Premiums and Revenue - Universal Insurance Holdings, Inc. reported that Florida represented 76.6% of direct premiums written for the three months ended September 30, 2024[143]. - The company experienced significant increases in personal residential insurance premiums due to rising costs from losses, loss adjustment expenses, and reinsurance[146]. - Direct premiums written increased by $42.4 million, or 8.0%, for the three months ended September 30, 2024, driven by premium growth in Florida of $9.1 million, or 2.1%, and in other states of $33.3 million, or 32.9%[210]. - Direct premium earned increased by 7.0% to $507.7 million for the three months ended September 30, 2024, compared to $474.3 million in the same period in 2023[209]. - Premiums earned, net, rose to $1,024.7 million for the nine months ended September 30, 2024, an increase of 11.8% compared to the same period in 2023[240]. - Direct premiums written increased by $109.6 million, or 7.4%, for the nine months ended September 30, 2024, driven by growth in Florida and other states[241]. Rate Changes and Regulatory Environment - In April 2023, UPCIC received approval for a rate decrease of 1.4% for Homeowners' and 1.6% for Dwelling Fire in Florida, effective July 15, 2023[154]. - The Florida Legislature enacted substantial law changes in December 2022 aimed at mitigating rising claims costs and enhancing service standards for policyholders[147]. - The reforms have led many insurers, including the company, to submit rate filings in 2024 reflecting overall average rates equal to or slightly lower than the previous year's rates[149]. - UPCIC filed a 7.5% rate increase for Florida personal residential homeowners effective July 17, 2023, and a 4.1% increase for dwelling-fire lines effective January 15, 2024[155]. - Rate changes approved for 2024 include a 14.8% increase in Georgia, 7.8% in South Carolina, and 14.3% in Alabama, among others[156]. Claims and Losses - The estimated retained losses from Hurricane Milton, which made landfall on October 9, 2023, are expected to be $45.0 million for the quarter ended December 31, 2024[204]. - The company incurred estimated net losses from Hurricane Helene of $111.0 million, with reinsurance recoveries of $66.0 million[220]. - Net losses and LAE were $317.0 million with a 91.7% net loss ratio for the three months ended September 30, 2024, up from $288.0 million and 87.0% in the prior year[219]. - Net losses and loss adjustment expenses (LAE) were $800.7 million with a 78.1% net loss ratio for the nine months ended September 30, 2024, compared to $717.9 million and a 78.3% net loss ratio for the same period in 2023[247]. Financial Performance - The combined ratio is a key performance indicator, with a ratio below 100% indicating underwriting profit[169]. - The net combined ratio for the three months ended September 30, 2024, was 116.9%, an increase of 6.2 points compared to the same period in 2023[202]. - The combined ratio improved to 102.8% for the nine months ended September 30, 2024, from 103.5% for the same period in 2023[255]. - Adjusted net income attributable to common stockholders is calculated by excluding net realized and unrealized gains and losses on investments[163]. - Adjusted operating loss for Q3 2024 was $22.7 million, compared to a loss of $4.5 million in Q3 2023, indicating a deterioration in operating performance[233]. - Adjusted net loss attributable to common stockholders was $20.8 million for Q3 2024, compared to a loss of $4.6 million in Q3 2023[235]. Investment and Capital Management - Net investment income rose to $15.4 million, a 20.8% increase compared to $12.8 million for the same period in 2023[201]. - Total invested assets increased to $1.37 billion as of September 30, 2024, from $1.16 billion as of December 31, 2023, primarily due to investment of excess cash and unrealized gains[265]. - The investment portfolio as of September 30, 2024, included available-for-sale debt securities and equity securities, with a total fair market value of $1,276,732[318]. - The company’s investment strategy does not include trading in risk-sensitive financial instruments[316]. - The company has a total material cash requirement of $1,252.471 million as of September 30, 2024, with $723.474 million due in the next 12 months[301]. Shareholder and Equity Information - The company repurchased 226,498 shares at an average price of $19.39, totaling $4.4 million, with $10.3 million remaining under the repurchase program[203]. - Stockholders' equity increased to $400.245 million as of September 30, 2024, from $341.297 million as of December 31, 2023, reflecting a net increase of $58.4 million[286]. - The adjusted book value per common share as of September 30, 2024, was $15.76, up from $14.00 as of September 30, 2023, reflecting an increase of 12.6%[311]. - Cash dividends declared for the first three quarters of 2024 were consistently $0.16 per common share[300]. Operational Efficiency and Initiatives - The company has adopted initiatives to expedite the claims process and improve efficiency, including the use of technology for property damage reviews[152]. - The company has cautiously increased its appetite for new business following the reforms and operational initiatives taken in recent years[153]. - General and administrative expenses increased by $8.8 million, or 11.2%, for the three months ended September 30, 2024, driven by higher policy acquisition costs and other operating costs[225]. - The company relies on independent insurance agents, and the loss of these relationships could adversely impact its business[132].

