United Insurance Holdings Corp. Reports Financial Results for Its First Quarter Ended March 31, 2022

Company Release - 5/9/2022

Company to Host Quarterly Conference Call at 5:00 P.M. ET on May 9, 2022

The information in this press release should be read in conjunction with an investor presentation that is available on the Company's website at investors.upcinsurance.com/Presentations.

ST. PETERSBURG, Fla.--(BUSINESS WIRE)-- United Insurance Holdings Corp. (Nasdaq: UIHC)(UPC Insurance or the Company), a property and casualty insurance holding company, today reported its financial results for the first quarter ended March 31, 2022.

($ in thousands, except for per share data)

Three Months Ended

March 31,

 

2022

 

2021

 

Change

Gross premiums written

$

279,475

 

 

$

311,638

 

 

(10.3

) %

Gross premiums earned

$

319,206

 

 

$

356,663

 

 

(10.5

) %

Net premiums earned

$

100,857

 

 

$

145,949

 

 

(30.9

) %

Total revenues

$

102,366

 

 

$

161,789

 

 

(36.7

) %

Loss before income tax

$

(44,307

)

 

$

(26,282

)

 

(68.6

) %

Net loss attributable to UIHC

$

(33,172

)

 

$

(17,771

)

 

(86.7

) %

Net loss available to UIHC common stockholders per diluted share

$

(0.77

)

 

$

(0.41

)

 

(87.8

) %

 

 

 

 

 

 

Reconciliation of net loss to core loss:

 

 

 

 

 

Plus: Non-cash amortization of intangible assets

$

812

 

 

$

1,043

 

 

(22.1

) %

Less: Net realized gains (losses) on investment portfolio

$

(1,769

)

 

$

503

 

 

NM

Less: Unrealized gains (losses) on equity securities

$

(2,268

)

 

$

2,564

 

 

NM

Less: Net tax impact (1)

$

1,018

 

 

$

(425

)

 

NM

Core loss (2)

$

(29,341

)

 

$

(19,370

)

 

(51.5

) %

Core loss per diluted share (2)

$

(0.68

)

 

$

(0.45

)

 

(51.1

) %

 

 

 

 

 

 

Book value per share

$

5.96

 

 

$

8.32

 

 

(28.4

) %

NM = Not Meaningful
(1)

In order to reconcile net loss to the core loss measures, the Company included the tax impact of all adjustments using the 21% corporate federal tax rate.

(2)

Core loss, and core loss per diluted share, both of which are measures that are not based on GAAP, are reconciled above to net loss and net loss per diluted share, respectively, the most directly comparable GAAP measures. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

"First quarter results reflect the aggressive de-risking and deleveraging activities we’ve taken in personal lines over the last 18 months, with gross earned premium down by 10% and net earned premium down by 30%," said Dan Peed, CEO of UPC Insurance. "However, while claims frequency was in line with expectations, claims severity was elevated due to inflation and excessive litigation not yet fully impacted by Senate Bill 76. With recent rate increases yet to earn through the portfolio, we experienced a first quarter underwriting loss in personal lines. Our commercial lines business performed well and continues to grow. We continue to take decisive corrective actions to reduce expenses, increase revenues, and execute on risk selection."

Return on Equity and Core Return on Equity

The calculations of the Company's return on equity and core return on equity are shown below.

($ in thousands)

Three Months Ended

March 31,

 

2022

 

2021

Net loss attributable to UIHC

$

(33,172

)

 

$

(17,771

)

Return on equity based on GAAP net loss attributable to UIHC (1)

 

(41.7

) %

 

 

(15.9

) %

 

 

 

 

Core loss

$

(29,341

)

 

$

(19,370

)

Core return on equity (1)(2)

 

(36.9

) %

 

 

(17.3

) %

(1)

Return on equity for the three months ended March 31, 2022 and 2021 is calculated on an annualized basis by dividing the net loss or core loss for the period by the average stockholders' equity for the trailing twelve months.

(2)

Core return on equity, a measure that is not based on GAAP, is calculated based on core loss, which is reconciled on the first page of this press release to net loss, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

Combined Ratio and Underlying Ratio

The calculations of the Company's combined ratio and underlying combined ratio are shown below.

