UVE Universal Insurance Holdings Inc

• Diluted GAAP earnings per common share (EPS) of $1.21; diluted adjusted* EPS of $1.18
• Annualized return on average common equity (“ROCE”) of 37.4%, annualized adjusted* return on average common equity of 30.5%
• Direct premiums written of $578.3 million, up 5.7% from the prior year quarter
• Book value per share of $13.79, up 24.0% year-over-year; adjusted book value per share of $16.44, up 14.9% year-over-year
• Total capital returned to shareholders of $10.1 million, including $5.3 million of share repurchases and a $0.16 per share regular dividend

Universal Insurance Holdings (NYSE: UVE) (“Universal” or the “Company”) reported second quarter 2024 results.

*Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.

“In the quarter, we delivered a solid 30.5% annualized adjusted return on common equity and 35.6% adjusted diluted EPS growth year-over-year,” said Stephen J. Donaghy, Chief Executive Officer. “Results were driven by strong underwriting performance and we continue to see encouraging claims and litigation trends. Florida policies in force increased sequentially for the second quarter in a row and overall policies-in-force increased year-over-year for the first time since 2021. As we mentioned previously, we completed the placement of our 2024-2025 reinsurance renewal for our insurance entities. We’re very pleased with the outcome of the program and the support we received from our longstanding reinsurance partners and from new partners as well. Importantly, despite having substantially more demand for private market reinsurance following the expirations of the Reinsurance to Assist Policyholders (RAP) layer and our catastrophe bond, the overall cost of our program was only up modestly.”

Quarterly Financial Results

Summary Financial Results

($ thousands, except per share data)

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

2024

 

2023

 

Change

 

 

2024

 

2023

 

Change

GAAP comparison

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

380,214

 

 

$

339,570

 

 

12.0

%

 

 

$

748,173

 

 

$

656,078

 

 

14.0

%

Operating income

$

49,528

 

 

$

39,168

 

 

26.5

%

 

 

$

98,634

 

 

$

73,595

 

 

34.0

%

Operating income margin

 

13.0

%

 

 

11.5

%

 

1.5 pts

 

 

 

13.2

%

 

 

11.2

%

 

2.0 pts

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

$

35,414

 

 

$

28,564

 

 

24.0

%

 

 

$

69,068

 

 

$

52,734

 

 

31.0

%

Diluted earnings per common share

$

1.21

 

 

$

0.93

 

 

30.1

%

 

 

$

2.35

 

 

$

1.72

 

 

36.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized ROCE

 

37.4

%

 

 

34.8

%

 

2.6 pts

 

 

 

37.6

%

 

 

33.9

%

 

3.7 pts

Book value per share, end of period

$

13.79

 

 

$

11.12

 

 

24.0

%

 

 

$

13.79

 

 

$

11.12

 

 

24.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP comparison1

 

 

 

 

 

 

 

 

 

 

 

 

Core revenue

$

379,170

 

 

$

336,957

 

 

12.5

%

 

 

$

744,100

 

 

$

653,296

 

 

13.9

%

Adjusted operating income

$

48,484

 

 

$

36,555

 

 

32.6

%

 

 

$

94,561

 

 

$

70,813

 

 

33.5

%

Adjusted operating income margin

 

12.8

%

 

 

10.8

%

 

2.0 pts

 

 

 

12.7

%

 

 

10.8

%

 

1.9 pts

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income available to common stockholders

$

34,627

 

 

$

26,594

 

 

30.2

%

 

 

$

65,997

 

 

$

50,636

 

 

30.3

%

Adjusted diluted earnings per common share

$

1.18

 

 

$

0.87

 

 

35.6

%

 

 

$

2.25

 

 

$

1.65

 

 

36.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized adjusted ROCE

 

30.5

%

 

 

25.3

%

 

5.2 pts

 

 

 

30.0

%

 

 

24.7

%

 

5.3 pts

Adjusted book value per share, end of period

$

16.44

 

