Universal Insurance Holdings, Inc. Reports Record First Quarter 2015 Financial Results
Achieved Highest Quarterly Net Income andDiluted EPS in Company History
Fort Lauderdale, FL, April 30, 2015 – Universal Insurance Holdings, Inc. (NYSE: UVE) (or the “Company”) today reported record net income of $22.3 million and diluted earnings per share (EPS) of $0.62, an increase of $8.8 million and $0.24, respectively, for the first quarter of 2015. This compares to net income of $13.5 million, or $0.38 per diluted share, for the same period in 2014.
“We are pleased to report a strong start to 2015, as we delivered the highest quarterly net income and diluted EPS in the Company’s history,” said Sean P. Downes, the Company’s Chairman, President and Chief Executive Officer. “We continue to demonstrate consistent execution on our key strategic priorities, including a focus on driving organic growth, while writing high quality, rate adequate business. The significant growth in our net earned premiums during the quarter was driven by our growth initiatives, improving reinsurance economics, as well as a reduction in the cession rate of the Company’s quota share reinsurance contracts. Looking ahead in 2015, we remain confident in our ability to drive profitable organic growth, maintain our healthy financial position, continue our geographic expansion efforts and deliver increasing returns to shareholders.”
First-Quarter 2015 & Recent Highlights
First-Quarter 2015 Results
Net income for the first quarter of 2015 of $22.3 million reflects an improvement across multiple measures including an increase in direct premiums written, net premiums written, net earned premiums, policy fees, net investment income and total revenues. Operating expenses were lower as a percentage of net earned premiums and total revenues compared to the first quarter of 2014.
The increase in net earned premiums reflects both growth in policies in force and the reduction in
the cession rate of the Company’s quota share reinsurance contracts effective June 2014. The decrease in operating expenses as a percentage of total revenues is due primarily to operational initiatives to settle claims and changes in the structure of our reinsurance program effective June 2014, including the reduction in our quota share cession rate.
At March 31, 2015, stockholders’ equity reached an all-time high at $241.9 million compared to pro-forma stockholders’ equity of $218.9 million at December 31, 2014, reflecting year-to-date net income of $22.3 million and dividend payments of $4.2 million.
On January 13, 2015, the Company announced that its board of directors declared a cash dividend of $0.12 per share of common stock, which was paid on March 2, 2015 to shareholders of record on February 18, 2015.
On April 13, 2015, the Company announced that its board of directors declared a cash dividend of $0.12 per share of common stock to be paid on July 2, 2015 to shareholders of record on June 18, 2015.
If declared and paid as intended, the annual aggregate dividend in 2015 will be $0.48 for each common share.
Financial Results Presentation
The Company will make available an audio recording of a presentation discussing its first quarter 2015 financial results at approximately 5:00 pm Eastern on April 30, 2015. The presentation will be pre-recorded and there will be no opportunity for live questions. The audio recording will be available at www.universalinsuranceholdings.com until June 1, 2015.
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 and Indiana. 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 March 31, 2015.