Financial Data and Key Metrics Changes - Adjusted loss per common share was $0.73 compared to an adjusted loss per common share of $0.16 in the prior year quarter, indicating a significant increase in losses [4] - Core revenue reached $381.4 million, up 5.4% year-over-year, driven by higher net premiums earned, net investment income, and commission revenue [4] - Direct premiums written were $574.4 million, an increase of 8% from the prior year quarter, with growth in Florida at 2.1% and 32.9% in other states [5] - The net combined ratio was 116.9%, up 6.2 points from the prior year quarter, reflecting higher net loss and expense ratios [6] Business Line Data and Key Metrics Changes - Direct premiums earned were $507.7 million, up 7% from the prior year quarter, primarily due to growth in direct premiums written [5] - Net premiums earned were $345.7 million, an increase of 4.4% from the prior year quarter, attributed to higher direct premiums earned [5] Market Data and Key Metrics Changes - The company opened for business in Wisconsin, marking its expansion into the 19th state, which diversifies its book of business and grows its addressable market [3] Company Strategy and Development Direction - The company is focused on expanding into new markets and diversifying its business, as evidenced by the opening in Wisconsin [3] - Management expressed optimism regarding underwriting results and agency relationships, indicating a positive outlook for future growth [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of recent hurricanes on financial results but emphasized the company's strong reinsurance protection and relationships, which provide resilience [3] - The company is cautiously optimistic about future underwriting results, with improvements expected due to legislative reforms and pricing adjustments [16] Other Important Information - The company repurchased 226,000 shares at a cost of $4.4 million, with approximately $10.3 million remaining in the share repurchase authorization program [7] - A quarterly cash dividend of $0.16 per share was declared, payable on August 9, 2024 [7] Q&A Session Summary Question: Can you talk about the reserve development? - The company had favorable development of approximately $2.2 million from prior year catastrophes [8] Question: Any particular source of the catastrophe losses? - The losses were primarily from notable hurricanes such as Irma, Ian, Matthew, and Michael [9] Question: Can you provide details on the catastrophe losses in the quarter? - The estimated range for losses from hurricanes Debbie, Helene, and Milton is between $600 million and $900 million, with specific retention amounts detailed [11] Question: Will recovery of revenue for claims management happen in Q4? - Management indicated uncertainty about recovering all expenses in Q4, with some recovery expected to extend into 2025 [14] Question: Thoughts on normalized underwriting results? - Management expressed optimism about continued improvements in underwriting results due to agency relationships and legislative reforms [15]

Financial Performance - Universal Insurance Holdings (UVE) reported a quarterly loss of $0.73 per share, which is better than the Zacks Consensus Estimate of a loss of $1.03, and compares to a loss of $0.16 per share a year ago, indicating an earnings surprise of 29.13% [1] - The company posted revenues of $387.55 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 13.33%, and this is an increase from year-ago revenues of $360.05 million [1] Stock Performance - Universal Insurance shares have increased by approximately 22.8% since the beginning of the year, outperforming the S&P 500's gain of 21.5% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $345.09 million, and for the current fiscal year, it is $1.28 on revenues of $1.44 billion [4] - The estimate revisions trend for Universal Insurance is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [4] Industry Context - The Insurance - Property and Casualty industry is currently in the top 37% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [5] - CCC Intelligent Solutions Holdings Inc. (CCCS), another company in the same industry, is expected to report quarterly earnings of $0.09 per share, with revenues projected at $237.28 million, reflecting a 7.3% increase from the year-ago quarter [5]