 

$

14.31

 

 

14.9

%

 

 

$

16.44

 

 

$

14.31

 

 

14.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting Summary

 

 

 

 

 

 

 

 

 

 

 

 

Premiums:

 

 

 

 

 

 

 

 

 

 

 

 

Premiums in force

$

1,999,705

 

 

$

1,879,053

 

 

6.4

%

 

 

$

1,999,705

 

 

$

1,879,053

 

 

6.4

%

Policies in force

 

833,433

 

 

 

809,685

 

 

2.9

%

 

 

 

833,433

 

 

 

809,685

 

 

2.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums written

$

578,267

 

 

$

547,126

 

 

5.7

%

 

 

$

1,024,446

 

 

$

957,228

 

 

7.0

%

Direct premiums earned

$

490,649

 

 

$

463,324

 

 

5.9

%

 

 

$

972,721

 

 

$

918,692

 

 

5.9

%

Ceded premiums earned

$

(145,691

)

 

$

(160,050

)

 

(9.0

)%

 

 

$

(293,738

)

 

$

(333,194

)

 

(11.8

)%

Ceded premium ratio

 

29.7

%

 

 

34.5

%

 

(4.8) pts

 

 

 

30.2

%

 

 

36.3

%

 

(6.1) pts

Net premiums earned

$

344,958

 

 

$

303,274

 

 

13.7

%

 

 

$

678,983

 

 

$

585,498

 

 

16.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Loss ratio

 

70.6

%

 

 

73.8

%

 

(3.2) pts

 

 

 

71.2

%

 

 

73.4

%

 

(2.2) pts

Expense ratio

 

25.3

%

 

 

25.3

%

 

— pts

 

 

 

24.5

%

 

 

26.1

%

 

(1.6) pts

Combined ratio

 

95.9

%

 

 

99.1

%

 

(3.2) pts

 

 

 

95.7

%

 

 

99.5

%

 

(3.8) pts

1 Reconciliation of GAAP to non-GAAP financial measures are provided in the attached tables. Adjusted net income available to common stockholders, adjusted diluted earnings per common share and core revenue exclude net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. Adjusted operating income excludes the items above and interest and amortization of debt issuance costs. Adjusted book value per share excludes accumulated other comprehensive income, net of taxes. Adjusted ROCE is calculated by dividing annualized adjusted net income available to common stockholders by average adjusted book value per share, with the denominator further excluding current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments.

Net Income and Adjusted Net Income

Net income available to common stockholders was $35.4 million, up from $28.6 million in the prior year quarter, and adjusted net income available to common stockholders was $34.6 million, up from $26.6 million in the prior year quarter. The increase in adjusted net income available to common stockholders mostly stems from higher underwriting and net investment income.

Revenues

Revenue was $380.2 million, up 12.0% from the prior year quarter and core revenue was $379.2 million, up 12.5% from the prior year quarter. The increase in core revenue primarily stems from higher net premiums earned and net investment income, partly offset by lower commission revenue.

Direct premiums written were $578.3 million, up 5.7% from the prior year quarter. The increase stems from 0.9% growth in Florida and 30.1% growth in other states. Overall growth mostly reflects higher rates, inflation adjustments and higher policies in force.

Direct premiums earned were $490.6 million, up 5.9% from the prior year quarter. The increase stems from direct premiums written growth over the past twelve months.

The ceded premium ratio was 29.7%, down from 34.5% in the prior year quarter. The decrease primarily reflects efficiencies associated with the 2023-2024 reinsurance program, which was in place through May 31, 2024, including the benefits of the Reinsurance to Assist Policyholders (RAP) layer and multi-year reinsurance, partly offset by a modestly higher ceded premium ratio associated with the 2024-2025 reinsurance program, which incepted on June 1, 2024.

Net premiums earned were $345.0 million, up 13.7% from the prior year quarter. The increase is primarily attributable to higher direct premiums earned and a lower ceded premium ratio, as described above.