($ in thousands)

Three Months Ended

March 31,

 

2022

 

2021

 

Change

Loss ratio, net(1)

90.6

%

 

79.3

%

 

11.3 pts

Expense ratio, net(2)

53.8

%

 

47.9

%

 

5.9 pts

Combined ratio (CR)(3)

144.4

%

 

127.2

%

 

17.2 pts

Effect of current year catastrophe losses on CR

28.4

%

 

16.4

%

 

12.0 pts

Effect of prior year unfavorable development on CR

1.4

%

 

20.4

%

 

(19.0) pts

Underlying combined ratio(4)

114.6

%

 

90.4

%

 

24.2 pts

(1)

Loss ratio, net is calculated as losses and loss adjustment expenses (LAE), net of losses ceded to reinsurers, relative to net premiums earned.

(2)

Expense ratio, net is calculated as the sum of all operating expenses less interest expense relative to net premiums earned.

(3)

Combined ratio is the sum of the loss ratio, net and expense ratio, net.

(4)

Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

Quarterly Financial Results

Net loss attributable to the Company for the first quarter of 2022 was $33.2 million, or $0.77 per diluted share, compared to $17.8 million, or $0.41 per diluted share, for the first quarter of 2021. The increase in net loss was primarily due to a decrease in revenues for the quarter. This was driven by decreased gross written premiums, the details of which are described below. In addition, the Company's ceded premiums earned increased as a result of the reinsurance program changes described below. This decrease in revenues was partially offset by lower loss and LAE incurred, driven by lower unfavorable prior year loss development in 2022 related to both the Company's catastrophe and non-catastrophe losses. As such, the Company did not declare a dividend for the second quarter of 2022.

The Company's total gross written premium decreased by $32.2 million, or 10.3%, to $279.5 million for the first quarter of 2022, from $311.6 million for the first quarter of 2021. This decrease was driven primarily by the transition of the Northeast business to Homeowners Choice Property & Casualty Insurance Company, Inc. (HCPCI) in the fourth quarter of 2021 and the first quarter of 2022. In addition, the Company experienced a decline in written premiums across the personal lines business, due to underwriting actions taken by the Company throughout 2021 and in the first quarter of 2022. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by region and gross written premium by line of business are shown in the table below.

($ in thousands)

 

Three Months Ended
March 31,

 

 

 

 

 

 

2022

 

2021

 

Change $

 

Change %

Direct Written and Assumed Premium by Region (1)

 

 

 

 

 

 

 

 

Florida

 

$

215,127

 

$

195,585

 

$

19,542

 

 

10.0

%

Gulf

 

 

41,606

 

 

52,983

 

 

(11,377

)

 

(21.5

)

Southeast

 

 

15,166

 

 

24,407

 

 

(9,241

)

 

(37.9

)

Northeast

 

 

7,455

 

 

38,615

 

 

(31,160

)

 

(80.7

)

Total direct written premium by region

 

 

279,354

 

 

311,590

 

 

(32,236

)

 

(10.3

)

Assumed premium (2)

 

 

121

 

 

48

 

 

73

 

 

152.1

 

Total gross written premium by region

 

$

279,475

 

$

311,638

 

$

(32,163

)

 

(10.3

)%

 

 

 

 

 

 

 

 

 

Gross Written Premium by Line of Business

 

 

 

 

 

 

 

 

Personal property

 

$

151,511

 

$

203,598

 

$

(52,087

)

 

(25.6

)%

Commercial property

 

 

127,964

 

 

108,040

 

 

19,924

 

 

18.4

%

Total gross written premium by line of business

 

$

279,475

 

$

311,638

 

$

(32,163

)

 

(10.3

)%

(1)

"Gulf" is comprised of Louisiana and Texas; "Northeast" is comprised of Massachusetts, New Jersey and New York in 2022 and Connecticut, Massachusetts, New Jersey, New York and Rhode Island in 2021; and "Southeast" is comprised of Georgia, North Carolina and South Carolina. As of January 15, 2022, the Company is no longer writing in New Jersey, as the policies have transitioned to HCPCI.

(2)

Assumed premium written for 2022 and 2021 primarily included commercial property business assumed from unaffiliated insurers.

Loss and LAE decreased by $24.4 million, or 21.1%, to $91.4 million for the first quarter of 2022, from $115.8 million for the first quarter of 2021. Loss and LAE expense as a percentage of net earned premiums increased 11.3 points to 90.6% for the first quarter of 2022, compared to 79.3% for the first quarter of 2021. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the first quarter of 2022 would have been 19.2%, an increase of 1.8 points from 17.4% during the first quarter of 2021.

