Investor Presentation
First Quarter 2023
Company Overview
UIHC is a specialty underwriter of catastrophe exposed property insurance.
United Insurance Holding Corp. (Nasdaq: UIHC) was founded in
1999 and is the insurance holding company for two P&C carriers: American Coastal Insurance Company (ACIC) and Interboro Insurance Company (IIC) along with other operating affiliates.
ACIC has the #1 market share of commercial residential
property insurance (commercial lines) in Florida with roughly 5,100 policies and $563 million of premium in-force.
IIC's homeowners & fire insurance products (personal lines) are written exclusively in New York with roughly 18,000 policies and
$31 million of premium in-force.
UIHC as of March 31, 2023
Total Assets: | $1.4 billion |
Total Equity: | $83.5 million |
Annualized Revenue: | $416.2 million |
Employees: | 110 |
Headquarters: | St. Petersburg, FL |
Credit Rating: | BB+ (Kroll) |
Specialty Commercial Property
Specialty Homeowners
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Executive Summary
- Q1-23Results
- GAAP net income of $260.9m included a $230.3m gain from discontinued operations from de-consolidating our former affiliate United Property & Casualty Insurance Company (UPC). The prior year was recast to conform to the presentation of discontinued operations.
- GAAP net income from continuing operations of $30.5m improved 563% from $4.6m last year driven by strong underwriting performance in commercial lines from ACIC. UIHC's combined ratio of 70.5% was also a significant improvement from the prior year.
- Current accident year catastrophe losses of $3.1m compared favorably to $6.6m last year, and favorable prior year reserve development of $3.2m primarily in commercial lines was also a positive contribution and consistent with the prior year.
- Stockholders' equity attributable to UIHC as of March 31, 2023, was $83.5m or $1.93 per share and $2.52 per share excluding unrealized losses in accumulated other comprehensive income.
- Other Highlights
- On April 19, 2023, we obtained a memorandum of understanding from the Florida Department of Financial Services (DFS) ratifying and accepting a reinsurance allocation agreement covering the 2022 core catastrophe reinsurance program previously approved by the Office of Insurance Regulation. This action provided critical clarity regarding future reinsurance recoverable for ACIC related to Hurricane Ian but did not settle reinsurance recovered by UPC on behalf of ACIC. We are working diligently with the DFS to resolve this.
- We have secured 100% of the capacity needed for our new 2023-24 catastrophe reinsurance program for ACIC and are also nearing completion of IIC's program renewal to be effective 6/1/23 and expect to announce the key details once the programs are finalized.
- The Company believes these two highlights above along with other actions being taken to resolve all amounts due to and from UPC will ultimately rectify the two primary reasons identified by our independent auditor for their going concern opinion issued on April 17, 2023.
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Q1-23 Summary Results
UIHC's solid results were fueled by our leading commercial residential business in Florida.
$ in thousands, except per share amounts | Q1-23 | Q1-22 ¹ | Change | ||
Net income (loss) | $ | 260,878 | $ | (33,172) | n/m |
per diluted share (EPS) | $ | 5.99 | $ | (0.77) | |
Reconciliation to core income (loss): | |||||
Investment gains (losses) | $ | 309 | $ | (580) | |
Amortization of intangible assets | $ | (641) | $ | (641) | |
Gain (loss) from discontinued operations | $ | 230,305 | $ | (37,904) | |
Total adjustments | $ | 229,973 | $ | (39,126) | |
Net loss & LAE ratio | 21.9% | 56.3% | ||
Net expense ratio | 48.6% | 135.4% | ||
Combined ratio | 70.5% | 191.7% | (121.2) pts | |
Less: Net current year catastrophe loss & LAE | 3.5% | 11.4% | ||
Less: Net (favorable) unfavorable reserve development | -3.6% | -5.3% | ||
Underlying combined ratio | 70.6% | 185.6% | (115.0) pts | |
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¹ 2022 amounts recast for discontinued operations
Q1-23 Detailed Results
Pre-tax earnings from continuing operations of $40.4m soared +619% y/y.
$ in millions
Gross Premiums Earned
Ceded Premiums Earned
Net Premiums Earned
Investment & Other Income
Unrealized G(L) on Equities
Total Revenue
Underlying Loss & LAE
Current year CAT Loss & LAE
Prior year development (F)/U
Net Loss & LAE
Operating Expense
Total Expenses (excluding interest)
Earnings from continuing operations before tax
Net income from continuing operations
Direct Loss Ratio - Non-catastrophe
Direct Loss Ratio - Current year catastrophe
Direct Expense ratio
Net Loss Ratio
Net Expense Ratio
Combined Ratio
Less: Current year catastrophe loss & LAE
Less: Prior year reserve development (F)/U
Underlying Combined Ratio
¹ 2022 amounts recast for discontinued operations
Q1-23 | Q1-22 ¹ | Change | % Chg | |||
$ | 144.4 | $ | 122.7 | 21.7 | 17.7% | |
(57.1) | (65.0) | 7.9 | -12.2% | |||
87.3 | 57.7 | 29.6 | 51.3% | |||
16.2 | 60.5 | (44.3) | -73.2% | |||
0.5 | (0.8) | 1.3 | -162.5% | |||
104.0 | 117.4 | (13.4) | -11.4% | |||
19.2 | 29.0 | (9.8) | -33.8% | |||
3.1 | 6.6 | (3.5) | -53.0% | |||
(3.2) | (3.1) | (0.1) | 3.2% | |||
19.1 | 32.5 | (13.4) | -41.2% | |||
42.4 | 78.2 | (35.8) | -45.8% | |||
61.5 | 110.7 | (49.2) | -44.4% | |||
$ | 40.4 | $ | 5.6 | $ | 34.8 | 618.5% |
$ | 30.5 | $ | 4.6 | $ | 25.9 | 563.0% |
9.1% | 21.1% | -12.1 pts | ||||
2.1% | 5.3% | -3.2 pts | ||||
31.7% | 63.7% | -32.1 pts | ||||
21.9% | 56.3% | -34.4 pts | ||||
48.6% | 135.4% | -86.8 pts | ||||
70.5% | 191.7% | -121.2 pts | ||||
3.5% | 11.4% | -7.9 pts | ||||
-3.6% | -5.3% | 1.7 pts | ||||
70.6% | 185.6% | -115 pts |
Includes non-recurring management fee income and operating expenses related to UPC that no longer eliminate in consolidation.
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Disclaimer
United Insurance Holdings Corp. published this content on 15 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2023 20:26:12 UTC.