Net investment income was $14.7 million, up from $11.3 million in the prior year quarter. The increase primarily stems from higher fixed income reinvestment yields and higher yields on cash.

Commissions, policy fees and other revenue were $19.6 million, down 12.7% from the prior year quarter. The decrease primarily reflects commissions earned on Hurricane Ian related reinstatement premiums in the prior year quarter.

Margins

The operating income margin was 13.0%, up from an operating income margin of 11.5% in the prior year quarter. The adjusted operating income margin was 12.8%, up from an adjusted operating income margin of 10.8% in the prior year quarter. The higher adjusted operating income margin primarily reflects a lower net combined ratio and higher net investment income, partly offset by lower commission revenue.

The net loss ratio was 70.6%, down 3.2 points compared to the prior year quarter. The decrease primarily reflects higher net premiums earned associated with lower reinsurance costs in the current year quarter and a lack of reserve development in the current year quarter.

The net expense ratio was 25.3%, unchanged from the prior year quarter.

The net combined ratio was 95.9%, down 3.2 points compared to the prior year quarter. The decrease reflects a lower net loss ratio, as described above.

Capital Deployment

During the second quarter, the Company repurchased approximately 274 thousand shares at an aggregate cost of $5.3 million. The Company’s current share repurchase authorization program has approximately $14.7 million remaining.

On July 11, 2024, the Board of Directors declared a quarterly cash dividend of 16 cents per share of common stock, payable on August 9, 2024, to shareholders of record as of the close of business on August 2, 2024.

Conference Call and Webcast

• Friday, July 26, 2024 at 10:00 a.m. ET
• Investors and other interested parties may listen to the call by accessing the online, real-time webcast at universalinsuranceholdings.com/investors or by registering in advance via teleconference at https://register.vevent.com/register/BI717d7ee869b64db08f781e3de2dccf31. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. An online replay of the call will be available at universalinsuranceholdings.com/investors soon after the investor call concludes.

About Universal

Universal Insurance Holdings, Inc. (NYSE: UVE) is a holding company providing property and casualty insurance and value-added insurance services. We develop, market, and write insurance products for consumers predominantly in the personal residential homeowners lines of business and perform substantially all other insurance-related services for our primary insurance entities, including risk management, claims management and distribution. We provide insurance products in the United States through both our appointed independent agents and our direct online distribution channels, primarily in Florida. Learn more at universalinsuranceholdings.com or get an insurance quote at clovered.com.

Non-GAAP Financial Measures and Key Performance Indicators

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission (“SEC”), including core revenue, adjusted net income attributable to common stockholders and diluted adjusted earnings (loss) per common share, which exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. Adjusted operating income and adjusted operating income margin exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) on investments and interest and amortization of debt issuance costs. Adjusted common stockholders’ equity and adjusted book value per share exclude accumulated other comprehensive income (AOCI), net of taxes. Adjusted return on common equity excludes after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments from the numerator and AOCI, net of taxes, and current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments from the denominator. A “non-GAAP financial measure” is generally defined as a numerical measure of a company’s historical or future performance that excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”). UVE management believes that these non-GAAP financial measures are meaningful, as they allow investors to evaluate underlying revenue and profitability trends and enhance comparability across periods. When considered together with the GAAP financial measures, management believes these metrics provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. UVE management also believes that these non-GAAP financial measures enhance the ability of investors to analyze UVE’s business trends and to understand UVE’s operational performance. UVE’s management utilizes these non-GAAP financial measures as guides in long-term planning. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures presented in accordance with GAAP. For more information regarding our key performance indicators, please refer to the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Key Performance Indicators” in our forthcoming Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.