Policy acquisition costs decreased by $14.8 million, or 36.3%, to $26.0 million for the first quarter of 2022, from $40.8 million for the first quarter of 2021, primarily due to a decrease in expenses such as premium taxes, policy administration fees and agent commissions, which fluctuate in conjunction with the quarter-over-quarter decrease in personal lines gross written premium. In addition, ceding commission income increased related to the Company's additional quota share reinsurance agreements. This was partially offset by increased external management fees incurred during the first quarter of 2022, as a result of an increased volume of commercial lines gross written premium.

Operating and underwriting expenses decreased by $1.0 million, or 7.6%, to $12.2 million for the first quarter of 2022, from $13.2 million for the first quarter of 2021, due to lower agent related expenses as the Company has discontinued their agent incentive program in 2022.

General and administrative expenses remained relatively flat, increasing by $0.1 million, or 0.6%, to $16.0 million for the first quarter of 2022, from $15.9 million for the first quarter of 2021.

Combined Ratio Analysis

The calculations of the Company's loss ratios and underlying loss ratios are shown below.

($ in thousands)

Three Months Ended

March 31,

2022

 

2021

 

Change

Loss and LAE

$

91,368

 

 

$

115,781

 

 

$

(24,413

)

% of Gross earned premiums

 

28.6

%

 

 

32.5

%

 

(3.9

) pts

% of Net earned premiums

 

90.6

%

 

 

79.3

%

 

11.3

pts

Less:

 

 

 

 

 

Current year catastrophe losses

$

28,616

 

 

$

23,965

 

 

$

4,651

 

Prior year reserve unfavorable development

 

1,433

 

 

 

29,769

 

 

 

(28,336

)

Underlying loss and LAE (1)

$

61,319

 

 

$

62,047

 

 

$

(728

)

% of Gross earned premiums

 

19.2

%

 

 

17.4

%

 

1.8

pts

% of Net earned premiums

 

60.8

%

 

 

42.5

%

 

18.3

pts

(1)

Underlying loss and LAE is a non-GAAP financial measure and is reconciled above to loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

The calculations of the Company's expense ratios are shown below.

($ in thousands)

Three Months Ended

March 31,

2022

 

2021

 

Change

Policy acquisition costs

$

26,016

 

 

$

40,821

 

 

$

(14,805

)

Operating and underwriting

 

12,248

 

 

 

13,222

 

 

 

(974

)

General and administrative

 

16,005

 

 

 

15,882

 

 

 

123

 

Total Operating Expenses

$

54,269

 

 

$

69,925

 

 

$

(15,656

)

% of Gross earned premiums

 

17.0

%

 

 

19.6

%

 

(2.6

) pts

% of Net earned premiums

 

53.8

%

 

 

47.9

%

 

5.9

pts

Reinsurance Costs as a Percentage of Gross Earned Premium

Reinsurance costs as a percentage of gross earned premium in the first quarter of 2022 and 2021 were as follows:

 

2022

 

2021

Non-at-Risk

(2.3

) %

 

(2.3

) %

Quota Share

(32.0

) %

 

(26.2

) %

All Other

(34.1

) %

 

(30.6

) %

Total Ceding Ratio

(68.4

) %

 

(59.1

) %

The increase in this ratio was driven by the Company entering into two additional quota share agreements effective December 31, 2021. The first agreement is a structured quota share agreement, which has a cession rate of 25% and covers United Property and Casualty Insurance Company and Family Security Insurance Company, Inc.'s non-catastrophe losses on policies in-force at December 31, 2021 in Florida, Texas and Louisiana. The second agreement is a quota share agreement with HCPCI and TypTap Insurance Company effective December 31, 2021 through May 31, 2022, which provides 85% reinsurance coverage on in-force, new and renewal policies in Georgia, North Carolina and South Carolina.

In addition to the changes in the Company's quota share agreements, the Company also reduced the retention amounts related to their catastrophe excess of loss reinsurance program for the 2021-2022 season, resulting in higher ceded premiums year over year but less risk if the named storm season would have been as active as the 2020-2021 season. These modifications have resulted in increases to the Company's ceding ratio quarter-over-quarter.

Investment Portfolio Highlights

The Company's cash, restricted cash and investment holdings decreased from $964.8 million at December 31, 2021 to $908.7 million at March 31, 2022. The Company's cash and investment holdings consist of investments in U.S. government and agency securities, corporate debt and 100% investment grade money market instruments. Fixed maturities represented approximately 90.9% of total investments at March 31, 2022, compared to 92.2% at December 31, 2021. At March 31, 2022, the Company's fixed maturity investments had a modified duration of 3.9 years, compared to 4.0 years at December 31, 2021.