Financial Performance - Loss per common share was $0.57, with an adjusted loss per common share of $0.73[1] - Total revenues reached $387.6 million, a 7.6% increase from the prior year quarter; core revenue was $381.4 million, up 5.4%[6] - The company reported a net loss of $16.2 million in Q3 2024, compared to a loss of $5.9 million in Q3 2023[17] - Basic earnings per share for Q3 2024 were $(0.57), compared to $(0.20) in Q3 2023[18] - The annualized return on average common equity (ROCE) for Q3 2024 was (16.3)%, compared to (7.4)% in Q3 2023[18] - GAAP net income available to common stockholders for the nine months ended September 30, 2024, was $52,902, compared to $46,816 in 2023, showing an increase of 12.5%[23] - The diluted earnings per share for the nine months ended September 30, 2024, was $1.80, compared to $1.54 in 2023, reflecting a year-over-year increase of 16.9%[23] Premiums and Policies - Direct premiums written totaled $574.4 million, representing an 8.0% increase year-over-year[1] - Net premiums earned were $345.7 million, up 4.4% from the prior year quarter[7] - Direct premiums written for Florida increased to $440,018, up from $430,946, while total direct premiums written rose to $574,351 from $531,988, representing a growth of 7.5% year-over-year[19] - The total number of policies in force increased to 844,539, up from 807,553, with Florida policies slightly up to 570,432 from 570,339[20] Investment and Assets - Net investment income was $15.4 million, an increase from $12.8 million in the prior year quarter[7] - Net investment income rose to $15.4 million in Q3 2024, up from $12.8 million in Q3 2023, marking a 20.5% increase[17] - Total assets increased to $2.65 billion in 2024, compared to $2.32 billion in 2023, representing a growth of 14.4%[16] - Total liabilities grew to $2.25 billion in 2024, up from $1.98 billion in 2023, an increase of 13.7%[16] Book Value - Book value per share increased to $14.15, up 37.0% year-over-year; adjusted book value per share was $15.76, up 12.6% year-over-year[1] - Book value per share at the end of Q3 2024 was $14.15, up from $10.33 in Q3 2023, reflecting a 36.5% increase[18] - Adjusted book value per common share increased to $15.76 from $14.00 year-over-year, indicating a growth of 12.6%[24] Ratios and Performance Metrics - The net combined ratio was 116.9%, an increase of 6.2 points compared to the prior year quarter[8] - The ceded premium ratio rose to 31.9%, up from 30.2% in the prior year quarter[6] - The combined ratio for the three months ended September 30, 2024, was 116.9%, compared to 110.7% in 2023, indicating a deterioration in underwriting performance[19] - The loss and loss adjustment expense ratio for the three months ended September 30, 2024, was 91.7%, up from 87.0% in 2023, reflecting increased claims costs[19] Strategic Initiatives - The company opened for business in Wisconsin, expanding its market presence to 19 states[3] - The company plans to enhance its market presence through new product offerings and strategic partnerships in the upcoming quarters[14] Operational Profitability - The company reported an adjusted operating income of $(22,657) for the three months ended September 30, 2024, compared to $(4,530) in 2023, indicating a significant decline in operational profitability[22] Total Insured Value - The total insured value increased to $347,996,437 from $320,580,520, representing an increase of 8.6% year-over-year[20]

Financial Performance - Total revenues for the period increased by 12.0% to $380.2 million, up from $339.6 million, driven by a 13.7% increase in net earned premiums to $345.0 million[41]. - Net income for the period was $35.4 million, representing a 24.0% increase compared to $28.6 million in the prior year[41]. - For the six months ended June 30, 2024, net income was $69,073,000, up from $52,739,000 in 2023, indicating a 30.9% growth[150]. - Net income for the three months ended June 30, 2024, was $35,416,000, compared to $28,566,000 for the same period in 2023, representing a 24.8% increase[150]. - Diluted earnings per share increased to $2.35 for the six months ended June 30, 2024, up 36.6% from $1.72 in the prior year[105]. Premiums and Policies - For the three months ended June 30, 2024, Florida represented 79.7% of the company's direct premiums written, totaling $578.3 million, an increase of 5.7% from $547.1 million in the previous period[25][41]. - Direct premiums written increased by $67.2 million, or 7.0%, for the six months ended June 30, 2024, driven by premium growth in Florida and other states[95]. - The number of policies-in-force increased by 23,748, or 2.9%, to 833,433 as of June 30, 2024, compared to the same date in 2023[78]. - For the six months ended June 30, 2024, direct premium earned increased by $54.0 million, or 5.9%, reflecting the earning of premiums written over the past 12 months[72]. Expenses and Costs - The company's loss and loss adjustment expenses rose by 8.9% to $243.6 million, reflecting ongoing challenges in the Florida market[41]. - General and administrative expenses increased to $87.1 million for the three months ended June 30, 2024, compared to $76.7 million during the same period in 2023[67]. - Total operating costs and expenses increased to $649.5 million, an 11.5% rise from $582.5 million in the prior year[105]. - The total costs for reinsurance as a percentage of direct earned premium increased to 33.0%, compared to approximately 31.8% in the previous contract period[79]. Investment Income - The company reported a net investment income of $14.7 million, a significant increase of 29.9% from $11.3 million in the previous period[41]. - Net investment income rose to $28.2 million for the six months ended June 30, 2024, an increase of 28.2% compared to the prior year[95]. - The total investment income for the six months ended June 30, 2024, was $29.375 million, up from $23.138 million in the same period of 2023[192]. Shareholder Returns - The company declared dividends of $0.16 per common share and $0.25 per preferred share, totaling $4,771 thousand for the quarter ended June 30, 2024[113]. - The company has maintained a consistent dividend policy, reflecting its commitment to returning value to shareholders[113]. Market and Operational Focus - The company operates in 18 states as of June 30, 2024, with a primary focus on residential homeowners' insurance, particularly in Florida[159]. - The company continues to focus on enhancing its operational efficiency and expanding its market presence through strategic investments and product development[113]. Legal and Compliance - The company has established significant in-house legal services to address the high volume of litigated claims as cost-effectively as possible[46]. - The Company issued $100 million of 5.625% Senior Unsecured Notes due 2026, and as of June 30, 2024, it was in compliance with all financial covenants[211]. - The Company entered into a $50 million revolving credit line with JP Morgan Chase Bank, with no amounts borrowed as of June 30, 2024[213]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to $2,678,535,000, an increase from $2,316,561,000 as of December 31, 2023, reflecting a 15.7% rise[148]. - Total liabilities increased to $2,285,298,000 as of June 30, 2024, compared to $1,975,264,000 at the end of 2023, marking a 15.7% increase[148]. - The company’s total stockholders' equity increased to $393,237,000 as of June 30, 2024, from $341,297,000 at the end of 2023, reflecting a 15.2% growth[148].

