution channels in the United States across 19 states (primarily Florida). Learn more at universalinsuranceholdings.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 available 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) of equity securities. 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) of equity securities 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) of equity securities 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) of equity securities 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, 2023.

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 2022 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,
			2023				2022
ASSETS:
Invested Assets
Fixed maturities, at fair value		$	1,031,558			$	1,014,626
Equity securities, at fair value			76,995				85,469
Investment real estate, net			5,572				5,711
Total invested assets			1,114,125				1,105,806
Cash and cash equivalents			343,532				388,706
Restricted cash and cash equivalents			69,488				2,635
Prepaid reinsurance premiums			379,501				282,427
Reinsurance recoverable			322,986				808,850
Premiums receivable, net			88,536				69,574
Property and equipment, net			48,729				51,404
Deferred policy acquisition costs			114,590				103,654
Goodwill			2,319				2,319
Other assets			75,049				74,779
TOTAL ASSETS		$	2,558,855			$	2,890,154
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Unpaid losses and loss adjustment expenses		$	551,007			$	1,038,790
Unearned premiums			1,040,067				943,854
Advance premium			76,030				54,964
Reinsurance payable, net			388,294				384,504
Long-term debt, net			102,196				102,769
Other liabilities			99,759				77,377
Total liabilities			2,257,353				2,602,258
STOCKHOLDERS' EQUITY:
Cumulative convertible preferred stock ($0.01 par value)2			—				—
Common stock ($0.01 par value)3			473				472
Treasury shares, at cost - 18,080 and 16,790			(257,143	)			(238,758	)
Additional paid-in capital			115,922				112,509
Accumulated other comprehensive income (loss), net of taxes			(107,115	)			(103,782	)
Retained earnings			549,365				517,455
Total stockholders' equity			301,502				287,896
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,558,855			$	2,890,154
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 - 47,266 and 47,179 shares; Outstanding 29,186 and 30,389 shares.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands)
		Three Months Ended									Nine Months Ended
		September 30,									September 30,
			2023				2022					2023				2022
REVENUES
Net premiums earned		$	331,040			$	290,631				$	916,538			$	836,756
Net investment income			12,755				6,074					34,735				15,337
Net realized gains (losses) on investments			(431	)			292					(337	)			(375	)
Net change in unrealized gains (losses) of equity securities			(1,285	)			(4,150	)				1,403				(16,430	)
Commission revenue			10,830				12,592					43,098				35,157
Policy fees			5,111				5,272					14,662				15,991
Other revenue			2,028				2,099					6,027				5,862
Total revenues			360,048				312,810					1,016,126				892,298
EXPENSES
Losses and loss adjustment expenses			287,972				330,444					717,853				715,854
Policy acquisition costs			53,180				54,609					156,877				163,432
Other operating expenses			25,142				19,364					74,047				68,129
Total operating costs and expenses			366,294				404,417					948,777				947,415
Interest and amortization of debt issuance costs			1,631				1,630					4,896				4,969
Income (loss) before income tax expense (benefit)			(7,877	)			(93,237	)				62,453				(60,086	)
Income tax expense (benefit)			(1,962	)			(20,962	)				15,629				(12,718	)
NET INCOME (LOSS)		$	(5,915	)		$	(72,275	)			$	46,824			$	(47,368	)

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,
			2023				2022					2023				2022
Weighted average common shares outstanding - basic			29,617				30,604					30,087				30,858
Weighted average common shares outstanding - diluted			29,617				30,604					30,378				30,858
Shares outstanding, end of period			29,186				30,513					29,186				30,513
Basic earnings (loss) per common share		$	(0.20	)		$	(2.36	)			$	1.56			$	(1.54	)
Diluted earnings (loss) per common share		$	(0.20	)		$	(2.36	)			$	1.54			$	(1.54	)
Cash dividend declared per common share		$	0.16			$	0.16				$	0.48			$	0.48
Book value per share, end of period		$	10.33			$	8.54				$	10.33			$	8.54
Annualized return on average common equity (ROCE)			(7.4	)%			NM*					21.2	%			(18.3	)%
*Not meaningful, as it implies full first event hurricane retentions in the first two quarters of 2022, which in actuality were hurricane free, and it similarly implies a full first event retention in the fourth quarter of 2022, which would instead be subject to a smaller subsequent event retention on a consolidated basis.

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,
			2023				2022					2023				2022
Premiums
Direct premiums written - Florida		$	430,946			$	412,588				$	1,225,295			$	1,200,193
Direct premiums written - Other States			101,042				88,089					263,921				229,492
Direct premiums written - Total		$	531,988			$	500,677				$	1,489,216			$	1,429,685
Direct premiums earned		$	474,311			$	452,450				$	1,393,003			$	1,295,858
Net premiums earned		$	331,040			$	290,631				$	916,538			$	836,756
Underwriting Ratios - Net
Loss and loss adjustment expense ratio			87.0	%			113.7	%				78.3	%			85.5	%
Policy acquisition cost ratio			16.1	%			18.8	%				17.1	%			19.5	%
Other operating expense ratio			7.6	%			6.7	%				8.1	%			8.2	%
Expense ratio			23.7	%			25.5	%				25.2	%			27.7	%
Combined ratio			110.7	%			139.2	%				103.5	%			113.2	%

		As of
		September 30,
			2023			2022
Policies in force
Florida			570,339			636,883
Other States			237,214			236,043
Total			807,553			872,926
Premiums in force
Florida		$	1,571,600		$	1,529,632
Other States			342,893			303,402
Total		$	1,914,493		$	1,833,034
Total Insured Value
Florida		$	190,299,057		$	203,957,272
Other States			130,281,463			120,648,594
Total		$	320,580,520		$	324,605,866