At March 31, 2022, the Company's fixed maturity investment holdings decreased by $101.9 million, or 15.4% from December 31, 2021, in order to satisfy the Company's liquidity requirements during the first quarter of 2022.

Book Value Analysis

Book value per common share decreased 17.2% from $7.20 at December 31, 2021, to $5.96 at March 31, 2022. Underlying book value per common share decreased 10.9% from $7.35 at December 31, 2021 to $6.55 at March 31, 2022. A decrease in the Company's retained earnings as the result of a net loss in the first quarter of 2022 drove the decrease in the Company's book value per share. As shown in the table below, removing the effect of AOCI increases the Company's book value per common share, as the Company experienced unfavorable market conditions for the three months ended March 31, 2022.

($ in thousands, except for share and per share data)

 

March 31,
2022

 

December 31,
2021

 

 

 

Book Value per Share

 

 

 

 

Numerator:

 

 

 

 

Common stockholders' equity attributable to UIHC

 

$

257,971

 

 

$

312,406

 

Denominator:

 

 

 

 

Total Shares Outstanding

 

 

43,257,595

 

 

 

43,370,442

 

Book Value Per Common Share

 

$

5.96

 

 

$

7.20

 

 

 

 

 

 

Book Value per Share, Excluding the Impact of Accumulated Other Comprehensive Income (AOCI)

 

 

 

 

Numerator:

 

 

 

 

Common stockholders' equity attributable to UIHC

 

$

257,971

 

 

$

312,406

 

Less: Accumulated other comprehensive loss

 

 

(25,657

)

 

 

(6,531

)

Stockholders' Equity, excluding AOCI

 

$

283,628

 

 

$

318,937

 

Denominator:

 

 

 

 

Total Shares Outstanding

 

 

43,257,595

 

 

 

43,370,442

 

Underlying Book Value Per Common Share(1)

 

$

6.55

 

 

$

7.35

 

(1)

Underlying book value per common share is a non-GAAP financial measure and is reconciled above to book value per common share, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

Definitions of Non-GAAP Measures

The Company believes that investors' understanding of UPC Insurance's performance is enhanced by the Company's disclosure of the following non-GAAP measures. The Company's methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Net loss excluding the effects of amortization of intangible assets, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core loss) is a non-GAAP measure that is computed by adding amortization, net of tax, to net income and subtracting realized gains (losses) on the Company's investment portfolio, net of tax, and unrealized gains (losses) on the Company's equity securities, net of tax, from net loss. Amortization expense is related to the amortization of intangible assets acquired through mergers and, therefore, the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of the Company's operations. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net loss. The core loss measure should not be considered a substitute for net loss and does not reflect the overall profitability of the Company's business.

Core return on equity is a non-GAAP ratio calculated using non-GAAP measures. It is calculated by dividing the core loss for the period by the average stockholders’ equity for the trailing twelve months (or one quarter of such average, in the case of quarterly periods). Core loss is an after-tax non-GAAP measure that is calculated by excluding from net loss the effect of non-cash amortization of intangible assets, unrealized gains or losses on the Company's equity security investments and net realized gains or losses on the Company's investment portfolio. In the opinion of the Company’s management, core loss, core loss per share and core return on equity are meaningful indicators to investors of the Company's underwriting and operating results, since the excluded items are not necessarily indicative of operating trends. Internally, the Company’s management uses core loss, core loss per share and core return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis. The most directly comparable GAAP measure is return on equity. The core return on equity measure should not be considered a substitute for return on equity and does not reflect the overall profitability of the Company's business.

Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. The Company believes that this ratio is useful to investors, and it is used by management to highlight the trends in the Company's business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause the Company's loss trends to vary significantly between periods as a result of their frequency of occurrence and severity and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of the Company's business.

Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. The Company uses underlying loss and LAE figures to analyze the Company's loss trends that may be impacted by current year catastrophe losses and prior year development on the Company's reserves. As discussed previously, these two items can have a significant impact on the Company's loss trends in a given period. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of the Company's business.