Financial Data and Key Metrics Changes - The company reported a 30.5% annualized adjusted return on common equity and a 35.6% growth in adjusted diluted earnings per share year-over-year [6] - Adjusted diluted earnings per common share increased to $1.18 from $0.87 in the prior year quarter, driven by higher underwriting and net investment income [8] - Core revenue reached $379.2 million, up 12.5% year-over-year, primarily due to higher net premiums earned and net investment income [8] Business Line Data and Key Metrics Changes - Direct premiums written were $578.3 million, reflecting a 5.7% increase from the prior year quarter, with 0.9% growth in Florida and 30.1% growth in other states [9] - Direct premiums earned increased to $490.6 million, up 5.9% from the prior year quarter [9] - Net premiums earned rose to $345 million, a 13.7% increase year-over-year, attributed to higher direct premiums earned and a lower ceded premium ratio [10] Market Data and Key Metrics Changes - The net combined ratio improved to 95.9%, down 3.2 points compared to the prior year quarter, indicating better underwriting performance [10] - The net loss ratio decreased to 70.6%, down 3.2 points year-over-year, primarily due to higher net premiums earned and lower reinsurance costs [11] Company Strategy and Development Direction - The company completed its 2024-2025 reinsurance renewal with positive outcomes and support from both long-standing and new reinsurance partners [7] - Management expressed optimism regarding the impacts of tort reform in Florida, indicating a positive outlook for future share repurchases and overall market position [16][23] Management's Comments on Operating Environment and Future Outlook - Management noted encouraging claims and litigation trends, leading to a positive outlook for the company's performance [6] - The company is currently analyzing rates with actuaries to assess the impact of tort reform on future pricing strategies [22][23] Other Important Information - The company repurchased approximately 274,000 shares at a cost of $5.3 million, with $14.7 million remaining in the share repurchase authorization program [12] - A quarterly cash dividend of $0.16 per share was declared, payable on August 9, 2024 [12] Q&A Session Summary Question: Impact of tort reform in Florida - Management continues to see positive impacts from the December 2022 legislation, leading to an optimistic outlook for the company's position and share repurchases [16] Question: Movement in reserves development - There was zero net development in reserves during the quarter [17] Question: Catastrophe losses and weather conditions - Weather-related losses were well contained within the company's loss expectations for the quarter [20] Question: Industry competition and rate pressures - Management is not experiencing pressure regarding rates and is optimistic about the market's future, focusing on rate adequacy and strong agency relationships [22][23]

Universal Insurance Holdings (UVE) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.15 per share. This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 2.61%. A quarter ago, it was expected that this property and casualty insurance company would post earnings of $1.04 per share when it actually produced earnings of $1.07, delivering a surprise of 2.88 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________________________________ FORM 10-Q ________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number ...

Universal Insurance Holdings, Inc. (NYSE:UVE) Q1 2024 Earnings Conference Call April 26, 2024 10:00 AM ET Company Participants Arash Soleimani - Chief Strategy Officer Steve Donaghy - Chief Executive Officer Frank Wilcox - Chief Financial Officer Conference Call Participants Paul Newsome - Piper Sandler Nic Iacoviello - Dowling Operator Good morning, ladies and gentlemen, and welcome to Universal First Quarter 2024 Earnings Conference Call. As a reminder, this conference call is being recorded. I would now ...

Exhibit 99.1 Universal Reports First Quarter 2024 Results Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables. Fort Lauderdale, Fla., April 25, 2024 – Universal Insurance Holdings (NYSE: UVE) ("Universal" or the "Company") reported first quarter 2024 results. "It was a strong quarter, including a 29.4% annualized adjusted return on common equity and 35.4% adjusted diluted EPS growth year-over-year," said Stephen J. Donaghy, Chief Executive Officer. "Results were solid ...