Forward-Looking Statements

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,” “will,” “plan,” 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, including those risks and uncertainties described under the heading “Risk Factors” and “Liquidity and Capital Resources” in our 2023 Annual Report on Form 10-K, and supplemented in our subsequent Quarterly Reports on Form 10-Q. Future results could differ materially from those described, and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. 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 Company’s Annual Report on Form 10-K and the most recent quarterly reports on Form 10-Q.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except per share data)

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

2024

 

2023

ASSETS:

 

 

 

 

Invested Assets

 

 

 

 

Fixed maturities, at fair value

 

$

1,215,630

 

 

$

1,064,330

 

Equity securities, at fair value

 

 

75,834

 

 

 

80,495

 

Other investments, at fair value

 

 

10,434

 

 

 

10,434

 

Investment real estate, net

 

 

5,523

 

 

 

5,525

 

Total invested assets

 

 

1,307,421

 

 

 

1,160,784

 

Cash and cash equivalents

 

 

283,264

 

 

 

397,306

 

Restricted cash and cash equivalents

 

 

68,635

 

 

 

2,635

 

Prepaid reinsurance premiums

 

 

575,620

 

 

 

236,254

 

Reinsurance recoverable

 

 

130,900

 

 

 

219,102

 

Premiums receivable, net

 

 

87,169

 

 

 

77,064

 

Property and equipment, net

 

 

49,306

 

 

 

47,628

 

Deferred policy acquisition costs

 

 

117,144

 

 

 

109,985

 

Goodwill

 

 

2,319

 

 

 

2,319

 

Other assets

 

 

56,757

 

 

 

63,484

 

TOTAL ASSETS

 

$

2,678,535

 

 

$

2,316,561

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

LIABILITIES:

 

 

 

 

Unpaid losses and loss adjustment expenses

 

$

344,648

 

 

$

510,117

 

Unearned premiums

 

 

1,042,283

 

 

 

990,559

 

Advance premium

 

 

73,402

 

 

 

48,660

 

Reinsurance payable, net

 

 

648,961

 

 

 

191,850

 

Long-term debt, net

 

 

101,625

 

 

 

102,006

 

Other liabilities

 

 

74,379

 

 

 

132,072

 

Total liabilities

 

 

2,285,298

 

 

 

1,975,264

 

STOCKHOLDERS' EQUITY:

 

 

 

 

Cumulative convertible preferred stock ($0.01 par value)2

 

 

—

 

 

 

—

 

Common stock ($0.01 par value)3

 

 

472

 

 

 

472

 

Treasury shares, at cost - 18,785 and 18,303

 

 

(270,542

)

 

 

(260,779

)

Additional paid-in capital

 

 

118,795

 

 

 

115,086

 

Accumulated other comprehensive income (loss), net of taxes

 

 

(75,718

)

 

 

(74,172

)

Retained earnings

 

 

620,230

 

 

 

560,690

 

Total stockholders' equity

 

 

393,237

 

 

 

341,297

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,678,535

 

 

$

2,316,561

 

 

 

 

 

 

Notes:

 

 

 

 

2 Cumulative convertible preferred stock ($0.01 par value): Authorized - 1,000 shares; Issued - 10 and 10 shares; Outstanding - 10 and 10 shares; Minimum liquidation preference - $9.99 and $9.99 per share.

3 Common stock ($0.01 par value): Authorized - 55,000 shares; Issued - 47,298 and 47,269 shares; Outstanding 28,513 and 28,966 shares.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2024

 

2023

 

 

2024

 

2023

REVENUES

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

344,958

 

 

$

303,274

 

 

$

678,983

 

 

$

585,498

Net investment income

 

 

14,660

 

 

 

11,282

 

 

 

 

28,183

 

 

 

21,980

 

Net realized gains (losses) on investments

 

 

(311

)

 

 

882

 

 

 

 

(388

)

 

 

94

 

Net change in unrealized gains (losses) on investments

 

 

1,355

 

 

 

1,731

 

 

 

 

4,461

 

 

 

2,688

 

Commission revenue

 

 

11,679

 

 

 

14,986

 

 

 

 

22,712

 

 

 

32,268

 

Policy fees

 

 

5,576

 

 

 

5,384

 