Book value per common share, excluding the impact of accumulated other comprehensive loss (underlying book value per common share), is a non-GAAP measure that is computed by dividing common stockholders' equity after excluding accumulated other comprehensive loss, by total common shares outstanding plus dilutive potential common shares outstanding. The Company uses the trend in book value per common share, excluding the impact of accumulated other comprehensive loss, in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes this non-GAAP measure is useful to investors because it eliminates the effect of interest rates that can fluctuate significantly from period to period and are generally driven by economic and financial factors that are not influenced by management. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of accumulated other comprehensive loss, should not be considered a substitute for book value per common share and does not reflect the recorded net worth of the Company's business.

Conference Call Details

 

Date and Time:

May 9, 2022 - 5:00 P.M. ET

 

Participant Dial-In:

(United States): 877-445-9755

 

(International): 201-493-6744

 

Webcast:

To listen to the live webcast, please go to http://investors.upcinsurance.com and click on the conference call link at the top of the page or go to: https://event.webcasts.com/starthere.jsp?ei=1544118&tp_key=28134a7f74

 

 

An archive of the webcast will be available for a limited period of time thereafter.

 

Presentation:

 

The information in this press release should be read in conjunction with an investor presentation that is available on the Company's website at investors.upcinsurance.com/Presentations.

About UPC Insurance

Founded in 1999, UPC Insurance is an insurance holding company that sources, writes and services personal and commercial residential property and casualty insurance policies using a group of wholly owned insurance subsidiaries and one majority owned insurance subsidiary through a variety of distribution channels. The Company currently writes policies in Florida, Louisiana, New York, and Texas. The Company also writes policies in Georgia, South Carolina and North Carolina, where renewal rights have been sold and all premiums and losses are ceded. From its headquarters in St. Petersburg, UPC Insurance's team of dedicated professionals manages a completely integrated insurance company, including sales, underwriting, customer service and claims.

Forward-Looking Statements

Statements made in this press release, or on the conference call identified above, and otherwise, that are not historical facts are “forward-looking statements”. The Company believes these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions, or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in, or implied by, the forward-looking statements. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” "endeavor," "project," “believe,” "plan," “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. Factors that could cause actual results to differ materially may be found in the Company's filings with the U.S. Securities and Exchange Commission, in the “Risk Factors” section in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.

Consolidated Statements of Comprehensive Loss

In thousands, except share and per share amounts

 

 

 

Three Months Ended

 

 

March 31,

 

 

2022

 

2021

REVENUE:

 

 

 

 

Gross premiums written

 

$

279,475

 

 

$

311,638

 

Change in gross unearned premiums

 

 

39,731

 

 

 

45,025

 

Gross premiums earned

 

 

319,206

 

 

 

356,663

 

Ceded premiums earned

 

 

(218,349

)

 

 

(210,714

)

Net premiums earned

 

 

100,857

 

 

 

145,949

 

Net investment income

 

 

2,478

 

 

 

3,583

 

Net realized investment gains (losses)

 

 

(1,769

)

 

 

503

 

Net unrealized gains (losses) on equity securities

 

 

(2,268

)

 

 

2,564

 

Other revenue

 

 

3,068

 

 

 

9,190

 

Total revenues

 

$

102,366

 

 

$

161,789

 

EXPENSES:

 

 

 

 

Losses and loss adjustment expenses

 

 

91,368

 

 

 

115,781

 

Policy acquisition costs

 

 

26,016

 

 

 

40,821

 

Operating expenses

 

 

12,248

 

 

 

13,222

 

General and administrative expenses

 

 

16,005

 

 

 

15,882

 

Interest expense

 

 

2,379

 

 

 

2,375

 

Total expenses

 

 

148,016

 

 

 

188,081

 

Loss before other income

 

 

(45,650

)

 

 

(26,292

)

Other income

 

 

1,343

 

 

 

10

 

Loss before income taxes

 

 

(44,307

)

 

 

(26,282

)

Benefit for income taxes

 

 

(11,050

)

 

 

(7,822

)

Net Loss

 

$

(33,257

)

 

$

(18,460

)

Less: Net loss attributable to noncontrolling interests

 

 

(85

)

 

 

(689

)

Net loss attributable to UIHC

 

$

(33,172

)

 

$

(17,771

)

OTHER COMPREHENSIVE LOSS:

 

 

 

 

Change in net unrealized losses on investments

 

 

(27,689

)

 

 

(21,739

)

Reclassification adjustment for net realized investment losses (gains)

 

 

1,769

 

 

 

(503

)

Income tax benefit related to items of other comprehensive loss

 

