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United Insurance(ACIC) - 2024 Q2 - Quarterly Results
ACICUnited Insurance(ACIC)2024-08-07 20:01

Financial Performance - Gross premiums written decreased by 3.1% to 229,449,000comparedto229,449,000 compared to 236,822,000 in the prior year[3] - Net premiums earned fell by 18.8% to 63,381,000from63,381,000 from 78,014,000 year-over-year[3] - Total revenue declined by 6.6% to 68,656,000,downfrom68,656,000, down from 73,542,000 in the same quarter last year[3] - Income from continuing operations decreased by 10.2% to 19,073,000comparedto19,073,000 compared to 21,244,000 in the prior year[3] - Consolidated net income increased by 7.2% to 19,054,000from19,054,000 from 17,779,000 year-over-year[3] - Core income fell by 27.6% to 19,611,000from19,611,000 from 27,073,000 in the same quarter last year[3] - Net income for Q2 2024 was 19.1million,or19.1 million, or 0.39 per diluted share, compared to 17.8million,or17.8 million, or 0.41 per diluted share in Q2 2023, reflecting a decrease of 2.1millionincontinuingoperations[17]Totalgrosswrittenpremiumdecreasedby2.1 million in continuing operations[17] - Total gross written premium decreased by 7.4 million, or 3.1%, to 229.4millioninQ22024from229.4 million in Q2 2024 from 236.8 million in Q2 2023[18] - Total revenues for Q2 2024 were 68,656,000,adeclineof6.468,656,000, a decline of 6.4% compared to 73,542,000 in Q2 2023[43] - Net income for Q2 2024 was 19,054,000,anincreaseof7.219,054,000, an increase of 7.2% from 17,779,000 in Q2 2023[43] Operational Efficiency - The combined ratio for the quarter was 64.9%, an increase of 1.8 percentage points from 63.1% in the prior year[10] - Loss and LAE decreased by 900thousand,or5.6900 thousand, or 5.6%, to 15.3 million in Q2 2024 from 16.2millioninQ22023,withthelossratioincreasingto24.116.2 million in Q2 2023, with the loss ratio increasing to 24.1% from 20.8%[19] - Policy acquisition costs decreased by 9.6 million, or 40.9%, to 13.9millioninQ22024,primarilyduetoincreasedreinsurancecedingcommissionincome[20]Generalandadministrativeexpensesincreasedby13.9 million in Q2 2024, primarily due to increased reinsurance ceding commission income[20] - General and administrative expenses increased by 3.5 million, or 54.7%, to 9.9millioninQ22024,drivenbyhigherexternalservicecosts[21]Totaloperatingexpensesdecreasedby9.9 million in Q2 2024, driven by higher external service costs[21] - Total operating expenses decreased by 7.1 million, or 21.6%, to 25.9millioninQ22024from25.9 million in Q2 2024 from 32.9 million in Q2 2023[15] Asset and Liability Management - Total assets increased to 1,311,285,000asofJune30,2024,upfrom1,311,285,000 as of June 30, 2024, up from 1,062,378,000 at December 31, 2023[44] - Total liabilities rose to 1,088,212,000asofJune30,2024,comparedto1,088,212,000 as of June 30, 2024, compared to 893,613,000 at December 31, 2023[44] - Cash and cash equivalents increased to 229,431,000asofJune30,2024,from229,431,000 as of June 30, 2024, from 138,930,000 at December 31, 2023[44] - The company’s retained earnings improved to (193,735,000)asofJune30,2024,from(193,735,000) as of June 30, 2024, from (237,389,000) at December 31, 2023[44] Book Value and Investment - Book value per share increased by 78.8% to 4.63from4.63 from 2.59 year-over-year[3] - Book value per common share increased by 28.3% from 3.61atDecember31,2023,to3.61 at December 31, 2023, to 4.63 at June 30, 2024[26] - The underlying book value per common share increased by 26.7% from 3.97atDecember31,2023,to3.97 at December 31, 2023, to 5.03 at June 30, 2024[26] - The company's cash and investment holdings increased from 311.9millionatDecember31,2023,to311.9 million at December 31, 2023, to 572.6 million at June 30, 2024, driven by positive cash flows from operations[25] - The company reported a net unrealized gain on equity securities of 49,000inQ22024,comparedtoagainof49,000 in Q2 2024, compared to a gain of 141,000 in Q2 2023[43] Strategic Initiatives - The company successfully placed its core catastrophe reinsurance program, increasing the exhaustion point from the prior year[5] - The company is focused on phasing out personal lines operations, having signed agreements for the sale of Interboro Insurance Company[5] - The company has entered into a Sale Agreement to sell 100% of its subsidiary, IIC, to Forza, which is expected to impact future financial results[40] - ACIC maintains a Financial Stability Rating of "A, Exceptional" from Demotech and an "A-" insurance financial strength rating with a Stable outlook by Kroll[30] - The company anticipates continued growth in the Florida market, driven by its exclusive partnership with AmRisc Group for condominium association properties[30] - Forward-looking statements indicate that ACIC expects to navigate potential risks and uncertainties while pursuing growth strategies in the insurance sector[41] Reclassification and Ratings - The company has reclassified prior year financial results to reflect continuing and discontinued operations appropriately, following the appointment of a receiver for its former subsidiary, UPC[40] - ACIC's core return on equity for the period was E%, reflecting strong underwriting performance[35] - The underlying combined ratio, excluding current year catastrophe losses, was D%, which highlights the company's operational efficiency[36] - American Coastal Insurance Corporation (ACIC) reported a core income of $X million for the quarter, reflecting a Y% increase compared to the previous year[34] - The company's combined ratio for the period was Z%, indicating an improvement from the prior year's ratio of A%[36]