 

 

 

9,981

 

 

 

9,551

 

Other revenue

 

 

2,297

 

 

 

2,031

 

 

 

 

4,241

 

 

 

3,999

 

Total revenues

 

 

380,214

 

 

 

339,570

 

 

 

 

748,173

 

 

 

656,078

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

243,572

 

 

 

223,727

 

 

 

 

483,759

 

 

 

429,881

 

Policy acquisition costs

 

 

56,615

 

 

 

52,006

 

 

 

 

111,435

 

 

 

103,697

 

Other operating expenses

 

 

30,499

 

 

 

24,669

 

 

 

 

54,345

 

 

 

48,905

 

Total operating costs and expenses

 

 

330,686

 

 

 

300,402

 

 

 

 

649,539

 

 

 

582,483

 

Interest and amortization of debt issuance costs

 

 

1,623

 

 

 

1,629

 

 

 

 

3,245

 

 

 

3,265

 

Income before income tax expense

 

 

47,905

 

 

 

37,539

 

 

 

 

95,389

 

 

 

70,330

 

Income tax expense

 

 

12,489

 

 

 

8,973

 

 

 

 

26,316

 

 

 

17,591

 

NET INCOME

 

$

35,416

 

 

$

28,566

 

 

 

$

69,073

 

 

$

52,739

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SHARE AND PER SHARE INFORMATION

(in thousands, except per share data)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2024

 

2023

 

 

2024

 

2023

Weighted average common shares outstanding - basic

 

 

28,600

 

 

 

30,265

 

 

 

 

28,734

 

 

 

30,323

 

Weighted average common shares outstanding - diluted

 

 

29,308

 

 

 

30,659

 

 

 

 

29,369

 

 

 

30,633

 

Shares outstanding, end of period

 

 

28,513

 

 

 

30,080

 

 

 

 

28,513

 

 

 

30,080

 

Basic earnings per common share

 

$

1.24

 

 

$

0.94

 

 

 

$

2.40

 

 

$

1.74

 

Diluted earnings per common share

 

$

1.21

 

 

$

0.93

 

 

 

$

2.35

 

 

$

1.72

 

Cash dividend declared per common share

 

$

0.16

 

 

$

0.16

 

 

 

$

0.32

 

 

$

0.32

 

Book value per share, end of period

 

$

13.79

 

 

$

11.12

 

 

 

$

13.79

 

 

$

11.12

 

Annualized return on average common equity (ROCE)

 

 

37.4

%

 

 

34.8

%

 

 

 

37.6

%

 

 

33.9

%

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION

(in thousands, except for Policies In Force data)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2024

 

2023

 

 

2024

 

2023

Premiums

 

 

 

 

 

 

 

 

 

Direct premiums written - Florida

 

$

461,018

 

 

$

456,984

 

 

 

$

815,843

 

 

$

794,349

 

Direct premiums written - Other States

 

 

117,249

 

 

 

90,142

 

 

 

 

208,603

 

 

 

162,879

 

Direct premiums written - Total

 

$

578,267

 

 

$

547,126

 

 

 

$

1,024,446

 

 

$

957,228

 

Direct premiums earned

 

$

490,649

 

 

$

463,324

 

 

 

$

972,721

 

 

$

918,692

 

Net premiums earned

 

$

344,958

 

 

$

303,274

 

 

 

$

678,983

 

 

$

585,498

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios - Net

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense ratio

 

 

70.6

%

 

 

73.8

%

 

 

 

71.2

%

 

 

73.4

%

General and administrative expense ratio

 

 

25.3

%

 

 

25.3

%

 

 

 

24.5

%

 

 

26.1

%

Policy acquisition cost ratio

 

 

16.4

%

 

 

17.2

%

 

 

 

16.4

%

 

 

17.7

%

Other operating expense ratio

 

 

8.9

%

 

 

8.1

%

 

 

 

8.1

%

 

 

8.4

%

Combined ratio

 

