Universal Insurance Holdings Inc. Issues Statement
Fort Lauderdale, FL, November 17, 2015 – Universal Insurance Holdings, Inc. (NYSE: UVE) today issued the following statement to correct misleading allegations and misinformation presented by Lakewood Capital Management, a short seller:
“Universal Insurance is a national homeowners insurance company with operations in 11 states and direct written premium of $684 million through September 30, 2015. The Company operates in a highly regulated industry, and has received all necessary certifications from the states in which it operates. Universal has established a consistent track record of top- and bottom-line growth. For the first nine months of 2015, the Company reported net income of $77.3 million, an increase of 48.7% year over year. Diluted EPS for the first nine months of the year was $2.15, an increase of 45.3% year over year. The Company’s growth has been driven by its focus on 100% organic expansion based on a rate adequate, high quality book of business, first-rate customer service and claims processing. Universal believes that the strategic changes and improvements made to its reinsurance program in 2015 will continue to drive financial improvements. Specifically, the Company’s 2015/2016 reinsurance program provides it with the necessary protection from significant storms and allows it, as a result of its improved capital position, to retain a greater share of its profitable business. The Company believes that the statements made by Lakewood Capital Management are misleading and contain partial information, designed to negatively affect Universal’s stock.”
About Universal Insurance Holdings, Inc.
Universal Insurance Holdings, Inc., with its wholly-owned subsidiaries, is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Universal Property & Casualty Insurance Company (UPCIC), a wholly-owned subsidiary of the Company, is one of the leading writers of homeowners insurance in Florida and is now fully licensed and has commenced its operations in North Carolina, South Carolina, Hawaii, Georgia, Massachusetts, Maryland, Delaware, Indiana, Pennsylvania and Minnesota. American Platinum Property and Casualty Insurance Company, also a wholly-owned subsidiary, currently writes homeowners multi-peril insurance on Florida homes valued in excess of $1 million, which are limits and coverages currently not targeted through its affiliate UPCIC. For additional information on the Company, please visit our investor relations website at www.universalinsuranceholdings.com.
Forward-Looking Statements and Risk Factors
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,” 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. Future results could differ materially from those described and the Company undertakes no obligation to correct or update any forward-looking statements. 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 Form 10-K for the year ended December 31, 2014 and the Form 10-Q for the quarter ended September 30, 2015.
Andy Brimmer / Mahmoud Siddig
Joele Frank, Wilkinson Brimmer Katcher