Universal Insurance Holdings Inc (UVE, Financial) released its Q3 2023 earnings report on October 26, 2023. The company reported a loss per common share of $0.20 and an adjusted loss per common share of $0.16. Despite the losses, the company saw growth in several areas. Direct premiums written increased by 6.3% from the prior year quarter, reaching $532.0 million. The book value per share rose by 21.0% year-over-year to $10.33, with an adjusted book value per share of $14.00, up 13.5% year-over-year.
Financial Performance
The company's net combined ratio was 110.7%, down 28.5 points from the prior year quarter. Total revenues for the quarter were $360.0 million, up 15.1% from the prior year quarter. Operating loss was $6.2 million, a significant improvement from the $91.6 million loss in the prior year quarter. The company also repurchased approximately 894 thousand shares for $12.3 million, returning a total capital of $17.2 million to shareholders, including a $0.16 per share regular quarterly dividend.
Commentary
Stephen J. Donaghy, Chief Executive Officer, commented on the results, stating,
The third quarter benefited from strong and improving underlying trends and I’m optimistic as I look forward... We continue to enhance our best-in-class claims infrastructure, which together with our reinsurance capabilities, serves to differentiate us from our peers."
Financial Tables Summary
The company's total revenues for the nine months ended September 30, 2023, were $1,016,126, up 13.9% from the same period in 2022. The net income available to common stockholders for the same period was $46,816, a significant improvement from the net loss of $47,376 in 2022. The diluted earnings per common share for the nine months ended September 30, 2023, was $1.54, compared to a loss per share of $1.54 in 2022.
Looking Ahead
Despite the challenges posed by Hurricane Idalia, Universal Insurance Holdings Inc (UVE, Financial) remains confident in its market position and continues to enhance its claims infrastructure and reinsurance capabilities. The company is optimistic about its largest geography, Florida, and has started to slowly increase new business in additional territories.
Explore the complete 8-K earnings release (here) from Universal Insurance Holdings Inc for further details.