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,
		2023				2022					2023				2022
GAAP revenue	$	360,048			$	312,810				$	1,016,126			$	892,298
less: Net realized gains (losses) on investments		(431	)			292					(337	)			(375	)
less: Net change in unrealized gains (losses) of equity securities		(1,285	)			(4,150	)				1,403				(16,430	)
Core revenue	$	361,764			$	316,668				$	1,015,060			$	909,103

GAAP operating income (loss) to adjusted operating income (loss)
	Three Months Ended									Nine Months Ended
	September 30,									September 30,
		2023				2022					2023				2022
GAAP income (loss) before income tax expense (benefit)	$	(7,877	)		$	(93,237	)			$	62,453			$	(60,086	)
add: Interest and amortization of debt issuance costs		1,631				1,630					4,896				4,969
GAAP operating income (loss)		(6,246	)			(91,607	)				67,349				(55,117	)
less: Net realized gains (losses) on investments		(431	)			292					(337	)			(375	)
less: Net change in unrealized gains (losses) of equity securities		(1,285	)			(4,150	)				1,403				(16,430	)
Adjusted operating income (loss)	$	(4,530	)		$	(87,749	)			$	66,283			$	(38,312	)

GAAP operating income (loss) margin to adjusted operating income (loss) margin
	Three Months Ended									Nine Months Ended
	September 30,									September 30,
		2023				2022					2023				2022
GAAP operating income (loss) (a)	$	(6,246	)		$	(91,607	)			$	67,349			$	(55,117	)
GAAP revenue (b)		360,048				312,810					1,016,126				892,298
GAAP operating income (loss) margin (a÷b)		(1.7	)%			(29.3	)%				6.6	%			(6.2	)%
Adjusted operating income (loss) (c)		(4,530	)			(87,749	)				66,283				(38,312	)
Core revenue (d)		361,764				316,668					1,015,060				909,103
Adjusted operating income (loss) margin (c÷d)		(1.3	)%			(27.7	)%				6.5	%			(4.2	)%

GAAP net income (loss) (NI) to adjusted NI (loss) available to common stockholders
	Three Months Ended									Nine Months Ended
	September 30,									September 30,
		2023				2022					2023				2022
GAAP NI (loss)	$	(5,915	)		$	(72,275	)			$	46,824			$	(47,368	)
less: Preferred dividends		3				3					8				8
GAAP NI (loss) available to common stockholders (e)		(5,918	)			(72,278	)				46,816				(47,376	)
less: Net realized gains (losses) on investments		(431	)			292					(337	)			(375	)
less: Net change in unrealized gains (losses) of equity securities		(1,285	)			(4,150	)				1,403				(16,430	)
add: Income tax effect on above adjustments		(422	)			(949	)				262				(4,134	)
Adjusted NI (loss) available to common stockholders (f)	$	(4,624	)		$	(69,369	)			$	46,012			$	(34,705	)
Weighted average diluted common shares outstanding (g)		29,617				30,604					30,378				30,858
Diluted earnings (loss) per common share (e÷g)	$	(0.20	)		$	(2.36	)			$	1.54			$	(1.54	)
Diluted adjusted earnings (loss) per common share (f÷g)	$	(0.16	)		$	(2.27	)			$	1.51			$	(1.12	)

GAAP stockholders’ equity to adjusted common stockholders’ equity
	As of
	September 30,				September 30,					December 31,
		2023				2022					2022
GAAP stockholders’ equity	$	301,502			$	260,637				$	287,896
less: Preferred equity		100				100					100
Common stockholders’ equity (h)		301,402				260,537					287,796
less: Accumulated other comprehensive (loss), net of taxes		(107,115	)			(115,665	)				(103,782	)
Adjusted common stockholders’ equity (i)	$	408,517			$	376,202				$	391,578
Shares outstanding (j)		29,186				30,513					30,389
Book value per common share (h÷j)	$	10.33			$	8.54				$	9.47
Adjusted book value per common share (i÷j)	$	14.00			$	12.33				$	12.89

GAAP return on common equity (ROCE) to adjusted ROCE
	Three Months Ended									Nine Months Ended									Year Ended
	September 30,									September 30,									December 31,
		2023				2022					2023				2022					2022
Actual or Annualized NI (loss) available to common stockholders (k)	$	(23,672	)		$	(289,112	)			$	62,421			$	(63,168	)			$	(22,267	)
Average common stockholders’ equity (l)		317,987				313,494					294,599				345,070					358,699
ROCE (k÷l)		(7.4	)%		NM*						21.2	%			(18.3	)%				(6.2	)%
Actual or Annualized adjusted NI (loss) available to common stockholders (m)	$	(18,496	)		$	(277,476	)			$	61,349			$	(46,273	)			$	(12,618	)
Adjusted average common stockholders’ equity4 (n)		420,120				416,848					399,646				417,022					423,199
Adjusted ROCE (m÷n)		(4.4	)%		NM*						15.4	%			(11.1	)%				(3.0	)%
4 Adjusted average common stockholders’ equity excludes current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities.
*Not meaningful, as it implies full first event hurricane retentions in the first two quarters of 2022, which in actuality were hurricane free, and it similarly implies a full first event retention in the fourth quarter of 2022, which would instead be subject to a smaller subsequent event retention on a consolidated basis.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231026478769/en/

Investors:

Arash Soleimani, CFA, CPA, CPCU, ARe

Chief Strategy Officer

954-804-8874

asoleimani@universalproperty.com

Source: Universal Insurance Holdings