 

6,236

 

 

 

5,376

 

Total comprehensive loss

 

$

(52,941

)

 

$

(35,326

)

Less: Comprehensive loss attributable to noncontrolling interests

 

 

(643

)

 

 

(917

)

Comprehensive loss attributable to UIHC

 

$

(52,298

)

 

$

(34,409

)

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

Basic

 

 

42,980,691

 

 

 

42,898,488

 

Diluted

 

 

42,980,691

 

 

 

42,898,488

 

 

 

 

 

 

Earnings available to UIHC common stockholders per share

 

 

 

 

Basic

 

$

(0.77

)

 

$

(0.41

)

Diluted

 

$

(0.77

)

 

$

(0.41

)

 

 

 

 

 

Dividends declared per share

 

$

0.06

 

 

$

0.06

 

Consolidated Balance Sheets

In thousands, except share amounts

 

 

 

March 31, 2022

 

December 31, 2021

ASSETS

 

 

 

 

Investments, at fair value:

 

 

 

 

Fixed maturities, available-for-sale

 

$

561,728

 

 

$

663,602

 

Equity securities

 

 

39,407

 

 

 

37,958

 

Other investments

 

 

16,707

 

 

 

18,006

 

Total investments

 

$

617,842

 

 

$

719,566

 

Cash and cash equivalents

 

 

257,871

 

 

 

212,024

 

Restricted cash

 

 

33,002

 

 

 

33,254

 

Accrued investment income

 

 

2,859

 

 

 

3,296

 

Property and equipment, net

 

 

28,477

 

 

 

31,561

 

Premiums receivable, net

 

 

76,889

 

 

 

79,166

 

Reinsurance recoverable on paid and unpaid losses

 

 

911,812

 

 

 

997,120

 

Ceded unearned premiums

 

 

283,964

 

 

 

430,631

 

Goodwill

 

 

73,045

 

 

 

73,045

 

Deferred policy acquisition costs

 

 

45,713

 

 

 

38,520

 

Intangible assets, net

 

 

17,563

 

 

 

18,375

 

Other assets

 

 

80,418

 

 

 

62,015

 

Total Assets

 

$

2,429,455

 

 

$

2,698,573

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Liabilities:

 

 

 

 

Unpaid losses and loss adjustment expenses

 

$

967,214

 

 

$

1,084,450

 

Unearned premiums

 

 

605,209

 

 

 

644,940

 

Reinsurance payable on premiums

 

 

196,911

 

 

 

248,625

 

Payments outstanding

 

 

104,278

 

 

 

114,524

 

Accounts payable and accrued expenses

 

 

73,334

 

 

 

76,258

 

Operating lease liability

 

 

1,751

 

 

 

1,934

 

Other liabilities

 

 

47,615

 

 

 

39,324

 

Notes payable, net

 

 

156,264

 

 

 

156,561

 

Total Liabilities

 

$

2,152,576

 

 

$

2,366,616

 

Commitments and contingencies

 

 

 

 

Stockholders' Equity:

 

 

 

 

Preferred stock, $0.0001 par value; 1,000,000 authorized; none issued or outstanding

 

 

 

 

 

 

Common stock, $0.0001 par value; 100,000,000 shares authorized; 43,469,678 and 43,360,429 issued, respectively; 43,257,595 and 43,370,442 outstanding, respectively

 

 

4

 

 

 

4

 

Additional paid-in capital

 

 

394,720

 

 

 

394,268

 

Treasury shares, at cost; 212,083 shares

 

 

(431

)

 

 

(431

)

Accumulated other comprehensive loss

 

 

(25,657

)

 

 

(6,531

)

Retained earnings (deficit)

 

 

(110,665

)

 

 

(74,904

)

Total stockholders' equity attributable to UIHC stockholders

 

$

257,971

 

 

$

312,406

 

Noncontrolling interests

 

 

18,908

 

 

 

19,551

 

Total Stockholders' Equity

 

$

276,879

 

 

$

331,957

 

Total Liabilities and Stockholders' Equity

 

$

2,429,455

 

 

$

2,698,573

 

 

United Insurance Holdings Corp.
Jessica Barclay
Deputy CFO
(727) 895-7737 / jbarclay@upcinsurance.com

OR

INVESTOR RELATIONS:
The Equity Group
Karin Daly
Vice President
(212) 836-9623 / kdaly@equityny.com

Source: United Insurance Holdings Corp.