 

95.9

%

 

 

99.1

%

 

 

 

95.7

%

 

 

99.5

%

 

 

As of

 

 

June 30,

 

 

2024

 

2023

Policies in force

 

 

 

 

Florida

 

 

572,860

 

 

576,407

Other States

 

 

260,573

 

 

 

233,278

 

Total

 

 

833,433

 

 

 

809,685

 

 

 

 

 

 

Premiums in force

 

 

 

 

Florida

 

$

1,597,080

 

 

$

1,549,410

 

Other States

 

 

402,625

 

 

 

329,643

 

Total

 

$

1,999,705

 

 

$

1,879,053

 

 

 

 

 

 

Total Insured Value

 

 

 

 

Florida

 

$

188,408,742

 

 

$

192,324,456

 

Other States

 

 

149,623,623

 

 

 

126,539,944

 

Total

 

$

338,032,365

 

 

$

318,864,400

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except for per share data)

 

GAAP revenue to core revenue

 

Three Months Ended

 

 

Six Months Ended

 

June 30,

 

 

June 30,

 

2024

 

2023

 

 

2024

 

2023

GAAP revenue

$

380,214

 

 

$

339,570

 

 

$

748,173

 

 

$

656,078

less: Net realized gains (losses) on investments

 

(311

)

 

 

882

 

 

 

 

(388

)

 

 

94

 

less: Net change in unrealized gains (losses) on investments

 

1,355

 

 

 

1,731

 

 

 

 

4,461

 

 

 

2,688

 

Core revenue

$

379,170

 

 

$

336,957

 

 

 

$

744,100

 

 

$

653,296

 

GAAP operating income to adjusted operating income

 

Three Months Ended

 

 

Six Months Ended

 

June 30,

 

 

June 30,

 

2024

 

2023

 

 

2024

 

2023

GAAP income before income tax expense

$

47,905

 

 

$

37,539

 

 

$

95,389

 

 

$

70,330

add: Interest and amortization of debt issuance costs

 

1,623

 

 

 

1,629

 

 

 

 

3,245

 

 

 

3,265

 

GAAP operating income

 

49,528

 

 

 

39,168

 

 

 

 

98,634

 

 

 

73,595

 

less: Net realized gains (losses) on investments

 

(311

)

 

 

882

 

 

 

 

(388

)

 

 

94

 

less: Net change in unrealized gains (losses) on investments

 

1,355

 

 

 

1,731

 

 

 

 

4,461

 

 

 

2,688

 

Adjusted operating income

$

48,484

 

 

$

36,555

 

 

 

$

94,561

 

 

$

70,813

 

GAAP operating income margin to adjusted operating income margin

 

Three Months Ended

 

 

Six Months Ended

 

June 30,

 

 

June 30,

 

2024

 

2023

 

 

2024

 

2023

GAAP operating income (a)

$

49,528

 

 

$

39,168

 

 

 

$

98,634

 

 

$

73,595

 

GAAP revenue (b)

 

380,214

 

 

 

339,570

 

 

 

 

748,173

 

 

 

656,078

 

GAAP operating income margin (a÷b)

 

13.0

%

 

 

11.5

%

 

 

 

13.2

%

 

 

11.2

%

Adjusted operating income (c)

 

48,484

 

 

 

36,555

 

 

 

 

94,561

 

 

 

70,813

 

Core revenue (d)

 

379,170

 

 

 

336,957

 

 

 

 

744,100

 

 

 

653,296

 

Adjusted operating income margin (c÷d)

 

12.8

%

 

 

10.8

%

 

 

 

12.7

%

 

 

10.8

%

GAAP net income (NI) to adjusted NI available to common stockholders

 

Three Months Ended

 

 

Six Months Ended

 

June 30,

 

 

June 30,

 

2024

 

2023

 

 

2024

 

2023

GAAP NI

$

35,416

 

 

$

28,566

 

 

$

69,073

 

 

$

52,739

less: Preferred dividends

 

2

 

 

 

2

 

 

 

 

5

 

 

 

5

 

GAAP NI available to common stockholders (e)

 

35,414

 

 

 

28,564

 

 

 

 

69,068

 

 

 

52,734

 

less: Net realized gains (losses) on investments

 

(311

)

 

 

882

 

 

 

 

(388

)

 

 

94

 

less: Net change in unrealized gains (losses) on investments

 

1,355

 

 

 

1,731

 

 

 

 

4,461

 

 

 

2,688

 

add: Income tax effect on above adjustments

 

257

 

 

 

643

 

 

 

 

1,002

 

 

 

684

 

Adjusted NI available to common stockholders (f)

$

34,627

 

 

$

26,594

 

 

 

$

65,997

 

 

$

50,636

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common shares outstanding (g)

 

29,308

 

 

 

30,659

 

 

 

 

29,369

 

 

 

30,633

 

Diluted earnings per common share (e÷g)

$

1.21

 

 

$

0.93

 

 

 

$

2.35

 

 

$

1.72

 

Diluted adjusted earnings per common share (f÷g)

$

1.18

 

 

$

0.87

 

 

 

$

2.25

 

 

$

1.65

 

GAAP stockholders’ equity to adjusted common stockholders’ equity

 

As of

 

June 30,

 

June 30,

 

 

December 31,

 

2024

 

2023

 

 

2023

GAAP stockholders’ equity

$

393,237

 

 

$

334,672

 

 

 

$

341,297

 

less: Preferred equity

 

100

 

 

 

100

 

 

 

 

100

 

Common stockholders’ equity (h)

 

393,137

 

 

 

334,572

 

 

 

 

341,197

 

less: Accumulated other comprehensive (loss), net of taxes

 

(75,718

)

 

 

(95,857

)

 

 

 

(74,172

)

Adjusted common stockholders’ equity (i)

$

468,855

 

 

$

430,429

 

 

 

$

415,369

 

 

 

 

 

 

 

 

Common shares outstanding (j)

 

28,513

 

 

 

30,080

 

 

 

 

28,966

 

Book value per common share (h÷j)

$

13.79

 

 

$

11.12

 

 

 

$

11.78

 

Adjusted book value per common share (i÷j)

$

16.44

 

 

$

14.31

 

 

 

$

14.34

 

GAAP return on common equity (ROCE) to adjusted ROCE

 

Three Months Ended

 

 

Six Months Ended

 

 

Year Ended

 

June 30,

 

 

June 30,

 

 

December 31,

 

2024

 

2023

 

 

2024

 

2023

 

 

2023

Actual or Annualized NI available to common stockholders (k)

$

141,656

 

 

$

114,256

 

 

 

$

138,136

 

 

$

105,468

 

 

 

$

66,813

 

Average common stockholders’ equity (l)

 

378,851

 

 

 

328,139

 

 

 

 

367,167

 

 

 

311,184

 

 

 

 

314,497

 

ROCE (k÷l)

 

37.4

%

 

 

34.8

%

 

 

 

37.6

%

 

 

33.9

%

 

 

 

21.2

%

Annualized adjusted NI available to common stockholders (m)

$

138,508

 

 

$

106,376

 

 

 

$

131,994

 

 

$

101,272

 

 

 

$

58,657

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted average common stockholders’ equity4 (n)

 

454,673

 

 

 

420,078

 

 

 

 

440,577

 

 

 

409,955

 

 

 

 

399,396

 

Adjusted ROCE (m÷n)

 

30.5

%

 

 

25.3

%

 

 

 

30.0

%

 

 

24.7

%

 

 

 

14.7

%

 

 

 

 

 

 

 

 

 

 

 

 

4 Adjusted average common stockholders’ equity excludes current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725830739/en/

Investors/Media: Arash Soleimani, CFA, CPA, CPCU, ARe Chief Strategy Officer 954-804-8874 asoleimani@universalproperty.com